PGE secures regulatory approval to ensure data centers pay for the growth they drive

Portland, Ore. – The Oregon Public Utilities Commission approved key elements of Portland General Electric’s proposals for charging customers based on their contribution to growth. The decision means that data centers will pay more for new infrastructure that supports their growth.

"The decision reflects an important step toward balancing growth, reliability and affordability for Oregon customers,” said John McFarland, 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.”

The Commission's order establishes an important new regulatory framework for serving large load customers and adopts several core components proposed by PGE, including:

• A new customer classification, Schedule 96: The order adopts PGE’s proposal to establish a dedicated customer class for large load data centers, recognizing the unique scale, infrastructure needs, and growth impacts associated with these customers.

• Growth based cost allocation: The Commission approved PGE’s proposed peak growth modifier, with some modifications. The PGM is designed to fairly allocate costs to customer groups that are growing the most.

• Customer protections against stranded assets: The Commission adopted PGE’s proposals for exit fees and minimum charges with some modification. Exit fees and minimum charges ensure that data centers commit to a certain level of payment, protecting families and small businesses from the costs of stranded assets.

• Special contracts to support clean energy development: The Commission also adopted PGE's proposal preserving the opportunity for case-by-case special contracts that could enable large customers to directly support new clean energy resources and infrastructure investments while facilitating more efficient interconnection timelines.

Today’s order reflects the growing need for modern regulatory frameworks as Oregon experiences unprecedented electricity demand growth driven by advanced manufacturing, technology development, and data center expansion. PGE will continue working with stakeholders and regulators on implementation details and additional policy considerations identified in the order.

Read the full decision from the Public Utilities Commission of Oregon

About Portland General Electric Company

Portland General Electric (NYSE: POR) is an integrated energy company that generates, transmits and distributes electricity to nearly 960,000 customers serving an area of approximately 2 million Oregonians. Since 1889, Portland General Electric (PGE) has been powering economies, delivering safe, affordable and reliable electricity while working to transform energy systems to meet evolving customer needs. PGE continues to make progress toward emissions reduction targets, and customers have set the standard for prioritizing clean energy with the No. 1 voluntary renewable energy program in the country. PGE is ranked a top ten utility in the 2025 Forrester U.S. Customer Experience Index. In 2025, PGE employees and retirees volunteered over 18,300 hours to more than 400 nonprofit organizations. Through the PGE Foundation, along with corporate contributions and the employee matching gift program, more than $5 million was directed to charitable organizations supporting economic growth and community resilience across our service area. For information: portlandgeneral.com/news