S.B. 76 Proposed Amendments

By Rex Cozzalio

February 15, 2009

Upon receipt of the most recent proposed amendments to S.B. 76, several
primary flaws in the Agreement in Principle (AIP), which 76 essentially
endorses, now actually codifies into Oregon law the principle actions of
those flaws.

The ratepayers have no representation either in the AIP or in SB 76. The
definition of ratepayers must be consistent and defined. Pacific Power has
been a responsible manager of the Klamath Dams, but contrary to the
circulated rhetoric, they do not represent its customers (ratepayers).
Pacific Power represents the profitability of their company and its
shareholders. For Pacific Power to represent those ratepayers, they would
have to share in the assets, profits, and directional decisions of that
company, which they do not. Therefore the ratepayers are not responsible
for the costs of company assets and liabilities incurred, any more than a
car purchaser is responsible for the profits of the manufacturer. If a
determination is made by the Secretary of Interior under provisions of the
AIP, in which group the ratepayers are also unrepresented, to remove dams
based upon newly imposed requirements not in existence at the time of
original licensing approval, then it is the federal government and states
calling for that required removal that are responsible for the mandated
costs, not the ratepayers. For an arbitrarily selected group to be
unwillingly burdened with guaranteeing the profits, liability costs, asset
replacement, and newly imposed intergovernmental requirements of a private
company through private agreement brokered by federal government, with no
direct correlation of costs imposed to ratepayer benefits received, then
those ratepayers must have the ability to form organized representation with
equal signer status at the AIP table, which they do not have. To target the
unrepresented ratepayer for costs over which they have no voting authority
or control, is simply a convenient way for the Secretary of Interior and
signers of a private agreement to shift the subjectively imposed costs away
from themselves and the voting taxpayers in order to effect that
'agreement'.

Additionally, as in the AIP, this bill authorizes the direct impounding by
PUC for ancillary costs unlimited in scope for the above purposes
unrestricted by the 200 million dams' removal 'cap', with those funds able
to be transferred within various trust accounts, allowing transfer for use
within other areas not originally authorized, and with any excess to
optionally be directed by the Secretary for other uses determined at his
discretion as 'benefitting' the ratepayers, rather than being returned to
the ratepayers. Now within S.B. 76, additional provision is made to further
detach that unrepresented group by legislatively limiting their ability to
legally contest that burden unwillingly and unjustly imposed upon them.
Please do not authorize the AIP by signing S.B. 76.

Sincerely,

Rex Cozzalio

4041 Copco Road

Hornbrook, CA 96044

February 15, 2009

Please submit this document into the records.

Proposed Amendments to S.B. 76-5

"(2) The commission shall use the depreciation schedules prepared under this
section to establish rates and tariffs for the recovery of Oregon's
allocated share of undepreciated amounts prudently invested by PacifiCorp in
a Klamath River dam. Amounts recoverable under this section include, but are
not limited to: "(a) Return of investment and return on investment; "(b)
Capital improvements required by the United States or any state for
continued operation of the dam until dam removal;

"(c) Amounts spent by PacifiCorp in seeking relicensing of the dam before
the effective date of this 2009 Act;

"(d) Amounts spent by PacifiCorp for settlement of the issues of relicensing
or removal of the dam; and

"(e) Amounts spent by PacifiCorp for the decommissioning of the dam in
anticipation of the dam's removal.

"(3) If any amount specified under subsection (2) of this section has not
been recovered by PacifiCorp before a dam is removed, the Public Utility
Commission shall allow recovery of that amount by PacifiCorp in Pacificorp's
rates and tariffs.

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"(2) PacifiCorp must include with the filing made under subsection (1) of
this section tariffs for the collection of two nonbypassable sur charges
from its customers for the purpose of paying the costs of re moving Klamath
River dams. Notwithstanding the commission's findings and conclusions under
subsection (4) of this section, the commission shall require PacifiCorp to
begin collecting the surcharges on the date that the filing is made under
subsection (1) of this section, or on January 1, 2010, whichever is later,
and PacifiCorp shall continue to collect the surcharges pending a final
decision on the commission's order under subsection (4) of this section. The
surcharges imposed under this section shall be:

"(a) A surcharge for the costs of removing the J.C. Boyle Dam; and

"(b) A surcharge for the costs of removing the Copco 1 Dam, the Copco 2 Dam
and the Iron Gate Dam.

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"(5) Notwithstanding ORS 183.482 (I), jurisdiction for judicial review of
any appeal of an order entered under subsection (4) of this section is
conferred on the Supreme Court, and a person seeking judicial re- view of
the order must file a petition for review with the Supreme Court in the
manner provided by ORS 183.482. ORS 183.482 (3) does not apply to an order
entered under subsection (4) of this section. If a petition for review is
filed, the surcharges imposed under the terms of the final agreement shall
remain in effect pending a final decision on the petition, but shall be
refunded if the rates resulting from the surcharges are finally determined
not to be fair, just and reasonable. A petition filed under this subsection
must indicate on its face that the petition is filed pursuant to this
subsection.

66 (6) The commission may not use any commercially sensitive information
provided to the commission in a filing made under sub- section (1) of this
section for any purpose other than determining whether the imposition of
surcharges under the terms of the final agreement results in rates that are
fair, just and reasonable. Not withstanding ORS 192.410 to 192.505, the
commission may not release commercially sensitive information provided to
the commission under this section, and shall require any person
participating in a proceeding relating to the surcharge to sign a protective
order prepared by the commission before allowing the participant to obtain
and use the information.

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In addition, the commission shall direct the trustee of the appropriate
trust account under section 5 of this 2009 Act to apply any excess balances
in the accounts to Oregon's allocated share of prudently incurred costs to
implement Federal Energy Regulatory Commission relicensing requirements. If
any excess amounts remain in the trust accounts after that application, the
Public Utility Commission shall order that the excess amounts be refunded to
customers or otherwise be used for the benefit of customers in accordance
with Public Utility Commission rules and policies.

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"(2) If an agreement is entered into under section 7 (2) of this 2009 Act,
the parties to the agreement may agree that a portion of the amounts
collected under one surcharge may be deposited in the trust account
established for amounts collected under the other surcharge. "(3) Upon
request of an agency of the United States, or upon request of the designee
of an agency of the United States, the commission shall require the trustee
of the appropriate trust account established under this section to transfer
to the agency or designee the amounts that are necessary to pay the costs of
removing the Klamath River dams.

"(4) If any amounts remain in a trust account established under this section
after the trustee makes all payments necessary for the costs of removing the
Klamath River dams, the commission shall direct the trustee of the account
to refund those amounts to customers or to otherwise use the excess amounts
for the benefit of customers.

"SECTION 6. Recovery of other costs incurred by PacifiCorp. Pursuant to ORS
757.210, the Public Utility Commission shall allow Pacificorp to include in
its rates and tariffs this state's allocated share of any costs that are
prudently incurred by PacifiCorp from changes in operation of Klamath River
dams before removal of the dams, or that are prudently incurred for
replacement power after the dams are removed, that are not otherwise
recovered under sections 3 and 4 of this 2009 Act.

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