ALJ/MD2/hkr Date of Issuance 10/15/2010

Decision 10-10-011 October 14, 2010

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of PacifiCorp (U901E), an Oregon Company, to Recover Costs Recorded in the Catastrophic Event Memorandum Account.

Application 10-05-009 (Filed May 7, 2010)

DECISION APPROVING SETTLEMENT AGREEMENT

Summary

We approve the settlement between PacifiCorp and the Commission's Division of Ratepayer Advocates which is contained in Attachment A. The settlement resolves all issues in this proceeding, and will permit PacifiCorp to recover a portion of the $3.63 million costs recorded in its Catastrophic Event Memorandum Account for the costs associated with restoring electric service to California customers in response to damage from severe winter snow storms that occurred in PacifiCorp's northern California service territory in January 2010. This amount includes distribution capital investments and associated depreciation expense, distribution and transmission operation and maintenance expenses, and dispatch and customer service expenses, and excludes estimated insurance recovery.

The Settlement Agreement establishes a revised revenue requirement, allocates the revenue requirement responsibility among customer classes, provides for a new tariff rider with new rates, and resolves all issues in PacifiCorp's application to recover costs recorded in the Catastrophic Event Memorandum Account.

By excluding some costs and adjusting the depreciation rate, the Settlement Agreement lowers PacifiCorp's recovery request from $1.36 million in revenue requirement (a 1.6 percent overall rate increase) to $1.23 million (an approximately 1.4 percent overall rate increase over current rates). PacifiCorp will recover the $1.23 million over an approximately one-year period beginning January 1, 2011.