ORDER NO. 97-415

ENTERED OCT 28 1997

This is an electronic copy. Appendix not included.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 866

DISPOSITION: APPROVED WITH CONDITIONS

On September 22, 1997, WP Natural Gas Company (WPNG) filed an application requesting that the Commission determine 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 WPNG’s facilities and the facilities of an interstate pipeline.

Based on a review of the application and the Commission’s records, the Commission finds that the application satisfies applicable statutes. At its public meeting on October 21, 1997, the Commission adopted Staff’s recommendation to approve the application. Staff’s recommendation is attached as Appendix A and is incorporated by reference.

Jurisdiction

ORS 757.005 defines a "public utility" as anyone providing heat, light, water, or power service to the public in Oregon. The Company is a public utility subject to the Commission’s jurisdiction.

Applicable law

In 1993, the Oregon Legislature passed SB 1116, which allows the Commission to adopt and implement regulatory mechanisms to allow natural gas utilities to provide certain services in competitive upstream markets. ORS 757.516 requires that the Commission find that upstream services are subject to competition before authorizing a natural gas utility to enter into a contract with any customer for such services. The Company’s application and supporting materials demonstrate the competitive nature of the upstream markets.

ORDER

IT IS ORDERED that the WP Natural Gas Company request for competitive market determination and authorization to participate in these upstream markets is granted subject to the conditions described in Appendix A.

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(2). A party may appeal this order to a court pursuant to ORS 756.580.