UPDATE-Portland General expands into Washington in $1.9 bln deal backed by Manulife

Feb 17 (Reuters) - Portland General Electric POR.N said on Tuesday it has partnered with Manulife Investment Management to acquire select Washington state generation and electric utility operations from PacifiCorp for $1.9 billion, expanding beyond its Oregon home market.

With electricity demand surging among industrial customers and data centers, utilities are looking for additional generation and transmission assets to support load growth.

The deal includes three generation facilities: the 477-megawatt Chehalis natural gas plant, the 94-MW Goodnoe Hills wind facility, and the 234-MW Marengo I and II wind facilities, along with about 4,500 miles of transmission and distribution lines spanning 2,700 square miles.

Manulife Infrastructure Fund III and affiliates, including John Hancock Life Insurance Company (USA), will take a minority stake in the Washington utility business, providing long-term capital support for the expansion, Portland General said in a statement.

The company said it will operate the Washington assets through a newly formed subsidiary that will be regulated by the Washington Utilities and Transportation Commission.

It expects state and federal regulatory reviews to conclude roughly 12 months after filings are submitted.

The Portland, Oregon-based company posted an adjusted profit of 47 cents for the quarter ended December 31, missing analysts' estimates of 63 cents, according to data compiled by LSEG.