Your Chance to Speak Out About Pacific Power’s Proposed Rate Increase
Posted on May 13, 2013 by Catriona McCracken
Tags, Public Involvement and Coalitions, Utility Regulation
Within weeks of Pacific Power’s 2012 General Rate Case (GRC) ending, Pacific Power filed again for yet another rate increase. On March 1, 2013, Pacific Power filed for a 3% rate increase for residential customers effective January 2014 and then again later in 2014 for an additional 1.8%. In effect, the company is asking for a series of 4 general rate increases to take effect in a period of only 2 years (2013 and 2014). While the small increase that hit customers in January 2013 is being largely offset by the rate credit CUB won for customers as a result of the $17 million penalty issued by the Commission for inadequate coal studies, more increases will follow this summer and now the company is asking for two additional increases that would be effective 2014. CUB has been critical of Pacific Power in the past for filing rate cases for rate increases nearly every year. But the 2012 rate case commenced a new era where the Company is asking for rate increases twice a year.
According to Pacific Power, the primary driver of the first 2014 requested rate increase is a change in the company’s depreciation schedule, which pushes up rates by $40 million. This increase does not come from an increase in costs, but from a change in the timing of how costs are collected. For example, rather than pay for a particular Information Technology investment over 7 years, the new schedule might collect the same costs from customers over 5 years. While depreciation schedules get updated regularly, CUB cannot remember a depreciation change leading to such an increase in rates.
CUB is analyzing each and every page of the Pacific Power (UE 263) General Rate Case filing. We are looking at requests related to the fish collector system on the Lewis River, two way radios, pensions, and other investments for new capital projects. We are probing and digging, looking for inflated costs, errors in calculations and things that simply should not be billed to customers. While CUB is just beginning to analyze the Pacific Power rate case, there is one area that already troubles us – the request that customers pay the utility a profit on its pension contributions, which would require a fundamental change in how pensions are treated. It would give the company the ability to increase its profits and rates at will by dumping money into its pension fund. Examining Pacific Powers costs and revenues will be a priority for CUB over the next few weeks. CUB hopes to maintain its record of reducing, and even on occasion entirely eliminating, unnecessary rate hikes.
And while CUB continues to analyze the paper and electronic filings, the Commission needs to hear from you personally about what customers think about these relentless Pacific Power requests for rate increases. This year it will be easier than ever before to have your opinion heard. This is because the Commission has scheduled an Open House and Public Comment Hearing at which PacifiCorp customers like you are encouraged to come and voice your opinions in person to the Commission. Your statements will be made part of the record in this rate case. This is a wonderful opportunity for our members to participate. Please do join us at the Public Comment Hearing on May 14, 2013 and let the Commissioners know what you feel is good, bad or indifferent about Pacific Power.
EVENT: Public Comment Meeting for Pacific Power Rate Case, UE 263
DATE: Tuesday, May 14, 2013
TIME: 6 p.m. – 7 p.m. Open House
7 p.m. – 8:30 p.m. Public Comment Meeting
PLACE: South Medford High School Commons
1551 Cunningham Ave.
Medford, Oregon 97051
If you are not able to attend this meeting but would still like to comment for the record, you may submit written comments by mail or e-mail to the Commission at: Public Utility Commission of Oregon, Attn: docket UE 263, Administrative Hearings, P.O. Box 2148, Salem, OR 97308-2148.
You can also submit comments by telephone to: Consumer Services Division 503-378-6600 or 1-800-522-2404.
To keep up with CUB, like us on Facebook and follow us on Twitter!
04/03/17 | 2 Comments | Your Chance to Speak Out About Pacific Power’s Proposed Rate Increase