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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
September 28, 1994 September 27, 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 27, 1994, the Washington Utilities and Transportation Commission
("Commission") issued an order deciding the case which it initiated last fall
to review the prudence of the Company's recent purchase power contracts. In
that order the Commission held that 1.2% of the contract payments on the
Tenaska contract and 3% of the contract payments on the March Point Phase II
contract should not be recovered in rates. No disallowance was ordered in
respect to the other seven purchased power contracts under review. This
results in a refund of approximately $1,000,000 of rate revenues collected
during the October 1, 1993 through September 30, 1994, period and a denial of
$1,608,150 of rate revenues over the October 1, 1994 through September 30,
1995 period. The Commission calculated that this decision would amount to a
cumulative disallowance of approximately $17 million on a present value basis
over the life of the two contracts.
The basis for the Commission's disallowance is that the Commission felt that
the Company had not adequately quantified the value of dispatchability of
power when it evaluated these two power contracts. The Company disagrees
with the Commission conclusions.
In a contemporaneous order, the Commission also acted on the Company's
pending annual rate increase under its Periodic Rate Adjustment Mechanism.
The Company had requested a $55.5 million revenue increase and the Commission
allowed $53.7 million. The items of revenue disallowed were the $1.6 million
related to the two purchased power contracts and $208,000 related to a
$978,066 reduction which the Commission ordered in the Company's rate base
for its conservation program.
The Commission's orders are subject to petitions for reconsideration and
court appeals which may or may not be filed by the parties.
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: September 28, 1994 By R. E. Olson
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R. E. Olson
Vice President Finance and Treasurer
(Principal financial officer and
officer duly authorized to sign this
report on behalf of the registrant)
