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PUC trims Pacific Power rate hike
Utility wanted 13 percent, got 5 percent
Oregon Public Utility Commission has sliced Pacific Power's proposed rate hike by more than half.
Sep. 15, 2006

By KTVZ.com news sources
SALEM  - The Oregon Public Utility Commission issued a decision Friday that significantly trims PacifiCorp's general rate request filed with the Commission earlier this year.
The PUC is allowing overall rates to go up Jan. 1, 2007 by approximately 5 percent overall instead of the 13 percent initially requested by the utility.
The decision is the result of a stipulation reached between the various parties to the case in August. The stipulation represents a comprehensive settlement reflecting agreement among all the active parties in the rate case proceeding.
The actual amount will be adjusted this fall based on a final analysis of power costs, but it is capped at $43 million a year. PacifiCorp had asked for $116 million annually.
"Given where we arrived at when all was said and done, I agree with the others who examined this request and came to the conclusion that it represents a reasonable rate increase," PUC Chairman Lee Beyer said.
The decision means the average residential customers' monthly bill will go up from $67 to about $70 based on using a 1000 KWh of energy.
Costs were trimmed from several areas including Operating and Maintenance expenses, Administrative and General expenses, Federal and State Income Taxes, and the company's authorized rate of return.
As part of the stipulation, PacifiCorp agrees to not file a new general rate revision case in Oregon before Sept. 1, 2007.
The case is the first filed by PacifiCorp's new owners MidAmerican Energy Holding Co. PacifiCorp serves about 530,040 customers in Oregon.
Link to Commission order:
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