The POWER Act: Regulating Data Centers in PGE Territory
The POWER Act: Regulating Data Centers in PGE Territory
July 9, 2026 Energy Efficiency, Advocacy
Community Energy Project (CEP) secured important guardrails to protect PGE customers' energy bills from data centers. Data centers are now subject to a 29% rate increase while residential customers receive a 1.3% rate cut.
CEP advocated as part of a coalition with Green Energy Institute, Climate Solutions, Columbia Riverkeeper, and Oregon Environmental Council, along with the support of Oregon Citizens’ Utility Board and Columbia River Inter-Tribal Fish Commission.
The Oregon Public Utility Commission (PUC) approved a new rate structure for large-load customers by creating a new rate class required under HB 3546 (2025), Protecting Oregonians With Energy Responsibility (POWER) Act. This ensures that large customers pay the full and fair cost of the infrastructure needed to support their operations while protecting residential customers from subsidizing the infrastructure needed for their rapid load growth.
The PUC also adopted CEP's recommendation to establish a dedicated fund supporting energy efficiency improvements, critical home repairs, and distributed energy resources for low-income households. Data centers using more than 100 MW will pay a surcharge that funds these investments, helping reduce energy burdens for Oregon families.
Large load users such as data centers will also be required to enter a generation queue, which will determine when new loads can be served based on the availability of sufficient non-emitting resources. This means that data centers cannot connect to the grid until there is sufficient zero-emission generating capacity available to serve their expected power needs without violating Oregon’s HB 2021 clean energy targets and obligations. The PUC order also specifies minimum contract lengths, as well as penalties or fees if large users exceed their contracted power use or seek to exit early.
The complete order can be found here: https://apps.puc.state.or.us/orders/2026ords/26-154.pdf
These new protections represent an important step toward ensuring that Oregon's growing electricity demand is managed responsibly. CEP will continue working with utilities, regulators, and community partners to ensure the benefits of economic growth do not come at the expense of residential customers or Oregon's clean energy future.
