Portland General Electric Company (PGE) has agreed to purchase select Washington state generation, transmission, and electric utility operations from Berkshire‑owned PacifiCorp for $1.9 billion. The deal includes the 477‑MW Chehalis natural‑gas plant, the 94‑MW Goodnoe Hills wind facility, and the 234‑MW Marengo I and II wind facilities, as well as 4,500 miles of transmission and distribution lines and local utility operations covering 2,700 square miles. The acquisition will add roughly 800 MW of generation capacity and about 140,000 Washington customers to PGE’s portfolio.
The transaction expands PGE’s service territory into Washington, a state where it previously had no customers, and is expected to be accretive in the first full year after closing. By adding 800 MW of capacity and 140,000 customers, PGE will broaden its revenue base and reinforce its long‑term earnings and dividend growth prospects, which the company has reaffirmed at 5% to 7% per year.
Financing for the deal is structured through a mix of bridge debt, a $681 million term facility, up to $600 million of equity from Manulife Investment Management, and utility‑level debt. Manulife will hold a 49% minority stake in the Washington utility business, providing both capital and a strategic partnership for the expansion.
PacifiCorp’s decision to sell these assets stems from liquidity concerns and extraordinary pressure caused by wildfire litigation. Potential damages from the litigation could reach $52 billion, prompting the company to simplify operations and improve financial stability. The sale allows PacifiCorp to focus on its core markets while providing PGE with a strategic entry into Washington.
PGE’s 2025 financial performance provides context for the acquisition. GAAP net income was $306 million, or $2.77 per diluted share, compared with $313 million, or $3.01 per diluted share, in 2024. Q4 2025 earnings of $0.47 per diluted share missed analyst expectations of $0.72 by 34.7%, a miss attributed to a 17‑cent weather impact that offset 14% year‑over‑year industrial demand growth. The company has guided 2026 adjusted earnings per diluted share to $3.33–$3.53 and reaffirmed its long‑term EPS growth target of 5% to 7%.
"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 of PGE. "This is a targeted step toward ensuring the continued delivery of safe, reliable power to our nearly two million customers in the West and Intermountain West. This will improve the company's financial stability while simplifying our operations to support our long‑term…" said Darin Carroll, CEO of PacifiCorp. PacifiCorp leaders added, "Diverging policies among the six states PacifiCorp serves have created extraordinary pressure, affecting the company's ability to meet demand reliably and at the lowest cost to customers. These challenges have impacted the company's financial stability, liquidity and credit ratings."
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