New tariff requires Oregon data centers to pay full electricity costs
(KTVZ) — The Oregon Public Utility Commission approved a new tariff today requiring new large data centers in Pacific Power’s Oregon service area to pay the full cost of their electricity service. The newly created customer class applies to facilities that use or can use 20 megawatts or more of electricity for computing infrastructure, data processing, web hosting and related services.
The plan implements the POWER Act, a state law enacted in 2025 in response to rising concerns about the impact of new data centers on electricity costs. The policy reflects an agreement reached this fall between Pacific Power, commission staff, the Oregon Citizen’s Utility Board and the Green Energy Institute.
Under the approved tariff, costs required to serve customers in the new class are assigned directly to those specific facilities. Large energy users must enter into long-term service agreements and pay for all electric infrastructure and power services needed to support their operations, providing greater financial certainty for existing utility customers.
Rick Link serves as senior vice president of planning and regulation for Pacific Power. He stated that the framework balances ongoing business attraction with protections for current ratepayers.
“As Oregon continues to attract investment and economic development, it’s important that growth happens in a way that protects affordability for the customers we serve today,” Link said. “This approach will ensure that new large energy users pay their own way while supporting continued economic opportunity across the state.”
The new tariff will take effect on Jan. 1, 2027.
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