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Email Story to a Friend June 10, 2006 PUC, PacifiCorp far apart in setting electricity rate increase The Associated Press The Washington Post PORTLAND — PacifiCorp wants an electricity rate increase of 13.2 percent but the Oregon Public Utility Commission says 1.98 percent is the number it is considering. Portland-based PacifiCorp, which was recently acquired by billionaire Warren Buffett's MidAmerican Energy Holdings Co., filed a request in February for the 13.2 percent increase to its base rates, which would boost revenue by about $112 million. But the PUC staff members say PacifiCorp deserves an overall increase in revenue of only $16.8 million. The PUC adjusted the revenue requirement request downward by $38 million after analyzing its financial and risk profiles relative to other utilities, deciding that PacifiCorp deserved a rate of return of 8.082 percent, rather than the 9.81 percent it had requested. Other big adjustments to the request included expenses to overhaul generation equipment and to fund pensions, as well as adjustments to the margins the company expects to earn on wholesale power sales. Advertisement The PUC's commissioners must rule on the request by Dec. 23. But staff and customer groups can reach a settlement in advance and submit that for approval by commissioners. Ed Durrenberger, a PUC staff analyst, said the settlement proposal was only "a first shot across the bow" as regulators, the utilities and customers prepare for settlement talks starting next week. "I've got a feeling there will be some serious haggling over these numbers," he said. The Industrial Customers of Northwest Utilities has filed its own proposed settlement. Michael Early, executive director of the advocacy group, declined to share the proposal, but said, "at this stage, we don't believe the filing would justify any rate increase." Bob Jenks, executive director of the Citizen's Utility Board, said the rate request was typical for PacifiCorp, which he says regularly makes large requests but settles for smaller amounts. "On average, they get 30 percent of what they ask for," Jenks said. PacifiCorp officials had no comment. CD site seeks purchase without piracy Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback www.bingo.com Home Security Systems Trunks, Footlocker Custom Build Computers Discount Hotel Reservations --> online casinos news Ashley Furniture HomeStore Send Flowers California Casinos GMAT Prep Windermere Van Vleet Sports Equipment Online Casino Reviews Entertainment Guide --> Online Casino Fundraisers Sudoku Online Casinos Canada Online Pharmacy Advertisements Advertisement