Oregon's PGE Proposes Cost-Sharing Plan that Contradicts New Law for Data Centers

Portland General Electric (PGE) plans to have residential customers contribute to the costs of energy infrastructure needed for large data centers, despite a new Oregon law mandating that data centers cover these costs. The POWER Act requires the creation of a separate rate class for data centers to prevent residential customers from subsidizing their growth.

PGE's proposal allows data centers to pay only for the first three years of costs associated with a typical 50-year infrastructure investment, with the remaining costs shifted to all customers. Oregon's electricity consumption rose over 20% from 2013 to 2023, driven largely by data centers, which have increased demand by nearly 70% in the last decade.

The Oregon Public Utilities Commission is expected to decide on PGE's plan by the end of April. The utility serves 930,000 customers and has raised residential rates by 50% over the past five years.