POWER Act is moving from statute to utility bills as Oregon regulators review Portland General Electric’s data center rate filing. The case centers on whether large-load customers should cover more grid costs tied to their demand, and whether households and small businesses are shielded from those expenses.
Key Takeaways
- Oregon regulators approved Schedule 96 on May 7, 2026, creating a separate PGE rate class for large data centers and other large-load customers.
- PGE filed nearly 200 pages of tariff updates on June 3, with a final PUC decision expected at a July 7 public meeting.
- The filing includes data center-specific rates, new connection rules, system upgrade provisions, updated base rates, and a surcharge for targeted energy programs.
- PGE estimates the reclassification would affect about 963,000 customers, while not changing the utility’s overall revenue.
- The POWER Act applies to large energy use facilities, including data centers that meet the 20-megawatt threshold.
Oregon’s POWER Act, formally House Bill 3546, requires the Public Utility Commission to create a separate service classification for large energy use facilities. In PGE’s territory, that framework now centers on Schedule 96, a new class for data centers and other large-load customers.
The Oregon Public Utility Commission approved the structure on May 7, 2026, after reviewing concerns about how rapid electricity demand growth can affect rates paid by other customers. The agency said the decision was designed to make data center bills reflect the specific costs of serving their loads.
The rule does not prevent data centers from operating in Oregon. It changes how certain electricity costs are assigned. That distinction matters as utilities weigh new substations, distribution upgrades, transmission planning, and generation needs tied to large facilities that can use power around the clock.
The issue also fits into a broader Portland discussion about the local energy landscape, where grid resilience, clean electricity, and utility planning have become more visible public concerns.
Why Are Oregon Customers Watching The POWER Act?
The POWER Act has drawn attention because data centers can create large and concentrated power needs. A facility that crosses the 20-megawatt threshold may require infrastructure planning that differs from ordinary commercial service.
Regulators have framed the case around cost assignment. If a utility builds equipment mainly to serve a large new customer, the question becomes whether those costs should be paid broadly by all customers or more directly by the customer class driving the demand.
PGE’s June 3 filing placed that question into specific tariff language. The filing includes nearly 200 pages of updates, covering data center-specific rates, customer provisions, new connection rules, system upgrades, revised base rates, and a surcharge connected to targeted energy programs.
PUC Chair Letha Tawney said the added review period was needed because of the volume of tariff changes. “Taking time for review now” helps confirm that updated rates reflect the Commission’s decision, she said in the June 9 release.
How Would Schedule 96 Change PGE Rates?
Portland General Electric’s Schedule 96 would move qualifying data center customers into a dedicated large-load rate class. The framework includes long-term contract requirements, distribution upgrade costs assigned to the customer, minimum charges, and exit-fee provisions tied to infrastructure built for large loads.
Utility Dive reported that the May 7 order applies to data centers exceeding 20 megawatts and requires customer-paid distribution network upgrades. It also reported that minimum generation and transmission demand charges are set at 90 percent of contracted system capacity.
Large projects face additional terms. Facilities with 100 megawatts or more of allocated system capacity would pay a 1-cent-per-kilowatt-hour surcharge. The PUC said revenue from that surcharge would support programs intended to offset residential customer costs, including support for households facing higher energy burdens.
The rate structure may make service terms clearer for large customers, while giving regulators a way to separate costs tied to rapid load growth. It may also influence how future electricity demand is studied as Oregon weighs the role of advanced manufacturing, technology facilities, and the regional clean tech sector.
Frequently Asked Questions
What is the POWER Act in Oregon?
The POWER Act is House Bill 3546, a 2025 Oregon law that directs regulators to create a separate service classification for large energy use facilities, including qualifying data centers.
When is the next PGE rate decision?
The Oregon Public Utility Commission expects to review PGE’s filing at its July 7 public meeting.
How many customers could be affected?
PGE estimates the reclassification would affect about 963,000 customers across customer classes. Regulators said the filing is not expected to change PGE’s overall revenue.
Does the POWER Act stop data centers from operating?
No. The law changes how certain utility costs are classified and assigned. It does not ban data centers from operating in Oregon.
