Portland General Electric PacifiCorp Acquisition

Portland General Electric (POR) said on Feb. 15, 2026, that its acquisition of PacifiCorp’s Washington electric operations will expand its generation and distribution footprint and be earnings per share (EPS) accretive in the first full year after closing.

Deal Terms and Asset Scale

A wholly owned Portland General Electric subsidiary signed a definitive Asset Purchase and Service Area Transfer Agreement with PacifiCorp on Feb. 15, 2026. The $1.9 billion cash deal, subject to customary adjustments, values the assets at about 1.4 times estimated 2026 rate base.

The acquisition includes roughly 800 megawatts of generation capacity: the 477-megawatt Chehalis natural-gas plant, the 94-megawatt Goodnoe Hills wind farm, and the 234-megawatt Marengo I and II wind projects. It also covers approximately 4,500 miles of transmission and distribution lines serving about 140,000 customers across 2,700 square miles.

Financial Outlook and Regulatory Approvals

Manulife Infrastructure Fund III will acquire a minority stake with up to $600 million of equity, while Portland General Electric will finance the remainder with debt. PGE will operate the acquired system through a new subsidiary regulated by the Washington Utilities and Transportation Commission.

The company reaffirmed its 2026 adjusted EPS guidance of $3.33 to $3.53 per diluted share (non-GAAP) and long-term EPS growth of 5.0% to 7.0%. The acquisition is expected to be EPS accretive in the first full year after closing and supports PGE’s expansion into Washington to enhance reliability and affordability.

The transaction requires state and federal regulatory approvals, with review and closing targeted about 12 months after filings. Portland General Electric identified regulatory delays, integration challenges, and financing risks as primary forward-looking concerns.

PacifiCorp has cited liquidity pressures related to wildfire litigation as a factor in its asset sales. Portland General Electric reported 2025 GAAP earnings per share of $2.77 and adjusted EPS of $3.05, reflecting a 14% year-over-year rise in industrial demand offset by a roughly $0.17 negative weather impact in the fourth quarter. The company projects a 2026 effective tax rate of 15% to 20%, cash from operations between $1.0 billion and $1.2 billion, capital spending near $1.7 billion, and average construction work-in-progress around $850 million.

Pending regulatory approvals, the acquisition will significantly increase Portland General Electric’s generation and distribution scale in the Pacific Northwest, extend its service territory into Washington, and alter its financing structure and regulatory footprint.

"We are excited for the opportunity to continue to grow, expanding into Washington and building upon PGE's foundation of operational excellence and customer service," said Maria Pope, PGE’s president and chief executive.