Portland General Electric Announces Acquisition of Washington State Utility Operations and Select Assets from PacifiCorp

Portland General Electric Company announced an agreement to acquire select generation, transmission and electric utility operations in Washington state from PacifiCorp for $1.9 billion. The acquisition is intended to expand PGE’s service area to serve approximately 140,000 customers in Washington and extend the company’s commitments to reliability, affordability, economic development, and customer service.

Under the terms of the agreement, PGE will acquire three generation facilities: the Chehalis natural gas plant (477 MW), the Goodnoe Hills wind facility (94 MW), and the Marengo I and II wind facilities (234 MW). The transaction also includes about 4,500 miles of transmission and distribution lines and local utility operations covering approximately 2,700 square miles.

PGE plans to operate the Washington utility operations as a separate company through a newly formed subsidiary that will be regulated by the Washington Utilities and Transportation Commission. The company stated it will retain current Washington employees and honor existing labor processes. PGE also indicated that customers in both Washington and Oregon should not be affected by costs associated with the transaction or its financing. The company expects regulatory reviews to conclude about 12 months after the necessary filings are submitted.

Central to the acquisition is a partnership with Manulife Infrastructure Fund III L.P. and its affiliates, including John Hancock Life Insurance Company (USA). These entities will collectively hold a 49% ownership interest in the Washington utility business.

Maria Pope, president and CEO of PGE, commented on the acquisition, “We are excited for the opportunity to continue to grow, expanding into Washington and building upon PGE's foundation of operational excellence and customer service,” and added,“We look forward to our partnership with Manulife Investment Management, who brings a track record of investment success across the utility sector and Pacific Northwest agriculture and timberland industries.”