Oregon
Legislation could impact energy costs, utility operations in Oregon
What to know about the Oregon Legislative Assembly
The Oregon Legislature meets annually either in a short of long legislative session. Here’s what to know.
Bills that would make renewable energy technology a cost-neutral option for homeowners, make the electric grid more resilient by turning homes and electric cars into a virtual network of power plants and allow electric companies to self-insure are among those the state Oregon Legislature is considering in the 2026 session.
The slate of bills is nowhere near as transformative as the multiple laws passed in the 2025 legislative session, but this year’s proposed laws have the potential to make an enormous impact.
Investor-owned utilities in Oregon such as Portland General Electric, Pacific Corp and Northwest Natural receive exclusive territories in the state. In exchange, they’re regulated by the Oregon Public Utilities Commission.
These are the bills and how they would impact customers:
Senate Bill 1588 would require power companies to help consumers finance energy-efficient devices
Senate Bill 1588 would require electric companies to allow customers to buy things like electric heat pumps, energy storage systems and solar panels and pay for those items through a monthly charge on their bill. Those purchases would not increase the customer’s total bill.
That way, customers could purchase and use energy-efficient devices in their homes and not bear any additional costs. The mechanism would be similar to the way mobile carriers allow customers to purchase a new phone and pay the device off in installments.
“There’s still a cost gap that remains for too many Oregonians,” Claire Prihoda, policy manager of Climate Solutions, said during a public utilities commission meeting on Feb. 9.
Serena Campas, senior associate for policy at Rewiring America said utilities in other states have been operating similar programs for more than 15 years.
Most homeowners currently take out loans from separate companies to buy a solar power system or battery from a third party. They pay the loan at approximately the same rate they did when they were paying their full electric bill.
PGE opposes the bill and its lobbyist, Chloe Becker, said the utility is concerned about its obligations to set up the financing part of the program because it is not a lender.
Becker said that a $7,500 ductless heat pump could take 30 years for a homeowner to pay off.
“When we run the numbers using those parameters it raises questions for us about this model working in Oregon,” Becker said during a public utilities commission meeting Feb. 9.
Sen. Jeff Golden, D-Ashland, the chief sponsor of the bill, disputed the cost estimates and said it only mandates the power companies to submit proposals.
“Some of what was said is not in fact mandated at all,” Golden said.
Golden said loans for the energy efficient products would stay with the home when it is sold. That means the payment would follow the home and the next owner would still benefit from the energy savings.
“This is not consumer lending. I have heard some confusion about that. It is a utility rate tariff defining the service on terms that are just reasonable and fair determined by the public utility commission,” said Matt Flaherty, director of building decarbonization at Clean Energy Work.
The bill is next scheduled for a work session in the Senate Committee on Energy and Environment at 3 p.m. on Feb. 11.
Senate Bill 1582 would require utilities to develop virtual powerplants
Senate Bill 1582 would require investor-owned power companies to develop distributed power plant programs, also called virtual powerplants, through third-party companies.
Distributed power plants are networks of homes with solar power, batteries and electric cars that can put power back into the grid in times of high need, such as when temperatures are extremely high or low.
The owners of the homes are paid for participating in the programs.
Franco Albi, director of regional integration for Portland General Electric, said the company started developing such a so-called virtual power plant in 1999.
He said PGE has 230,000 customers and that the program produces as much power as the utility’s coal-burning plant in Boardman.
Albi said PGE already works with third-party aggregators in the programs and that the company opposes the bill because it’s essentially doing the same thing already without a law.
“We believe that the PUC is the right place to define the resource requirements,” Albi said. “That happens today and it’s through rulemaking, not statute and especially not statute rushed through a short session.”
Others argued that the pace investor–owned companies are establishing virtual power plants isn’t fast enough to meet projected need in Oregon.
“We need these higher adoption rates for economies of scale,” Sen. Courtney Neron Misslin, D-Wilsonville, a sponsor of the bill. “The third-party aggregators are the ones that allow this to build to an economy of scale.”
The Public Utility Commission in a letter warned that the bill could increase costs for customers because utility companies may need to increase their scale so third-party aggregators can participate.
Power companies, including PGE, have invested in building large-scale battery energy storage systems, which do the same thing. They are large scale and the company owns or leases those.
Marion County banned such systems in 2025.
The bill is scheduled for a work session in the Senate Committee on Energy and Environment at 3 p.m. on Feb. 11.
House Bill 4077 would allow public utilities to self-insure
House Bill 4077 would allow public utility companies to issue bonds in order to start a program to insure themselves.
It would require utilities to get approval by the public utility commission to do so.
Self-insurance is essentially a savings account for claims. A captive insurance program is a formal program that essentially does the same.
“This type of insurance can have several benefits,” said Jennifer Hill-Hart, the policy director for the Oregon Citizens Utility Board, a non-profit that advocates for energy affordability.
PacificCorp faces an estimated $8 billion in claims related to the 2020 wildfires in Oregon and California, according to estimates from parent company Berkshire Hathaway.
PGE voiced support for the bill.
“At PGE, we’ve seen our annual insurance premiums increase 180% in the last five years,” said Jay Tinker, a senior manager for the utility. “We are not alone in experiencing these increases and utilities as a sector are at risk of being unable to secure insurance coverage.”
The bill is scheduled for a committee work session at 8 a.m. on Feb. 12.
House Bill 4025 would allow rate increases in the winter
House Bill 4025 allows rate increases for public utilities other than electrical and natural gas companies to increase rates between Nov. 1 and March 31.
A law passed in the 2025 legislative session, House Bill 3179, prevented those companies from increasing rates during the winter months.
“After the bill passed, it was flagged that the way the law was written, it would apply to water utilities as well,” said State Rep. Nathan Sosa, D-Hillsboro, the bill’s sponsor.
The bill passed by a 51-7 vote on Feb. 10 by the House of Representatives and next advances to the Senate.
Bill Poehler covers Marion and Polk County for the Statesman Journal. Contact him at bpoehler@StatesmanJournal.com
ESTACADA Ore. (KPTV) – According to Governor Tina Kotek, 100% of Oregon school districts have adopted a cell phone ban. On Wednesday, Kotek visited Estacada High School (EHS) to see her policy in action.
“Research tells us that constant cell phone use distracts from learning and can create mental health issues,” Kotek said. “For our students to thrive, we have to make every hour of class time as high-value as possible. Getting rid of distractions like cell phones is one way we can prioritize student success and transform our education system to get better results.”
Last summer, Kotek issued Executive Order 2509, which bans Oregon public school students from using their cell phones at school. The policy officially went into effect on Jan. 1.
According to Superintendent Ryan Carpenter, the Estacada School District has approximately 2,100 students, with 51% under the poverty line and 18% qualify for special education services. Carpenter said the majority of school districts in Oregon have these same statistics, making EHS a great spot for Kotek to see her policy in action.
Kotek visited two classrooms at EHS and received feedback from students about the cell phone ban. While some students said the ban has made it harder to research certain assignments in class or to coordinate after-school plans, overall, students said they’ve noticed positive impacts.
“At first, I wasn’t the biggest fan, but as the semester has gone on, I’ve found a lot more positivity in it,” said Sophia Morales-Meraz, a sophomore at EHS. “I find myself reaching less for my phone, having stronger connections and talking more to my classmates, and spending more time just really enjoying the moment.”
“I’m definitely more engaged in lessons with my teachers because I’m able to focus on what they’re saying…” said Cooper Skroch, a junior at EHS. “My attention span has gotten a lot better now that I don’t have to use my phone during the day.”
EHS teachers said they have noticed improvements, too. In addition to seeing more engagement from their students, language arts teacher Jeff Mellema said the policy has brought joy back to his career.
“I got into this profession because I like the one-on-one with kids, I like interacting with students,” Mellema said. “I like helping them along the process of their learning and this policy’s made that part easier.”
Without cell phones in schools, Carpenter said parents raised concerns about contacting their child in case of an emergency. But Kotek said school staff are prepared to bridge that communication gap and connect students with their parents, if needed.
Carpenter said the cell phone ban has not only resulted in higher attendance and graduation rates, but it’s also established a stronger sense of community at EHS.
“A lot of great things are happening,” Carpenter said. “We’re experiencing barriers in every child’s life and to remove cell phones is just one barrier to help us continue to get kids to be successful.”
After receiving feedback from students, Kotek told FOX 12 that she does not plan to make any changes to the policy moving forward.
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PORTLAND, Ore. (KATU) — Opponents of Oregon’s proposed gas tax hike are not giving up in their efforts to force the courts to intervene before voters’ pamphlets are sent out for the May primary.
Former state lawmaker and attorney Julie Parrish, along with Thomas Rask, filed a federal lawsuit Tuesday in U.S. District Court in Portland.
The suit was filed on behalf of the Right to Vote on the Gas Tax political action committee and several individuals and names Secretary of State Tobias Read as the defendant.
The suit requests an emergency hearing to consider a temporary restraining order.
The plaintiffs allege that shortening the timeline Oregonians had to submit arguments for or against the measure violated the rights of disabled voters.
Under Oregon law, residents must either collect 500 signatures or pay a $1,200 fee to submit an argument.
They also point out that Secretary of State Read warned lawmakers in a letter earlier this year that they were jeopardizing timelines by blowing past deadlines to pass the legislation.
A Marion County judge already ruled against the plaintiffs earlier this year, although a federal judge did issue a temporary restraining order.
PAST COVERAGE | Rulings on Oregon’s Gas Tax Referendum
Oregon lawmakers passed SB 1599 along party lines, moving the referendum from the November general election ballot to the May primary.
Democratic lawmakers contend that moving the referendum to an earlier date gives the state more time to consider budget cuts.
The gas tax hikes are widely expected to be rejected by voters regardless of when they are held.
No court date has been set for the latest lawsuit. KATU will continue to track developments.
A crash involving an overturned truck has shut down Oregon Highway 230 about 9 miles east of Diamond Lake Junction.
OR 230 is closed at milepost 9 because the overturned truck is blocking the highway.
Drivers should expect delays and use an alternate route.
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