Portland General Electric (PGE) has agreed to acquire selected generation, transmission and electric utility operations in Washington from PacifiCorp for $1.9 billion, including a portfolio of renewable energy assets.
The transaction also includes agreements to develop two solar-plus-storage hybrid projects totaling 615 MW alongside several existing facilities.
PGE plans to build the Biglow Optimization project, comprising 125 MW of solar and 125 MW of battery energy storage in Sherman County, Oregon, with an expected investment of about $540 million.
The utility will also develop the Wheatridge expansion in Morrow County, Oregon, featuring 240 MW of solar and 125 MW of battery storage. The project is expected to reach commercial operation by the end of 2027.
Under the Wheatridge structure, PGE will own 110 MW of solar capacity and 65 MW of battery storage, investing roughly $490 million. NextEra Energy will operate the facility, own the remaining 130 MW of solar and 60 MW of storage, and sell its share of output to PGE under a 30-year power purchase agreement.
The acquisition package also includes the existing 94-MW Goodnoe Hills wind facility and the 234-MW Marengo I and II wind projects.
In addition, PGE will take over about 4,500 miles of transmission and distribution lines and local utility operations spanning roughly 2,700 square miles. The Washington operations will be managed as a separate company through a newly formed subsidiary regulated by the Washington Utilities and Transportation Commission.
PGE said it expects state and federal regulatory reviews to conclude about 12 months after filings are submitted.
Lazard acted as lead financial adviser and provided a fairness opinion to PGE. Barclays, J.P. Morgan and Citi also advised the utility, while Latham & Watkins served as legal counsel.
