Portland General Electric’s data center customers to pay more for electricity under landmark law - Oregon Public Broadcasting

The Oregon Public Utility Commission (PUC) has issued a landmark order, under the state's recently passed POWER Act, requiring data centers and other large industrial electricity users served by Portland General Electric (PGE) to pay higher rates. This move, which comes into effect soon for 16 identified data centers, aims to shift the financial burden of increased grid costs, previously borne by residential and small business customers, directly onto the large energy consumers driving demand. Prior to this, data center customers paid significantly less per kilowatt-hour than residential users. Ben Morris, a PGE spokesperson, confirmed that data centers will now bear more of the costs associated with growth, providing relief to other ratepayers. Oregon PUC Chair Letha Tawney emphasized that Oregonians should not subsidize explosive data center growth, ensuring these large users contribute their fair share and support grid reliability. The order also includes new renewable energy requirements for data centers and "exit fees" for incomplete projects, alongside a surcharge for very large customers to fund low-income energy efficiency. While environmental and utility watchdog groups, including the Oregon Citizens' Utility Board (CUB), applaud the decision as adding crucial guardrails, the Data Center Coalition, representing 42 data center owners and operators, criticized the changes as overly stringent. Aaron Tinjum, Vice President of Energy for the coalition, expressed concerns that the new approach could create barriers for data center investment in Oregon, potentially undermining economic benefits like jobs and tax revenue. However, Cole Souder, staff attorney at the Green Energy Institute at Lewis and Clark Law School, countered that the POWER Act and the PUC's order will hold data centers accountable, ensuring they fulfill commitments to cover their imposed costs and operate as "good neighbors" committed to renewable energy and reduced pollution.