Portland General Electric announced on February 17, 2026, that it will acquire PacifiCorp’s Washington state electric utility operations for $1.9 billion, partnering with Manulife Investment Management on the deal. The Oregon-based utility made the disclosure alongside its full-year 2025 financial results and initial earnings guidance for 2026.
PGE acquires PacifiCorp’s Washington operations for $1.9 billion
Under the agreement, PGE picks up three generation facilities as part of the transaction. Manulife Investment Management is co-investing, while PGE takes the wheel on managing the Washington utility operations once the deal closes.
That gives PGE a real foothold north of the Oregon border — a new state, a broader service territory, and a customer base it didn’t have yesterday. Lazard served as lead financial advisor and provided a fairness opinion on the transaction.
Why PGE is expanding into Washington state
The move into Washington isn’t random. Industrial demand in PGE’s existing territory has grown at a 10% compounded annual growth rate from 2020 to 2025, pushed largely by data center and high-tech customers—and PGE expects that pace to hold through 2030.
In 2025 and early 2026 alone, PGE signed five contracts with data center customers totaling 430 MW. That’s a lot of new load in a short window. Washington gives PGE more room to absorb it, and the acquisition fits squarely into the company’s long-term goal of delivering 5% to 7% earnings per share growth annually.
2025 financial results reflect demand growth offset by severe heat
PGE posted full-year 2025 GAAP net income of $306 million, or $2.77 per diluted share — a step back from $313 million, or $3.01 per diluted share, in 2024.
On a non-GAAP adjusted basis, earnings came in at $3.05 per diluted share. That figure strips out business transformation and optimization expenses, which totaled $42 million before taxes. Industrial demand grew 14% year-over-year, a clear win, but historic fourth-quarter heat hit results hard, shaving 17 cents per share off earnings.
Total revenues rose to $3.576 billion in 2025, up from $3.440 billion in 2024. Data center and high-tech customers drove much of that growth, alongside improved cost recovery. Purchased power and fuel expense dipped slightly, while depreciation, amortization, and interest expense climbed due to ongoing capital investment.
New solar and battery projects totaling 615 MW secured
PGE wrapped up a competitive bidding process under its 2023 Request for Proposals and landed agreements for two solar-and-battery hybrid projects totaling 615 MW, with 425 MW to be company-owned.
The first, Biglow Optimization, pairs a 125 MW solar facility with a 125 MW battery energy storage system in Sherman County, Oregon. PGE estimates the investment at roughly $540 million, excluding AFUDC, with commercial operation targeted for the end of 2027.
The second project, Wheatridge Expansion, sits in Morrow County, Oregon — a 240 MW solar facility combined with 125 MW of battery storage. PGE will own 110 MW of solar and 65 MW of battery capacity, investing approximately $490 million excluding AFUDC. NextEra Energy will operate the full facility, own the remaining capacity, and sell its portion to PGE under a 30-year power purchase agreement. Commercial operation is also targeted for the end of 2027.
PGE initiates 2026 earnings guidance and reaffirms long-term growth targets
PGE is initiating full-year 2026 adjusted earnings guidance of $3.33 to $3.53 per diluted share and reaffirming its 5% to 7% long-term earnings per share growth target.
Energy deliveries are expected to grow between 2.5% and 3.5% on a weather-adjusted basis in 2026, reflecting continued expansion of the industrial and data center customer base. Capital expenditures for 2026 are projected at $1.655 billion, with cash from operations forecast in the $1.0 to $1.2 billion range.
So here’s where things stand: PGE is making a major geographic bet with its $1.9 billion acquisition of PacifiCorp’s Washington operations, with Manulife Investment Management along for the ride. Its 2025 results showed strong industrial demand growth, though brutal fourth-quarter weather weighed on GAAP earnings. Two new Oregon solar-and-battery projects totaling 615 MW are set to come online by the end of 2027. With 2026 guidance of $3.33 to $3.53 per adjusted diluted share, PGE is signaling confidence in where this is all heading.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
