Oregon Electricity Rates
Oregon’s average residential electricity rate is 13.5¢/kWh—25% below the national average. Oregon is a regulated market powered by Columbia River hydroelectricity, with two large investor-owned utilities (Portland General Electric and PacifiCorp) and a robust network of consumer-owned utilities. The state has set one of the nation’s most aggressive clean energy mandates: 100% clean electricity by 2040 under HB 2021.
Oregon’s Hydropower Heritage
Oregon is Washington’s sister hydropower state—but with a fundamentally different energy personality. While Washington generates roughly 60% of its electricity from hydroelectric dams, Oregon sits at 42%, making it the second-highest hydro share among the lower 48 states. That distinction matters, because Oregon fills the gap with something Washington barely touches: natural gas at 33%.
This creates a split personality in Oregon’s power grid. Half the state’s electricity is clean, cheap, and essentially fuel-free—water flowing through turbines on the Columbia River. The other half burns fossil fuel. The entire arc of Oregon’s clean energy transition under HB 2021 is about eliminating that gas portion while holding onto the hydro advantage.
The Columbia River system is Oregon’s power backbone. Bonneville Dam (1,093 MW), The Dalles Dam (1,780 MW), and John Day Dam (2,160 MW) sit on the Oregon-Washington border, generating enormous quantities of electricity that the Bonneville Power Administration (BPA) markets at wholesale cost to the region’s public utilities. These federal dams, built between the 1930s and 1970s, were long ago paid off—their electricity carries nearly zero fuel cost.
BPA provides the same cheap wholesale power to Oregon’s consumer-owned utilities that it provides to Washington’s PUDs. Oregon’s public utilities—people’s utility districts, municipal utilities like EWEB, and cooperatives—purchase BPA hydropower at cost, keeping rates for roughly 30% of Oregon customers well below what the investor-owned utilities charge.
The Columbia River: Oregon’s Power Backbone
The Columbia River and its tributaries form one of the most productive hydroelectric systems on Earth. Three massive federal dams on the Oregon-Washington border anchor Oregon’s clean energy supply:
Bonneville Dam (1,093 MW) — completed in 1938, the original New Deal dam that gave BPA its name. Located 40 miles east of Portland in the Columbia River Gorge.
The Dalles Dam (1,780 MW) — one of the largest run-of-the-river dams in the U.S., located near the city of The Dalles in the eastern Gorge. Google chose to build its massive data center here precisely because of the cheap power this dam provides.
John Day Dam (2,160 MW) — the third-largest hydroelectric dam in the United States by energy output, producing an average of 10.7 billion kWh per year. BPA markets this power at wholesale cost to preference customers across the Pacific Northwest.
Together with BPA’s other federal dams, these facilities supply the backbone of Oregon’s cheapest electricity. But unlike Washington, Oregon cannot rely on hydro alone—the state must transition 33% natural gas generation to clean sources by 2040.
Oregon’s Electric Utilities
Oregon’s utility landscape is dominated by two large investor-owned utilities—Portland General Electric and PacifiCorp (Pacific Power)—that together serve roughly 70% of the state’s electricity customers. The remaining ~30% are served by consumer-owned utilities: people’s utility districts, municipal utilities, and electric cooperatives that purchase cheap BPA hydropower at wholesale cost.
This IOU-vs-public split creates a meaningful rate gap. Customers of consumer-owned utilities like EWEB in Eugene pay roughly 10¢/kWh, while PGE customers in the Portland metro area pay closer to 14–15¢/kWh. Both are well below the national average, but the difference adds up over a year of bills.
A notable development: PacifiCorp recently agreed to sell its Washington state service area to PGE, a sign of consolidation in the Pacific Northwest utility landscape. If approved, PGE would become an even more dominant player in the region.
Oregon’s largest investor-owned utility serves the Portland metropolitan area, Salem, and communities across the Willamette Valley. PGE achieved 45% clean energy in 2024 and added 1,000 MW of wind capacity and 292 MW of battery storage in a single year—one of the most aggressive clean energy buildouts by any U.S. utility. Publicly traded (NYSE: POR).
A subsidiary of Berkshire Hathaway Energy, PacifiCorp operates as Pacific Power in Oregon, serving Medford, Bend, Klamath Falls, Astoria, and rural communities across central, southern, and eastern Oregon. A multistate utility also operating in Washington, Utah, Wyoming, Idaho, and California. Recently agreed to sell its WA service territory to PGE.
One of Oregon’s largest municipal utilities, EWEB has been publicly owned since 1911. Heavily reliant on hydroelectric power from its own Carmen-Smith project on the McKenzie River and BPA wholesale purchases, EWEB offers some of Oregon’s cheapest electricity. Provides both water and electric service to the Eugene metropolitan area.
An investor-owned utility headquartered in Boise, Idaho Power serves approximately 80,000 customers in eastern Oregon, including Ontario, Baker City, and the Malheur County area. The utility generates most of its power from hydroelectric dams on the Snake River, supplemented by natural gas and growing wind and solar capacity.
A consumer-owned people’s utility district serving Oregon’s central coast, including Newport, Lincoln City, Depoe Bay, and Waldport. Central Lincoln PUD purchases the majority of its power from BPA at wholesale cost, passing those savings to coastal residents and businesses. One of Oregon’s 18 PUDs.
Oregon’s Consumer-Owned Utilities
Approximately 30% of Oregon electricity customers are served by consumer-owned utilities—people’s utility districts (PUDs), municipal utilities, and electric cooperatives. These nonprofit entities are governed by locally elected boards and operate for the benefit of ratepayers, not shareholders.
The key advantage: consumer-owned utilities are “preference customers” of the Bonneville Power Administration, meaning they can purchase cheap federal hydropower at wholesale cost—roughly 3–4¢/kWh for firm power. They pass these savings directly to ratepayers, which is why EWEB customers pay ~10¢/kWh while PGE customers pay ~14.5¢/kWh.
Oregon has 18 people’s utility districts and 18 electric cooperatives, along with municipal utilities in Eugene, McMinnville, Ashland, Bandon, and several other communities. Unlike Washington’s 28 PUDs, Oregon’s public power structure is more fragmented, but the BPA relationship works the same way—cheap federal hydro at cost.
HB 2021: Oregon’s Clean Energy Mandate
In 2021, Oregon signed House Bill 2021—one of the most aggressive clean energy laws in the United States, and arguably more ambitious than Washington’s CETA or California’s SB 100. The law requires Oregon’s two investor-owned utilities—Portland General Electric and PacifiCorp—to dramatically reduce greenhouse gas emissions from electricity generation:
By 2030: Reduce GHG emissions 80% below baseline levels.
By 2035: Reduce GHG emissions 90% below baseline levels.
By 2040: Achieve 100% clean electricity—five years ahead of Washington’s CETA target of 2045.
Oregon is already at 62% low-carbon generation—mostly from hydropower—giving the state a substantial head start. But the remaining 33% natural gas dependence must be entirely eliminated in roughly 14 years. That’s the challenge: not building a clean grid from scratch, but systematically replacing gas-fired generation with renewables and storage while maintaining reliability.
PGE’s approach has been one of the most aggressive in the nation. In 2024, the utility added 1,000 MW of new wind capacity and 292 MW of battery storage—a buildout pace that few U.S. utilities have matched. PGE achieved 45% clean energy that year and is on track to meet the 2030 target.
PacifiCorp’s 2025 Integrated Resource Plan (IRP) charts a different path, emphasizing new solar, wind, and battery storage across its six-state service territory, while exploring advanced nuclear technologies as potential baseload replacements for retiring gas plants.
HB 2021 Roadmap: The Path to 100% Clean
What stays: Hydropower (42%) and existing wind (14%) and solar (5%) are already clean and will continue operating. BPA’s federal hydro system is the foundation that makes Oregon’s 2040 target achievable.
What must go: The 33% natural gas share—roughly 7,000 GWh per year—must be replaced by new clean generation and storage. PGE is building wind, solar, and battery storage at scale. PacifiCorp is pursuing a mix of renewables and exploring small modular nuclear reactors.
The timeline: 80% GHG reduction by 2030 (5 years away), 90% by 2035, 100% clean by 2040. Oregon’s 2040 target is five years ahead of Washington’s CETA (2045) and on par with Minnesota’s 100% carbon-free standard. Only a handful of states have set earlier deadlines.
The wildcard: Consumer-owned utilities are not directly covered by HB 2021, though many have adopted voluntary clean energy goals. BPA’s hydro is already clean, so public utility customers are largely compliant by default.
Oregon vs. Washington: Pacific Northwest Power Siblings
Oregon and Washington share the Columbia River, the Bonneville Power Administration, and a heritage of cheap hydroelectric power—but they are not carbon copies. The two states have made different choices, and those differences show up in rates, energy mix, and clean energy policy.
Oregon
42% hydro, 33% natural gas. HB 2021: 100% clean by 2040. Two large IOUs (PGE, PacifiCorp) serve ~70% of customers. PGE added 292 MW battery storage in 2024. Population: 4.2M.
Washington
60% hydro, 18% natural gas, 10% nuclear. CETA: 100% clean by 2045. ~60% of customers served by public utilities. 28 PUDs. Grand Coulee Dam. Population: 7.8M.
Why Washington is cheaper: Washington generates 60% of its electricity from hydro vs. Oregon’s 42%. More hydro means less natural gas, and less gas means lower rates. Washington also has a larger share of customers served by public utilities (60% vs. Oregon’s 30%), amplifying the BPA cost advantage.
Why Oregon’s clean energy law is stronger: Oregon’s HB 2021 targets 100% clean electricity by 2040—five years ahead of Washington’s CETA deadline of 2045. Oregon’s law also directly mandates emissions reductions at specific milestones (80% by 2030, 90% by 2035), creating more binding interim targets.
PGE vs. Washington utilities on storage: Portland General Electric has been more aggressive on battery storage deployment than any single Washington utility. PGE’s 292 MW of battery storage added in 2024 exceeds the combined storage capacity of most Washington utilities.
The shared concern: Both states depend on BPA hydro, and both face growing demand from data centers. Washington’s PUDs have already imposed moratoriums on new large-load connections. Oregon’s data centers in The Dalles and Prineville are drawing from the same BPA surplus. If that surplus shrinks—due to drought, salmon protection measures, or dam removal debates—both states will feel the impact.
No PUD System Like Washington’s
Washington has 28 Public Utility Districts—a formal, county-level public power structure unique to a few Western states. Oregon has 18 PUDs, but they’re structured differently and serve a smaller share of the population. Oregon’s public power tradition relies more on municipal utilities (like EWEB) and electric cooperatives than on the PUD model. The practical result: fewer Oregon customers benefit from direct BPA wholesale pricing.
Oregon’s Tech & Data Center Growth
Oregon’s combination of cheap hydropower, mild climate, and no state sales tax has made it one of the most attractive data center and tech manufacturing locations in the western United States. The state’s tech footprint extends far beyond Portland’s startup scene into massive, power-hungry industrial operations.
The Dalles — Google’s Columbia River Data Center: Google chose The Dalles for its first company-designed data center in 2006, and the site has expanded continuously since. The location is no accident: The Dalles Dam sits literally next to the facility, providing direct access to some of the cheapest hydroelectric power in the country. Google has invested billions in this campus.
Prineville — Meta’s First Owned Data Center: In 2011, Facebook (now Meta) opened its first company-owned data center in Prineville, a small city in central Oregon’s high desert. The dry climate reduces cooling costs, and cheap power from BPA keeps operating expenses low. Apple later built a data center in Prineville as well.
Hillsboro/Beaverton — Silicon Forest: Intel’s largest manufacturing campus in the world, Ronler Acres in Hillsboro, anchors Oregon’s semiconductor industry. Intel employs over 20,000 workers in the Portland metro area, and the US-26 corridor from Hillsboro to Beaverton has become a major data center and tech manufacturing corridor.
The tension: Oregon’s data center growth is straining the same BPA surplus that keeps electricity cheap. As in Washington, there’s a growing conflict between the state’s identity as a low-cost power haven and the reality that tech industry demand is consuming surplus hydro capacity at an unsustainable rate.
Cheap Hydro + Cool Climate = Data Center Magnet
Oregon’s data center boom is driven by two structural advantages that are difficult to replicate elsewhere: cheap hydroelectric power (BPA wholesale rates of 3–4¢/kWh) and a mild, dry climate that reduces cooling costs—the largest operating expense for most data centers.
Central and eastern Oregon—where Google (The Dalles), Meta (Prineville), and Apple (Prineville) operate—have dry summers, cool nights, and minimal humidity. Facilities can use free-air cooling for much of the year, consuming far less electricity than data centers in hot, humid climates like Virginia’s Loudoun County or Texas.
But growth has limits. BPA’s surplus generation—once so abundant the agency struggled to sell it—is being consumed by tech industry expansion. Oregon’s clean energy targets under HB 2021 add another layer of complexity: new data center load must be served by clean generation, not gas.
Oregon Business Electricity Rates
Oregon’s commercial electricity rate of 10.8¢/kWh is roughly 40% below the national commercial average, making the state competitive for electricity-intensive businesses—especially those that can locate near cheap BPA power sources. Oregon’s lack of a state sales tax adds further cost advantage for equipment-heavy industries.
Tech & Semiconductors
Intel’s Ronler Acres campus in Hillsboro is the company’s largest manufacturing facility worldwide. Oregon’s “Silicon Forest” along the US-26 corridor includes Lam Research, Mentor Graphics (Siemens EDA), Lattice Semiconductor, and dozens of semiconductor equipment suppliers. Chip fabrication is among the most electricity-intensive manufacturing processes.
Agriculture
The Willamette Valley is one of the most diverse agricultural regions in the nation: wine grapes (700+ wineries), Christmas trees (Oregon is the #1 producer), nursery stock (the state’s top agricultural commodity by value), grass seed, hazelnuts, and berries. Irrigation, cold storage, and wine production facilities are significant electricity consumers.
Craft Brewing & Outdoor Recreation
Oregon is the craft beer capital of America—home to Deschutes Brewery, Ninkasi Brewing, Full Sail Brewing, Widmer Brothers, and hundreds more. Brewing is energy-intensive: refrigeration, fermentation temperature control, packaging lines, and cold chain distribution all drive significant electricity demand across the state.
Timber & Forest Products
Oregon remains one of the top timber-producing states in the nation, particularly in eastern Oregon and the Coast Range. Lumber mills, plywood manufacturing, and pulp and paper facilities are major industrial electricity consumers. The industry has declined from its peak but remains significant in rural Oregon economies.
Why Oregon Has Never Deregulated
Like its neighbor Washington, Oregon has never deregulated its electricity market—and for the same fundamental reason: cheap hydropower removes the political incentive. When residential rates are 25% below the national average, there’s no popular demand for the kind of competitive retail market that exists in Texas or Ohio.
Oregon’s energy policy focus has been squarely on clean energy, not competitive markets. The political energy that other states spent on deregulation, Oregon invested in HB 2021, renewable portfolio standards, and emissions reduction mandates. The theory: when rates are already low, the priority should be making those rates clean, not making them cheaper through competition.
The concept of community choice aggregation (CCA)—where local governments group customers together to negotiate bulk power purchases—has been discussed in Oregon but hasn’t gained significant traction. Portland has occasionally explored municipal utility options, but PGE remains firmly entrenched as the city’s power provider.
For Oregon consumers, the practical reality is straightforward: you cannot choose your electricity provider. Your utility is determined by your address. If you’re relocating to Oregon from a deregulated state, you’ll lose the ability to shop for rates—but you’ll likely pay less regardless.
States Where You Can Choose Your Electricity Provider
Unlike Oregon, several states offer fully deregulated electricity markets where consumers can shop for competitive rates from multiple providers. If you’re in a deregulated state, you can compare plans and potentially save:
Texas · Pennsylvania · Ohio · Illinois · New York · New Jersey · Connecticut · Maryland
How to Lower Your Oregon Electricity Bill
Oregon’s rates are already well below the national average, but there are meaningful strategies to reduce your electricity costs further:
Check Your Utility Type
The biggest factor in your rate is whether you’re served by a consumer-owned utility (PUD, municipal, co-op) or an investor-owned utility (PGE, Pacific Power). EWEB customers pay ~10¢/kWh; PGE customers pay ~14.5¢/kWh. If you’re shopping for a home, the utility territory can make a meaningful difference in annual electricity costs.
Go Solar
Oregon has better solar economics than its rainy reputation suggests. Eastern Oregon—Bend, Klamath Falls, the high desert—gets 260+ sunny days per year. Even in the Willamette Valley, modern panels perform well with diffuse light. The 30% federal ITC, Oregon’s solar incentives, and net metering policies make payback periods of 8–12 years achievable.
Utility Efficiency Rebates
PGE and Pacific Power offer substantial rebates for energy efficiency upgrades: heat pumps (a huge deal in Oregon’s mild, damp climate), insulation, smart thermostats, energy-efficient windows, and high-efficiency HVAC systems. Heat pumps are particularly cost-effective in Oregon, where moderate winters make them more efficient than in colder climates.
Time-of-Use Plans
PGE offers time-of-use (TOU) rate plans that charge less during off-peak hours (typically evenings and weekends). If you can shift electricity-heavy activities—EV charging, laundry, dishwashing—to off-peak periods, TOU plans can meaningfully reduce your monthly bill without changing your total consumption.
Want to Choose Your Electricity Provider?
Oregon is a regulated market, so you can’t shop for competitive electricity rates. But if you’re in a deregulated state or considering a move, you can compare plans from multiple providers:
Texas · Ohio · Pennsylvania · Illinois · New York
Frequently Asked Questions About Oregon Electricity
What is the average electricity rate in Oregon?
Oregon’s average residential electricity rate is 13.5¢/kWh as of May 2026—approximately 25% below the national average of 18.05¢/kWh. Commercial rates average 10.8¢/kWh. Oregon’s rates are kept low by significant hydroelectric generation from Columbia River dams and the Bonneville Power Administration’s wholesale-at-cost model.
Is Oregon a deregulated electricity state?
No. Oregon is a fully regulated electricity market. Your utility is determined by your address, and you cannot choose a competitive electricity supplier. Oregon’s energy policy has focused on clean energy mandates (HB 2021) rather than market deregulation. States like Texas, Ohio, and Pennsylvania offer deregulated markets where consumers can shop for competitive rates.
Why is Oregon electricity relatively cheap?
Oregon’s relatively cheap electricity is driven by substantial hydroelectric generation—approximately 42% of the state’s power comes from hydroelectric dams on the Columbia River system, including Bonneville Dam, The Dalles Dam, and John Day Dam. The Bonneville Power Administration (BPA) sells wholesale federal hydropower at cost to Oregon’s consumer-owned utilities, and those savings are passed to ratepayers. Oregon also benefits from growing wind generation (14%).
What is HB 2021?
HB 2021 is Oregon’s 2021 clean energy law—one of the most aggressive in the nation. It requires Portland General Electric and PacifiCorp to reduce greenhouse gas emissions 80% below baseline by 2030, 90% by 2035, and achieve 100% clean electricity by 2040. Oregon is already at 62% low-carbon generation (mostly hydro), but must eliminate its 33% natural gas dependence. PGE has responded by adding 1,000 MW of wind and 292 MW of battery storage in 2024 alone.
How does Oregon compare to Washington for electricity?
Both states rely on Columbia River hydropower and BPA, but Washington has more hydro (60% vs. 42%) and cheaper rates (~12¢ vs. ~13.50¢/kWh). Oregon depends more on natural gas (33% vs. 18%). However, Oregon has a more aggressive clean energy law—HB 2021 targets 100% clean by 2040, while Washington’s CETA targets 2045. Oregon also has fewer customers served by public utilities (30% vs. 60%), which limits the BPA cost advantage.
What is EWEB?
EWEB (Eugene Water & Electric Board) is a municipally owned utility serving approximately 92,000 customers in Eugene, Oregon. One of the largest municipal utilities in the state, EWEB offers some of Oregon’s cheapest electricity at roughly 10¢/kWh, thanks to heavy reliance on hydroelectric power from its Carmen-Smith project and BPA purchases. EWEB provides both water and electric service and has been publicly owned since 1911.
What is the average monthly electric bill in Oregon?
The average Oregon household pays approximately $164/month for electricity. This reflects Oregon’s moderate per-kWh rates combined with heating demand—many Oregon homes use electric heat, especially heat pumps. Bills vary by utility: EWEB customers in Eugene pay less than PGE customers in the Portland metro area. Eastern Oregon, with hotter summers and colder winters, tends to have higher seasonal bills.
Is solar worth it in Oregon?
Yes—solar is a viable investment in Oregon, especially in the eastern and central parts of the state. Bend, Klamath Falls, and the high desert receive 260+ sunny days per year, comparable to many Southern states. The 30% federal Investment Tax Credit, Oregon’s solar incentives, and net metering policies make rooftop solar financially viable. Even in the cloudier Willamette Valley, modern panels perform well with diffuse light, and payback periods of 8–12 years are achievable.
About this Data
Rate data is sourced from the U.S. Energy Information Administration (EIA), the Oregon Public Utility Commission (OPUC), Portland General Electric, PacifiCorp, Bonneville Power Administration, and the ElectricChoice.com electric rate marketplace. Last data refresh: May 2026.