Hillsboro pauses new municipal demand charge after business owners warn of job and cost impacts

The Hillsboro City Commission voted to pause implementation of a new municipal electricity demand charge for 60 days after sustained public comment from a local manufacturer and questions from commissioners about timing and notice.

The pause, approved after a motion and second, comes after business representatives warned that a charge tied to a $22 million electrical infrastructure upgrade would sharply increase operating costs for large local users and could put jobs and future expansion at risk. A commission motion asked staff to bring in utility experts and run usage scenarios to educate affected businesses and residents before the charge is imposed.

Everett, a local manufacturing owner who spoke at length at the meeting, said his company operates multiple Hillsboro facilities and employs about 50 people locally. He told the commission he had received a brief mailed notice about the new demand charge and that the timing prevented major operational planning. "If you had told me last November we were going to add a demand charge with a multiplier effect on our base power consumption, I would have moved a million dollars of infrastructure somewhere else," he said during public comment.

Utility staff explained the proposed demand charge is intended to address peak loads and the risk to community transformers, and said the charge is a common industry tool tied to a planned infrastructure project. "This funding model is not meant to be a money grab," a utility representative said; the official added the $22 million upgrade is aimed at reducing the risk of extended outages if peak demand continues to grow.

Commissioners and staff agreed the conversation revealed a communications gap. Commissioners asked the utility to provide clearer modeling of customer peaks, historical usage and mitigation strategies (such as soft-start motor equipment, demand-response programs or targeted relief for major industrial users) and to host technical briefings for affected accounts. The commission also asked staff to explore potential grant or external funding options for portions of the infrastructure work.

The commission's motion asks staff to: convene utility and engineering experts for public sessions, produce usage and peak-demand scenarios for major accounts, and return to the commission within the 60-day pause period with mitigation options and a recommended schedule for implementation. The pause shifts near-term implementation timelines; the commission discussed making any new charge effective only after the education period and subject to further public review.

The 60-day pause does not cancel the infrastructure project but gives commissioners time to seek funding alternatives and run targeted outreach. The commission also suggested offering individualized mitigation consultations to the largest municipal power customers and exploring whether state or federal grants could reduce the project's local cost burden.

What happens next: staff will coordinate technical briefings, ask the utility to run account-level scenarios and return to the commission before the pause expires with options and a recommended path forward.