Oregon makes data centers pay more for power - What it means for your electric bill

Oregon regulators have approved new rules designed to make large data centers pay more directly for their significant electricity consumption and associated infrastructure upgrades, a move intended to alleviate cost burdens on residential and small business customers. The new framework, enacted by the Oregon Public Utility Commission (PUC) and stemming from the previously passed 'Power Act' legislation, creates a separate rate category for large energy users in PGE territory. This mandates long-term contracts, minimum payment requirements, and direct responsibility for infrastructure costs for data centers. The PUC also approved a new surcharge on the largest energy users, with funds directed towards energy efficiency programs and assistance for low-income customers. While Portland General Electric (PGE) expects a quick short-term relief for consumers, the long-term impact, including the potential for data centers to pass on higher costs, remains uncertain. Regulators are working on a similar framework for Pacific Power. The discussion highlighted Hillsboro, Oregon, as a key area of data center development, with 18 data centers currently built or under construction, occupying 8% of the city's North Industrial Area. PGE has reportedly spent approximately $210 million on data center-related growth in Hillsboro alone as of 2025. The new regulations also require the PUC to consider how data center growth aligns with Oregon's clean energy goals and to submit regular reports to lawmakers on energy trends and grid impacts. The report briefly touched on the national debate, citing a project near the Great Salt Lake in Utah where Box Elder County Commissioners approved a large data center development despite community opposition, water use concerns, and air quality impacts. Developers for the Utah project plan their own natural gas power source and recently withdrew a water rights application.