Earlier this week, PacifiCorp announced it has entered into an agreement with Portland General Electric Company (NYSE: POR) to sell its wind, natural gas generation and distribution assets and infrastructure in the state of Washington for $1.9 billion, subject to customary purchase price adjustments.
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 acquisition also includes 4,500 miles of transmission and distribution lines, and local utility operations across 2,700 square miles.
The acquisition will enable PGE to extend its long-standing commitments to reliability, affordability, economic development and a customer-centric approach to approximately 140,000 Washington customers. “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,” said Maria Pope, president and CEO. “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.”
Diverging policies among the six states PacifiCorp serves have created extraordinary pressure, affecting the company’s ability to meet demand reliably and at the lowest cost to customers. These challenges have impacted the company’s financial stability, liquidity and credit ratings. The sale will be a critical step in strengthening PacifiCorp’s financial position and simplifying operations across its service area.
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