PGE has reached an agreement with Orion Energy LLC to buy the development rights for the 25,000-acre Biglow Canyon Wind Farm in Sherman County.

The Oregon Public Utility Commission is reviewing the agreement and is expected to announce its recommendation in the next several weeks. If the agreement is approved by the commission, Portland General Electric (NYSE: POR) could develop between 350 and 450 megawatts of wind energy capacity at the site, which could produce enough electricity to power 100,000 homes. It would be one of the largest wind power projects in the nation.

PGE officials said the agreement fits well with what customers want and with the company's goal to minimize energy price volatility by reducing exposure to fuel costs.

The deal would enable PGE to hold wind easements from more than 23 private landowners in Sherman County for 30 years or more. Orion Energy worked with local representatives of these landowners, collectively known as Praise the Wind Inc., to develop and execute the wind easements. The land is currently used as farm and pasture land and will largely stay that way given the small footprint of modern wind projects.

Oakland, Calif.-based Orion Energy is the developer of Biglow Canyon and is working with the Oregon Department of Energy's Energy Facility Siting Council to obtain a site certificate for the project. Orion Energy also has been working closely with Sherman County throughout the development process to ensure the project meets local needs. Additionally, the Bonneville Power Administration will provide engineering and construction expertise to develop the transmission infrastructure and connect the project into the region's grid.

PGE proposes to construct the wind farm in three phases during a five-year time frame. In its first phase, PGE would install enough wind turbines at the site to produce about 126 MW of capacity, which could power up to 32,000 homes. Depending on the availability of turbines and other factors such as regulatory approval, phase one could be completed as early as the end of 2007.