ORDER NO. 96-171

ENTERED JUL 1, 1996

THIS IS AN ELECTRONIC COPY

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UG 124

DISPOSITION: APPLICATION APPROVED

On May 21, 1996, Northwest Natural Gas Company (Northwest or company) filed Advice No. 96-10 revising Tariffs P.U.C. Or. 22 and P.U.C. Or. 23. The company is requesting authority to implement a permanent rate change to allocate property tax savings attributable to Ballot Measure 5 to its customers, effective July 1, 1996. The average reduction to core market (firm and interruptible sales) customers and to Schedules 90 and 91 (transportation) customers is 1.3 percent. Northwest’s Oregon annual revenues will be reduced by $3,783,000.

Savings from the property tax rate reductions associated with Ballot Measure 5 have been deferred and are being amortized to customers through a temporary rate reduction. The current filing implements a permanent rate change effective July 1, 1996, to reflect the fully phased-in savings level. New deferrals will end as of June 30, 1996. The temporary rate increment that is amortizing savings to date will continue through November, 1996. Under the proposed tariffs, the monthly bill of a typical residential customer using 66.7 therms per month will decrease by $0.51, or 1.3 percent.

Northwest is also requesting authority to make certain housekeeping revisions to Schedule 6, Firm Capacity Sales Service. Currently, temporary increments are included in the commodity rate and the distribution rate is based on the permanent Schedule 90 rate. However, certain rate changes to Schedule 90, such as the Ballot Measure 5 adjustment, are not always the same as for Schedule 6. Therefore, Northwest proposes that the distribution rate incorporate both temporary and new permanent rate increments specifically related to Schedule 6. This allows Schedule 6 to reflect appropriately both Ballot Measure 5 and future rate adjustments. The overall billing rate will not be changed by the proposed tariff revisions. The revisions are reasonable.

At its public meeting on June 18, 1996, the Commission reviewed Staff’s recommendation and approved the application.

ORDER

IT IS ORDERED that: Northwest Natural Gas Company’s application requesting authorization to implement permanent rate adjustments associated with Ballot Measure 5 and the proposed Schedule 6 modifications is granted. Tariffs filed in Advice No. 96-10 become effective on July 1, 1996.

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.