Oregon Regulator Approves New Rate Class for Large Load Data Centers to Cover Grid Costs
May 21, 2026
Oregon Regulator Approves New Rate Class for Large Load Data Centers to Cover Grid Costs
Oregon regulators have approved a new rate class for large-load data centers and cryptocurrency mining operations, requiring them to cover the full costs of electricity grid infrastructure needed to serve their facilities. The decision, made earlier this month by the Oregon Public Utility Commission (PUC), is designed to protect residential and small-business ratepayers from bearing the financial burden of surging energy demand driven by large-scale computing facilities.
The new regulations are mandated by the Protecting Oregonians With Energy Responsibility (POWER) Act, which was passed by the Oregon Legislative Assembly on June 5, 2025, and signed into law in August 2025. Under the rules, data centers and crypto mining operations with a load of 20 megawatts (MW) or more will be placed in a new rate class, where pricing must reflect all costs of providing energy to those facilities. Additionally, the act requires utilities to enter into long-term contracts with incoming data centers to mitigate the risk of stranded assets—a key concern for ratepayer protection.
Following the PUC’s approval, Portland General Electric (PGE), Oregon’s largest utility, has until June 3 to file a new pricing framework, with the new rates taking effect on June 10. According to PGE spokesperson Ben Morris, 16 data centers in the state will be immediately impacted by the new rates and will be subject to fees to cover grid upgrade costs. The order also imposes renewable energy requirements on data centers before they come online and introduces exit fees for facilities that abandon projects before completion.
The Data Center Coalition has pushed back against the regulations, with Vice President of Energy Aaron Tinjum arguing that the order is “out of step” with other states and that the new rates are excessive. However, Oregon is part of a growing trend of states enacting or seeking to enact rules to protect ratepayers from bill hikes tied to the energy demands of data centers. Earlier this month, Oklahoma Governor Kevin Stitt signed a similar bill into law, and Florida’s governor signed legislation prohibiting utilities from passing data center infrastructure costs on to residential and small-business customers. Other states, including Ohio, North Carolina, and Virginia, have also proposed or passed comparable rules.
Source: datacenterdynamics
