2025 2 p.m.Eastern Oregon’s largest city raises “suppressed” utility rates and fees to pay for rising cost of public service La Laguna Sportsbar at lunch time in Hermiston
Jaime Ruelas grew up in Hermiston but his family is from Tecomán
The small city near Mexico’s Pacific coast is near a lagoon with a crocodile reserve that the family so closely associated with the area they started calling their father’s hometown “La Laguna.”
Ruelas and his family fulfilled a longtime dream and opened La Laguna Sportsbar on Hermiston’s Main Street
a grinning crocodile at the center of the business’s logo
“I’ve always had the name in the back of my head,” he said
La Laguna opened just months before the COVID-19 pandemic and barely survived the resulting shutdowns
While Ruelas feels good about the future of his family’s restaurant
he’s starting to feel the rising cost of living and doing business in Hermiston as another unforeseen pressure
Residents got their first major price hike in the spring when the Hermiston City Council approved a 37% trash rate increase for the city’s garbage company
the council instituted a business license fee for the first time in Hermiston’s history
they agreed to raise electrical rates by 20% over the next three years
It’s a significant development for a city that’s taken pride in its rapid growth and its business-friendly environment
Officials said they’re still trying to keep the town affordable while acknowledging that the costs of providing services in Eastern Oregon’s largest city were beginning to outstrip its revenue
Hermiston is far from alone in seeing utility costs skyrocket. Energy utilities across the state have hiked prices by double digits
While many rural utility ratepayers are paying less than their urban neighbors
Hermiston officials think that smaller utilities will follow in their footsteps in the months ahead
They say they understand the pain of rising utilities and new fees
but the era of suppressed costs is over as parts of the region grow
Hermiston assistant city manager Mark Morgan explains a utility project in Hermiston
Hermiston was a small farming town with less than 1,000 people
The war brought the Umatilla Army Depot in 1941
causing the town’s population to more than quadruple over the following decade
The advent of center-pivot irrigation helped turn western Umatilla County into one of the top-producing agricultural areas in Oregon and led to more growth
Hermiston surpassed 10,000 people in 1990 and reported nearly 20,000 in the 2020 census
All of these decades of growth allowed the city to keep its utility rates and fees artificially low
according to Hermiston assistant city manager Mark Morgan
Newer infrastructure meant the city didn’t need to regularly replace decades-old water and power lines
with Hermiston focusing mainly on operating costs
Morgan recalled a 2016 visit from Madras city officials
who asked him what Hermiston’s secret was in keeping its utility rates so low
That’s where we really started to recognize we need to really ratchet up some of these fees that we’re charging
someone’s gonna have to pay for those costs.”
Hermiston residents have benefited from notably low utility costs for years
Before a December rate hike by the city-run utility — Hermiston Electric Services — a home that used 1,400 kilowatt hours of energy spent $124 per month
The Hermiston City Council approved 15% rate hikes for water and sewer services in 2017
But the recent increase in electric bills caught residents’ attention
Hermiston city officials argue that electricity there will still be cheaper than many of the other utilities in the region, like Pacific Power, which recently raised its residential rates by nearly 10%
But Morgan said he understood those explanations offer little solace to ratepayers
‘I was paying this [amount] and now I’m paying this
What do I care what people are paying in Baker City
Hermiston city officials say not all the cost increases are under their control
The electricity rate hikes were partly inspired by increased costs from the city’s energy supplier
the federally-run Bonneville Power Administration
The garbage rate increase came years after the local trash company was bought by Waste Connections Inc.
a national corporation that wanted higher rates to pay for fleet and equipment updates
which significantly curtailed the amount of revenue local governments could collect from property taxes
also mean funding needs to come from elsewhere
Morgan said the city had seriously considered a business license fee as far back as 2012
but decided it was better to table it for a time when the city needed it more
we kind of viewed that as like you’re climbing Mount Everest,” he said
“You want to have some extra oxygen bottles in your backpack
You don’t want to just use a revenue source just because it’s there.”
Ruelas said he’s keeping an extra close eye on the alley behind the restaurant
“The thing is that we have our trash in the back
you’ll see people just come and throw stuff in there,” he said with a chuckle
Ruelas said he’s already felt the pain of that garbage rate increase and is bracing for a bigger electric bill and the business license fee
but there’s only so much he said he can do when he has TVs playing live sports all day and the bar frequently hosts live music and DJs
While he recently switched vendors to save money on rising food prices
he doesn’t have that option with public utilities
Customers at La Laguna may end up seeing some of those rising costs in their bills
but Ruelas understands that the city is raising its rates to cover its own costs
and he supports the idea of more law enforcement
He remains optimistic about the future of his family’s restaurant
Hermiston residents often travel 30 minutes north to the Tri-Cities region in Washington for dining and entertainment
but he sees La Laguna as an attempt to build a nightlife in Hermiston as it matures as a city
“You do hear a lot of people complaining that
“But those businesses won’t come here until they see that the money’s being spent here.”
Hermiston Energy Services general manager Nate Rivera addresses the Hermiston City Council from the podium at at Dec
2024 meeting at Hermiston City Hall in Hermiston
Doug Primmer spent one of his last votes as city councilor supporting the electricity rate hike
but he’s open to asking questions about how the city will grow in the future
which would help the city’s rates and fees stay aligned with its costs
But he said one potential obstacle is a national push toward tariffs
The Trump administration has promised to impose 25% tariffs on Canada and Mexico starting in February
Lumber tariffs during the last Trump administration raised construction costs
and as the city attempts to replace its aging infrastructure
“I think there’s some concern in the industry that
depending on what happens with those tariffs
we could be heading back up the other side,” he said
Roy Barrón was the sole vote against the electric utility rate hike
Barrón voted against it because he wanted the rate increases implemented on a tighter timeline
The council elected to spread them out over three years
and Hermiston Energy Services will eat significantly into its reserves because of that decision
he was sympathetic to how many new fees and rate hikes the council approved over the last year
A cook at La Laguna Sportsbar washes dishes in the kitchen on Jan
“I think this is just more a part of a bigger thing that’s happening here in the US
where our wages aren’t increasing in accordance with inflation
That’s something that’s not very unique to Hermiston.”
Amazon is in the midst of building a new data center in town and city officials are considering further expansion of the urban growth boundary
any drawbacks from growth are outweighed by its potential to improve Hermiston’s quality of life
“I think as long as we keep a pulse on the community (and) open these conversations to the community
“That’s how I feel about Hermiston and the growth that we’re experiencing
Tags: Hermiston, Eastern Oregon, Economy, Business
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ShareTopHermiston Raceway officials announced on Saturday that the Oregon facility is closing ahead of the 2025 season
with its signature events moving to Washington's Tri-City Raceway
"This past Saturday, I received a handwritten letter from our landowner informing me that the facility has been sold and we must vacate the premises by January 15th," reads a post on Hermiston Raceway's Facebook page
"To say I was caught off guard is an understatement. We had a verbal agreement to continue in 2025 and were getting a plan together to purchase the facility. We had 10 events planned and were looking forward to a promising 2025 season. But as things stand, it seems we have already held our final event."
While this development spells the end of plans for the 2025 season at Hermiston, the track's marquee events will still take place at Tri-City Raceway Red Mountain Event Center in West Richland, Washington.
There are also hopes to add a 1/4-mile track to the facility, hoping to draw Hermiston's local divisions to the venue.
"However, as we close this chapter, we are excited to add our signature events to my existing schedule at Tri-City Raceway," reads the post. "With an 11-event schedule planned, we anticipate continued growth and thrilling competition, making Tri-City Raceway the undisputed hub for motorsports. "Currently we are gaining investors & resources to bring a 1/4 mile oval track @ Tri-City Raceway bringing all our local divisions to the team."
Hermiston is moving forward with its plan to host its Night of Champions on January 17. That event is taking place at Wildhorse Resort and Casino.
Hermiston Raceway played host to numerous touring series in 2024, including the Northwest Super Late Model Series, Washington Midget Racing Association, Tri-State Challenge Pro Late Models and SpeedTour Regional Sprint Car Series. In recent years, the Northwest Super Late Model Series traditionally hosted its "Labor Day Spectacular" at the Oregon facility.
"We are saddened to hear of the news from Hermiston Raceway," said the Northwest Super Late Model Series in response. "The Waldens have poured their hearts and souls into the facility, and had grown both the car counts and fan attendance since their takeover, with multiple improvements at the 3/8-mile.
"The facility had become one of the cornerstones of the Northwest Super Late Model Series schedule since our return in 2019."
-Photo credit: Northwest Super Late Model Series
© 2025 RTA Media Holdings, LLC. All rights reserved.
2025 2 p.m.Local immigration attorney says he’s received an “onslaught” of calls since Trump took office A Hermiston water tower in Hermiston
When Hermiston’s Hispanic Advisory Committee was putting together its goals for 2025
“One of the things they heard – loudly – was that (residents) wanted more information on immigration,” said Lilly Alarcon-Strong
Hermiston city recorder and a staff representative on the committee
The committee is hosting an immigration resource fair in Hermiston on Sunday to help meet that loud demand for information
The fair will feature a talk from attorney Eamonn Roach
who has practiced immigration law from his office in Pasco
“It has been an onslaught since Trump returned to office,” Roach said
adding that his office first got an uptick after the November presidential election and subsequent inauguration
20 is when we started getting an insane amount of calls.”
Clients often call because they want to know how Trump’s policies may affect their ongoing immigration case or how the new administration may affect their ability to stay in the country
While Roach said he counsels clients based on their personal histories and backgrounds
he plans to remind attendees at the fair of their Fifth Amendment right against self-recrimination when dealing with U.S
“There is no requirement to answer questions,” he said
Although there are significant immigrant populations across Eastern Oregon and the inland Northwest
most of the focus for immigration enforcement remains on larger cities
The region’s immigration detention facilities are in Portland and Tacoma
Although organizations that serve immigrants do outreach to rural communities
they are largely based west of the Cascades
Being well-prepared for potential encounters with ICE can overcome that disparity, Roach added. He pointed out that ICE operations are nothing new. The agency deported an average of 310 people per day last year under the Biden administration
higher than any single year in the first Trump term
ICE now has a daily quota of well over 1,000 arrests per day
a number Roach thinks Trump will try to reach by increasing the amount of workplace raids
Roach thinks that plan is unlikely to succeed without help from the immigrants themselves
“(Trump) is doing everything he can to scare people
because he doesn’t have the resources or the ability to get everybody and to deport them all,” Roach said
“If he can have some people scared enough where they leave on their own
Local law enforcement officials in Umatilla and Morrow counties have already told the East Oregonian they plan to comply with state law that forbids them from working with immigration enforcement without a warrant
While fear is already starting to spread in other immigrant communities across the Northwest, Alarcon-Strong, the Hermiston city official, said residents should feel safe when coming to the event.
2024 9:55 p.m.Manager attributes price hike to rising supplier costs and aging infrastructure Hermiston City Hall in Hermiston
Hermiston residents are about to see a massive rate hike in their electric bill that will be spread over the next three years and will go into effect in March
the Hermiston City Council approved a 20% rate increase for Hermiston Energy Services
While several councilors referenced community complaints
they didn’t get any public pushback at the meeting
Presiding over his last meeting before his term ends, Mayor Dave Drotzmann recalled how the City Council dealt with “spitting mad” public testimony when it raised water and sewer rates by 15% in 2017
But when he asked if any members of the public wanted to comment on the electricity rate hikes
he was met only with silence from the audience
The rate increase will have a significant impact on Hermiston Energy customers
Started in 2001 after the city acquired Pacific Power’s facilities and infrastructure in Hermiston
the city electrical utility now covers about two-thirds of Hermiston
with most of the rest covered by the Umatilla Electric Cooperative
Hermiston Energy general manager Nate Rivera said the rate hike was needed for two different factors
The first is that Hermiston Energy’s supplier
is raising its power and transmission prices
The second is that Hermiston Energy’s electrical infrastructure is starting to show its age and needs to be replaced
with some copper lines operating despite being more than 50 years old
“Rate adjustments are the unfortunate part about the job,” he said
“The important thing to remember is the rate adjustments at a consumer-owned utility go to maintain a safe and reliable system.”
Energy prices are rising rapidly throughout the state
One report states that some customers are paying 50% more on their energy bill than in 2019
Portland General Electric and NW Natural have hiked their prices by more than 20% in recent years
Rivera said Hermiston Energy’s costs will be on the lower end of the scale compared to other nearby utilities
A Hermiston Energy customer who uses 1,400 kilowatts of energy per month pays $124 per month
That’s far below other Eastern Oregon providers like the Columbia Basin Electric Cooperative ($158) and Pacific Power ($217)
The rate hike will eventually push that bill to $150
putting Hermiston Energy more squarely in the middle of the pack but still well below the $260 national average
Other local utilities are likely to raise their rates once they incorporate the increase in power prices from BPA
Councilor Nancy Peterson said Hermiston Energy’s relative affordability offered little solace to customers
who don’t think about their power bills in those terms
no one cares what anyone else’s rate is,” they said
“They care about how much they’re having to pay.”
Councilor Roy Barrón argued that Hermiston Energy should start raising its rates by small
predictable amounts on a regular basis to avoid these large increases
But the majority opinion was led by Councilor Doug Primmer
who was sworn in to replace Drotzmann as mayor at the end of the meeting
“Power is going to come from somewhere,” he said
There’s nothing that’s going to keep it from going up
City staff recommended spreading out the rate increase over two years
but the City Council opted to extend the period to three years
a move that will require Hermiston Energy to draw a significant amount of money from its reserves
The council ultimately voted 7-1 to approve the three-year rate hike
Barrón was the only councilor to vote against it
Tags: Eastern Oregon, Electricity, Energy, Utilities
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