Portland General Electric says OPUC order may derail holding company reorganization
The utility says the commission's final order departs from a stipulation it had reached with OPUC staff
Published
Chart: POR, one-minute prices, three sessions
Portland General Electric says the Oregon Public Utility Commission has issued a final order in Docket UM 2385 on the company's application to reorganize under a holding company structure. The order includes a customer rate credit and other benefits totaling about $83 million that the company supports.
But the company says the order also imposes conditions that depart from the stipulation it had agreed with OPUC staff, including restrictions on dividends tied to retained earnings and to credit ratings. Portland General Electric says those conditions may not be feasible to implement and could limit its ability to fund investment in system reliability, clean energy and infrastructure.
The company is evaluating options including reconsideration, clarification or judicial review. It says it does not expect to proceed with the reorganization, or to implement the rate credit, unless the provisions are clarified or modified.
The final order breaks from the staff stipulation that had been viewed favorably enough to prompt an analyst upgrade earlier this year, a stipulation built on the premise that the company would gain the financial flexibility the new conditions now put in question.