Key Points:
- Portland General Electric is buying PacifiCorp’s Washington assets for $1.9 billion.
- The deal includes wind and gas plants plus 4,500 miles of power lines.
- Manulife Investment Management will provide up to $600 million in funding.
- PacifiCorp is selling assets to strengthen its finances amid wildfire lawsuits.
Portland General Electric reached an agreement on Tuesday to purchase a major collection of energy assets from PacifiCorp. The deal, valued at $1.9 billion, involves infrastructure located in Washington state. This purchase expands Portland General’s reach and adds significant hardware to its network.
The package includes three power generation facilities that run on wind and natural gas. Beyond the power plants, Portland General takes ownership of 4,500 miles of transmission and distribution lines. These lines cover a service area of about 2,700 square miles and currently deliver electricity to roughly 140,000 customers.
To help pay for this massive acquisition, Portland General is teaming up with Manulife Investment Management. Manulife plans to contribute up to $600 million toward the purchase price. In return for this cash, the investment firm will hold a minority ownership stake in the Washington utility business.
PacifiCorp is a unit of Berkshire Hathaway Energy, the massive firm owned by Warren Buffett. While they serve 2 million customers across six western states, the company has faced significant financial pressure recently. PacifiCorp is dealing with billions of dollars in legal claims linked to wildfires in Oregon and California during 2020 and 2022.
Late last year, PacifiCorp warned investors that these lawsuits could cause a shortage of cash. Selling these Washington assets allows the company to bring in money quickly. PacifiCorp stated that this move is a critical step to fix its financial position and simplify how it operates across its remaining territories.
Both companies call Portland, Oregon, their home base. They view this transfer as a logical step for both sides. Executives expect the regulatory process and final paperwork to take up to a year before the deal officially closes.
