Oregon Regulators Approve 29% Electricity Rate Hike for Data Centers
The Oregon Public Utility Commission has approved Portland General Electric's proposal to increase electricity rates for data centers by 29%. This change is mandated by a 2025 state law, the POWER Act, which separates data centers into their own billing category. Other residential and commercial customers will see slight reductions in their rates.
Portland General Electric (PGE) has proposed a significant 29% increase in electricity rates for data centers in Oregon, effective June 10, pending state regulatory approval. This change stems from a 2025 state law, known as the POWER Act, which mandates that data centers be categorized separately for billing purposes.
The Oregon Public Utility Commission approved PGE's new rate structure on May 7, with the specific rates released on June 3. While data centers face a substantial hike, most other PGE customers, including residential, small business, and commercial clients, are expected to see slight rate reductions. For instance, residential customers could see a 1.3% decrease, equating to about a $1.92 reduction in their monthly bill.
PGE serves approximately 963,000 customers across Oregon, encompassing areas like Salem, Woodburn, Silverton, and the wider Portland metropolitan region. Another investor-owned utility, Pacific Power, is also required to develop new rates under the 2025 POWER Act. Bill Poehler, who covers Marion and Polk County for the Statesman Journal, reported on these developments.