Portland General Electric to Buy PacifiCorp’s Washington Utility Operations, Reports 2025 Results, Sets 2026 Outlook

Transaction would add about 140,000 Washington customers and include generation assets, lines and local utility operations

Portland General Electric (PGE) announced an agreement to acquire select Washington state generation, transmission and electric utility operations and related assets from PacifiCorp for $1.9 billion. The company said the deal is structured with a partnership that includes Manulife Investment Management, through a fund and affiliates that would hold a minority ownership stake in the Washington utility business.

PGE said it plans to operate the Washington business as a separate company through a newly formed subsidiary regulated by the Washington Utilities and Transportation Commission. The company expects state and federal regulatory reviews to conclude about 12 months after regulatory filings are submitted.

Assets in the proposed acquisition

PGE said the agreement covers electric utility operations serving approximately 140,000 customers, along with generation, grid infrastructure and local operations across a defined service footprint in Washington.

• 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).
• Approximately 4,500 miles of transmission and distribution lines.
• Local utility operations across roughly 2,700 square miles.

PGE described the purchase price as equivalent to 1.4 times estimated 2026 rate base for the acquired operations. The company said it expects the transaction to be accretive in the first full year after closing, while also supporting longer-term earnings-per-share and dividend growth expectations.

2025 financial results and factors affecting performance

Alongside the transaction announcement, PGE reported 2025 net income under generally accepted accounting principles (GAAP) of $306 million, or $2.77 per diluted share. After adjustments tied to business transformation and optimization expenses, the company reported non-GAAP net income of $336 million, or $3.05 per diluted share.

PGE attributed part of its operating backdrop to industrial demand growth, stating 2025 industrial demand rose 14% year over year. It also said “historic” fourth-quarter weather reduced earnings by 17 cents per diluted share.

2026 guidance and operational updates

PGE initiated full-year 2026 adjusted earnings guidance of $3.33 to $3.53 per diluted share and reaffirmed its longer-term earnings-per-share growth target of 5% to 7%, using a base of $3.08 per diluted share (the midpoint of the company’s original 2024 adjusted earnings guidance).

In additional operational updates, PGE said that in 2025 and early 2026 it executed five contracts with data center customers totaling 430 MW. The company also said it reached agreements to construct two solar-and-battery hybrid projects totaling 615 MW, with 425 MW to be company-owned.

The proposed acquisition, if approved, would expand PGE’s regulated utility footprint beyond Oregon while creating a separate Washington-regulated subsidiary for the acquired operations.