PGE requests large rate increase for Oregon data centers
Portland General Electric (PGE) has filed for regulatory approval to increase electricity rates by 29% for large data centers in Oregon, while lowering rates for residential and small business customers. These proposed changes are part of the Oregon POWER Act regulatory framework and are pending review by the Oregon Public Utility Commission (OPUC). The utility states the new structure aims to ensure customers driving increased electricity costs, such as data centers, bear the associated infrastructure investment expenses.
Portland General Electric (PGE) has formally requested regulatory approval for a significant increase in electricity rates for large data centers operating within Oregon. The utility, as announced Wednesday, is proposing a 29% rate hike for large-load data center customers, while simultaneously planning rate reductions for residential (1.3%), small business (3.7%), commercial (2.2%), and industrial (1.5%) customers. These changes, submitted under the Oregon POWER Act, are slated to take effect on June 10, pending review and endorsement by the Oregon Public Utility Commission (OPUC).
The filing by PGE follows an OPUC decision on May 7 that sanctioned PGE's implementation of the POWER Act, establishing it as the first utility in Oregon to create a distinct customer class for data centers. This framework is designed to allocate infrastructure costs based on growth-related demand. John McFarland, Chief Customer Officer at PGE, stated that the new structure intends to ensure that customers responsible for rising electricity demands also bear the costs associated with new infrastructure investments.
In addition to the rate changes, the OPUC previously authorized other measures to manage data center growth, including the introduction of exit fees, minimum charges, and special contracts aimed at supporting clean energy development. The proposed rate adjustments are currently under regulatory scrutiny by the OPUC.