ORDER NO. 98-279

ENTERED JUL 13 1998

This is an electronic copy.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UE 102

DISPOSITION: RECONSIDERATION OF ORDER NO. 98-163 GRANTED; ORDER MODIFIED

 

On April 20, 1998, the Commission issued Order No. 98-163 granting PGE’s request that it be required to provide certain information only to PUC Staff. On June 23, 1998, the Industrial Customers of Northwest Utilities (ICNU), the Citizens’ Utility Board of Oregon (CUB), and the Commercial Energy Alliance (CEA) (collectively referred to as Joint Customers) filed a motion requesting reconsideration.

PGE filed a response opposing the motion. It argues that the Motion does not meet the requirements of OAR 860-014-0095, our rule relating to reconsideration. It also argues that the information sought is still merely a "placeholder" not relevant to any issue in the case and that, at best, any claim of relevance for the information is premature.

Joint Customers allege that the information sought, which relates to the basis for PGE’s estimates of the value of its generation and supply portfolio, has now become highly relevant to issues of substantial consequence and controversy in the proceeding: whether PGE should sell some, rather than all, of these assets (as Staff now argues) and whether PGE's claim that the restructuring plan will lead to a 10 percent decrease in rates is correct.

Joint Customers argue that if some of the assets are not sold, PGE's stranded costs may be higher than if all were sold and that the value of the unsold assets may have to be determined through an administrative proceeding. Thus, Joint Customers claim, the PGE estimates are relevant. Joint Customers also assert that since Staff has taken a position on the issue of sale of the assets that may conflict with the positions of Joint Customers, Joint Customers need the information to be able to develop their testimony and argument on an equal footing with Staff and PGE.

Joint Customers also argue that PGE's supposed prediction of a 10 percent decrease in rates is highly dependent on its forecast of stranded costs. The issue of whether such an estimate is realistic may become important to the positions of Joint Customers’ component entities. PGE appears to acknowledge that the rate decrease estimate has a connection to the estimates of the value of the assets in question but argues that the rates set out were merely "illustrative," and not intended as evidence of a rate decrease.

DISPOSITION

The Commission recognized in Order No. 98-163 that any significant change in the posture of the case might call for a modification of that order. We noted that if "the procedural course of this case changes so that the information involved becomes relevant to our decision in this case, we will grant access to all pertinent information." More specifically, we stated: "For example, if the Commission were to decide to make a final decision before the binding auction bids for the supply assets are in hand, the estimates may play a role in that decision and the bases for them would then be relevant." (at 6, n.5) We did not intend to judge a request for a change in the order by the standards set out in the administrative rule cited above but rather under the provisions of ORS 756.568, which allows the Commission to amend or rescind its orders.

In any event, Joint Customers have provided a basis for reconsideration under either the rule or statute. Order No. 98-163 was narrow. It was based on the record before the Commission at that time. Our decision was based largely on the fact that as the case stood then the sale of the assets at auction would occur before the Commission made a final decision on the overall plan. The estimates in question were thus not relevant to an issue before the Commission. The information now before us indicates that the posture has changed. Staff has in fact offered testimony on an alternative plan which would involve sale of only some of the assets. Staff’s testimony recognizes that restructuring could go into effect before the auction results are available. Although Staff then argues that the estimates in question should not be used to set transition costs, other parties could argue that the estimates should be used. The question of the accuracy of the estimates is thus now an issue that may have to be dealt with by the Commission before any auction occurs and the estimates are thus relevant. We are also persuaded that the possibly conflicting positions of Staff and Joint Customers makes it appropriate to provide an opportunity for Joint Customers to develop their case independent of Staff. We will therefore modify Order No. 98-163 to require PGE to provide the information in question to representatives of Joint Customers who have signed the Protective Order.

The Commission intends that this modification of the prior narrow order be itself narrow. It allows only the representatives of Joint Customers who have signed the Protective Order to receive the specific information sought in Staff Data Request No. 76. We are confident that broadening the availability of the information to Joint Customers while continuing extraordinary restrictions on its dissemination to other parties will protect the rights of both PGE and the Joint Customers and further the public interest.

ORDER

IT IS ORDERED that the Motion for Reconsideration of Order No. 98-163 is granted and the order is modified to require PGE to provide the information sought in Staff Data Request No. 76 to representatives of Joint Customers (as defined above) who have signed the Protective Order in this case.

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.