Salem’s Data-Center Debate Reaches Oregon’s Utility-Rate System
Salem’s pending Oakline at Mill Creek data-center proposal now sits alongside a new Oregon utility-rate structure designed to make large energy users pay more of the costs associated with serving them.
The Oregon Public Utility Commission approved Schedule 96 on July 7, 2026, for data centers and other large-load customers served by Portland General Electric. The rates became effective July 8. The utility decision is separate from Salem’s land-use process, but it could shape the project’s electricity costs if the proposal moves forward and qualifies for the new customer class.
What changed in the utility system
Schedule 96 creates a distinct PGE rate class for qualifying large-load customers. The PUC said the structure is intended to prevent households and small businesses from subsidizing the infrastructure and energy resources needed to serve rapidly growing data-center demand.
PGE reported an average rate increase of 29% for large-load data-center customers. Average rates were reduced for other customer classes, including residential customers by 1.3%, small businesses by 3.7%, commercial customers by 2.2% and industrial customers by 1.5%.
Those are average effects under the approved filing, not a guarantee that every customer’s bill will change by exactly those percentages. They also do not mean Salem households receive a project-specific credit or that the proposed facility would automatically lower local bills.
Added protections for very large users
The PUC also approved a surcharge of 1 cent per kilowatt-hour for Schedule 96 customers with at least 100 megawatts of allocated system capacity. The commission said revenue would support programs intended to offset costs for residential customers, including assistance for households facing high energy burdens.
The tariff includes other requirements for future PGE agreements with data-center customers. Those provisions include predictable charges if PGE builds infrastructure that a customer does not use, confirmation that sufficient clean-energy resources are available before service begins, and requirements governing special contracts.
The goal is cost allocation, not a promise that all future ratepayer exposure has been eliminated. The eventual effect will depend on the facility’s size, operating pattern, service arrangement and infrastructure needs.
Where the Salem proposal stands
Verrus is proposing Oakline at Mill Creek at the Mill Creek Corporate Center. On July 31, 2026, Verrus, through subsidiary Alderstone LLC, submitted a land-use application to the City of Salem. The city listed the application as pending as of August 1.
That filing does not mean the project has been approved, is under construction or is guaranteed to proceed. The proposal remains subject to Salem’s planning, development, building, utility and regulatory processes.
The city says the formal land-use process includes public notice and a 14-day comment period. After a decision, there is a 15-day appeal period. Construction and building permits would still be required after land-use approval and the resolution of any appeals.
Why the project’s power bill is still unknown
Schedule 96 establishes the applicable utility framework, but it does not establish Oakline’s final electricity bill. The city has not publicly identified the project’s expected electric load, its allocated capacity, its operating profile or a final PGE service agreement.
Without those details, it would be misleading to calculate a project-specific bill or determine whether the 100-megawatt surcharge would apply. The 29% figure is an average rate effect for qualifying customers, not a forecast for Oakline.
The city has identified a possible local fiscal effect through its 5% franchise fee on utility services using city rights of way. But any future city revenue would depend on the project being approved and built, the electric service ultimately provided and the amount of utility service subject to the fee.
For Salem residents, the immediate distinction is simple: Oregon has approved a statewide PGE tariff for large energy users, while Oakline at Mill Creek remains a pending local land-use proposal with key electricity and infrastructure details unresolved.
Sources
- Oregon Public Utility Commission rate-structure decision
- City of Salem project update
- PGE rate-update announcement
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