PacifiCorp has agreed to offload its wind, natural gas generation and distribution assets in Washington, US, to Portland General Electric (PGE) in a transaction valued at $1.9bn.
This sale is subject to standard adjustments to the purchase price.
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The agreement includes significant facilities such as the Chehalis thermal plant and the Marengo and Goodnoe Hills wind farms.
The transaction also involves the distribution infrastructure that supports customers in Yakima, Walla Walla and nearby areas currently served by Pacific Power.
PacifiCorp’s decision to sell is driven by increasing challenges related to varying regulatory policies in the six states where it operates.
These challenges have put pressure on PacifiCorp’s ability to provide reliable and cost-effective service, impacting its financial health, liquidity and credit ratings.
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By GlobalDataPacifiCorp CEO Darin Carroll said: “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.
“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.”
The sale is part of PacifiCorp’s strategy to enhance its financial stability and streamline operations across its service regions.
The completion of this transaction is expected to take around a year. Both companies are working towards ensuring a smooth transition for employees in Washington.
PacifiCorp has stated its ongoing commitment to the communities it serves, while PGE aims to sustain growth and investment in the region, continuing to deliver dependable service with a focus on customer satisfaction.
Carroll added: “This transaction will better align the costs, benefits and obligations across PacifiCorp’s diverse service areas and help create a more workable multi-state utility structure.”
