ORDER NO. 95-1340

ENTERED DEC 20 1995

THIS IS AN ELECTRONIC COPY

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UG 120
UM 776

DISPOSITION: APPLICATION APPROVED

UG 120

On October 17, 1995, Northwest Natural Gas Company (Northwest) filed Advice No. 95-20 proposing to reduce annual rates by $14.0 million or 4.2% to reflect changes in the cost of purchased gas and technical adjustments in its deferred revenue and gas cost accounts, effective December 1, 1995. Advice No. 95-21, also filed on October 17, 1995, transfers the rate increments from the temporary rate schedules in Advice 95-20 to the primary rate schedules, effective December 2, 1995.

On November 9, 1995, Northwest withdrew its October filing and replaced it with revised tariffs in Advice No. 95-20A reflecting certain modifications that result in a proposed overall revenue reduction of $18,251,000, effective December 1, 1995. Advice No. 95-21 was also withdrawn and refiled as 95-21A, with a December 2, 1995, effective date. This application requests authority to reduce rates to track reductions in purchased gas costs, to make technical adjustments to amortize Northwest’s deferred revenue and gas cost accounts, and to reflect a permanent rate decrease associated with termination of the company’s Interruptible Sales Adjustment (ISA) balancing account. Northwest requests a waiver of the statutory 30-day notice requirement for both revised filings.

Commission staff reviewed Northwest’s revised filing and issued a detailed report recommending approval of amortization of deferred accounts, base gas cost changes, and rate changes as requested. Staff also recommends that the tariff sheets associated with Advice Nos. 95-20A and 95-21A go into effect December 1, 1995, and December 2, 1995,

respectively, waiving statutory authority. At its public meeting on November 28, 1995, the Commission reviewed staff’s recommendation and approved the application.

UM 776

On October 17, 1995, Northwest filed an application pursuant to ORS 757.259 and 757.210 and OAR 860-27-300. Northwest requests reauthorization of deferrals pursuant to its automatic adjustment clause, the Purchased Gas Adjustment (PGA) mechanism, Schedule No. 169. The PGA allows the company to adjust tariffs annually for known and measurable changes in purchased base gas costs and for changes in amortization rates relating to the PGA balancing account.

Northwest states that continued deferral of these cost and revenue differences minimizes the frequency of rate changes and appropriately matches costs borne and benefits received by ratepayers, in keeping with ORS 757.259(2)(d).

The Commission staff report indicates that the reasons cited for reauthorization are still valid and recommends approval of the filing. At its November 28, 1995, public meeting, the Commission approved reauthorization of Northwest’s PGA mechanism, effective December 1, 1995.

ORDER

IT IS ORDERED that:

1. Amortization of deferred accounts, base gas cost changes, and rate changes as requested in Northwest Natural Gas Company’s revised filing of November 9, 1995, is approved. Revised tariff sheets filed as Advice Nos. 95-20A and 95-21A are approved to become effective December 1, 1995, and December 2, 1995, respectively, waiving the 30-day statutory notice requirement. (UG 120)

2. Northwest’s application requesting reauthorization of deferred accounting for its Purchased Gas Balancing Account mechanism, Schedule No. 169, is approved to become effective for 12 months beginning on December 1, 1995. (UM 776)

Made, entered, and effective .

A party may request rehearing or reconsideration of this order within 60 days pursuant to ORS 756.561. A party may appeal this order pursuant to ORS 756.580.