Imagine a colossal 300-mile power line, designed to light up homes and businesses across Oregon, potentially diverting its energy to fuel just one data center instead—it's a real-world tale of corporate maneuvering that could leave everyday consumers in the dark. But here's where it gets controversial, sparking debates about public service versus private gain. Stick around as we unpack this intricate story, revealing twists that might surprise you.
PacifiCorp, grappling with staggering wildfire liabilities, is pushing forward a proposal to offload its stake in the Boardman-to-Hemingway transmission line—often called B2H—to a subsidiary of its parent company. This would involve the subsidiary leasing back the line's capacity to PacifiCorp for a minimum of two decades. For beginners wondering what this means, think of it like selling your car but renting it back immediately: you get cash upfront without losing access, though it might complicate things down the road.
The potential purchaser is a specialized subsidiary of Berkshire Hathaway Energy, the Nebraska-headquartered giant led by billionaire Warren Buffett. PacifiCorp itself is fully owned by Berkshire Hathaway Energy, which is part of the broader Berkshire Hathaway empire. This request landed with Oregon's state regulators last month, as detailed in PacifiCorp's filing with the Oregon Public Utility Commission (accessible at https://apps.puc.state.or.us/edockets/DocketNoLayout.asp?DocketID=24832).
This move comes amid PacifiCorp's struggles with wildfire-related costs that could reach billions, coupled with credit rating downgrades—like the recent hit from S&P Global Ratings (detailed at https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3475323)—and mounting financial strain that threatens its operations and ability to settle legal claims. To give you a clearer picture, wildfires in Oregon, especially the catastrophic Labor Day 2020 blazes, have led to settlements exceeding $750 million so far, including $125 million to wineries for smoke damage, and court-ordered payments of around $500 million to individuals after negligence findings. PacifiCorp is appealing these rulings, but with potentially thousands more claims, the total could overwhelm the company.
Adding fuel to the fire, PacifiCorp's decision to redirect the line's power mainly to a data center—rather than the hundreds of thousands of residential customers it originally promised—has raised eyebrows. This shift occurred after failing to secure firm transmission rights from the Bonneville Power Administration to move energy westward. For those new to this, the Bonneville Power Administration is a federal agency managing hydropower in the Pacific Northwest; without those rights, the utility couldn't guarantee power delivery to homes.
The B2H line, one of Oregon's biggest transmission projects in years, stretches through Idaho and five Oregon counties. Construction kicked off this summer after 20 years of planning, permits, and legal battles, coinciding with Oregon's soaring energy needs and a critical shortage of transmission infrastructure. And this is the part most people miss: in a time of renewable energy goals and emission targets, this project could be pivotal, yet it's tangled in financial woes.
The proposed deal lets PacifiCorp keep using the line while slashing its capital outlays, easing pressure from wildfire expenses and green energy investments that are draining its funds and hurting its borrowing power. Bob Jenks, head of the Oregon Citizens’ Utility Board—which advocates for utility customers—suggests this might be Berkshire Hathaway's way to pump capital into PacifiCorp without risking it in a bankruptcy scenario, a risk the company itself has highlighted.
In regulatory filings, PacifiCorp claims the sale would help fulfill its duties in building and powering the B2H Project, boost liquidity, and uphold customer benefits without revealing the sale price. The project's total cost is pegged at $1 to $1.2 billion (as per https://docs.idahopower.com/pdfs/AboutUs/PlanningForFuture/irp/2021/IRPACTransmissionUpdateMay2021.pdf), with PacifiCorp holding 55% and Idaho Power, the developer, owning the remainder. PacifiCorp's spokesperson, Simon Gutierrez, emphasized via email to The Oregonian/OregonLive that the transaction secures funding for completion and maintains partnership commitments.
Lease payments to the Berkshire subsidiary remain undisclosed until closing. S&P's downgrade to the lowest investment-grade level stems from wildfire concerns, echoed by Moody's in September. Analysts at S&P noted that cutting capital spending could improve PacifiCorp's finances, stating, 'We believe PacifiCorp can reduce its capital spending during periods of stress, which indicates a limited need for refinancing under such conditions' (from https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3475323).
Critics of B2H argue the leaseback is a ploy to sidestep state oversight and dodge serving residential users, whom the utility once vowed to benefit. Last month, the utility commission upheld the certificate of public convenience and necessity for Idaho Power to use eminent domain, issued in 2023 based on PacifiCorp's promise to serve 805,000 customers, including 620,000 in Oregon (for more, see https://www.oregonlive.com/environment/2025/11/oregon-regulators-uphold-approval-for-controversial-transmission-line-that-may-serve-a-single-data-center-rather-than-the-public.html). But earlier this year, PacifiCorp pivoted to an industrial client due to transmission hurdles.
Regulators affirmed the line's public interest, noting PacifiCorp might still chase rights for residential use. However, if sold, that seems improbable, according to Irene Gilbert, co-chair of the Stop B2H Coalition and a longtime challenger (as covered in https://www.oregonlive.com/environment/2025/10/a-300-mile-power-line-was-supposed-to-serve-the-public-now-it-may-serve-a-data-center.html). She calls it a 'manipulation of rules' to benefit developers, allowing Berkshire to profit like a regulated utility would. PacifiCorp seeks commission approval, arguing the sale-leaseback aligns with public welfare.
The commission is deciding on the process—open meeting or contested hearing—and must rule within 90 days, per spokesperson Kandi Young. Meanwhile, the Oregon Department of Energy is checking if the deal affects the site certificate for the facility, with spokesperson Jennifer Kalez stating, 'We are evaluating whether PacifiCorp’s planned sale of its interest in the Boardman to Hemingway project would have any effect on the Energy Facility Siting Council approval.'
This saga raises thorny questions: Is this a savvy financial lifeline for a utility in crisis, or a sneaky end-run around commitments to the public? Do corporate giants like Berkshire Hathaway prioritize profits over people? And what if this sets a precedent for other utilities? Share your take in the comments—do you side with the critics, or see it as a necessary compromise?
