Autumn brings movement in utility ownership
Posted on September 16, 2005 by oregoncub
Tags, Utility Regulation
PGE Stock Distribution and Rate Reduction
As the summer ends, CUB is wrapping up a PGE RVM (resource valuation mechanism) case, UE 172, in which we won a reduction for PGE customers of $3.75 million for 2006. This case contained some hard issues involving Company attempts to charge customers twice for the same cost, to apply to residential customers costs that should apply only to industrial customers, and a general attempt to push rates up beyond what we felt was reasonable. We are pleased with this reduction in rates for the coming year and hope that you are, too.
As temperatures outside start to drop, the tenor of utility purchase negotiations is heating up. After months of research and negotiation, CUB signed the Agreement for PGE’s Stock Distribution Application, UM 1206. The application, which awaits PUC approval, would pave the way for PGE to become an independent, publicly traded utility once again. We fought for, and received, conditions that improved the terms of the stock distribution, and feel that the outcome yields a better risk/benefit position than sending PGE back to Enron and the bankruptcy court. While we would have preferred that PGE be sold to the City of Portland, that deal was rejected by Enron’s bankruptcy management team. Since that rejection, the stock distribution is the best of the options left open to us.
After running a fairly comprehensive series of articles regarding the Texas Pacific purchase attempt of PGE, Portland-based Willamette Week ran a rather disappointing cover story this week on the current stock distribution case. The author’s insistence that this deal is worse than that offered by Texas Pacific only goes to show that people have already forgotten how bad the Texas Pacific proposal truly was. It also indicates a lack of clarity on the legal restrictions of the regulatory process.
CUB takes every opportunity that actually exists to fight for customers’ access to better service at a better price, and the reason we are so successful in this advocacy is because we understand and respect the process, both its real opportunities and its real limitations. Look for CUB’s more complete response to the WW cover story next week.
MidAmerican Public Meetings
Another high profile case, the MidAmerican proposal to purchase PacifiCorp, is also getting ready to take off. Several meetings have been scheduled for public comments:
Portland Open House, Univ. of Portland, Chiles Ctr, Hall of Fame Rm, 10-03-05 6:30 p.m.
Bend Open House, Bend Sr. High School, Commons, 10-06-05 6:30 p.m.
Klamath Falls Open House, Ponderosa Jr. High School, Library, 10-10-05 6:30 p.m.
Medford Open House and Town Hall, Red Lion Inn, 10-11-05 6:30 p.m.
Pendleton Open House, Blue Mtn Comm. College, Rm P-132, 10-13-05 6:30 p.m.
Portland Town Hall, Univ. of Portland, Chiles Ctr, Hall of Fame Rm, 10-25-05 6:30 p.m.
If you have a chance to attend one of these meetings, please do. The more people turn out to see what’s really going on with their utility, the better the chance that that utility won’t be caught in a bad bargain.
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03/10/17 | 0 Comments | Autumn brings movement in utility ownership