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Portland General Electric Moves to Expand Footprint by Acquiring PacifiCorp Assets in Washington
PGE agrees $1.9 billion deal to take over generation, transmission and distribution operations, adding about 140,000 customers and thousands of miles of infrastructure
Portland General Electric has agreed to acquire significant utility operations and energy infrastructure assets in Washington state from PacifiCorp, in a transaction valued at approximately $1.9 billion, marking the utility’s first major expansion outside Oregon.
Under the agreement, PGE will take ownership of three power generation facilities — the Chehalis natural gas plant with 477 megawatts of capacity, the Goodnoe Hills wind facility producing 94 megawatts, and the Marengo I and II wind facilities with a combined 234 megawatts.
The acquisition also includes roughly 4,500 miles of transmission and distribution lines and local utility operations covering about 2,700 square miles, bringing an estimated 140,000 customers under PGE’s service area footprint.
PGE plans to operate the Washington utility as a separate subsidiary, which will be regulated by the Washington Utilities and Transportation Commission.
PGE said it intends to retain current Washington employees and honour existing labour agreements as part of the transition.
The company emphasised that ratepayers in both Oregon and Washington should not experience cost increases associated with the transaction or its financing, which will be subject to regulatory review before closing, expected in about 12 months following filings with authorities.
Strategic partners in the deal include Manulife Infrastructure Fund III L.P. and affiliated entities such as John Hancock Life Insurance Company (USA), which together will hold a 49 per cent ownership interest in the new Washington utility unit.
PGE’s president and chief executive officer described the transaction as an exciting opportunity to grow the company’s operational reach and build on its foundation of reliability and customer service, while the addition of wind and gas generation supports broader regional energy needs.
The acquisition represents a significant shift in the regional utility landscape, as PGE expands beyond its traditional Oregon base.
PacifiCorp, a Berkshire Hathaway Energy subsidiary and one of the largest grid operators in the western United States, serves customers across six states and continues its own strategic planning, including ongoing compliance with clean energy goals under Washington’s regulatory framework.
Under the agreement, PGE will take ownership of three power generation facilities — the Chehalis natural gas plant with 477 megawatts of capacity, the Goodnoe Hills wind facility producing 94 megawatts, and the Marengo I and II wind facilities with a combined 234 megawatts.
The acquisition also includes roughly 4,500 miles of transmission and distribution lines and local utility operations covering about 2,700 square miles, bringing an estimated 140,000 customers under PGE’s service area footprint.
PGE plans to operate the Washington utility as a separate subsidiary, which will be regulated by the Washington Utilities and Transportation Commission.
PGE said it intends to retain current Washington employees and honour existing labour agreements as part of the transition.
The company emphasised that ratepayers in both Oregon and Washington should not experience cost increases associated with the transaction or its financing, which will be subject to regulatory review before closing, expected in about 12 months following filings with authorities.
Strategic partners in the deal include Manulife Infrastructure Fund III L.P. and affiliated entities such as John Hancock Life Insurance Company (USA), which together will hold a 49 per cent ownership interest in the new Washington utility unit.
PGE’s president and chief executive officer described the transaction as an exciting opportunity to grow the company’s operational reach and build on its foundation of reliability and customer service, while the addition of wind and gas generation supports broader regional energy needs.
The acquisition represents a significant shift in the regional utility landscape, as PGE expands beyond its traditional Oregon base.
PacifiCorp, a Berkshire Hathaway Energy subsidiary and one of the largest grid operators in the western United States, serves customers across six states and continues its own strategic planning, including ongoing compliance with clean energy goals under Washington’s regulatory framework.
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