ORDER NO. 96-186

ENTERED JUL 17 1996

THIS IS AN ELECTRONIC COPY

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 793

DISPOSITION: STIPULATION ADOPTED

On March 8, 1996, Northwest Natural Gas Company (NNG) filed a depreciation study proposing revised depreciation rates for its total depreciable capital investment in Oregon.

In the depreciation study, NNG proposed life and salvage parameters increasing the depreciation expense for 14 accounts, decreasing the depreciation expense for 14 accounts, and keeping 25 accounts unchanged. The total of all requested changes would decrease annual depreciation expense by approximately $1,328,000.

Staff and NNG worked together to develop depreciation rates acceptable to both parties. The parties reached agreement on depreciation and amortization issues, agreeing that NNG's annual depreciation expense should be decreased by $1,500,000, rather than the $1,328,000 originally requested. On June 27, 1996, NNG and staff filed the attached stipulation.

Staff submitted written testimony and an exhibit to support the stipulation. Based on the evidence submitted, the Commission finds that the stipulated depreciation parameters will be fair and reasonable. The Commission concludes that it should approve the stipulation. The stipulation and its accompanying exhibit are attached to this order and incorporated into it.

ORDER

IT IS ORDERED that:

 

1. The stipulation filed by Northwest Natural Gas Company and the Commission's staff on June 27, 1996, is adopted.

2. The revised depreciation rates agreed to in the stipulation are deemed effective as of January 1, 1996.

Made, entered, and effective ________________________________________.

A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A request for rehearing or reconsideration must be filed with the Commission within 60 days of the date of service of this order. The request must comply with the requirements in OAR

860-014-0095. A copy of any such request must also be served on each party to the proceeding as provided by OAR 860-013-0070. A party may appeal this order to a court pursuant to ORS 756.580.

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