PGE requests large rate increase for Oregon data centers

PORTLAND Ore. (KPTV) – Portland General Electric (PGE) has filed for regulatory approval of new electricity rates that would increase costs for large data centers while lowering rates for residential and small business customers, the utility announced Wednesday.

The proposed changes, filed under Oregon’s POWER Act regulatory framework, are scheduled to take effect June 10 pending review and approval by the Oregon Public Utility Commission (OPUC).

Under the proposal, rates for large-load data center customers would increase 29%. Residential customers would see a 1.3% decrease in rates, while small business customers would get a 3.7% reduction. Commercial customers would see a 2.2% decline and industrial customers would get a 1.5% decrease.

The filing follows a May 7 decision by OPUC approving PGE’s implementation of the POWER Act. making it the first utility in Oregon to establish a desperate customer class for data centers and adopt a framework designed to allocate infrastructure costs based on growth-related demand.

PGE said the new structure is intended to ensure customers driving increased electricity costs bear the costs associated with new infrastructure investments.

“Oregon is building a modern regulatory framework that supports responsible growth while keeping customer affordability front and center,” said John McFarland, Chief Customer Officer at PGE. “As energy demand from large-energy users grows, this approach helps ensure the costs of new infrastructure are paid by the customers driving that growth.”

The commission also authorized more measures aimed at managing data center growth, including exit fees, minimum charges and special contracts intended to support clean energy development.

The proposed rate changes remain subject to regulatory review and approval by OPUC.