Legislation to Address Energy Costs for Large Users
A new bill aimed at ensuring that major energy consumers, such as data centers and cryptocurrency firms, contribute fairly to electricity costs is moving forward to the governor for final approval.
PASSAGE OF HOUSE BILL 3546
On Thursday, the Oregon House voted to advance House Bill 3546, known as the POWER Act (Protecting Oregonians With Energy Responsibility), to the governor’s desk.
CONTRIBUTIONS TO AFFORDABILITY AND ACCOUNTABILITY
Sarah Wochele, an equity analyst with the Oregon Citizens’ Utility Board, stated that the bill addresses energy affordability, consumer protection, and accountability for large energy consumers. “Last year, Oregon saw record disconnections as residents struggled with soaring energy costs driven partly by data centers,” she explained.
NEW CLASSIFICATION FOR LARGE ENERGY USERS
The legislation creates a new category for energy consumers that use over 20 megawatts (20 million watts) of power, such as data centers and cryptocurrency operations, which will enable them to pay their fair share for electricity usage.
LONG-TERM COMMITMENT REQUIRED
Furthermore, large energy consumers will be required to sign a decade-long contract, ensuring they contribute a minimum amount for their energy usage and for new transmission additions.
SUPPORT AND OPPOSITION FOR THE BILL
The POWER Act is part of a broader legislative initiative for energy affordability and resilience, endorsed by over 50 climate and environmental organizations. However, some opponents have raised concerns that the new costs could deter data centers from establishing operations in Oregon.
IMPACT ON CUSTOMERS
The bill will primarily affect customers of Portland General Electric, Pacific Power, and Idaho Power within Oregon. Currently, large industrial customers of Portland General Electric pay approximately 8 cents per kilowatt-hour, while residential users pay around 20 cents per kilowatt-hour.
