PGE to Acquire PacifiCorp’s Washington Assets in $1.9B Deal
Portland General Electric (PGE) announced plans to acquire most of PacifiCorp’s utility assets in Washington state for $1.9 billion, expanding its service territory beyond Oregon. The acquisition includes two wind farms, a 477-megawatt gas-fired plant, 4,500 miles of transmission and distribution lines, and approximately 140,000 customers.
If approved, PacifiCorp, owned by Berkshire Hathaway, will retain only some hydroelectric and transmission assets, exiting its retail operations in Washington. The sale simplifies PacifiCorp’s multi-state operations and provides cash to help offset liabilities from past wildfire-related costs.
For PGE, the acquisition will increase its customer base by roughly 15%, covering parts of Yakima, Walla Walla, Kittitas, Benton, Columbia, and Garfield counties. CEO Maria Pope noted the Washington territories are growing, with potential for new data centers, renewable energy projects, and transmission investments.
The deal includes a 49% co-investment from Manulife Infrastructure Fund III L.P., supporting capital expansion while reducing pressure on PGE’s balance sheet. Financing will combine $600 million equity from Manulife, $700 million in debt, and $600 million from PGE’s holding company, alongside a planned public stock offering.
PGE will operate the Washington assets through a new subsidiary regulated by the Washington Utilities and Transportation Commission, retaining the current workforce and honoring existing labor agreements. State and federal approvals are expected to take around 12 months.
Source: oregonlive.com
