ORDER NO. 97-342

ENTERED SEP 5, 1997

This is an electronic copy

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 631

DISPOSITION: PETITION GRANTED.

In Order No. 94-319, issued on February 18, 1994, the Commission granted the petition of Northwest Natural Gas Company (NNG) for a determination that the provision of natural gas commodity, interstate pipeline capacity, and natural gas transportation services are subject to competition when such services are provided in advance of the point of interconnection between the company’s facilities and the facilities of an interstate pipeline. Order No. 94-319 imposed a condition, however, limiting NNG to offering those services only within its own service territory.

On June 30, 1997, NNG filed a petition requesting the Commission to amend Order No. 94-319 by eliminating the restriction to offer competitive upstream commodity and capacity services only within its own service territory. The petition states that the other natural gas local distribution companies in Oregon do not oppose NNG's request. The Commission considered the petition at its August 22, 1997, public meeting. The Commission’s Staff recommended that the petition be granted. The Commission adopted Staff’s recommendation and granted NNG's petition. Staff’s Report, attached to this order and incorporated as Appendix A, explains the reasons why NNG's petition was granted.

CONCLUSIONS

NNG has demonstrated that the upstream markets have developed sufficiently so the territorial restriction is no longer necessary. Rescinding the restriction should allow NNG to compete on a more equal footing with others in the upstream markets.

ORDER

IT IS ORDERED that:

NNG's petition to amend Order No. 94-319 is granted;

Order No. 94-319 is amended to rescind Condition No. 1, which states: "For the State of Oregon only, NNG shall be allowed to offer such services to customers within its own service area only."

The remainder of Order No. 94-319 shall remain in effect.

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 of 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.