Portland General Electric Company announced it has agreed to acquire select Washington state generation, transmission, and electric utility operations from PacifiCorp for $1.9 billion, a transaction representing a purchase price multiple of 1.4x the estimated 2026 rate base. The deal will expand PGE’s customer base to approximately 140,000 in Washington and is expected to be accretive in the first full year after closing, enhancing long-term earnings per share and dividend growth.
As part of the transaction, PGE is partnering with Manulife Investment Management, including Manulife Infrastructure Fund III, L.P. and affiliates such as John Hancock Life Insurance Company (USA), which will hold a minority ownership stake in the Washington utility business.
Under the agreement, PGE will acquire 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). The deal also includes approximately 4,500 miles of transmission and distribution lines and utility operations spanning 2,700 square miles.
PGE plans to operate the Washington assets through a newly formed subsidiary regulated by the Washington Utilities and Transportation Commission. The company expects state and federal regulatory reviews to conclude approximately 12 months after filing.
In addition to the acquisition announcement, PGE reported full-year 2025 GAAP net income of $306 million, or $2.77 per diluted share, compared to $313 million, or $3.01 per diluted share, in 2024. On a non-GAAP basis, which excludes business transformation and optimization expenses, 2025 net income totaled $336 million, or $3.05 per diluted share, versus $327 million, or $3.14 per diluted share, in 2024, which excluded January 2024 winter storm costs.
Fourth-quarter 2025 GAAP net income was $41 million, or $0.36 per diluted share, compared to $39 million, or $0.36 per diluted share, in the prior-year period. Non-GAAP net income for the quarter was $53 million, or $0.47 per diluted share.
Total revenues increased year over year, supported by continued demand growth from data center and high-tech customers and improved cost recovery. Industrial demand rose 14% year over year in 2025. Purchased power and fuel expense declined slightly amid stable market conditions and lower commodity prices, while depreciation, amortization and interest expense increased due to capital investments.
Looking ahead, PGE reaffirmed its long-term earnings per share growth target of 5% to 7%, using a base of $3.08 per diluted share, the midpoint of its original 2024 adjusted earnings guidance. The company initiated full-year 2026 adjusted earnings guidance of $3.33 to $3.53 per diluted share.
Guidance assumptions include 2.5% to 3.5% weather-adjusted energy delivery growth, operating and maintenance expense between $820 million and $840 million, depreciation and amortization expense between $560 million and $580 million, an effective tax rate of 15% to 20%, cash from operations of $1,000 million to $1,200 million, and capital expenditures of $1,655 million.
PGE also highlighted resource procurement activity. Following its 2023 all-source request for proposals, the company reached agreements to construct two solar and battery hybrid projects totaling 615 MW. These include the Biglow Optimization project in Sherman County, Oregon, comprising a 125 MW solar facility and a 125 MW battery energy storage system, and the Wheatridge Expansion in Morrow County, Oregon, where PGE will own 110 MW of solar and 65 MW of battery storage capacity. The Wheatridge project will be operated in part by NextEra Energy, Inc. under a 30-year power purchase agreement.
Additionally, PGE entered into 20-year storage capacity agreements for the 200 MW Meadowlark battery project in Washington County, Oregon, owned by Copenhagen Infrastructure Partners, and the 200 MW Nottingham battery project, also located in Washington County.
KEY QUOTES
“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. We look forward to our partnership with Manulife Investment Management, who brings a track record of investment success across the utility sector and Pacific Northwest agriculture and timberland industries.”
Maria Pope, President and CEO, Portland General Electric Company
