Home / Business and Economy / PGE Buys PacifiCorp Assets for $1.9B
PGE Buys PacifiCorp Assets for $1.9B
17 Feb
Summary
- Portland General Electric acquired PacifiCorp's Washington assets for $1.9 billion.
- The deal includes generation facilities and 4,500 miles of transmission lines.
- PacifiCorp cited diverging state policies as a reason for the sale.
Portland General Electric has announced a significant $1.9 billion agreement to purchase PacifiCorp's generation and distribution assets located within Washington state. This strategic acquisition encompasses three generation facilities and an extensive network of 4,500 miles of transmission and distribution infrastructure.
The deal also includes PacifiCorp's local utility operations, which serve around 140,000 customers across a 2,700-square-mile service area. Manulife Investment Management is providing financial backing for this transaction, securing a minority stake in the newly acquired Washington utility business.
PacifiCorp, a unit of Berkshire Hathaway, indicated that the sale is a crucial step in streamlining its operations and improving its financial standing. The company has faced challenges due to inconsistent regulatory policies across the six states it operates in, impacting its financial stability and credit ratings.
Both Portland General Electric and PacifiCorp anticipate that the completion of this transaction will take approximately one year. This move is expected to reshape the energy landscape in Washington.
