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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
May 5, 1994 May 4, 1994
______________________________________________________
(Date of earliest
event reported)
PUGET SOUND POWER & LIGHT COMPANY
(Exact name of registrant as specified in its charter)
Washington 1-4393 91-0374630
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification
incorporation) Number)
411 108th Avenue N.E., Bellevue, Washington 98004-5515
(Address of principal executive offices, zip code)
Registrant's telephone number, including area code:
206/454-6363
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ITEM 5 OTHER EVENTS
On September 21, 1993, the Washington Utilities and Transportation Commission
("Commission") issued a general rate order requiring the Company to file a case
demonstrating the prudence of eight power resources added by the Company since
its last general rate case. Pending the outcome of this prudence review, the
Commission ordered that the Company's new rates, effective October 1, 1993,
would be collected subject to refund to the extent any imprudence with respect
to the acquisition of these resources is found. The Commission calculated the
annual revenue requirement at risk to be up to $86.1 million.
On May 4, 1994, Commission Staff, the Public Counsel section of the State
Attorney General's Office, and a group of industrial customers filed testimony
in the Company's prudence review addressing the eight contracts initially
subject to review plus an additional contract for a resource that went into
operation on April 8, 1994. The testimony filed by the industrial customer
group does not recommend any rate reduction or refund.
Commission Staff's testimony recommends that beginning October 1, 1994, the
Company's rates be reduced by $22.6 million, and that the Company be directed
to refund $12.8 million which is estimated to be the amount through September
30, 1994 associated with three purchased power contracts. Public Counsel's
testimony recommends a $43.2 million rate reduction effective October 1, 1994,
and that the Company be directed to refund $35.4 million. The disallowances
proposed by Commission Staff and Public Counsel would continue throughout the
term of the respective power contracts which have remaining terms of 14 to 20
years.
Based on the nature and terms of the contracts and existing regulatory
precedents, management believes that these power purchase contracts were
prudent, and that on those grounds the recommendations of Commission Staff and
Public Counsel are not supportable. The contracts were acquired pursuant to
the Company's integrated resource plan and all of the generating projects whose
output is being purchased are completed, operational, and performing in
accordance with the contracts. The ultimate resolution of this prudence review
is subject to the determination of the Commission.
Cross-examination of the opposing testimony is scheduled to commence June 6,
1994. Filing of the Company's rebuttal case is due July 1, 1994. The
Commission is expected to issue its decision in September, to be effective as
of October 1, 1994.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PUGET SOUND POWER & LIGHT COMPANY
Date: May 5, 1994 By R. E. Olson
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Vice President Finance and Treasurer
(Principal accounting officer and officer duly authorized
to sign this report on behalf of the registrant)
