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Wow Pacificorp selling Washington utility assets to Portland Electric for $1.9 billion.
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PORTLAND, Ore.--(BUSINESS WIRE)--PacifiCorp today 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.
The agreement outlines the sale of PacifiCorp’s assets, including the Chehalis thermal plant, Marengo wind facility, Goodnoe Hills wind facility and the distribution infrastructure required to serve customers in the current Pacific Power service area in Yakima, Walla Walla and surrounding communities.
“This is a targeted step toward ensuring the continued delivery of safe, reliable power to our nearly two million customers in the West and Intermountain West,” said Darin Carroll, PacifiCorp’s CEO. “This will improve the company’s financial stability while simplifying our operations to support our long-term commitment to customers in each of our remaining states.”
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.
“This transaction will better align the costs, benefits and obligations across PacifiCorp’s diverse service areas and help create a more workable multistate utility structure,” said Carroll.
The transaction is expected to take up to a year to finalize, and both companies anticipate a seamless transition for Washington employees.
PacifiCorp remains deeply committed to the communities it serves. PGE is positioned to continue growth and investment in the region and will continue to provide reliable service and maintain a strong focus on customer satisfaction in Washington.
