Oregon officially hikes electric rates for data centers in PGE territory
The Oregon Public Utility Commission approved a 29% electric rate hike for data centers in Portland General Electric's territory, effective July 8, while other customer categories will see rate decreases. This decision implements the POWER Act, a 2025 law requiring data centers to have separate rates and 10-year contracts to offset their high grid usage. Governor Tina Kotek and the Oregon Citizens Utility Board supported the measure to ensure fairness in energy costs.
The Oregon Public Utility Commission (PUC) officially approved a 29% increase in electric rates for data centers operating within Portland General Electric's (PGE) service territory, effective July 8. This decision follows the implementation of the POWER Act, a 2025 law that mandates separate electricity rates for data centers and requires them to commit to 10-year contracts to mitigate their substantial impact on the electric grid.
In contrast, most other PGE customers will see rate decreases, with residential customers experiencing a 1.3% reduction, commercial customers a 2.1% drop, and industrial customers a 1.4% decrease. PUC Chair Letha Tawney stated that these changes ensure data center costs are accurately reflected in their rates, preventing other customers from absorbing these expenses.
Oregon Governor Tina Kotek lauded the decision as a "win for Oregonians," reinforcing the POWER Act's goal of ensuring fairness and accountability from large energy users. The Oregon Citizens Utility Board (CUB), which had advocated for data centers to cover their own costs, also expressed strong support, stating it was unacceptable for working families and small businesses to subsidize data center energy use. Pacific Power, another major utility in Oregon, is currently in the process of establishing its own data center rates under the new law.