ORDER NO. 95-1054

ENTERED OCT 2, 1995

THIS IS AN ELECTRONIC COPY

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UP 122

DISPOSITION: APPLICATION GRANTED

On August 10, 1995, Portland General Electric Company (PGE or Company)

filed this application with the Public Utility Commission pursuant to ORS 757.480 and OAR 860-27-025. PGE is requesting approval to sell certain of its utility property alleged to be no longer necessary or useful for providing utility services to the public.

At its public meeting on September 26, 1995, the Commission adopted the staff recommendation to approve the sale as proposed.

Based on the application and the Commission’s records, the Commission makes the following:

FINDINGS OF FACT

PGE is an Oregon corporation whose utility function consists of providing heat, light, and power to the public in Oregon.

The property consists of a 115kv electric transmission line located between Harriet Lake Substation and the Three Lynx Substation at the Stone Creek Hydroelectric Project (FERC Project No. 5264) in Clackamas County, Oregon.

PGE is seeking Commission approval to sell the Overbuild portion of the Stone Creek Hydroelectric Project (Overbuild) to the Eugene Water and Electric Board (EWEB) for its gross book value of $1,322,797, which PGE alleges resulted from arms-length negotiation.

All of the property proposed for sale has been treated as utility property since its acquisition in 1994. PGE has determined it is uneconomic to include the Overbuild in its transmission grid. The property is not needed for utility purposes and is not necessary or useful in the performance of PGE’s duties to the public.

PGE proposes to record the $49,747 gain in FERC Account 421.1, Gains from Disposition of Property, a "below-the-line account." Although use of this account would be in accordance with the FERC Uniform System of Accounts, in this instance PGE should record the non-land gain in FERC Account 108, Accumulated Provision for Depreciation of Electric Plant, an "above-the-line" account, because the property has been in a rate base account throughout PGE’s ownership.

There is no indication that the proposed sale will impair the company’s ability to provide its public utility service.

OPINION

Applicable Law

ORS 757.005(1)(a)(A) defines a public utility as an entity that owns, operates, manages, or controls any plant or equipment in this state for the furnishing of heat, light, or power to the public.

ORS 757.480 provides that a public utility doing business in Oregon shall first obtain Commission approval for any transaction to sell, lease, assign or otherwise dispose of property of such public utility necessary or useful in the performance of its duties to the public or any part thereof of a value in excess of $10,000.

PGE is a public utility subject to the Commission's jurisdiction. The proposed sale involves property which has a value in excess of $10,000 and is no longer useful for providing utility services to the public.

OAR 860-27-025 specifies the information a public utility must submit when

it makes application to sell or lease its property. This application contains the necessary information.

There is no indication that the proposed sale will impair PGE’s ability to provide public utility service in Oregon.

CONCLUSIONS

PGE is a public utility subject to the jurisdiction of the Public Utility Commission of Oregon.

 

PGE’s proposed transaction meets the requirements of ORS 757.480.

 

The application should be granted.

 

 

ORDER

IT IS ORDERED that:

1. The application of Portland General Electric Company (PGE) for authority to sell the Overbuild portion of the Stone Creek Hydroelectric Project, a 115kv electric transmission line located between Harriet Lake Substation and the Three Lynx Substation at the Stone Creek Hydroelectric Plant, is granted subject to the following conditions:

a. PGE shall file, as soon as available, final executed or conformed copies of all documents related to this transaction.

b. PGE shall file, as soon as available, copies of the journal entries

recording the transaction.

c. PGE shall account for the net gain arising from the transaction in FERC Account 108, Accumulated Provision for Depreciation of Electric Plant,

an "above-the-line" account.

2. Commission approval of the accounting treatment does not constitute approval for ratemaking purposes.

Made, entered, and effective .

A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A party may appeal this order pursuant to ORS 756.580.