Oregon data centers face sharp electricity rate hike under new law
Oregon's Public Utility Commission approved a new law, the POWER Act, which implements a 29% electricity rate hike for data centers within Portland General Electric's service territory. This change aims to shift costs from residential and commercial customers to large energy users like data centers. The Data Center Coalition has filed a petition asking the PUC to reconsider its order, calling it "out of step" with other states.
The Oregon Public Utility Commission (PUC) has approved new electricity rates, effective Wednesday, under the state's Protecting Oregonians With Energy Responsibility (POWER) Act. This legislation mandates Portland General Electric (PGE) to raise rates for data center customers by an average of 29%, while simultaneously lowering rates for residential, commercial, and other industrial customers.
Commission Chair Letha Tawney stated that these changes ensure data centers accurately bear the costs they create within PGE's territory, preventing higher costs for other customers in the future. The POWER Act was signed into law last year by Gov. Tina Kotek, who emphasized its intent to ensure fairness and accountability as large energy users, such as data centers, increase demand on Oregon's electrical grid. These rate adjustments come amid growing concerns about data center power consumption and its impact on electric grids nationwide.
The Data Center Coalition (DCC), an industry advocacy group, has expressed concerns, arguing that Oregon PUC's order is "significantly out of step with the approaches and best practices being implemented in many other states." Aaron Tinjum, DCC's vice president of energy, confirmed that the group has filed a petition for the PUC to reconsider its order. The DCC asserts that the industry is committed to paying its full energy costs but seeks a workable approach that aligns costs with causation and maintains Oregon's competitiveness.