In a recent development, Portland General Electric Company, based out of Oregon, is going to buy select PacifiCorp assets for $1.9bn comprising of Washington state generation and transmission as well as electric utility operations. This, apparently, includes numerous renewable energy assets as well.
According to the transaction to buy select PacifiCorp assets, there is an agreement to construct two solar and battery hybrid projects totalling 615 MW, and also several existing assets.
Portland General Electric – PGE will be constructing the Biglow Optimization, which is a 125 MW solar facility along with a 125 MW BESS that is located in Oregon’s Sherman County, with an investment amounting to almost $540 million.
The company is also going to build the Wheatridge expansion, which is a 240 MW solar facility along with a 125 MW BESS, which is located in Oregon’s Morrow County.
The estimated commercial operation date of the project happens to be at the end of 2027.
PGE will be holding 110 MW of solar as well as 65 MW of BESS production capacity, having an investment of around $490 million, whereas NextEra Energy, Inc. is going to operate the facility and will own the remainder of 130 MW of solar and 60 MW of BESS production capacity and, along with it, sell their portion of the output to PGE as per a 30-year PPA.
The estimated commercial operation date of the project is at the end of 2027.
In addition to this, PGE is also going to acquire the current 94 MW Goodnoe Hills wind facility along with the 234 MW Marengo I and II wind facilities.
This acquisition also has in it 4,500 miles of transmission and distribution lines as well as certain local utility operations that are spread throughout 2,700 square miles.
PGE is going to manage the Washington operations like a separate company by way of a newly formed subsidiary, which will be regulated by the Washington Utilities and Transportation Commission.
PGE anticipates the state and federal regulatory reviews pertaining to the acquisition to close 12 months post submission of the regulatory filings, the company confirmed.
Lazard went on to serve as a lead financial advisor and offered a fairness opinion to Portland General Electric.
Apart from it, Barclays and J.P. Morgan, along with Citi, also served as the financial advisors to Portland General Electric, whereas Latham & Watkins went on to serve as legal advisor.
