Editor’s Note: T&D World’s Eric Moody contributed to this report.

In a change affecting nearly a million ratepayers, the Oregon Public Utility Commission July 7 unanimously approved a 29.7% rate increase for Portland General Electric’s large electric consumers, including data centers, cryptocurrency companies and large industries, according to Oregon Public Broadcasting.

At the same time, residential customers will receive a 1.3% decrease in their rates. The new rates have already in force, and impact 963,000 customers. 

PGE previously made the request in May to make sure its customers are not on the hook for electricity used by large customers like data centers at a time when electricity demand is rising along with rates. The charge is based on “contribution to growth” of electricity demand.

This order is the first use of Oregon’s 2025 POWER Act. The House Bill 3546 was passed by state legislators to address concerns surrounding the rapid development of data center demand. It applies to projects that use more than 20 MW, according to OPB.

Gov. Tina Kotek said this action would protect ordinary ratepayers from the impact of data center demand.

“We must continue to do whatever we can to keep working families and small businesses from absorbing the costs of data center energy use,” Kotek said in a statement.

PGE is the first Oregon utility to change its rates based on the POWER Act’s reclassification of customers. Kotek said she would also heed the recommendations of a newly formed Data Center Advisory Committee as she consults with lawmakers during the January 2027 legislative session in Salem.

Other changes enacted July 7 include new terms of service for large energy consumers, a new fee to fund energy payment assistance and new rules for large users who are newly connecting to the PGE power grid.