ORDER NO. 96-047

ENTERED FEB 23 1996

THIS IS AN ELECTRONIC COPY

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UP 126

DISPOSITION: APPLICATION GRANTED WITH CONDITIONS

On January 31, 1996, 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, to World Power, a division of Associated Electric Company, Inc., (WP).

At its public meeting on February 20, 1996, 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 two 3600 HP diesel generators, a generator control building, two step-up transformers, and one station service transformer located on US Forest Service land at Government Camp in Clackamas County, Oregon. PGE has treated all of the property as utility property since its acquisition in 1970 and 1972.

PGE received seven firm bids on the property and proposes selling it to WP, the highest cash bidder, for $450,000 plus $30,000 to cover testing costs.

WP will remove the equipment from the site by March 31, 1996, and install the equipment at Vanderbilt University as backup or supplemental power for one of Vanderbilt's campuses.

PGE proposes to record the $325,000 gain in FERC Account 411.6, Gain on Disposition of Property, an "above the-line" account.

There is no indication that the proposed sale will impair PGE'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

1. PGE is a public utility subject to the jurisdiction of the Public Utility Commission of Oregon.
2. PGE's proposed transaction meets the requirements of ORS 757.480.
3. The application should be granted.

ORDER

IT IS ORDERED that:

1. The application of Portland General Electric Company (PGE) for authority to sell two 3600 HP diesel generators, a generator control building, two step-up transformers, and one station service transformer located on US Forest Service land at Government Camp in Clackamas County, Oregon, to World Power, a division of Associated Electric Company, Inc., 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.

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.