SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 29, 1995
Registrant; State of Incorporation; IRS Employer
Commission File NumberAddress; and Telephone Number Identification No.
1-5532 PORTLAND GENERAL CORPORATION 93-0909442
(an Oregon Corporation)
121 SW Salmon Street
Portland, Oregon 97204
(503) 464-8820
1-5532-99 PORTLAND GENERAL ELECTRIC COMPANY 93-0256820
(an Oregon Corporation)
121 SW Salmon Street
Portland, Oregon 97204
(503) 464-8000
121 S.W. Salmon Street, Portland, Oregon 97204
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code 503-464-8820
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Item 5.Other Events
REGULATORY MATTERS
On March 29, 1995 the Oregon Public Utility Commission (PUC) issued an
order on Portland General Electric Company's (PGE or the Company)
general rate request. The order, based on a two-year test period,
authorizes a single average rate increase of 5% representing additional
revenues of $51 million in 1995 and $52 million in 1996. The tariff
change will increase residential rates 7.7%, commercial rates 5.6% and
industrial rates 2.6% effective April 1, 1995. The order establishes
PGE's return on equity at 11.6% for both 1995 and 1996, this is a
decrease from the previously authorized 12.5%.
The order authorizes PGE to recover all of the estimated Trojan Nuclear
Plant (Trojan) decommissioning costs and 87% of its remaining
investment in Trojan which will be collected over Trojan's original
license period ending in 2011. The order also adopts a mechanism to
decouple short-term profits from retail kilowatt-hour sales.
The disallowed portion of the Trojan investment is comprised of $17.1
million of post-1991 capital expenditures, primarily related to steam
generator repair activities and $20.4 million of general Trojan
investment. In light of this disallowance, PGE may record a first
quarter loss of up to $37 million, after tax. This decision will be
made after the Company thoroughly evaluates the PUC's order.
The decoupling mechanism adopted by the PUC sets revenue targets
associated with retail loads for each of the eight quarters in 1995 and
1996. If actual weather-adjusted revenues exceed or fall short of
target revenues, PGE will refund or collect the difference from
customers over an 18-month period. The adjustment at anytime during
the two-year period cannot result in an overall increase or decrease in
rates, due solely to decoupling, of more than 3%. Adjustments to
rates, if necessary, will be made every six months through a filing
with the PUC.
The order includes approximately $16 million of variable power cost
savings expected from the commercial operation of the Coyote Springs
Generating Project (Coyote Springs), a 220 megawatt natural gas-fueled
cogeneration facility under construction in eastern Oregon. The order
does not include projected capital and fixed costs associated with the
plant of approximately $36 million. PGE will file to include these
costs in base rates coinciding with anticipated plant commercial
operation in 1995.
The order does not address collection of PGE's power cost deferrals
which will be the subject of separate rate proceedings to be filed with
the PUC during 1995 (see Portland General Corporation's and PGE's
reports on Form 10-K for the period ended December 31, 1994 for further
information).
Any party to the general rate proceeding, including PGE, has 60 days
from the date of the order entered by the PUC to file an application
for reconsideration or to appeal to state court. PGE is currently
evaluating the rate order and its potential financial impact.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned hereunto duly authorized.
Portland General Corporation
Portland General Electric Company
March 30, 1995 By /s/ Joseph M. Hirko
Joseph M. Hirko
Vice President Finance,
Chief Financial Officer,
Chief Accounting Officer
and Treasurer
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