Citizens' Utility Board of Oregon: PacifiCorp rate case decision good for customers

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September 29, 2005

PacifiCorp rate case decision good for customers

Great news for Pacific Power customers! The PUC yesterday accepted CUB's recommendation to stop the over-collection of taxes by the utility (and its parent company, PacifiCorp) in their upcoming year's rates. This change in PUC precedent chopped $16 million off the company's proposed rate increase and made the final increase, at $26 million or 3.2%, a fraction of their original request of $102 million or 12%. According to PUC Chairman Lee Beyer, "The tax amounts included in PacifiCorp's rates are a better estimate of what PacifiCorp will actually pay to governments."

CUB fought hard on the tax issue, both during this rate case and in the Legislature for SB408, the Utility Tax Reform Bill, on which the Commission based part of their decision. We are particularly pleased in light of the recent removal of the electric power surcharge customers had been paying since the 2001 energy crisis. With that surcharge removed, and even counting the 3.2% increase, Pacific Power customers can still expect their electric bills to be lower this winter than last winter.

Bob Jenks was quoted in the Oregonian today regarding this decision, saying, "This is a sign we have fundamentally changed the way we collect taxes in rates, and it will result in lower rates for customers." (Read full article here.)

The PUC decision also accepted CUB's proposal to change the billing structure for Pacific Power's residential customers. As we reported in CUB Online on June 28th, (See Alert CUB Member tips us off to billing cycle problem) the company overcharged customers in the winter by extending the billing periods. This practice will now be eliminated.

If your electric company is Pacific Power, now would be a great time to give them a call (800-769-3717) and change some of your power over to a renewable power option. Rates are reasonable, and you will have the satisfaction of contributing to an increasing market for sustainable power options that will put Oregon on the right course for the future.

Posted by Oregon CUB at September 29, 2005 12:59 PM

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