Portland General Electric is trying to turn Oregon data-center demand into a rate design that makes large customers fund their own grid, rather than socializing that spend across households. The Oregon commission approved a New Large Load Tariff in May, and the new prices took effect in July. Average rates for data centers rose about thirty percent, while other classes saw relief. That is the political and economic bargain the equity is now priced around. Management also reaffirmed full-year adjusted earnings guidance after a second-quarter print that tracked the internal plan even as it lagged Street estimates. Industrial deliveries rose just over eleven percent, and that class now carries the growth story.
GAAP net income reached $68 million. Diluted GAAP earnings were $0.59 a share. Adjusted earnings were $0.64 a share after stripping transformation and acquisition costs. Retail revenue added twenty-two cents of earnings, split between industrial demand and new cost recovery on the Seaside battery and distribution planning. Power-cost timing took eighteen cents away, and higher depreciation, interest, and share count took another twelve. The half-year picture is weaker because first-quarter items and a larger share base compressed earnings versus last year. The consequence for shareholders is that the second quarter looks like a timing print, not a franchise break.
Full-year adjusted guidance was left unchanged at the previously stated band. The low end is $3.33. The high end is $3.53. The Washington purchase is a cash deal of $1.9 billion for roughly one hundred forty thousand customers, aimed at a close in the middle of next year. A new general rate case seeks an overall increase of just under five percent, with new rates in the middle of next year if the commission grants the request. The open question is whether Oregon regulation, share issuance, and power-cost timing allow industrial load growth to show up as the promised five-to-seven percent earnings path.