Salem, Oregon – Oregon’s next big fight over data centers may not begin inside a server farm. It may begin with a power bill on a kitchen table.
On July 7, the Oregon Public Utility Commission is set to consider the first rate-change proposal under the Protecting Oregonians With Energy Responsibility Act, better known as the POWER Act.
For Gov. Tina Kotek, the case is a test of a simple question: when huge energy users place new pressure on the electric grid, should families and small businesses help carry the cost, or should those large users pay more of it themselves?
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Kotek used a press conference this week to push the point directly, calling on regulators to deliver energy affordability and fairness for Oregonians. The POWER Act, which she signed in 2025, was written to protect residential and smaller commercial customers from rising electricity costs tied to data centers and other large energy users.
“Too many Oregonians are struggling with high energy bills,” Governor Kotek said.
“The POWER Act ensures that households and small businesses – not data centers – come first. By requiring large energy users to pay their fair share of the costs they impose on the electric grid, we are taking concrete steps to keep electricity reliable and affordable for Oregonians.”
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The first proposal now before the PUC would raise rates for large data centers by 29% while lowering rates for most residential and other business customers. The change is not being presented as a one-time fix to Oregon’s broader energy cost problem.
Instead, supporters describe it as a new rule of the road for a state where electricity demand from data centers is growing fast enough to force expensive grid planning, new infrastructure, and sharper questions about who benefits and who pays.
The law directs the PUC to create rates for data centers and other large users that reflect the real costs they place on the electric system. That means the cost of serving those users is supposed to stay with them, not slide quietly onto the bills of households, small businesses, and older residents living on fixed incomes.
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Supporters framed the moment as larger than one regulatory vote. Nora Apter, Oregon Director of Climate Solutions, said the issue touches both affordability and the state’s clean-energy future.
“Today is about something that matters to every Oregonian: keeping electricity affordable while building the reliable, clean energy system our future depends on,” Apter said.
“The POWER Act puts us on a different path by establishing a simple principle: data center growth shouldn’t come at the expense of Oregon families or our clean energy future. Oregon was the first state in the nation to adopt this kind of framework. That is innovative leadership worth celebrating.”
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The affordability argument has become sharper as data centers expand in Oregon and across the country. These facilities support the digital economy, but they also use large amounts of power and can require major utility investments.
According to reporting on the proposal, large data centers on Portland General Electric’s grid would see the 29% increase, while residential customers could see bills drop by about 1.6% if the change is approved. Data centers reportedly account for about 5.6% of PGE’s electricity load now, with expectations that their share could grow to roughly 15%.
Bob Jenks, executive director of the Citizens’ Utility Board, said the shift is overdue.
“I’m sure the data centers won’t be happy with the rate hikes they’ll see under the POWER Act, but this is what’s right for Oregonians,” Jenks said.
“Asking Oregonians who are on the front line of energy affordability to pay the costs our utilities incur to serve data centers is unacceptable. With the POWER Act, Oregon has rejected that idea.”
For many households, the debate is not abstract. It is rent, groceries, medication and heat. Bandana Shrestha, state director of AARP Oregon, said that older Oregonians can be hit especially hard when utility bills rise.
“For most people, a utility bill may be just another monthly expense. But for many older Oregonians, especially those living on fixed incomes, it can mean cutting down on food or skipping lifesaving medication to keep the lights on,” Shrestha said.
“Utility affordability matters. Fairness matters. AARP supports the POWER Act because it establishes a straightforward consumer protection principle: that the costs and risks created by large electricity users should be borne by those users, not shifted to working families and older Oregonians.”
The July 7 PUC meeting will be the first major test of that principle. If approved, the proposal would show how the POWER Act moves from statute to actual bills, setting a possible model for future cases involving large energy users. Kotek has also signaled that more state action on data centers could follow, including broader discussions around grid capacity, water use, jobs and tax incentives.
For now, the state’s message is clear: Oregon still wants a reliable, modern energy system. But under the POWER Act, the biggest users are being told they cannot build their future on someone else’s monthly bill.
