ORDER NO. 99-339

ENTERED MAY 18 1999

This is an electronic copy. Appendices and footnotes may not appear.

OF OREGON

UE 102

DISPOSITION: RECONSIDERATION GRANTED

On March 29, 1999, PGE filed a Petition for Reconsideration and Clarification of Order No. 99-033, the Commission’s restructuring order in this case. The Industrial Customers of Northwest Utilities (ICNU) filed a response on April 13, 1999, and PUC Staff (Staff) filed a response on April 14, 1999.

PGE notes that Order No. 99-033 establishes a general framework for restructuring PGE that must be developed further before PGE can decide whether or not to go forward. PGE thus asks the Commission to provide clarification and guidance as to the implications of various portions of the order. PGE also asks that certain portions of the order be modified or reversed. PGE asks additionally that the Commission change the process by which PGE is to indicate acceptance or rejection of plan so that its final commitment will be required only when tariffs are approved.

ICNU opposes reconsideration of the Commission’s decisions concerning cost of capital, which it describes as well reasoned and supported by an extensive record. Staff asks that the Commission simply grant reconsideration now but wait until after the legislative session before providing a detailed response. At that point, Staff argues, it will be clear whether legislative action has answered or made moot some of the issues PGE raises. Staff suggests that at the end of the session Staff and other parties be allowed to further respond to the issues before the Commission makes its decision.

Discussion

Order No. 99-033 was intended to set out principles for restructuring. They were broad policy statements, in many instances, which we knew would need additional development. We also noted in the order that implementation would require legislative action. In light of the general character of Order No. 99-033, PGE’s requests for amplification are reasonable and constitute good cause for reconsideration under OAR 860-014-0095. Our granting of the petition is not, of course, an indication of our view of the merits of any portion of the petition.

Staff's argument that our specific decisions should be delayed until after the end of the legislative session is appropriate. Only then will we know what form of restructuring, if any, can be implemented. We will therefore grant the petition now but delay a detailed response until after the session ends. Our response will include our decision on the process by which PGE will indicate acceptance or rejection of the plan. We will decide after the session whether to allow additional responses from the parties.

IT IS ORDERED that the application for reconsideration filed by Portland General Electric Company is granted.

Made, entered, and effective ________________________.

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