Electrification: What's the impact on housing affordability?

This summer, Partners for Affordable Housing invited three experts to present to our coalition on the impacts that electrification could have to housing affordability in Bend. Their 30-minute informational sessions helped us to understand the benefits and concerns remaining as we consider electrification. Learn more and check out the video links below!

What is electrification?

Electrification is the effort to move away from using fossil fuel–based energy sources (like liquified natural gas [LNG], propane, or oil) to using electricity for powering homes. This includes replacing gas furnaces, water heaters, and stoves with efficient electric alternatives such as heat pumps, induction cooktops, and electric water heaters. The goal is to reduce greenhouse gas emissions, improve indoor air quality, and prepare homes to run on increasingly clean electricity from renewable energy sources. Electrification has emerged as a popular strategy for creating healthier, more environmentally sustainable housing with lower monthly energy bills. 

However, significant questions remain as to whether the regional electric grid is ready for this proposed shift, and how much electrification will increase housing construction costs. Concerns remain around infrastructure build-out, impacts to home purchase prices and monthly rents, development impacts, and potential legal challenges--all of which support a more cautious, phased approach. There is also concern that electrification policies will have a chilling effect on housing production as costs related to the expense of electric heating units make it more difficult for projects to pencil out.

What is happening with electrification in Central Oregon?

The City of Bend is already actively exploring ways to reduce reliance on natural gas in buildings, aiming to meet its greenhouse gas reduction targets of 40% by 2030 and 70% by 2050. The first phase of this work, in 2024, involved evaluating policy options like incentives, fees, building restrictions, and outreach efforts, and took into consideration stakeholder interviews and recommendations from the Environment & Climate Committee, the Affordable Housing Advisory Committee, and the Bend Economic Development Advisory Committee.

The second phase of work, in 2025, focuses on deeper study, and broad public and stakeholder engagement to advance one to three prioritized policy options. In April, the Bend City Council supported moving forward with incentives to encourage electrification—including a possible impact fee on natural gas systems; generated revenue would support electrification programs. Discussions also include expanding EV charging infrastructure and electrifying municipal assets.

The City of Bend is expanding their educational outreach about the benefits of shifting to electricity as a primary power source, and are planning to roll out a new Energy Navigator Program next year. They are also exploring policy changes and fees to disincentivize the use of natural gas. 

This fall, we will learn more about whether our electric grid is able to support the electrification policies contemplated by the City of Bend. Pacific Power will present their findings on impacts to the grid. An underprepared grid could present real public safety issues, especially in a climate of temperatures extremes. As users increase their electricity use to keep homes comfortable, the grid may not be able to support the user load, leaving community members in the dark and cold. When the power goes out, homes heated or cooled by electricity will get uncomfortable and unsafe very quickly.

Access our electrification education series

Below are direct links to - and brief synopses of - the half-hour presentations and Q and A we hosted this summer. You can also visit the Partners for Affordable Housing YouTube channel to view these and other coalition videos.

View the Presentations

Presentation by Carly Colgan, Executive Director of Bend-Redmond Habitat, on July 17

Bend-Redmond Habitat for Humanity is leading the way in accessing subsidies and donations to provide affordable, all-electric housing that lowers costs, improves health, and builds long-term stability for families. By combining energy-efficient design with solar power, their homes cut utility bills by as much as 90%—one homeowner saw her bill drop from $208 to just $14.50. These savings free up income for education, healthcare, and wealth-building, while reducing greenhouse gas emissions by up to 70%. Even without consistent state incentives, Habitat leverages donor funds to maintain a commitment to net-zero construction, so that families benefit from a move to electrification.

Presentation by Cassie Lacy, Senior Management Analyst in the City Manager's Office, City of Bend on August 7

The City of Bend is developing policies to reduce reliance on natural gas as part of its Community Climate Action Plan, which aims to cut greenhouse gas emissions 40% by 2030 and 70% by 2050. Since buildings are the City’s largest source of emissions, electrification is a top priority for the organization. After studying options and gathering input from stakeholders, Bend’s Environment and Climate Committee recommended limiting natural gas in new construction and incentivizing electric alternatives. In April, the Bend City Council directed staff to move forward with a fee on natural gas appliances in new homes, with the revenue funding incentive programs to help residents and builders shift toward cleaner, all-electric buildings. This process will unfold through 2025 with consultant support, stakeholder engagement, and council oversight.

Presentation by Alisa Dunlap, Regional Business Manager for Deschutes, Jefferson and Crook Counties, Pacific Power on August 21

With Central Oregon as the utility’s fastest-growing service area, electricity demand has already risen 40% since 2021—driven by population growth, air conditioning, electric vehicles, and new technologies. Bend’s City Council is exploring policies that would require new housing to be built all-electric, and Pacific Power is working to model what that would mean for the grid. While the company has enough generation, local infrastructure—like substations and distribution lines—will need upgrades to handle the added load. A phased approach, rather than an immediate shift to 100% electrification, would be more manageable and affordable for both the utility and customers. Pacific Power wishes to support Bend’s climate goals but also ensure reliability, wildfire risk reduction, and equitable access as the region transitions toward cleaner energy.