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Portland General Electric Company (PGE) and Manulife Investment Management have struck a $1.9 billion cash deal to acquire PacifiCorp’s Washington state assets, according to a Tuesday announcement. The transaction, guided by law firms Latham & Watkins LLP and Simpson Thacher & Bartlett LLP, marks a major expansion for PGE into Washington’s energy market.

Expanding Footprint Across Washington

The assets included in the acquisition cover PacifiCorp’s generation, transmission, and electric utility operations. Together, they span 4,500 miles of power lines and serve utility operations across 2,700 square miles. Regulatory filings have been submitted, with state and federal authorities expected to complete reviews within the next 12 months.

“We are excited for the opportunity to continue to grow, expanding into Washington and building upon PGE's foundation of operational excellence and customer service,” said PGE President and CEO Maria Pope.

Pope added, “We look forward to our partnership with Manulife Investment Management, who brings a track record of investment success across the utility sector and Pacific Northwest agriculture and timberland industries.”

Manulife Joins the Power Play

Recep Kendircioglu, Manulife Investment Management’s global head of infrastructure, described the partnership as “an opportunity that fits well within our infrastructure strategy and leverages our experience in utility investments.”

Under the deal, Manulife Infrastructure Fund III LP and its affiliates will hold a 49% stake in the utility assets. PGE will appoint a separate company to oversee operations in Washington.

Powering Up With Wind and Gas

The acquisition brings several energy facilities under PGE’s control:

• 94-megawatt Goodnoe Hills wind facility

• 477-megawatt Chehalis natural gas plant

• Marengo I and II wind facilities, combining for 234 megawatts

“This is a targeted step toward ensuring the continued delivery of safe, reliable power to our nearly 2 million customers in the West and Intermountain West,” PacifiCorp CEO Darin Carroll said. “It will improve the company’s financial stability while simplifying operations to support our long-term commitment to customers in each of our remaining states.”

PGE, Manulife, and PacifiCorp did not immediately respond to requests for additional comment on Tuesday. Counsel information for PacifiCorp was also unavailable.

PGE is represented by Latham & Watkins LLP.