ORDER NO. 96-256

ENTERED OCT 03 1996

This is an electronic copy.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UP 134

DISPOSITION: APPLICATION GRANTED WITH CONDITIONS

On September 3, 1996, Portland General Electric Company (PGE or Company) filed this application with the Public Utility Commission pursuant to ORS 757.480 and OAR 860-027-0025. PGE is requesting approval to sell certain utility property alleged to be no longer necessary or useful for providing utility services to the public.

At its public meeting on September 24, 1996, the Commission adopted Staff’s recommendation to approve the sale, subject to certain conditions.

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 several parcels of land which sum to approximately 15.77 acres of the Oregon Electric Railroad Right-of-Way corridor in Washington County, Oregon.

The Tri-County Metropolitan Transportation District (Tri-Met) is purchasing this land for $500,000. As a condition of sale, PGE retains a perpetual power line easement over the entire western portion of the light rail line, from 12th Street in Hillsboro to Cedar Hills Blvd. in Beaverton, and right of ways through all the parcels being sold. PGE does not need this property for its utility operations.

The property proposed for sale is classified as "utility plant in service." The gain on disposition of this property is $297,546 and will be recorded in Account 411.6, Gain on Disposition of Property, an "above-the-line" account.

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 860-027-0025 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 for authority to sell several parcels of land, for an approximate total of 15.77 acres, of the Oregon Electric Railroad Right-of-Way corridor in Washington County, Oregon, 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.