The Portland-based utility that provides power to Eastern Washington communities near the Tri-Cities is preparing to exit the state and hand its market share to another Pacific Northwest company. 

PacifiCorp, owned by Iowa-based Berkshire Hathaway Energy, announced Feb. 17 that it had entered an agreement with Portland General Electric Company (PGE) to sell its power generation and distribution assets and infrastructure in the state for $1.9 billion, according to a release. 

PacifCorp currently supplies power to 137,000 customers in Walla Walla and Yakima and communities surrounding them, including some in Benton County. Its power generation assets include the 140-megawatt Marengo wind farm outside Dayton and 96-megawatt Goodnoe Hills wind farm outside Goldendale. 

PacifiCorp officials said in a statement that diverging energy policies among the six states the company serves are driving the sale as it struggles with financial stability, liquidity and credit ratings while also providing reliable and low-cost power. 

“This is a targeted step toward ensuring the continued delivery of safe, reliable power to our nearly two million customers in the West and Intermountain West,” said Darin Carroll, PacifiCorp’s CEO. “This will improve the company’s financial stability while simplifying our operations to support our long-term commitment to customers in each of our remaining states.” 

The transaction is expected to take up to a year to finalize, and both companies said they anticipate a seamless transition for Washington employees. 

The state’s Utilities and Transportation Commission approved a power cost-only general rate increase of $33.9 million, or about 7.9% above its current revenue level, on Dec. 22 for the Portland-based electric utility, according to a release.  That rate increase went into effect on Jan. 1. 

For a home using 1,200 kilowatt-hours per month, that raised the average monthly power bill by more than $10, according to the Yakima-Herald Republic.  

The utility’s customers raised concerns about how recent rate increases had affected them at a December hearing, noting they were creating a financial burden on ratepayers.  

However, UTC officials found PacifiCorp’s rate increase, revised from an initial proposal filed in April, to be equitable and reasonable and will reduce costs for Washington customers by about $68 million versus the status quo. The commission also determined that PacifiCorp’s plan will better facilitate meeting state clean energy requirements, including the removal of coal from Washington power rates.  

The UTC said in a statement it recognized these concerns and stated that it will work to lessen rate impacts and avoid larger increases in the future.