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News Release
Commission Approves PacifiCorp Rate Hike
June 27, 2000 (2000-032)
Contacts: Ron Eachus, Chairman, 503 378-6611; Roger Hamilton, Commissioner, 503 378-6611; Joan H. Smith, Commissioner, 503 378-6611; Bob Valdez, Public Information Officer, 503 378-8962
Salem, OR - The Oregon Public Utility Commission has approved an overall 1.8 percent increase for Oregon customers of Pacific Power Corporation. The new tariff will boost the company's annual revenues by $13.66 million. The new rates take effect July 1, 2000.
Under the new tariff, residential rates will rise by 3 percent, commercial customers will pay .52 percent more for electricity and large industrial user rates will increase by 1.15 percent. A typical residential customer using 1,000 kWh per month will see an increase of $1.84 cents a month.
The Commission approved the increase through an annual adjustment as part of the alternative form of regulation (AFOR) process that was approved by the Oregon Public Utility Commission in May 1998. The AFOR allows prices to change according to designated price indexes adjusted for increases in productivity. The AFOR also includes service quality standards and incentives to continue Pacific Power's investment in renewable forms of energy.
The Citizens Utility Board (CUB) and Industrial Customers of Northwest Utilities (ICNU) opposed the new tariff, due mainly to concerns about a delay in filing earnings information.
"The Commission appreciates concerns of consumer groups regarding an earnings review, but views these adjustments as fair and consistent with the AFOR agreement. It sees no reason to penalize the company by suspending the filing at this time," Commissioner Roger Hamilton said. "By using balancing accounts, customers are protected over the years of the AFOR."
This tariff is separate from a rate case the company filed earlier this year to raise annual rates by $61.8 million or 8.9 percent overall for increased generation and transmission costs. The Commission is continuing to review the rate case and anticipates finalizing the case this fall.
Pacific Power serves approximately 479,000 customers in Oregon.
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