New Rules Protect Oregonians From Data Center-Caused Rate Increases
In a landmark moment for Oregon ratepayers, last week the Oregon Public Utility Commission enacted new rules protecting Portland General Electric (PGE) customers from rate increases stemming from data centers. Represented by Green Energy Institute, OEC joined other consumer advocates to influence this decision.
By creating a new customer category for data centers, PGE can now more accurately track their energy usage and charge them accordingly. The new rules put guardrails in place for data centers like contract limits, penalties for going over energy use thresholds, and greater transparency in their reporting — preventing this skyrocketing industry from impacting Oregonians’ utility bills more than it already has. Moreover, new data centers can only be connected to PGE’s grid if there is enough emission-free electricity available to serve them. This important step will preserve PGE’s ability to affordably serve all customers with 100% emissions-free electricity by 2040.
The implementation of these new regulations was made possible by the POWER Act, which OEC helped pass in 2025. Oregonians across the state are facing rising energy costs year after year, all while communities face the impact of climate change first-hand. Rules like these that reign in energy use for resource-hungry industries in our state are needed now more than ever — for the good of our wallets, and for the good of our planet’s future.
Read the press release from our partners at Oregon Citizens’ Utility Board below.
Regulators Set New Rules for How PGE Charges Data Centers for Electricity
The Oregon Public Utility Commission released a new order on data centers, requiring more consumer protections for Oregonians, and added requirements to support emissions reductions.
SALEM, OR — In a landmark decision this week, the Oregon Public Utility Commission directed Portland General Electric (PGE) to add guardrails to protect Oregonians’ energy bills from data centers and a new customer category to charge data centers for their energy usage.
Customers now have strong consumer protections in the face of data centers’ skyrocketing growth over the past few years. These large users are a driver of PGE bills rising nearly 50 percent in the last five years. PGE will release the impacts on billing rates for data centers, household customers, and other businesses in early June.
“This decision is overall a win for Oregonians. CUB expects that we will soon see data centers paying for their own energy costs,” said Bob Jenks, Executive Director of Oregon Citizens’ Utility Board (CUB). “We are confident that by this summer, we will see data centers paying higher rates that more accurately reflect the costs they are putting on our energy grid.”
Now, customers will have additional protections from data centers. Included are guardrails like deposits for new data centers, contract lengths of 10 to 30 years (depending on size), penalties for going over contracted electricity usage, greater transparency in reporting, and more.
By creating a new customer category for data centers, PGE can now track the energy costs of those businesses and bill them appropriately, protecting Oregonians and small businesses. Data centers will be financially responsible for the full lifetime of new infrastructure built for their growth. As of 2025, PGE spent $210 million on data center growth in Hillsboro alone.
Data centers that use more than 100MW (more than three times the City of Ashland) will now have to pay a modest surcharge to fund energy efficiency upgrades for low-income households.
“A surcharge on data center usage to fund programs for low-income customers will help lower costs for those who have been overburdened with bill increases in recent years, as the Commission acknowledged,” said Cole Souder, Staff Attorney for the Green Energy Institute at Lewis & Clark Law School. “Energy Trust of Oregon identified a need to fund programs that provide energy efficiency and other resources for low-income customers. This surcharge will help to do just that, providing tangible benefits to customers who need it most.”
Regulators also ruled that new data centers can only be connected to PGE’s grid if there is enough emissions-free electricity available to serve them. PGE is required by law to serve all customers with 100% emissions-free electricity by 2040. This new rule will help manage costs for other customers outside of data centers during the transition to clean energy.
“This is a historic, precedent-setting win that puts Oregon at the forefront of managing data center growth the right way,” said Nora Apter, Oregon Director at Climate Solutions. “Through strong implementation of the POWER Act, this order represents a vital step toward ensuring data centers take responsibility for their energy and affordability impacts. It protects families and small businesses from rising costs, strengthens grid resilience, and helps keep Oregon on track toward a reliable, equitable, and 100% clean energy future.”
In 2025, the Oregon Legislature adopted the Protecting Oregonians With Energy Responsibility (POWER) Act (HB 3546) with bipartisan support. The legislation addresses one of Oregon’s most pressing energy challenges: rising utility costs driven in part by the explosive growth of energy-intensive data centers and cryptocurrency. HB 3546 directed regulators to hold large energy users accountable for paying for their own energy costs.
PGE is the first utility to begin implementing the POWER Act. Pacific Power has started its own data center investigation proceeding at the Public Utility Commission this spring. Regulators are expected to make a decision on this proceeding in November 2026.
Consumer advocates involved in this case included the Oregon Citizens’ Utility Board, as well as the Green Energy Institute, representing a coalition of groups, including Climate Solutions, Columbia Riverkeeper, Community Energy Project, and Oregon Environmental Council.
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