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July 01, 2005

Oregonian Op-Ed Fails to Note Conflict of Interest

In an op-ed in today's Oregonian, former Oregon Public Utility Commissioner Joan Smith takes issue with the goals and mechanisms in SB 408, the utility tax reform bill that CUB has been involved in writing and promoting. (To read more about the tax issues SB 408 addresses, click here.)

We disagree with Ms. Smith's interpretation of the bill, most importantly the fact that she seems to misunderstand the timeline of its changes, which would go forward in time and rates only, not retroactively. She also implies that the bill deals with more costs than just taxes.

But we also feel it's important to point out that Ms. Smith is not only a former PUC Commissioner, she is currently a compensated member of the Board of Directors of IdaCorp, the holding company of Idaho Power. Idaho Power is one of the investor-owned utilties serving Oregon ratepayers with a stake in maintaining the status quo. We think this link should have been disclosed to Oregonians, since it significantly alters the context of her opinion.

The fundamental issue remains that customer rates should reflect actual taxes expected to be paid by utilities and their holding companies. If the taxes probably won't be paid, they should not be collected in rates.

To read Ms. Smith's op-ed, click here.

Posted by Oregon CUB at July 1, 2005 10:49 AM

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