ORDER NO. 99-426

ENTERED JUL 15 1999

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

OF OREGON

UA 67

DISPOSITION: APPLICATION FOR ALLOCATION OF ADJACENT UNSERVED TERRITORY APPROVED

On March 4, 1999, the Tillamook People’s Utility District (Tillamook PUD) filed an application with the Public Utility Commission of Oregon (Commission), for the allocation of adjacent unserved territory, pursuant to ORS 758.435 and OAR 860-025-0025. There are two areas that Tillamook PUD seeks to have allocated to it as adjacent unserved territory, both located in Tillamook County. The areas are referred to in the application as Area A and Area B. A map of the territory is attached as Exhibit 1 to the application.

In its application Tillamook PUD states that the adjacent unserved areas are remote and consist primarily of undeveloped timberlands, and that expansion of facilities into these unserved areas will be predicated upon the possible future development of the areas. Tillamook PUD also indicates that PacifiCorp and West Oregon Electric Cooperative, Inc., provide similar utility service in proximity to the adjacent unserved areas, but states that that its existing facilities are closer to the unserved areas than the facilities of any other power company.

Notice of the application was published in both The Oregonian and the Tillamook Headlight-Herald on March 10, 1999, and March 17, 1999. Notice was also provided to PacifiCorp and West Oregon Electric Cooperative, Inc. The notice stated that that any affected party may request a hearing on this matter within 30 days of the notice. No one requested a hearing.

The Staff of the Commission (Staff) entered into a Stipulation with Tillamook PUD for the approval of the latter’s application for allocation of adjacent unserved territory. A copy of the Stipulation is attached to this Order as Appendix A. The Stipulation indicates that Staff has reviewed the application and agrees that the adjacent unserved areas described in the application are more economical and feasible to serve by an extension of Tillamook PUD’s existing facilities than by an extension of the facilities of another person.

The Commission has reviewed the application, the exhibits attached thereto, and the Stipulation entered into between Staff and Tillamook PUD. The Commission finds that Tillamook PUD has substantially complied with the requirements of OAR 860-025-0025. The Commission further finds that it is more economical and feasible to serve the adjacent unserved areas described in the application by an extension of Tillamook PUD’s existing facilities than by an extension of the facilities of another person.

ORS 758.440(1) directs the Commission to enter an order either approving or disapproving an application for allocation of adjacent unserved territory on the basis of such application, if there is no hearing, together with findings of the facts supporting such order. Prior to approving such an application, ORS 758.440(2) requires the Commission to find that it is more economical and feasible to serve an adjacent unserved area by an extension of the applicant’s existing facilities than by an extension of the facilities of another person.

Since the Commission has found that it is more economical and feasible to serve the adjacent unserved areas described in the application by an extension of Tillamook PUD’s existing facilities than by an extension of the facilities of another person, the Commission concludes that the application should be approved, and Tillamook PUD should be allocated the adjacent unserved territory requested in its application. The boundaries of the adjacent unserved areas are shown in the metes and bounds descriptions of Area A and Area B, attached to this Order as Appendix B and C respectively.

ORDER

IT IS ORDERED that:

The Application of Tillamook People’s Utility District for an Allocation of Adjacent Unserved Territory, filed on March 4, 1999, is approved.

Tillamook People’s Utility District is allocated the adjacent unserved territory described in its application.

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.