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Pacific Power to charge new Oregon data centers for all costs associated with growing energy need
The proposal would shift the cost of new power plants, batteries and transmission upgrades to future data center operators, officials said.
Pacific Power agreed last week to require new data centers to cover all costs for energy generation, storage, and infrastructure projects, ensuring residential customers do not subsidize massive server farm demand.
The Citizens' Utility Board called the agreement "the strongest from a for-profit electric utility yet" on Tuesday under Oregon's new POWER Act, which mandates separate rate classes for data centers.
Unlike Portland General Electric's system focusing on "peak demand growth," Pacific Power's plan assigns costs based on overall demand, clarifying infrastructure costs tied to specific rural data centers.
The Public Utility Commission is expected to approve the deal on Nov. 13, though Charlotte Shuff, a spokesperson for the Citizens' Utility Board, expects the Data Center Coalition to appeal.
Dozens of massive data centers are seeking system access as energy demand grew 8% between 2013 and 2023, while the West faces pressure to build new transmission lines costing several million dollars per mile.