ORDER NO. 98-212

ENTERED MAY 27 1998

This is an electronic copy.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UA 58

DISPOSITION: MOTION DENIED

On May 1, 1998, Central Lincoln People’s Utility District (Central) filed with the Commission an application for allocation of exclusively served territory within Central’s territorial boundaries. On May 11, 1998, Central filed a motion for an order staying activities of Douglas Electric Cooperative (Douglas) and International Paper Company (International) designed to allow Douglas to provide electricity to International. A motion for expedited treatment of Central’s motion accompanied the motion for a stay. On May 20, Douglas and International filed a response to the motion. On May 22, Central filed a reply to the response.

ORS 758.450(3) provides that "during the pendency of an application for an allocation of exclusively served territory, no person other than applicant shall offer, construct or extend utility service in or into the territory applied for."

In its application, Central claims that "Central Lincoln PUD is the exclusive source of electricity to all customers within its territorial boundaries." Based on its allegation that it already exclusively serves all electric customers in its territory, Central wants the Commission to formally allocate electric service within its boundaries exclusively to Central. In their response to the motion, Douglas and International state that "[f]or several decades, Douglas has provided electric service to over 60 customers located within Central Lincoln’s political boundaries in the Gardiner, Reedsport and Lakeside areas." That statement is based on an affidavit of David Sabala attached to the response. Mr. Sabala states that "[a]t that time Douglas was, and still is, providing utility services, as a matter of right and not pursuant to any agreement with Central Lincoln, to some 60 customers situated with the boundary of Central Lincoln Peoples’ Utility District."

Central has not received a territorial allocation from the Commission. The Commission does not have accurate records showing who is providing electric service in Central’s territory or whether the service is exclusively being provided by one provider. Central contends that the only area within its territory relevant to this proceeding is the area surrounding International’s mill. The Commission disagrees. The Commission must look at the entire territory for which an exclusive territorial allocation is requested.

The pleadings are contradictory on the question of whether Central is currently the exclusive provider of electricity in its territory. The current state of the record is insufficient to determine whether Central’s territory is being served exclusively. Granting a motion for a stay would not be appropriate when the pleadings allege disputed facts. ORS 758.450(3) applies to territories in which there is monopoly utility service. Other provisions in ORS Chapter 758 apply to territory allocation proceedings when more than one provider provides service. It would be premature for the Commission to grant the motion when the applicability of ORS 758.450(3) to this proceeding is not clear. The issue of exclusivity of service should be resolved at a hearing.

ORDER

IT IS ORDERED that the motion filed by Central Lincoln People’s Utility District on May 11, 1998, is denied.

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.