Oregon Public Broadcasting

An average household in the Portland area will pay $5.38 more on their monthly bill next year.

That’s because Portland General Electric will be allowed to increase utility rates for residential customers by 6 percent, starting on Thursday.

The state regulator in charge of setting utility rates says it reduced PGE's rate increase request by more than 15 percent.

That’s about $26 million over the next year for business and residential customers.

The Oregon Public Utility Commission says the increase was approved because it will cost more to produce electricity next year.

Bob Valdez is a spokesman for the commission.

He says the commission knows a monthly bill increase is especially tough in a recession.

Bob Valdez: “We are cognizant of the fact of our tough economic times. And people seem to be getting hit with increases every time they turn around. That’s why we worked extremely hard to as small amount as possible.”

Also Monday, PGE named a new chief financial officer.

Maria Pope, currently the CFO at Mentor Graphics will take over the financial duties at the utility on Thursday.