Portland General Electric Company in Oregon will acquire select Washington state generation, transmission and electric utility operations from PacifiCorp for $1.9 billion, including several renewable energy assets.
The transaction includes an agreement to construct two solar and battery hybrid projects for a total of 615 MW, as well as several existing assets.
PGE will construct the Biglow Optimization, a 125 MW solar facility and 125 MW BESS located in Sherman County, Oregon, with an investment of approximately $540 million.
The company will also build the Wheatridge expansion, a 240 MW solar facility and 125 MW BESS located in Morrow County, Oregon.
The project has an estimated commercial operation date at the end of 2027.
PGE will own 110 MW of solar and 65 MW of BESS production capacity with an investment of approximately $490 million, while NextEra Energy, Inc. will operate the facility, own the remaining 130 MW of solar and 60 MW of BESS production capacity and sell their portion of the output to PGE under a 30-year PPA.
The project has an estimated commercial operation date at the end of 2027.
PGE will also acquire the existing 94MW Goodnoe Hills wind facility (pictured) and the 234W Marengo I and II wind facilities.
The acquisition also includes 4,500 miles of transmission and distribution lines, and local utility operations across 2,700 square miles.
PGE will manage the Washington operations as a separate company through a newly formed subsidiary regulated by the Washington Utilities and Transportation Commission.
PGE expects the state and federal regulatory reviews of the acquisition to close 12 months after submission of regulatory filings, the company said.
Lazard served as lead financial advisor and provided a fairness opinion to Portland General Electric.
Barclays, J.P. Morgan and Citi also served as financial advisors to Portland General Electric, while Latham & Watkins served as legal advisor.