Oregon regulators hike power rates for data centers
Oregon regulators have approved a new tariff for Portland General Electric, increasing electricity rates for data centers by an average of 29% while lowering residential costs by 1.3%. This action implements the state's POWER Act, a first-in-the-nation law requiring data centers to bear more of their infrastructure costs.
The Oregon Public Utility Commission unanimously voted to approve a new tariff for Portland General Electric, the state's largest electric utility, which will significantly increase electricity prices for data centers by an average of 29% starting Wednesday. Concurrently, residential customers will see their electricity costs decrease by approximately 1.3%, translating to an average monthly saving of $1.91 per household.
This new rate structure is the first to be implemented under Oregon's POWER Act, a bipartisan law passed last year. The legislation mandates that data centers in the state contribute a greater share towards the cost of their electric infrastructure. Governor Tina Kotek (D) has publicly praised the POWER Act for addressing the considerable and often politically contentious impact of the data center industry's expansion on state power grids.