The Real Story- A Column by Dirk Knudsen

Oregon’s POWER Act, in plain English

FOX 12 ran a news story today that has people talking about how their power rates are going to come down!! Well, not so fast. That is not going to happen anytime soon. The struggle for all residential users is to avoid having their rates double again in the next five years – something we are all reeling from nowadays.

Oregon Data Centers May Have To Start Paying Their Way

Let’s dig deeper than Fox 12 did.

The Oregon Power Act was signed into law by Governor Tina Kotek. What it is.
House Bill 3546 (the POWER Act) is now law in Oregon. It instructs the Public Utility Commission (PUC) to establish a separate rate class for very large electricity users—notably data centers and large cryptocurrency operations—so that the grid and power-supply costs they generate are charged to them, rather than being spread to everyone else.

Why does it exist?
Rapid data-center growth has necessitated the installation of expensive new feeders, substations, transmission lines, and firm power sources. Without a dedicated class, utilities have been recovering portions of those costs from all customers, including residential users. Legislative materials cite about $210 million in PGE local transmission upgrades for data-center load that were being shared across ratepayers.

Who’s covered?
The law targets “large energy-use facilities,” with reporting and coverage framed around users >20 MW (data centers/crypto and similar). The PUC is now reviewing details of the final tariffing mechanics. opb+2opb+2

What changes on my bill now?
Nothing immediate. The Legislature sets the framework; the details are set in the upcoming PUC proceedings. The expectation: costs to serve new or expanding hyperscale loads shift onto those loads, which should reduce future cross-subsidies that have contributed to rising residential rates. That’s more of a “prevent bigger hikes” than a bill cut today.

How the press has summarized it.
Coverage consistently indicates that data centers will face a new, likely higher rate, and that “how much more” will be determined in PUC rate cases. That remains to be seen.

Quick Q&A for readers

Will my bill go down?

No, not right away. The law is designed to stop or shrink future increases that would otherwise fall on households by assigning big-load costs to big users. Actual bill impacts come after the PUC sets the tariff. Oregon

Why single out data centers?
Because they’re extraordinarily power-intensive and drive major grid investments. Regulators and advocates argued that those costs were being socialized onto everyone else. The Legislature’s record includes the $210M PGE upgrades example as justification for a distinct class.

Is the law already in effect?
Yes. Signed June 16, 2025 (Chapter 323, 2025 Laws); the Governor held a ceremonial signing on Aug 25, 2025.

Deeper Investigatiob is Available at:

OPB explainer & passage coverage (scope, >20 MW, PUC will decide “how much more”). opb+1
Oregon CUB summary (separate class to end cross-subsidies from households). Oregon CUB+1
Oregon PUC 2025 Legislative Report (PUC directed to create the class and implement). Oregon
Statesman Journal (new, likely higher rate for data centers). Statesman Journal
Legislative/PUC filings citing $210M PGE upgrades for data-center load.

Data Center rooftop cooling units in Hillsboro, Oregon, use a massive amount of power and water. Hillsboro Herald Photo

The Herald Analysis:

Here is the real problem with all of this:

This ACT, while a start, is merely a way for us as citizens to plead with Data Centers to stop punishing us; it feels like we are begging someone to stop beating us down.
It is positioned from a place of weakness. The Bill fails to recognize the immense power the State of Oregon and the people of Oregon have over the PUCs, the power companies, and the Data Centers.
Residential ratepayers already pay 300% more than Data Centers do for power —and this bill does nothing to address that. The fact is we should all pay the same rate for Power, and Data Centers should be paying 100% of all the costs being incurred to increase our power grid. Why are we paying for that anyway?
Lastly, this bill does nothing to address the Billions in property tax giveaways that Data Centers are given.