Analysts at the Oregon Public Utility Commission said Wednesday that PacifiCorp deserves an even smaller increase in electric rates than they suggested last month.
The Portland-based utility, which was recently acquired by MidAmerican Energy Holdings Co., filed a request in February for a 13.2 percent increase to base rates effective in December. That's the equivalent of about $112 million a year.
Last month, after reviewing PacifiCorp's request and dialing back various cost increases that PUC staff felt were unjustified, they proposed to settle the rate case with a 2 percent rate increase. After another month of deliberation and a series of unsuccessful settlement talks, PUC analysts suggested Wednesday that the appropriate increase in rates was closer to 1.4 percent, or about $12 million a year.
Wednesday marked the first public responses by other stakeholders in the rate case, including customer groups, the city of Portland and water users in Eastern Oregon. Predictably, they thought the utility deserved less than it requested.
"It's safe to say the company is disappointed in these positions," said Bekki Witt, a spokeswoman for the utility. "None of them come close to providing the relief necessary to continue serving Oregon customers with safe, reliable electricity."
PacifiCorp maintains that its rates -- particularly residential rates -- have been relatively stable since 2000 while competitors such as Portland General Electric have been granted huge increases. It says it needs to make to make big investments in its system to meet growing demand and maintain reliability.
But the company hasn't managed to convince regulators in Oregon or Washington of the need for higher rates.
In April, regulators in Washington entirely rejected PacifiCorp's request for an 18 percent increase.
That decision came after the PUC in Oregon slashed a rate request the company made last year from 12.5 percent to 3.2 percent.
The PUC reaffirmed that order earlier this week with some tweaks after granting PacifiCorp's request for a rehearing.
In the testimony filed Wednesday, the Citizen's Utility Board suggested that the utility deserves nothing in its most recent case -- or perhaps even less. Bob Jenks, executive director of CUB, said things are still in flux since PacifiCorp's acquisition by MidAmerican, with staff cuts, changes in corporate overhead expenses and other changes taking place. In the meantime, he said, PacifiCorp hasn't proved that its revenue requirement should change from what the commission approved last year.
If the commission does change rates, CUB suggests that it should adjust the company's revenue requirement downward by $30 million more than staff suggests, primarily due to tax adjustments relating to its holding company, MidAmerican.
PacifiCorp is scheduled to formally respond to staff and customer groups in its latest rate request in rebuttal testimony due August 10. More settlement talks will take place in the interim.
The Industrial Customers of Northwest Utilities also identified a series of adjustments to PacifiCorp's rate request that, when combined with the staff's proposed reductions, would lead to no increase.
"When you come in year in and year out for a rate increase," said Melinda Davison, the group's attorney, "there's a point where the well runs dry."
Ted Sickinger: 503-221-8505; tedsickinger@news.oregonian.com