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News Release

PGE Secures Regulatory Approval To Ensure Data Centers Pay For The Growth They Drive - 05/08/26

Framework helps shield residential and small business customers from added costs while enabling growth in the region 

 

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: https://apps.puc.state.or.us/orders/2026ords/26-154.pdf  

PGE Secures Regulatory Approval To Ensure Data Centers Pay For The Growth They Drive - 05/08/26

Framework helps shield residential and small business customers from added costs while enabling growth in the region 

 

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: https://apps.puc.state.or.us/orders/2026ords/26-154.pdf