New Rules Protect Pacific Power Customers From Data Center-Caused Rate Increases

As data centers continue their rapid expansion across Oregon, they're making their impact felt. A new report shows that data centers account for nearly 25% of the total electricity demand in the state. As we continue to grapple with all the challenges that this industry presents, it's critical that we keep consumer protections and climate impacts front and center in the conversation.

Thankfully, we've just taken a new step in the right direction: A new agreement at the Oregon Public Utility Commission will help protect Pacific Power customers from being left on the hook for the industry's growing energy demands. Thanks to the POWER Act, legislation that OEC supported in 2025, these new rules will bring stronger protections for households and small businesses when they're needed most. This win comes on the heels of similar rules passed in May 2026 that protect PGE residential customers from unfair rate increases.

The agreement, which is expected to receive final approval from regulators in October, puts important guardrails in place for new data centers connecting to Pacific Power's grid. New data centers will now be responsible for the costs they create for the electric system - including the full cost of new distribution infrastructure, generation and energy storage, and the electricity needed to serve their operations. Data centers will also be responsible for their share of certain transmission costs, based on how much of that infrastructure they use. These protections are especially critical as Oregon sees growing interest from energy-intensive data centers, whose enormous electricity demands could otherwise shift costs onto other utility customers.

The agreement also includes important measures that keep Oregon on track to meet our clean energy goals. Data centers will be responsible for the costs associated with meeting the state's 100% clean electricity requirements, including investments needed to ensure reliable service for all customers. Data centers larger than 100 megawatts will also contribute to energy efficiency programs for low-income households and will be required to have flexible energy use, helping reduce strain on the grid during periods of high demand.

When Governor Kotek signed the POWER Act last year, the goal was to ensure that rapidly growing industries like data centers don't drive up energy costs for Oregon families. This agreement with Pacific Power shows what it can look like to put those protections into practice. While the new rules will apply primarily to new data centers rather than lowering existing customers' rates, they can help prevent future infrastructure and energy costs from being shifted onto households and small businesses.

Oregon's energy system is changing quickly, and the decisions we make now will shape whether that transition delivers affordable, clean, and reliable electricity for everyone. As data centers and other large energy users seek to expand in our state, OEC will continue working with partners and regulators to make sure their growth does not come at the expense of Oregon families, our clean energy progress, or the communities already facing the impacts of climate change.

Ready to get involved and make your voice heard for crucial protections like the POWER Act? Sign up for OEC's Grassroots Action mailing list . We'll fill you in on opportunities to speak up for the issues that matter most to you.