PacifiCorp proposal aims to shield Central Oregon customers from large energy user costs

CENTRAL OREGON (KTVZ) -- New rules approved by Oregon regulators aimed at how utilities charge large energy users are expected to have implications beyond Portland General Electric, including for Central Oregon customers served by Pacific Power.

The Oregon Public Utility Commission approved changes allowing Portland General Electric to charge higher rates to large energy users such as data centers. The goal is to ensure those customers pay for the cost of expanding the power grid, rather than shifting those costs onto smaller or household ratepayers.

The move comes after six consecutive years of rate increases for Oregon customers, driven in part by what PGE describes as an unprecedented rise in electricity demand, with data centers as a major factor.

Under the new rules, large energy use facilities must pay 100% of the cost to expand distribution systems needed to serve them. They must also use at least 90% of their contracted power capacity, with requirements for contract lengths and penalties for exceeding usage or exiting early.

The rules define large energy users as facilities capable of drawing more than 20 megawatts of power at a time. A separate category for “very large loads” — those exceeding 100 megawatts — includes a 1 cent per kilowatt-hour surcharge, with funds going toward reducing energy burden for vulnerable customers.

The order also includes a queue system to ensure new large users can only connect when enough zero-emission energy is available to meet demand under House Bill 2021.

While the decision directly applies to PGE, Pacific Power is proposing a similar approach for customers in Central Oregon.

PacifiCorp exclusively sent a statement to KTVZ News, saying utilities have seen a growing number of extremely large new load requests in recent years, requiring significant investments in transmission and generation infrastructure.

The company has filed a proposed tariff with the Oregon Public Utility Commission under House Bill 3546 to create a new rate schedule for “New Large Energy Use Facilities.” Under the proposal, large energy users such as data centers would be required to cover the costs of infrastructure upgrades needed to serve them.

PacifiCorp said the approach would allow the utility to meet the needs of large energy users while continuing to invest in infrastructure and protecting affordability for other customer classes.

PGE has until June 3 to file a new pricing system to implement the order, which would take effect June 10. The utility is also required to begin annual reporting on large energy users starting June 1, 2027.