Portland area Gasoline prices down a dime from month ago
Nationally, gasoline prices on average hover just above $3.19 per gallon, but $4.67 in California
Locally, here in Milwaukie, cash regular gasoline starts the month of October at $3.249 per gallon at the Space Age gasoline station at 42nd and Harrison, and $3.069 at the Astro gas station in downtown Milwaukie, just off McLoughlin Boulevard.
The least expensive state for buying gasoline is Mississippi, with its average price for regular gasoline being $2.68 per gallon. Texas is not too expensive either at $2.78 per gallon. California is the most expensive state for gasoline at $4.67 with Washington just at $4.00.
The Oil minister of Saudi Arabia this week says that crude oil could drop from its current price level of $71 down to $50, if other members of OPEC don't live up to their promises of cutting their oil production levels. This is kind of a threat to other OPEC members, that if they don't live by the agreed upon oil production cuts agreed to this last December, that Saudi Arabia will bust its own restraint on its own oil production and glut the market with much more oil supply.
$50 crude oil could mean gasoline prices dropping by 40 to 50 cents here the U.S including the Portland area. Locally, in this case, gasoline prices could be down below $3 per gallon.
You know as gasoline gets down to the $3 range, (gasoline - electric) hybrid vehicles have a fuel/energy cost roughly the same as all-electric vehicles based on PGE residential charging rates. For Hybrids, it is $3 per gallon divided by 55 miles per gallon, working out to about 5.5 cents per mile for fuel. By comparison, for all-electrics, it is almost 20 cents per KWH for residential charging divided by 3.5 miles per KWH, working out to a range of 5.7 cents per mile for fuel/energy.
PGE's residential electricity rate is currently over 18 cents per KWH, but PGE is currently asking the Oregon Public Utility Commission to raise its residential electricity rate to 20 cents per KWH.
Oregon is rated the second most costly state, among the 50 states, for driving a vehicle. Here's KOIN's reporting on the high cost of driving in Oregon:
Oregon is one of the most expensive states to drive in, according to new report (koin.com)
source of price data: AAA
(posted by Elvis Clark on October 3, 2024)
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Northwest Natural gas utility agrees to lower rate increase
Come November Northwest Natural gas utility may be able to fully offset any increase in its rates
Northwest Natural has agreed to lower its proposed rate increase from 17% down to 7%. It agreed to this with a consortium of environmental and community groups. This agreement needs approval from the Oregon Public Utility Commission.
But each November, Northwest Natural adjusts its rates for its actual wholesale cost of natural gas supplies. And Northwest Natural's wholesale cost of natural gas has been falling so far this year through this month. And so, the proposed 7% rate increase has a pretty good chance of disappearing entirely - no increase in rates at all starting this next Winter - as the 7% increase might just get fully offset by the adjustment downward for Northwest's wholesale cost of natural gas.
Here's OPB's reporting on Northwest Natural's settlement with environmental and community groups:
NW Natural rate hike could be limited after settlement - OPB
(posted by Elvis Clark on August 17, 2024)
Northwest Natural (gas utility) wants 18.8% more
Northwest Natural is asking the Oregon PUC to approve its rate increase request, but could be less
I will try to dig into the reasons why Northwest Natural is asking for an increase in its rates. It sounds like Northwest Natural is wanting to replace some depreciated equipment and do seismic upgrades of its information control centers that run and monitor its local gas utility distribution system (Northwest Natural is Milwaukie's and much of Oregon's local gas utility).
I would think that Northwest Natural could string out this equipment update and seismic update work over several years, helping smooth out the necessary rate increase over several years instead of lumping it all into the start of next year. Northwest Natural for ten or more years hardly asked for a rate increase, and maybe it is because it is deferring replacement of depreciated equipment.
A portion of the Northwest Natural rate increase proposal is for expanding service, and this is why developers actually support the rate increase.
I would be surprised if the Oregon Public Utility Commission (OPUC) doesn't cutback the proposed rate increase, and also, that the wholesale cost of natural gas supplies for Northwest Natural decrease - such that the actual rate increase taking effect this coming January 2025 is less then 10% and maybe closer to 5%.
Here is how Northwest Natural words its reasons for wanting this rate increase:
NW Natural asserts these proposed rate increases are necessary to account for the construction of seismically resilient regional resources, addressing capacity constraints on the system, actions to comply with federal pipeline and safety requirements, a meter modernization program, modernization of information and technology service systems, and inflation. Additionally, NW Natural may have other rate changes on or after November 1, 2024, such as rates associated with the company’s Purchase Gas Adjustment, that could increase or decrease the overall rate impact for customers.
NW Natural’s general rate case filing is undergoing a nearly year-long review and will be fully investigated on behalf of natural gas customers by the PUC, the Oregon Citizens’ Utility Board, and others. These public comment events are part of that investigation, which will conclude in October when the Commissioners rule on the request. The Commissioners may approve or modify NW Natural’s request and will only approve rate increases if fully justified by the company. New rates, if approved, are expected to go into effect November 1, 2024.
(posted by Elvis Clark on April 18, 2024)
Signs that inflation is entrenched in the U.S Economy
The U.S postal service is raising the cost of a stamp by 5 cents - July 14, 2024
The U.S postal service is raising the cost of a stamp by 5 cents - July 14, 2024
The U.S postal service is raising the cost of a stamp by 5 cents - July 14, 2024
Over the last 20 years, the cost of a first-class stamp has increased at an annual rate of over 3% per year. But between July of last year (2023) and this coming July, the stamp price is set to increase by over 12%.
(posted by Elvis Clark on April 10, 2024, with brief update on 4/11/24 parenthetically in the panel to the right of here.)
Gold prices are on a tear higher, up over 20% since a year ago.
The U.S postal service is raising the cost of a stamp by 5 cents - July 14, 2024
The U.S postal service is raising the cost of a stamp by 5 cents - July 14, 2024
Gold prices have really surged the last two months, seemingly because the U.S Federal Reserve (central bank) is talking about cutting interest rates. (It surged even higher on Friday 4/11/24 because of war talk between Israel and Iran.)
Those buying gold and driving its price higher suspect that inflation will get worse if the Federal Reserve does act and lower interest rates, allowing people to more easily borrow and spend monies on goods and services. This week on Tuesday the U.S Bureau of Labor Statistics reported that the consumer price index increased this last month (March) over the previous month (February) by 0.4%. A monthly rate of 0.4% translates into an annual rate of inflation of about 5%.
Over the last 55 years, dating back to the year 1969, gold has actually increased at the high rate of 8% per year. Hence, gold is not too far off from equaling the returns stock investors have generally experienced over the last 55 years. There is a 20-year period (1980s and 1990s) in which gold prices were essentially unchanged. So, gold investors have to have a lot of patience to ride out some tough times.
Clackamas is the 5th least affordable county in U.s
The Median Home Price in Clackamas is said to be over $600k now.
What is interesting in the following news link is that Multnomah County doesn't make the list of 25 least house affordable counties in the nation: Homeownership now ‘unaffordable’ in these Northern California counties: study | KRON4
Lately, it seems upper income people have been fleeing the high tax, high crime county of Multnomah for Clackamas County. So, Clackamas got a housing demand surge maybe because of the escape from Portland and Multnomah. Lake Oswego probably also is part of the reason this data shows Clackamas as unaffordable.
(posted by Elvis Clark on January 19, 2024)
PGE Electric utility bills hiked sharply
PGE Electricity costs going up 17% this January 2024 - Oregon Public Utility Commission approves
City governments like Milwaukie push homeowners to not use natural gas, even as it costs much less
City governments like Milwaukie push homeowners to not use natural gas, even as it costs much less
It sounds like PGE is hiking its electricity rates because renewable energy is causing price volatility in the wholesale markets it buys electricity from. You see renewable energy sources like wind and solar are highly volatile, such that they can drop to zero output in a moment's notice.
As a result, duplicate turbines (a portion of which use natural gas) need to be run to have spinning load to fill in for the frequent drops in renewable energy output. This causes price volatility in the wholesale electricity markets that PGE depends on.
PGE is also passing along to its customers its costs of installing electric vehicle chargers, as Oregon state government pushes PGE to install chargers.
City governments like Milwaukie push homeowners to not use natural gas, even as it costs much less
City governments like Milwaukie push homeowners to not use natural gas, even as it costs much less
City governments like Milwaukie push homeowners to not use natural gas, even as it costs much less
While PGE hikes its electricity rates, Northwest Natural [natural gas] company lowers its costs by some 8%, for this next year.
(The note in the photo of the Natural gas rate decision above mentions "One Year Later." About a Year ago now Milwaukie City Council in its ban on new natural gas hookups said that Natural gas heating costs would escalate. But here we are one year later, and natural gas heating costs are actually headed down.)
Heating a home with Natural gas is much less expensive than heating it with electricity, in most cases. Natural gas furnace heating can be as little as one third the cost of an electric resistance furnace; and even an electric heat pump is nearly twice expensive as heating with a natural gas furnace.
See the two panels just below her for more discussion about Milwaukie's Off-the-Deep-End natural gas ban.
(posted by Elvis Clark on November 16, 2023)
To see how flawed Milwaukie's Government Climate Policies, Look at the City's gas ban resolution
To see how flawed Milwaukie's Government Climate Policies, Look at the City's gas ban resolution
To see how flawed Milwaukie's Government Climate Policies, Look at the City's gas ban resolution
Milwaukie's natural gas ban passed about a year ago now is already on the wrong track (although one could say it never was on the right track to begin with). In the text above from the Milwaukie Resolution to ban new natural gas hookups, one of the justifications for enacting a ban on natural gas is that natural gas home heating would become too costly in short order.
In other words, the Milwaukie City Council composed of people who have no work experience in the energy industry tells its community that electricity will somehow become more economical for home heating than natural gas. Already as we can read, the opposite is the case. It is electricity that spirals higher in cost.
Such naive Councilors should not be mucking up the ability of people to have essential energy choices. Restricting people to one form of energy, namely electricity, is the opposite of helping people be resilient to energy interruptions and costs.
To see how flawed Milwaukie's Government Climate Policies, Look at the City's gas ban resolution
To see how flawed Milwaukie's Government Climate Policies, Look at the City's gas ban resolution
U.S OIl Production is setting records this year of 2023
Above Chart data is from the U.S. Energy Information Administration, "Monthly Energy Review"
(posted by Elvis Clark on November 5, 2023)
Northwest Natural [Gas] lowers rate, PGE (Electric) Hikes
Last December(2022) Milwaukie Council Resolved to ban natural gas in part because of price increases
The above is, verbatim, Section 1 of the City of Milwaukie's resolutions to ban new natural gas energy services in City buildings and private residences. These resolutions were partly pushed by Milwaukie's previous Mayor (Gamba) based on the idea that natural gas is going to become more expensive than electricity - and that the city government should force people to convert from natural gas to electricity heating rather than letting people make that decision using their own free will.
[These Milwaukie natural gas ban resolutions were enacted in December of 2022 by a City Council vote of 3 to 2, after a few meetings discussing them dating back to September 2022.]
Well, One year later. The cost of natural gas for home heating looks to be going down while the cost of electricity heating is going up. Here are two links for these rate changes, this Winter and beyond, for Northwest Natural gas customers and PGE's electric customers, respectively:
Natural gas prices - NW Natural
Portland General Electric Announces Second Quarter 2023 Results (prnewswire.com)
But as is often in politics, those who force costly mandates get themselves elected to higher position before it becomes apparent that their policy decisions are both wrong and costly. In the case of Gamba, he has moved on now to be an Oregon House Representative.
Notice that the date that the ban on new natural gas service is supposed to start is only about 4 months from now. The ban is currently thought to be unenforceable because of a federal court ruling, and it is doubtful City staff have drafted the legal code to effect these natural gas ban resolutions. And it is highly unlikely that such code can be prepared by this coming March 2024.
But Gamba succeeded in publicizing his environmental virtue and riding it - helping him get elected to a higher elected office. For those who like free will, Gamba's departure from Milwaukie's City Council is good.
(posted by Elvis Clark on October 27, 2023)
U.s Consumer price inflation is out of control
Loss of U.S Oil production not helping in the battle against high inflation.
A boom in U.S Oil Production in 2015 had brought inflation down to zero, as it caused OPEC and Russia to lose their control of world oil and other energy prices. Now OPEC and Russia are back in control of world oil prices.
(posted by Elvis Clark on October 14, 2022)
This Chart shows it costs about 25% more to live in Oregon
This chart is based on surveys conducted by Cities across United States, compiled by Missouri Gov.
Another source, the Bureau of Economic Research, ranks Oregon a little lower than this Chart on the cost of living relative to other states - but still among the higher cost states.
In the next five charts just below here, the Cost of living is broken down into 5 components of living costs.
(posted by Elvis Clark on July 27, 2022)
Groceries cost about 9% More In oregon
(posted by Elvis Clark on July 27, 2022)
Housing costs about 55% More in Oregon
(posted by Elvis Clark on July 27, 2022)
Oregon is only slightly more expensive for Health care
(posted by Elvis Clark on July 27, 2022)
Oregon is also slightly more costly for Uitilities
(posted by Elvis Clark on July 27, 2022)
Oregon is transportation Costly But highest?
I would think California is more Costly for Transportation than Oregon, and so questionable
(posted by Elvis Clark on July 27, 2022)
Oregon loses electric competitivness
In the Year 2001, Oregon enacted a public purpose fee of 3% on private utility electricity bills
Additionally, Oregon began to push its major utilities, PGE and PacifiCorp, to radically reduce electricity generated from coal and natural gas fuels, favoring wind mills and roof top solar panels in place of these conventional sources of electricity generation.
Now, the Oregon Public Utility Commission at the behest of Oregon's Governor is wanting these utilities to build up the capacity to charge most of Oregon's fleet of automobiles and trucks with electricity (replacing gasoline in transportation). Oregon's politicians lack the sense of the substantive costs of building the extra electric distribution line capacity necessary to electrify Oregon's 4 million stock of automobiles, risking pushing Oregon's electric bills much higher.
(posted by Elvis Clark on May 25, 2021)
Equivalent income to that of $70,000 in portland, or Area
If you make a middle class income of say $70,000 in the Portland, Oregon, metro area....what sort of income would you need if living in other selected cities (charted above) to maintain your Portland, Oregon, lifestyle?
Well you could make as little as $49,000 in Boise, Idaho, and still be as well off as you are in Portland, Oregon; or a little more than $50,000 if living in Myrtle Beach, S.Carolina.
On the other hand, if you move to Seattle, you would have to increase your income by $5,000 to $75,000 per year in order to afford the same life style as you currently have in Portland, Oregon. Or, increase your income to over $95,000 per year to squeeze by in San Francisco, California.
This data is compiled from Bank Rate. Com which gets their inflation data from the Council of Community and Economic Research.
p.s. by taking one or two snap shots per year, it is possible to back into the annual consumer inflation rate for the Portland, Oregon, metro area...the Portland area Consumer Price Index (CPI, local inflation index) is formally discontinued by the U.S Bureau of Labor Statistics in the year 2017. But with Bank Rate and other surveys of cost of living by metro areas relative to Portland (Or) and with CPIs still prepared by the U.S Bureau of Labor Statistics for other Cities; it is very possible to approximate Portland's absolute rate of inflation for a given period.
(posted by Elvis Clark 5/25/19)
key Inflation graph: Apartment Rents in Portland very high
Monitoring local Inflation
The graph above here on Comparative rental costs in the Portland Oregon area versus other selected cities is compiled from Bank Rate. com survey of the cost of living in various cities across the U.S. Bank Rate receives this living cost data from the The Council for Community and Economic Research. This Council is in existence for decades and uses an army of private persons doing independent surveys of costs in Cities across the U.S.
The cities I choose in the chart above for comparison are either regional, western U.S. or other 'attractive livable cities' to me.
Shelter costs, which apartment rental here is a proxy, account for a relatively large share of the cost of living - probably approaching a third of the total cost of living for middle income folks.
I will be posting some more cost of living comparisons between the Portland area and other U.S cities over the next few days. For example, the cost of a hair cut or a visit to a beauty salon.
I will use these Bank Rate cost of living data to begin our own index of inflation for the Portland Oregon Metro area. Every six months from now will compile the cost data from Bank Rate, as the Bank Rate data is updated.
(posted by Elvis Clark on 5/16/19)