Since Oregon’s early statehood, our communities have valued careful planning and fair cost allocation while balancing resource use, industry growth and sustainability.
We face challenges in managing our energy future to accommodate growth and innovation while ensuring fairness. The growth of electricity demand from data centers and other large industrial users raises valid concerns about equitably upgrading the electric grid.
House Bill 3546, the POWER Act, attempts to address these challenges by creating a new rate class specifically for data centers. Though well-intentioned, this approach sets a troubling precedent by targeting one industry and burdening state agencies with designing a discriminatory rate class. It also risks chilling Oregon investments by other high-load sectors.
Utility rate-setting should maintain reasonable and non-discriminatory rates for all customers. The legislation’s narrow focus is misguided. Instead, lawmakers should adopt a measured, sector-neutral approach that maintains regulatory flexibility without creating rigid categories that undermine economic competitiveness.
Oregon’s current rate structure ensures customers pay their fair share of electricity costs. With demand increasing across transportation, manufacturing and residential sectors, cost allocation policies should address evolving system needs without targeting specific industries.
However, energy policy should not just be about cost allocation – it should also encourage large-scale investments in clean energy. Data centers are among the few industries actively investing in renewable energy, such as wind, solar and hydroelectric power.
Legislators should reconsider the narrow approach of HB 3546. Oregon’s energy future – and its position as a hub for clean industry and innovation – depends on getting this right.
Skip Newberry, Portland
Newberry is president and CEO of the Technology Association of Oregon.
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