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PacifiCorp has warned of liquidity concerns from Oregon

wildfire

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PGE to acquire natural gas, wind, utility assets

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Transaction may close in more than one year

(Adds PacifiCorp comment, details about transaction, paragraphs

2, 7-9)

By Jonathan Stempel and Katha Kalia

Feb 17 (Reuters) - PacifiCorp, a utility owned by

Berkshire Hathaway ( BRK/A ), is ​selling wind, natural gas

generation and distribution assets and infrastructure ‌in central

and southern Washington state to Portland General Electric ( POR )

for $1.9 billion, citing liquidity concerns as it

battles wildfire litigation in Oregon.

The ⁠transaction announced on Tuesday 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. ‌PGE will add PacifiCorp's ‌140,000 customers in Washington

state, covering about 2,700 square miles.

Manulife Investment Management will take a 49%

stake in the Washington utility ​business, PGE said. The

transaction could take at least ‌one year to close, pending

federal and state regulatory reviews. PGE and PacifiCorp are

based in Portland, Oregon.

PacifiCorp has said it could face strained liquidity from

litigation by ​thousands of Oregonians who blamed it for ​causing

four wildfires ‌in September 2020 by negligently failing to shut

off power lines during a windstorm.

Damages claims could total $52 billion, PacifiCorp has said, but

would likely be lower. Trials could last into ⁠2028. PacifiCorp

has asked an Oregon state appeals court to undo a class action

and ⁠eliminate liability for fire victims' emotional distress.

PACIFICORP FACES 'EXTRAORDINARY PRESSURE'

In announcing the asset sale, PacifiCorp said "diverging

policies" among the six western U.S. states it serves have

created "extraordinary pressure," affecting its financial

stability, liquidity and credit ratings.

It is rare for Berkshire or its operating units to sell a large

business or ⁠group of ‌assets. Greg Abel replaced Warren Buffett

as the Omaha, Nebraska-based conglomerate's chief executive ‌on

January 1. Abel previously led PacifiCorp's immediate parent

Berkshire Hathaway Energy for about a decade.

"PacifiCorp is ⁠navigating a complex set of financial and

regulatory pressures," the utility said in a statement. "The

sale is an important step in strengthening the company's overall

position and simplifying operations."

The sale does not include PacifiCorp's hydroelectric

generation facilities in Washington.

As electricity demand surges among industrial customers and

data centers, utilities are seeking additional generation and

transmission assets to support load growth.

Maria Pope, PGE's chief executive, on a conference call said

the PacifiCorp assets are "a ​valuable mix of natural gas and

wind resources that provide safe, reliable and affordable

power."

PGE also posted an adjusted fourth-quarter profit of $53

million, or 47 cents per share. Analysts, on average, expected

63 cents ​per share, according to LSEG.