Oregon households face the steepest projected energy cost increases in the nation, according to an analysis released Friday, Oct. 2, by Energy Innovation, a clean-energy think tank.

The study projects federal policy rollbacks under President Donald Trump will add $840 per year to the average Oregon household's energy bill by 2035 and $1,200 by 2040. The cumulative hit from 2026 through 2040: $9,300 per household, the highest of any state.

In Hillsboro, rising utility costs have already reached City Hall. At a July 7 work session on utility fees, Council President Rob Harris raised concerns about "stacking 4–5% increases across multiple utilities when wage and Social Security increases are generally lower," according to council minutes. The city's Utility Assistance Program helped 1,190 customers in fiscal year 2025–26, distributing about $190,679.

Oregon households are absorbing those increases now. Portland General Electric residential rates rose 61% from 2019 to 2025. Nearly 58,000 Oregon residents had their power disconnected in 2024, the highest number on record, The Oregonian reported. NW Natural customers are paying 50% more for gas than in 2020.

Nationally, households will pay an average of $6,500 more over the same period, The Associated Press reported. Four other states face roughly $9,000 in cumulative increases: Mississippi, South Dakota, Virginia and Wyoming.

Bob Jenks, executive director of the Oregon Citizens' Utility Board, called the projections "frightening." He said he expects utilities to disconnect more customers who cannot afford their bills as costs rise.

"We're trying to optimize among the resource options we have, and they're trying to take things away and raise the costs," Jenks said.

Energy Innovation attributed the projected increases to several federal actions: the One Big Beautiful Bill Act (OBBBA), which slashed clean energy tax credits; Environmental Protection Agency rollbacks of clean air and power plant rules; loosened fuel economy standards; and federal moves to halt wind, solar and hydrogen projects. The analysis projects gasoline prices in Oregon will rise 13% by 2035 and 23% by 2040 as a result.

The study also projects Oregon will lose 7,500 jobs per year on average over the next decade, with gross domestic product losses reaching $2.2 billion annually by 2032. Worsening air pollution would add a cumulative $280 million in healthcare costs statewide, with annual increases of $26 million in 2035 and $32 million in 2040.

White House spokeswoman Taylor Rogers disputed the findings, saying lowering electricity prices remains a top priority. She called it "irresponsible" to classify Energy Innovation as nonpartisan, citing employee donations to Democrats. Energy Innovation spokesman Silvio Marcacci said the organization works with policymakers of both parties and that multiple Republican-led states have used its modeling tool.

The analysis did not model specific tariff impacts, though tariff-related inflation through 2026 is reflected in its baseline data. Energy Innovation described the projections as conservative for that reason.

The Bonneville Power Administration announced in September it is seeking a rate increase to cover a $250 million revenue shortfall. BPA sells wholesale power to more than 300 customers, including PGE. A final decision on that rate case is expected Dec. 18.