ORDER NO. 99-402
ENTERED JUN 30 1999
This is an electronic copy. Appendices and Footnotes may not appear.
BEFORE THE PUBLIC UTILITY COMMISSION
OF OREGON
UP 159
UW 62
| In the Matter of the Transfer of Hurtley Irrigation System to Squaw Creek Irrigation District with Attendant Financial Matters. | ) ) ORDER ) |
DISPOSITION: TRANSFER APPROVED WITH CONDITIONS
RATE SCHEDULES PERMANENTLY SUSPENDED
On April 15, 1998, an investigation into the rates of Hurtley Irrigation System (HIS) was opened by petition of 20 percent or more of its customers and docketed as UW 62. On July 2, 1998, HIS filed rate schedules with an effective date of August 2, 1998. At its Public Meeting of July 21, 1998, the Commission suspended the rate schedules until January 2, 1999, to allow the customers to either form an irrigation district or merge with Squaw Creek Irrigation District (Squaw Creek). See Order No. 98-309. An additional suspension period until July 2, 1999, was approved in Order No. 98-542.
On March 15, 1999, the Commission received a request from HIS, filed pursuant to ORS 757.480, requesting approval to transfer HIS to Squaw Creek. The request was filed as a result of a settlement agreement arising out of a Deschutes County Circuit Court case.
Based on a review of the March 15, 1999, request and the Commission’s records, the Commission finds that the request satisfies applicable statutes and administrative rules. At its Public Meeting on June 22, 1999, the Commission adopted the Staff’s recommendation to approve the transfer with conditions. Staff’s recommendation is attached as Appendix A and is incorporated by reference.
OPINION
Jurisdiction
ORS 757.005 defines a public utility as anyone providing heat, light, water, or power service to the public in Oregon. Hurtley Irrigation System is a public utility subject to the Commission’s jurisdiction.
Applicable Law
ORS 757.480 provides that a public utility doing business in Oregon shall first obtain Commission approval for any transaction to sell, lease, assign or otherwise dispose of property of such public utility necessary or useful in the performance of its duties to the public or any part thereof of a value in excess of $10,000.
The proposed transfer involves property which has a value in excess of $10,000. Commission approval of the accounting treatment for this transaction does not constitute approval for ratemaking purposes.
CONCLUSIONS
Hurtley Irrigation System is a public utility subject to the jurisdiction of the Public Utility Commission of Oregon.
Hurtley Irrigation System's proposed transaction meets the requirements of ORS 757.480.
The request should be granted.
The rate schedules filed in Docket UW 62 by Hurtley Irrigation System should be permanently suspended and the docket closed.
ORDER
IT IS ORDERED that:
The request to transfer all of the Hurtley Irrigation System assets to Squaw Creek Irrigation District is granted, subject to the conditions stated in Appendix A. For accounting purposes, the transfer is effective as of April 1, 1999.
The rate schedules filed in Docket UW 62 by Hurtley Irrigation System are permanently suspended.
The UW 62 docket is closed.
Made, entered, and effective .
| BY THE COMMISSION: ______________________________ Vikie Bailey-Goggins Commission Secretary |
A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A party may appeal this order pursuant to ORS 756.580.
ITEM NO.CA 27
Appendix A
PUBLIC UTILITY COMMISSION OF OREGON
STAFF REPORT
PUBLIC MEETING DATE: JUNE 22, 1999
REGULAR AGENDA CONSENT AGENDA X EFFECTIVE DATE
DATE: June 14, 1999
TO: Bill Warren through Marc Hellman and Mike Myers
FROM: Marion Anderson
SUBJECT: UP 159 – Transfer of the Hurtley Irrigation System to Squaw Creek Irrigation District with Attendant Financial Matters
SUMMARY RECOMMENDATION:
I recommend approval of the requested transfer with the conditions noted in my detailed recommendation.
DISCUSSION:
ORS 757.480(a) states that Commission approval is required to sell, lease, assign or otherwise dispose of the whole of the property of such public utility necessary or useful in the performance of its duties to the public or any part thereof of a value in excess of $10,000, or sell, lease assign or otherwise dispose of any franchise, permit or right to maintain and operate such public utility or public utility property, or perform any service as a public utility.
On March 15, 1999, a request was filed with the Commission after conversations were held with staff. Case number 96-CV-0323-MS was filed in the Deschutes County Circuit Court as an action by several plaintiffs against David L. Hurtley, Judy Hurtley, Hurtley Irrigation System, Squaw Creek Irrigation District and the State of Oregon Water Resources Commission. A preliminary injunction and order was entered on the record in May 1998 and the matter was dismissed in April 1999 as a result of the settlement agreement. That agreement, submitted by the attorney for defendant David Hurtley, is Attachment A to this recommendation. Staff has no opinion thereon. However, the Commission lacks the statutory authority to mandate the financial terms of that agreement, as requested.
DETAILED RECOMMENDATIONS:
1. Ownership of all Hurtley Irrigation System assets (as defined in the settlement agreement) should be ceded to Squaw Creek Irrigation District.
2. UW 62 should be dismissed and the underlying tariff sheets filed June 2, 1998 permanently suspended.
3. For accounting purposes, the transfer is effective April 1, 1999.
Attachment A