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CUB Wins Trojan Nuke Plant Lawsuit – Again

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CUB Wins Trojan Nuke Plant Lawsuit – Again CUB Wine Trojan Nuke Plant .4 ..'- '- Laweuit A~ain '1 But it'9 not over yet Summer 1998 ince its founding, CUB has often service to the customer." been compared to David, because "The PUC interprets the law as saying s:~ S we're fighting Goliath corporations. that the prohibition only applies to facilities ..s:::.- We like the comparison -- because even that are not yet providing service, as 0 though we·have a tiny staff to pit against opposed to closed facilities, like Trojan, that "- ~ armies of lawyers, we often win. On June already have provided service," said CUB's ~ ~ 24th, we won again, in a lawsuit we filed Executive Director, Bob Jenks. "But the ~ against Portland General Electric (PGE). measure's language is very clear on this ~ It all started in 1993, when PGE closed point, and Trojan is obviously not 'presently <U .A its Trojan nuclear power plant, which had providing service' to PGE's customers." \Sl been plagued for years with malfunctions. When Marion County Circuit Court .-<U PGE asked the Oregon Public Utility agreed, PGE took the case to the Oregon .-~ Commission (PUC), the state utility Court of Appeals. In June, a 3-judge panel -.- regulator, for permission to charge agreed unanimously with CUB. "State ~ ~ ::::s customers for the cost of decommissioning law," they wrote, "does not allow public <U the plant and paying off its remaining debt. utilities to obtain a profit from ratepayers on ..s::: The problem came when PGE also their investments in II. ~ asked to charge customers for the facilities that are not <U \Sl estimated $250 million dollars in profits it used to serve ::::s would have made, had the plant ratepayers. " ~ 0 remained open until 2011, when its "This is a at <U license was to expire. The PUC gave victory for .A • the company the go-ahead, saying that it ratepayers," said s:·• wanted to give Jenks. "More 0 utilities an importantly, this ~ <U incentive to sends a message to ~ close down and utilities: you'rejust 0 abandon bad like every other q... 0 investments. business - if you John make a bad ~ ~ Stephens, an investment, it will II ~ Trojan nuclear power plant, closed since 1993 -- but attorney hurt your bottom 0 still turning a profit for PGE. en working for line." CUB, challenged the decision. "Why This should mean that PGE's nearly ~ .-~ should PGE profit from a power plant that's 670,000 customers will receive a rate cut -.- not working?" he explained recently. "Isn't because of CUB's work. ~ it better to give companies an incentive not But hold the champagne -- there's still :::l .. to make bad investments in the first place?" one more hurdle. Even though all four \Sl s: More importantly, Stephens argued that judges who have reviewed the case so far <U a 1978 Oregon ballot measure, approved by have sided with CUB, PGE will appeal the .N- voters, prohibits utilities from collecting a case to the Oregon Supreme Court . .-~ profit on power plants that are not, in the Now where'd we put that slingshot? U words of the measure, "presently providing I11JVEBEM FAC"Sis the quarterly newsletter of the Citizens' Utility Board of Oregon (CUB). CUB is: From the Executive Director ftr a non-profit organization established by Oregon Dear CUB Member, voters to advocate on behalf of Oregon's utility ratepayers. Fourteen years ago, when citizen ... governed by a Board of activists asked voters to form CUB, they Governors from were opposed by utili ties. throughout Oregon, elected by Congressional District. Utilities called CUB a "boondoggle" (even ... a member of the though it was to be funded by contri­ National Association of butions) . They were so afraid of it, they State Utility Consumer outspent CUB supporters by 40 to 1. No one Advocates (NASUCA) is supposed to be able to win a campaign BOARD against those odds, especially a campaign President Kirk Roberts buil t upon volunteers instead of pollsters Vice-President and media consultants . But those early CUB Joan Cote volunteers did win. Treasurer Margot Beutler Board Members And so did consumers. Since its Steve Gorham founding, CUB has saved them about 800 Tim Goss million dollars in rate reductions and John Patterson refunds. That's over $100 per minute for 14 DoriElla Payne MarkWilk years. Carol Wotton CUB's victory in the Troj an lawsui t (see STAFF Executive Director p. 1) shows that we're not resting on our Bob Jenks laurels. The suit could save PGE customers Legal Counsel about $250 million, and possibly cut the Jason Eisdorfer bills of other utility customers as well. Development Director • Benjamin Chambers Organizing Director So let's go ov er this again: PGE Fair & Clean Energy Coalition mismanaged Troj an. Yet they want to keep Jeff Bissonnette charging customers for a profit on it -- for Office Assistant Anita Russell the next 13 years. Citizens' Utility Board Now that's a boondogg~e ~ 921 SW Morrison St., #511 Because Portland, OR 97205 .-~~ (503) 227-1984 (phone) utilities (503) 274-2956 (fax) bear Bob.)' Jenks E-mail: [email protected] watching Executive Director z •••••••••••••••••• CUB Calls for End to GTE "Confusopoly" The ~ompany ehouldn't profit from confuein(J ite cuetomere regon's second largest phone plans. So he called a GTE business. So they're profiting from company, GTE, has been customer service rep. "She didn't a 'confus-opoly.'" Omaking $25 - $30 million understand the plans either," Jenks Soon, CUB will prepare more each year than allowed by the said. "It's absurd! The only way to testimony asking the PUC to review Oregon Public Utility Commission find the best calling plan is through how GTE describes its calling plans (PUC). As a result, the PUC trial and error ... but if you try that, and to eliminate the $25 fee for intervened to reduce GTE's rates, the company'll charge you $25 switching plans. In addition, CUB and CUB has played a strong role in every time you switch plans." will propose that the PUC the negotiations between the two Why don't GTE customers investigate the marketing practices parties. But now simply change of GTE and other local phone that the PUC and Y;TE think5 that becau5e companies? companies. GTE have proposed it5 cU5tomer5 don't have a Because GTE has 'U"n" "B' a settlement, a monopoly on Rate cases give CUB the choice, it'5 okay to be CUB's coming out their local phone opportunity to raise issues and against it. confu5in~. tJ service. address problems -- if you're a GTE "GTE has designed a system "GTE thinks that because its customer and you're aware of a that makes it nearly impossible for customers don't have a choice, it's service problem we should know consumers to choose the plan that okay to be confusing," Jenks says . about, please give Bob Jenks a call makes the best sense for them," "They know they won't lose their at (503) 227-1984. says CUB's Executive Director, Bob Jenks, "and the proposed settlement totally ignores that." Consumer Tip GTE regularly misrepresents its calling plans to consumers -- then It's easy to choose the right calling plan for long distance charges them a whopping $25 if and cellular service: just ask! they want to switch. For example, Here's how: the GTE phone book says its "premium plan" gives customers 1 Call the customer service number on y unlimited access to the "locai calling or cellular bill. area" -- but the map of the "local calling area" actually describes a more limited area, covered by the "community calling plan." To see the area covered by the "premium plan," a customer would have to look at the map entitled "Extended Area Service." But guess what? None of the Why? Because local phone companies have no calling plan descriptions even incentive to help you save money -- it cuts their profits, mentions "Extended Area Service!" and they know you can't switch to another provider. Even Jenks, who has worked on But the long distance and cellular companies have to telecommunications issues for years, compete for your business. They believe that helping was unable to make heads or tails of y~u save a few dollars will make you a loyal customer. GTE's descriptions of its calling Because utilities watching bear Citizens Unite with CUB A~ainst Enron yer 200 citizens attended a CUB is a founding member - protect both consumers and the series of public hearings testified. Representatives from environment. Oheld in May on the Portland AARP, Oregon Environmental Only four groups testified in General Electric (PGE)lEnron Council, OSPIRG, Oregon favor of the Enron plan, including Electric Deregulation Plan. The Consumer League, Oregon Law Electric Lite, an independent power hearings, sponsored by the Oregon Center, Oregon Action, and the supplier. Each of the supporters Public Utility Commission (PUC), Oregon Energy Coordinators stood to gain financially from indicated that consumers were Association spoke about the need to Enron's version of deregulation. skeptical about PGElEnron's claims that their plan would lower electric UC staff filed testimony July 6th asking the Commissioners to rates. The testimony. also showed reject the PGElEnron deregulation plan. The staff proposed an broad support for energy efficiency, Palternative plan that would address many of CUB's objections to renewable energy, and low-income the PGElEnron proposal. On July 22nd, CUB will file its own detailed energy assistance. testimony, including a critique of the Enron proposal, and a plan for In addition to dozens of citizens, improving the electric system.
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