Portland General expands into Washington in $1.9 bln deal backed by Manulife (updated)

Portland General Electric Co

17/02/2026 10:16

PacifiCorp has warned of liquidity concerns from Oregon wildfire

PGE to acquire natural gas, wind, utility assets

Transaction may close in more than one year

Adds detail on transaction

By Jonathan Stempel and Katha  Kalia

Feb 17 (Reuters) -
PacifiCorp, a utility owned by Berkshire Hathaway BRKa.N, is selling wind, natural gas generation and distribution assets and infrastructure in central and southern Washington state to Portland General Electric POR.N for $1.9 billion, citing liquidity concerns as it battles wildfire litigation in Oregon.

The transaction announced on Tuesday includes the Chehalis natural gas plant, Goodnoe Hills wind facility, Marengo I and II wind facilities and 4,500 miles of transmission and distribution lines. PGE will add about 140,000 customers across 2,700 square miles of local utility operations.

Manulife Investment Management MFC.TO will take a 49% stake in the Washington utility business, PGE said. The transaction could take at least one year to close, pending federal and state regulatory reviews.  PGE and PacifiCorp are based in Portland, Oregon.

PacifiCorp has said it could face
strained liquidity
 from litigation by thousands of Oregonians who blamed it for causing four wildfires in September 2020 by negligently failing to shut off power lines during a windstorm.

Damages claims could total
$52 billion
, PacifiCorp has said, but would likely be lower.  Trials could last into 2028. PacifiCorp has asked an Oregon state appeals court to undo a class action and eliminate liability for fire victims' emotional distress.

PACIFICORP FACES 'EXTRAORDINARY PRESSURE'

In announcing the asset sale, PacifiCorp said "diverging policies" among the six western U.S. states it serves have created "extraordinary pressure," affecting its financial stability, liquidity and credit ratings.

It is rare for Berkshire or its operating units to
sell
 a large business or group of assets.  Greg Abel replaced Warren Buffett as the Omaha, Nebraska-based conglomerate's chief executive on January 1.

PacifiCorp, its immediate parent Berkshire Hathaway Energy and Berkshire did not immediately respond to requests for comment.

As electricity demand surges among industrial customers and data centers, utilities are seeking additional generation and transmission assets to support load growth.

Maria Pope, PGE's chief executive, on a conference call said the PacifiCorp assets are "a valuable mix of natural gas and wind resources that provide safe, reliable and affordable power."

PGE also posted an adjusted fourth-quarter profit of $53 million, or 47 cents per share. Analysts, on average, expected 63 cents per share, according to LSEG.

 (Reporting by Katha Kalia in Bengaluru and Jonathan Stempel in New York; Editing by Tasim Zahid and Nick Zieminski)

 ((Katha.Kalia@thomsonreuters.com;))