New rules mean residents in Salem don’t have to worry about their gas and electric bills going up with the new year, but rate increases are coming in the spring for some Salem households. 

The FAIR Energy Act, signed into law in July, prohibits state-regulated electric utilities from raising rates during the winter heating season, which ends in April.

Residents will see modest increases this month in their garbage disposal rates and other municipal utilities like sewer and water which are administered by Marion County and the city of Salem. 

During the colder months, customers in Salem using Portland General Electric will see a slight decrease in power rates.

The new law directs the Oregon Public Utility Commission to take into consideration the economic impacts of an electric or natural gas company’s rate increases. The commission regulates investor-owned electric, natural gas, landline telecommunications companies and certain water utilities, commission spokeswoman Kandi Young told Salem Reporter in an email. She said the commission does not regulate utilities owned by municipalities or cooperatives like Salem Electric. 

Here’s a breakdown of what you can expect on your bills.

Electricity and natural gas 

New power rates going into effect in April won’t be finalized and approved by the commission until late March, Young said.

Meanwhile, some customers will see a small decrease in the rate they pay for electricity.

Portland General Electric residential customers will see a modest decrease of 1.4% on power rates with the new year, PGE spokesman Drew Hanson said. 

“The reasons for these changes are largely due to annual power cost adjustments, updates to an annual power plant filing and changes to customer assistance programs,” Hanson said.

Hanson said utility rate changes could occur in the early spring or summer, but the amount has yet to be determined because it requires a lengthy commission process for approval.

Salem Electric power rates will increase 5.4% in April. For a typical resident, that means paying about $6.55 more per month. 

“This change comes after a year of rising costs, including an increase in wholesale power rates that took effect last October, and higher prices for essential materials like transformers, poles, wire, and service trucks,” said Jacob Knudson, member services manager for Salem Electric.

The electric cooperative provides power for most of West Salem and Keizer. Knudson said it’s the first rate adjustment since October 2023.

NW Natural isn’t planning any further increase after a rate increase took effect Oct. 31.

According to the company’s website, natural gas rates went up for customers in Oregon by an average of $4 a month. 

Stefanie Week, the senior communications manager for NW Natural, said the company offers a bill discount program for eligible customers that can save between 15% to 85% on monthly gas bills. The program is available to households with an income of less than 60% of the state median income. More information on the discount program can be found here. 

Garbage, recycling 

Salem residents in Marion County won’t pay more for garbage collection in 2026.

On the Polk County side of the city, garbage pickup increased by $1.20 per month for most customers with monthly rates increasing from $31.85 to $33.05 for 35-gallon garbage carts. That’s a 3.8% increase and means annual bills will increase by $14.40. 

City councilors authorized the increase in November. 

Most residential customers in urban areas in Marion County will see a monthly increase of about 70 cents on their garbage bills, a 2.2% increase, Marion County Public Works Communication Coordinator Erin Burt, said in an email to Salem Reporter. 

That rate applies to people who live outside city limits in east Salem.

A standard 35-gallon garbage cart now costs $31.85 per month to haul, Burt said. That is up from the $31.15 customers paid last year. 

Garbage rates for rural customers have not changed, Burt said. 

Water and sewer 

Salem residents will spend about $5 more per month on city utility bills in 2026. Those fees include water, sewer and stormwater.

City councilors in November 2024 voted to increase rates by 4.5% per year in both 2025 and 2026. The 2026 rate increase took effect Jan. 1.

The increase means an average home would pay about $106.87 per month in city utilities, up from $102.24 last year.

That total doesn’t include the city’s monthly operations fee, which is tacked onto utility bills to pay for general city services. For residential customers, that fee is $16.28 per month after the city council authorized a 2.5% increase last year.

A list of utility rates and a calculator can be found on the city’s website.

Contact reporter Joe Siess: [email protected]. 

LOCAL NEWS DELIVERED TO YOU: Subscribe to Salem Reporter and get all the fact-based Salem news that matters to you. Fair, accurate, trusted – SUBSCRIBE

Joe Siess is a reporter for Salem Reporter. Joe joined Salem Reporter in 2024 and primarily covers city and county government but loves surprises. Joe previously reported for the Redmond Spokesman, the Bulletin in Bend, Klamath Falls Herald and News and the Malheur Enterprise. He was born in Independence, MO, where the Oregon Trail officially starts, and grew up in the Kansas City area.