The Senate Committee on Energy and Environment convened on May 5, 2025, to discuss the rising electricity prices in Oregon and the role of community-owned utilities (COUs) versus investor-owned utilities (IOUs) in managing these costs.

A key point raised during the meeting was the effectiveness of COUs in keeping electricity prices stable. Representatives highlighted that when large users, such as agricultural irrigators, seek to connect to the electricity grid, they engage directly with COUs to negotiate infrastructure needs and costs. This collaborative approach allows for tailored agreements that help manage expenses over time, ensuring that the financial burden is shared and kept in check.

In contrast, the discussion shifted to the challenges faced in IOU territories. It was noted that when large loads are introduced in these areas, the costs associated with infrastructure improvements are typically passed on to all customers within the IOU's service area. This raises concerns about fairness, especially as demand for electricity is expected to increase significantly due to the influx of data centers and artificial intelligence operations, which often require substantial power.

The committee members expressed the need for a more equitable system where large users, particularly those consuming over 20 megawatts, contribute to the infrastructure costs they incur. This would align IOUs more closely with the practices of COUs, promoting better governance and financial responsibility among large electricity consumers.

The meeting underscored the importance of addressing these issues proactively, as the demand for electricity continues to grow. The committee is considering recommendations to ensure that all large users, including data centers, are held accountable for their energy consumption and the associated infrastructure costs. This approach aims to create a more sustainable and fair energy landscape in Oregon.