PORTLAND, Ore. — The Oregon Public Utilities Commission has approved major elements of a proposal from Portland General Electric aimed at ensuring large energy users, including data centers, shoulder more of the costs tied to Oregon’s growing electricity demand.
The decision establishes a new regulatory framework designed to protect residential and small business customers from paying for infrastructure needed to support rapid growth from large industrial and technology customers.
“The decision reflects an important step toward balancing growth, reliability and affordability for Oregon customers,” said John McFarland, PGE’s chief customer officer. “As energy demand grows, it is critical that the costs of new infrastructure are allocated fairly and transparently. Our focus remains on maintaining reliable service, supporting economic development and protecting residential and small business customers from unnecessary cost impacts.”
Under the Commission’s order, large-load data centers will be placed into a newly created customer classification known as Schedule 96. Regulators said the classification recognizes the significant infrastructure demands and growth impacts associated with large-scale data center operations.
The Commission also approved a “peak growth modifier,” a cost allocation mechanism intended to assign more infrastructure costs to customer groups driving the highest levels of demand growth. PGE said the measure is intended to more fairly distribute costs as electricity use rises across the region.
Additional protections adopted in the order include exit fees and minimum charges for large customers. The measures are designed to prevent “stranded assets” — infrastructure investments that could otherwise leave residential and small business customers responsible for unpaid costs if large users reduce operations or leave the system.
The order also preserves the ability for PGE to negotiate special contracts with large customers on a case-by-case basis. Utility officials said those agreements could help support development of new clean energy resources and accelerate infrastructure improvements needed for future growth.
The Commission’s decision comes as Oregon faces rapidly increasing electricity demand driven by data center expansion, advanced manufacturing and technology development. PGE officials said they will continue working with regulators and stakeholders on implementation details and additional policy considerations outlined in the order.
The full decision from the Public Utilities Commission of Oregon is available here: PUC Order 26-154
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