ORDER NO. 99-435

ENTERED JUL 08 1999

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

OF OREGON

UM 784

DISPOSITION: REAUTHORIZATION APPROVED

At its public meeting on June 22, 1999, the Commission adopted Staff’s recommendation to approve reauthorization of deferred accounting for costs associated with Portland General Electric Company’s conservation programs. Staff’s recommendation is attached as Appendix A and is incorporated by reference.

IT IS ORDERED THAT reauthorization of deferred accounting for amounts related to Portland General Electric Company’s energy efficiency programs for a 12-month period beginning July 1, 1999, as described in Appendix A, is granted.

Made, entered and effective __________________________________.

A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A party may appeal this order to a court pursuant to ORS 756.580.

Appendix A

PUBLIC MEETING DATE: June 22, 1999

DATE: July 19, 1999

TO: Bill Warren through Lee Sparling and Ed Busch

FROM: Ed Krantz

SUBJECT: UM 784 - Deferred accounting for costs associated with PGE’s conservation programs

SUMMARY RECOMMENDATION:

Approve reauthorization for a 12-month period beginning July 1, 1999.

DISCUSSION:

This request covers the deferral of costs related to PGE’s energy efficiency activities. The company defers the difference between the actual revenue requirement and lost revenue associated with these activities and that revenue requirement and lost revenue forecast included in the company’s last general rate case, Docket No. UE 88. Current reauthorization extends through June 30, 1999.

The account is subject to ORS 757.259 and OAR 860-27-300, and the Commission may authorize deferred accounts for periods of 12 months or less. As a result, the deferrals will cease on June 30, 1999, unless the Commission reauthorizes the process. Staff recommends the Commission allow PGE to continue the previously authorized deferred accounting for the 12-month period beginning July 1, 1999.

These amounts would be subject to recovery through the company’s annual Schedule 101 rate filing. The company estimates that for the 12-month period beginning July 1, 1999, the net deferrals of its conservation programs, including funding for the Northwest Energy Efficiency Alliance, will be approximately $7.5 million.

The company proposes to record the conservation cost deferrals in FERC Account 182.3, Other Regulatory Assets.

STAFF RECOMMENDATION:

I recommend the Commission allow PGE to continue deferred accounting for amounts related to the company’s energy efficiency programs for a 12-month period beginning July 1, 1999.