ORDER NO. 98-356

ENTERED AUG 24, 1998

This is an electronic copy.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UA 59

DISPOSITION: APPLICATION GRANTED

On May 27, 1998, Portland General Electric Company (PGE) filed an application requesting approval of an amendment to the agreement between PGE and the Canby Utility Board/City of Canby (Canby) for the allocation of utility service territory between them. PGE seeks approval pursuant to ORS 758.430 and OAR 860-025-0015.

In April 1962 PGE and Canby entered into an agreement concerning the allocation of electric service territory between them. The Commission granted the application in Order No. 38537, issued in Docket No. UF 2327 on July 18, 1962. PGE and Canby have now entered into an amendment to their agreement. The Amendment removes all references to an additional boundary line and specifies the process the parties will follow to seek Commission approval for an adjustment of the service territory boundaries upon annexation by the City of real property which is within PGE’s previously allocated service territory boundaries. In addition, two parcels of property have recently been annexed into the City of Canby. Canby has purchased the PGE facilities located on these properties and the customers will be transferred to Canby. The areas to be transferred may generally be described as follows:

Wright’s Nursery: located in southeastern portion of the city limits, south of S. Township Road, east of S. Pine Street, north of SE 10^th Avenue, and west of Redwood Street.

United Methodist Church: located in Canby Gardens in the northwestern portion of the city limits, south of NW Territorial road, east of N Holly Street, north of NW 14^th Avenue and west of Ivy Street.

Pursuant to ORS 758.420, the Commission published notice of the application for amendment in The Oregonian, and the Canby Herald/Wilsonville Spokesman, newspapers of general circulation in the subject area. The notice stated that any affected customer could request a hearing within 30 days. No one requested a hearing or filed comments.

ORS 758.430 requires Commission approval of an amendment to a territorial allocation agreement. OAR 860-025-0015 requires that an application for an amendment to a Commission-approved territorial agreement include the amendatory contract, a reference to the basic approval contract, and other information the Commission may require. The application at issue here meets those requirements.

ORS 758.405 establishes Oregon’s territorial allocation philosophy. It is to eliminate and prevent duplication of utility facilities and to promote efficient and safe operation of utility facilities. Approval of the subject application will further the philosophy by coordinating and efficiently allocating territories with nearby electric service facilities.

The basic agreement between PGE and Canby was approved by the Commission years ago. The current application addresses a relatively modest amendment to the basic agreement. Unnecessary duplication of facilities will be avoided. Approval of this application will help clarify the areas that each party will serve in the future, allowing them to better meet expected load. Safe, adequate, and reasonable service will be provided to the area and customers involved. The Commission finds that the amendatory application meets applicable requirements imposed by statute and by rule.

CONCLUSIONS

1. Granting the application is in the public interest and will not impair PGE’s ability to provide electric service to the public in Oregon;

2. The application should be granted.

ORDER

IT IS ORDERED that:

1. The application of PGE for approval of the allocation of utility service territory and the transferring of customers and ownership of facilities between PGE and Canby is granted;

2. The amended agreement between PGE and Canby dated February 24, 1998, is approved.

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