ORDER NO. 97-042

ENTERED FEB 07 1997

This is an electronic copy.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 834

In the Matter of an Investigation of Transition Costs for Electric Utilities

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ORDER

DISPOSITION: INVESTIGATION OPENED

At its public meeting on January 21, 1997, Commission Staff (Staff) recommended the Commission open an investigation to develop a policy for the treatment of transition costs for electric utilities. Staff’s recommendation is attached as Appendix A and is incorporated by reference. Appendix A provides the background and additional details concerning this issue. The Staff recommendation is adopted.

Electric utilities in Oregon may experience transition costs as one potential outcome of opening the generation portion of their business to competition. The Staff believes that in order to fully explore the issues involved in transition costs it is necessary to open a docket. Staff proposed that the proceeding address the following issues:

How should a utility’s transition costs be determined?

What portion of any transition costs should be recovered from customers?

What types of charges should be used for transition recovery?

ORDER

IT IS ORDERED that an investigation to develop a policy for the treatment of transition costs for electric utilities is opened.

Made, entered, and effective ________________________.

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Roger Hamilton
Chairman

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Ron Eachus
Commissioner

 

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Joan H. Smith
Commissioner