Portland General Electric to Acquire PacifiCorp Washington Utility Assets for $1.9B
•February 17, 2026
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Why It Matters
The transaction expands PGE’s geographic footprint and renewable mix, strengthening its competitive position in the Pacific Northwest energy market without burdening customers with additional costs.
Key Takeaways
- •PGE buys Washington assets for $1.9 billion
- •Includes gas plant, wind farms, 4,500 mi transmission lines
- •Manulife will own 49% of new Washington subsidiary
- •No cost impact for Oregon or Washington ratepayers
- •Regulatory approval expected within 12 months of filing
Pulse Analysis
Portland General Electric’s $1.9 billion purchase of PacifiCorp’s Washington operations marks the utility’s first major entry beyond Oregon, effectively enlarging its service footprint to roughly 140,000 additional customers. By creating a stand‑alone subsidiary regulated by the Washington Utilities and Transportation Commission, PGE can tailor rates and investments to local conditions while leveraging its existing corporate support functions. The deal also signals a broader trend of regional utilities consolidating assets to achieve economies of scale, especially as they confront tightening emissions standards and the need for resilient grid infrastructure.
The acquired portfolio blends 477 MW of natural‑gas generation with 328 MW of wind capacity, providing PGE a balanced mix of dispatchable and renewable resources. The Chehalis gas plant offers firm power that can back‑up intermittent wind output from the Goodnoe Hills and Marengo I/II facilities, enhancing overall grid reliability for Washington customers. Moreover, the wind assets align with the Pacific Northwest’s aggressive clean‑energy targets, allowing PGE to accelerate its decarbonization roadmap without compromising supply security. The 4,500 mile transmission and distribution network further expands the utility’s ability to integrate future renewable projects across a 2,700‑square‑mile service area.
Financing the transaction relies on a partnership with Manulife Infrastructure Fund III, which will hold a 49 % equity stake in the new Washington subsidiary. This structure provides PGE with capital‑light growth while granting Manulife exposure to a stable, regulated utility asset class that complements its existing Pacific Northwest agriculture and timberland holdings. Regulators have been assured that the acquisition will not translate into higher rates for either Oregon or Washington ratepayers, a commitment that should smooth the approval process. Assuming a 12‑month review timeline, the deal could close by mid‑2025, positioning PGE to capture emerging growth opportunities in the region’s evolving energy market.
Deal Summary
Portland General Electric (PGE) announced an agreement to acquire select Washington state generation, transmission, and electric utility operations from PacifiCorp for $1.9 billion. The transaction includes three generation facilities, 4,500 miles of transmission and distribution lines, and will be run as a separate subsidiary. PGE will partner with Manulife Investment Management, which will hold a 49% stake in the new Washington utility business.
Article
Source: Power Engineering
Portland General Electric Company announced an agreement to acquire select Washington state generation, transmission, and electric utility operations from PacifiCorp for $1.9 billion.
PGE argues the acquisition will enable it to extend its long-standing commitments to reliability, affordability, and economic development for its approximately 140,000 Washington customers.
“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,” said Maria Pope, president and CEO. “We look forward to our partnership with Manulife Investment Management, which brings a track record of investment success across the utility sector and Pacific Northwest agriculture and timberland industries.”
Under 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 acquisition also includes 4,500 miles of transmission and distribution lines, and local utility operations across 2,700 square miles.
PGE will manage the Washington operations as a separate company through a newly formed subsidiary regulated by the Washington Utilities and Transportation Commission. PGE said it will retain current Washington employees and honor the existing labor process, and PGE corporate functions will provide shared support for both Washington and Oregon companies.
PGE also noted that Washington and Oregon customers will not be impacted by costs associated with executing the acquisition and transaction financing. PGE expects the state and federal regulatory reviews of the acquisition to close 12 months after submission of regulatory filings.
Central to this acquisition is PGE’s partnership with Manulife Infrastructure Fund III L.P. and its affiliates, including John Hancock Life Insurance Company (USA), which will collectively be a 49% owner of the Washington utility business. Manulife Investment Management is an investor in infrastructure, agriculture, and timberland, which has managed farms and forests in the Pacific Northwest for more than two decades.
“We are pleased to partner with PGE to support this investment in reliable generation, transmission, and distribution for Washington communities,” said Recep Kendircioglu, Global Head of Infrastructure, Manulife Investment Management. “This partnership represents an opportunity that fits well within our infrastructure strategy and leverages our experience in utility investments.”
Originally published in Factor This.
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