OR — Power Infrastructure Updated 2026-07-17

Oregon

WECC Solar Wind Storage Data Center PPAs Queue Bottlenecks Transmission Constraints

1) Grid operator and market structure

  • Reliability region / grid operator: Oregon is in the WECC Northwest (WECC-NW) assessment area of the Western Interconnection. WECC-NW explicitly includes Oregon. [1]
  • Balancing authority: BPA provides Balancing Authority Area services for generators operating within BPA’s BAA on the Federal Columbia River Transmission System (FCRTS). [2]
  • Retail market structure: Oregon is regulated but allows direct access for nonresidential customers; an electricity service supplier can provide generation/transmission while the local utility remains the distribution provider. [3] [4]
  • Market evidence: EIA’s Oregon profile shows most retail sales are still by full-service providers rather than energy-only providers, indicating limited retail choice penetration. [5]

2) Interconnection queue

  • Queue owner and process: BPA’s interconnection process is governed by its OATT and publishes a queue for interconnection requests to the FCRTS. [6]
  • Queue depth (BPA): The BPA queue workbook downloaded on 2026-07-17, with workbook timestamp 2026-07-17 12:00:36, lists 1,462 total requests; 363 are active when active is defined as RECEIVED, STUDY, or CONST AGRMT EXE. Calculated from BPA’s InterconnectionQueueOutput.xlsx (Bonneville Power Administration, 2026-07-17).
  • Oregon-specific depth: Using the workbook’s explicit State = OR field, the July 17 queue has 707 Oregon entries, 172 active; the active entries average approximately 1,500 days (4.10 years) old, with a 73-day minimum and 4,743-day maximum (ages computed from request dates to 2026-07-17). This strict state-field count excludes Oregon projects whose state field is blank, including some named PARS load requests, so it should not be read as a complete count of every Oregon-connected request (Bonneville Power Administration, 2026-07-17).
  • Data-center-specific and large-load requests (Oregon): BPA queue entries include:
  • New May-June 2026 large-load entries: The five RECEIVED large-load “PARS” requests added in late May in Columbia and Washington counties total 760 MW. The July 17 workbook also contains a 300 MW Yamhill County request dated June 18 and a 680 MW Clatskanie/Columbia County request dated June 24, bringing these seven recent Oregon PARS requests to 1,740 MW. None is labeled as a data center in the workbook, so they are evidence of large-load interconnection pressure rather than confirmed data-center projects (Bonneville Power Administration, 2026-07-17).
  • Interconnection reforms:
    • BPA is transitioning large generator interconnections from serial studies to a cluster study process (TC-25), ending individual feasibility/SIS processing after June 30, 2024. [7]
    • BPA issued its Phase One cluster study on January 30, 2026 for 167 requests, then reported on June 2 that 138 customers had re-demonstrated readiness and that BPA needed additional time to decide whether to perform a cluster restudy; BPA targeted July 14 for that decision (Bonneville Power Administration, 2026-01-30; Bonneville Power Administration, 2026-06-02).
    • FERC Order No. 2023 and Order No. 2023-A require interconnection process reforms for transmission providers, including cluster studies and readiness requirements. [8] [9]
    • Oregon PUC’s 2026 PGE Schedule 96 order adds an Oregon-specific service constraint for data centers: a Schedule 96 data center can be energized only once PGE has sufficient emissions-free generation available to serve the customer without hindering HB 2021 compliance, unless the customer uses direct access, a special contract, or another approved arrangement (Oregon PUC Order No. 26-154, 2026-05-07).

3) Ratepayer protection (large-load tariffs / cost allocation)

Oregon PUC has moved from investigation to implementation for PGE and continues related large-load proceedings for PacifiCorp:

  • HB 3546 / POWER Act implementation: HB 3546 created a separate Oregon rate classification for large energy use facilities capable of using 20 MW+ and primarily engaged in NAICS 518210 data processing, hosting, and related services (Oregon Legislative Information System, 2026-06-10).
  • UM 2377 / Order No. 26-154 (PGE Schedule 96): On 2026-05-07, the Oregon PUC approved PGE’s new data-center service classification, Schedule 96, and associated Rule I revisions. Core protections include 90% minimum transmission and generation demand billing tied to contracted capacity, a distribution charge intended to recover 100% of distribution-system expansion costs, exceedance penalties, minimum contract lengths, exit fees, and reporting requirements (Oregon PUC Order No. 26-154, 2026-05-07).
  • Large-load cost-allocation threshold: Order No. 26-154 lowered the large-load cost-allocation threshold to 20 MW across PGE Schedules 89, 90, and 96, aligning the tariff mechanics with POWER Act scale (Oregon PUC Order No. 26-154, 2026-05-07).
  • 100 MW surcharge: Schedule 96 includes a 1 cent/kWh surcharge for customers with 100 MW or more allocated system capacity, with revenues directed toward non-cost-effective energy efficiency, repairs, and distributed resources to reduce energy burden (Oregon PUC Order No. 26-154, 2026-05-07).
  • PGE Schedule 96 rates now effective: After suspending PGE’s implementation filing for review in Order No. 26-206, the Commission approved the rate changes on July 7, effective July 8. PGE’s data-center customers received an average 29% increase; PGE residential customers received an average 1.3% decrease, commercial customers 2.1%, and other industrial customers 1.4%. The final decision also implemented the targeted energy-assistance charge and large-load connection rules (Oregon PUC Order No. 26-206, 2026-06-09; Oregon PUC, 2026-07-07).
  • UE 424, UE 430, UE 433, UE 435: Earlier Oregon PUC large-load dockets addressed line-extension allowances, connection-cost allocation, excess-demand / capacity-reservation charges, and flat-load customer cost responsibility. The PUC’s large-load page continues to identify data centers, AI, and industrial development as central drivers of the docket activity. [10]
  • PacifiCorp / Pacific Power (UE 463): PacifiCorp’s Advice No. 25-015 proposing Schedule 401 for new large-energy-use facilities remains suspended in an active contested case. Staff and intervenor rebuttal/cross-answering testimony was filed July 9; the schedule calls for PacifiCorp surrebuttal July 28, a hearing August 26, briefs in September, a target final order October 26, and a statutory/effective date of November 1, 2026 (Oregon PUC eDockets, 2026-07-17).
  • Water-use reporting remains outside this PUC order: In Order No. 26-154, the Commission declined to require data-center water-use reporting in the PGE tariff proceeding, noting that water-use questions are outside the PUC’s utility-rate authority and are being addressed by other agencies/processes (Oregon PUC Order No. 26-154, 2026-05-07).

4) Generation adequacy (projects, storage, shortfalls)

  • Adequacy outlook: NERC’s 2024 LTRA for WECC-NW reports that anticipated reserve margin falls below the reference margin level starting summer 2031; shortfalls of existing-certain and net firm transfers begin summer 2029; ~5 GW of baseload retirements are expected in 2024-2028; and summer peak grows from ~66.4 GW in 2024 to ~78.8 GW in 2034. [1]
  • Major projects serving future load:
    • Sunstone Solar Project (Morrow County): Proposed 1,200 MW solar PV with up to 7,200 MWh BESS; includes substations and a 230 kV line. [11]
    • Wheatridge Renewable Energy Facility East (Morrow/Umatilla): 300 MW wind with 30 MW BESS; under construction. [12]
  • Utility-scale storage pipeline: ODOE reported 56 MW operating, 2.4 GW approved but not built, and 4.7 GW under review for state-jurisdiction storage facilities as of July 2025. [13]
  • Gas-infrastructure concern (non-regulatory report): Columbia Riverkeeper released a June 2026 advocacy report arguing that unrestrained data-center growth in Oregon and Washington could add 65 million MWh of demand and catalyze new methane-gas power plants and Northwest Pipeline expansions. This is an environmental-advocacy assessment, not an Oregon PUC finding (Columbia Riverkeeper, 2026-06-01).

5) Utility load forecasts (data center demand in IRPs)

  • PGE CEP/IRP (2023): PGE cites significant localized load growth from data centers and notes industrial growth in semiconductor and data center segments, making data centers a material driver in its planning environment. [14]
  • PGE’s updated 2026 large-load outlook: As of January 31, PGE reported executed 2025 and 2026 year-to-date contracts with five data-center customers totaling 430 MW, plus another 1.7 GW of incremental large-load requests through 2028 and 2032. Its planning assumptions show roughly 10% long-term load growth from data center/high-tech customers from 2025-2030, contributing to approximately 3% total company load growth through 2030; PGE cautions that the pipeline depends on customers meeting contractual and readiness milestones (Portland General Electric SEC filing, 2026-05-12).
  • PUC investigations link load growth to data centers: Oregon PUC’s Large Customer Demand page explicitly identifies data centers/AI/industrial development as key drivers of accelerated load growth and a focus of regulatory planning/cost allocation dockets. [10]
  • Governor’s Data Center Advisory Committee: The committee’s June 26 meeting covered the POWER Act, energy affordability, public revenue, and incentives. No final recommendations have been adopted; the schedule calls for a July 31 meeting and August 4 draft-report deliberation before an October 2026 final report (Oregon Department of Energy, 2026-07-17; Oregon Department of Energy facilitator summary, 2026-06-26).
  • Federal technical-assistance application: ODOE sought retroactive legislative authorization for its January 30 application to the U.S. Department of Energy’s CARLA program for up to $4.3 million in technical assistance on large-load siting, supply, interconnection, and cost allocation. The February legislative document recommended approval of the application; it does not establish that Oregon received an award (Oregon Legislative Fiscal Office, 2026-02).
  • La Pine load proposal ended: On May 27, the La Pine City Council unanimously ended consideration of the industrial-land sale for Boxminer’s proposed 20 MW data center, after staff found unsupported or materially discrepant power-revenue, franchise-fee, and job projections. It should therefore not be counted as an active Central Oregon large-load project (City of La Pine Council minutes, 2026-05-27).

6) Behind-the-meter / co-location / direct PPAs

  • Behind-the-meter / customer-sited resources: PGE’s CEP/IRP states that significant transmission constraints increase the role of customer-sited resources, demand response, and energy efficiency. [14]
  • Direct PPAs to serve data centers: Avangrid signed a PPA with Google for more than 100 MW from Leaning Juniper IIB in Gilliam County, with Northern Wasco PUD delivering power to Google’s data centers in The Dalles. [15]
  • Special contracts under Schedule 96: The 2026 PGE tariff order preserves case-by-case pathways for special contracts, direct access, or other arrangements that could let large customers directly support emissions-free resources and potentially improve interconnection timelines (Oregon PUC Order No. 26-154, 2026-05-07).
  • PGE/data-center flexibility pilots: PGE reported an Aligned Data Centers/Calibrant project pairing a 31 MW / 62 MWh customer-paid battery with grid integration, an NVIDIA/Emerald AI/EPRI demand-response test, and GridCARE analysis that identified more than 80 MW of capacity on existing infrastructure. These are pilot or planning measures, not substitutes for the tariff’s readiness and cost-allocation requirements (Portland General Electric presentation to the Data Center Advisory Committee, 2026-05-29).
  • FERC large-load/co-location action has limited direct Oregon scope: On June 18, FERC ordered all six RTOs/ISOs under its jurisdiction to justify or reform tariff rules for large-load interconnection, cost shifting, co-location, behind-the-meter generation, and flexible service. The orders do not directly govern BPA, PGE, or PacifiCorp as Oregon balancing authorities/utilities; CAISO is the only named Western RTO, so any Oregon effect is indirect through regional markets and transmission relationships (FERC, 2026-06-18).

7) Transmission constraints and upgrades

  • Constraints: PGE’s CEP/IRP highlights significant transmission constraints that increase reliance on customer-sited resources and demand-side measures. [14]
  • Major upgrades affecting Oregon data center siting:
    • Boardman to Hemingway (B2H) 500-kV line: ~270.8 miles across five Oregon counties; approved/under construction with work in Malheur County beginning June 2025 and continuing through 2027. [16]
    • BPA North of Marion Upgrade #2: Rebuilds Pearl-Marion 500 kV, Oregon City-Chemawa 115 kV river crossing, and adds a transformer at Chemawa. [17]

Sources

[1] NERC, 2024-12

[2] Bonneville Power Administration, 2026-06-10

[3] Oregon PUC, 2026-06-10

[4] Oregon Secretary of State, 2026-06-10

[5] U.S. Energy Information Administration, 2026-06-10

[6] Bonneville Power Administration, 2026-06-10

[7] Bonneville Power Administration, 2026-06-10

[8] FERC, 2026-06-10

[9] FERC, 2026-06-10

[10] Oregon PUC, 2026-06-10

[11] Oregon Energy Facility Siting Council, 2024-11-14

[12] Oregon Energy Facility Siting Council, 2024-09-19

[13] Oregon Department of Energy, 2025-07-24

[14] Portland General Electric, 2023-06-30

[15] American Public Power Association, 2021-09-27

[16] Oregon Department of Energy, 2026-06-10

[17] Bonneville Power Administration, 2024-10-17

[18] Bonneville Power Administration, 2026-07-17

[19] Oregon PUC Order No. 26-154, 2026-05-07

[20] Oregon PUC, 2026-05-07

[21] Oregon Legislative Information System, 2026-06-10

[22] OPB, 2026-06-04

[23] MGRID, 2026-06-09

[24] Columbia Riverkeeper, 2026-06-01

[25] Oregon Department of Energy, 2026-06-10