Full Breakdown
Oregon Raises Data-Center Electricity Rates Under New POWER Act Rule
7/10/2026, 11:47:31 AM
New Rate Structure Takes Effect
Starting Wednesday, Portland General Electric (PGE) must apply revised electricity tariffs approved by the Oregon Public Utility Commission (PUC). Data-center customers will see an average increase of 29%, while residential rates are set to drop 1.3%, commercial rates 2.1% and other industrial rates 1.4%. The PUC estimates the changes will affect roughly 963,000 customers across PGE’s service territory.
Legislative Background
The adjustments stem from the Protecting Oregonians With Energy Responsibility (POWER) Act, signed into law last year by Governor Tina Kotek after passage by the state’s Democratic-controlled legislature. The law was crafted to align electricity costs with the load that large energy users, such as data centers, place on the grid.
Official Statements
Commission Chair Letha Tawney said the new schedule “ensures that costs created by data centers in PGE’s territory are more accurately reflected in their rates.” Governor Kotek emphasized that the POWER Act “was intended to ensure fairness and accountability when large energy users, like data centers, take up more load on Oregon's electrical grid.”
Industry Opposition
The Data Center Coalition (DCC), representing owners, operators and builders, called the PUC order “significantly out of step with the approaches and best practices being implemented in many other states.” DCC vice-president of energy Aaron Tinjum asserted the industry is “committed to paying its full cost for the energy it uses to ensure that those costs are not shifted to other customers.” He added that “protections should be evidence-based, structured carefully, and grounded in specific cost risks; otherwise they risk creating market friction, introducing uncertainty, and making Oregon less predictable and less competitive.” The coalition has filed a petition asking the PUC to reconsider the order.
Why It Matters
Proponents argue the rate shift prevents future consumer price spikes as AI-driven data-center expansion strains the grid. Critics warn the higher charges could deter investment and reduce Oregon’s competitiveness in the growing clean-energy and tech sectors. The outcome will shape how the state balances grid reliability, consumer protection, and the economic incentives for high-energy-use industries.
