Oregon utility regulators delay PGE’s data center rate increase for a month - Oregon Public Broadcasting
Oregon utility regulators have delayed Portland General Electric's proposed 29% rate increase for data centers by one month. The Oregon Public Utility Commission needs more time to review the 200-page filing to ensure accuracy and customer protection, especially as it implements the state's POWER Act which created a new rate class for large energy users. This delay also postpones planned rate decreases for residential and commercial customers.
The Oregon Public Utility Commission (PUC) has delayed Portland General Electric's (PGE) proposed 29% rate increase for data centers and other large load users for at least one month. The PUC, which regulates electric and gas utilities in Oregon, stated on Wednesday that additional time is required to thoroughly review PGE's nearly 200-page filing. PUC Chair Letha Tawney emphasized the need to prevent errors and protect customers, highlighting the commission's focus since 2023 on "protecting Oregonians from the rising costs of rapid data center growth."
PGE had intended for the rate changes to take effect this week, with the utility planning to increase data center rates by 29% while simultaneously reducing residential and commercial customer rates by 1.3%. The PUC is now expected to announce its final decision by July 7. This delay occurs as the commission begins to implement the state's POWER Act, a landmark law passed last year that established a new rate class for data centers, cryptocurrency operations, and other major industrial energy consumers, mandating them to cover their equitable share of electricity and grid usage.
Drew Hanson, a spokesperson for PGE, expressed the company's disappointment over the delay, noting that the proposal included price decreases for residential and small business customers. He asserted that PGE is unaware of any errors in its filing and is working with PUC staff to facilitate timely implementation. Conversely, Charlotte Shuff, outreach and communications director for the Oregon Citizens’ Utility Board, a nonprofit watchdog group, voiced support for the delay. Shuff stated that the group wants the PUC to "get this right the first time" and ensure the new rates are fair and hold data centers accountable, calling it a "complicated and unique docket." The Citizens’ Utility Board had previously argued that PGE's proposed rate changes would still overcharge residential customers.