PGE proposes major increase to data centers, lowering rates for households
Portland General Electric (PGE) is proposing a significant rate increase for data centers and other large industrial power users in Oregon, while slightly lowering rates for residential and commercial customers. This proposal is in response to the POWER Act, a state law requiring large electricity users to pay a greater share of utility costs. The rate changes are pending approval from the Oregon Public Utility Commission.
Portland General Electric (PGE), Oregon's largest electric utility, announced a proposal to significantly increase electricity rates for data centers, cryptocurrency operators, and other large industrial power users by 29%. Concurrently, residential customers would see a 1.3% rate decrease, and commercial customers a 2.2% reduction. This move comes as PGE begins to implement the POWER Act, a landmark state law approved by Oregon lawmakers last year, which mandates that large electricity users consuming over 20 megawatts pay a larger share of utility costs.
The POWER Act aims to address the rapid growth of the data center industry in Oregon, which has led to households and businesses subsidizing the costs of connecting these facilities to the electrical grid. The Oregon Citizens' Utility Board, a consumer advocacy group, highlighted that residential customers had previously been paying more than double the per-kilowatt-hour rate compared to data centers. PGE currently serves about 125 data centers in the state, with at least 16 facilities expected to be impacted by the new rate structure.
If approved by the Oregon Public Utility Commission, the proposed rate changes are scheduled to take effect on June 10.