Berkshire-owned PacifiCorp, citing liquidity, sells Washington assets to Portland General Electric for $1.9 billion

Core Viewpoint - PacifiCorp, a utility owned by Berkshire Hathaway, is selling its Washington assets to Portland General Electric for $1.9 billion due to liquidity concerns stemming from wildfire litigation in Oregon [1]. Group 1: Transaction Details - The sale includes the Chehalis natural gas plant, Goodnoe Hills wind facility, Marengo I and II wind facilities, and 4,500 miles of transmission and distribution lines [1]. - Portland General Electric will acquire approximately 140,000 customers in Washington state, covering about 2,700 square miles [1]. - Manulife Investment Management will take a 49% stake in the Washington utility business as part of the transaction [1]. Group 2: Financial and Regulatory Context - PacifiCorp has warned of potential liquidity issues due to litigation from thousands of Oregonians, with damages claims estimated at $52 billion, although actual claims may be lower [1]. - The company is facing "extraordinary pressure" from diverging policies among the six western U.S. states it serves, impacting its financial stability and credit ratings [1]. - The transaction may take at least one year to close, pending federal and state regulatory reviews [1]. Group 3: Strategic Implications - The sale is viewed as a crucial step for PacifiCorp to strengthen its overall position and simplify operations amid complex financial and regulatory pressures [1]. - The assets sold are considered a valuable mix of natural gas and wind resources that will enhance PGE's ability to provide reliable power as electricity demand surges [1]. - The sale does not include PacifiCorp's hydroelectric generation facilities in Washington [1].