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STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

June 13, 2002 Agenda ID 776

TO: PARTIES OF RECORD IN APPLICATION 01-03-026

Enclosed is the Alternate Proposed Decision of Commissioner Loretta Lynch to the Proposed Decision of Administrative Law Judge (ALJ) Jeffrey O'Donnell previously mailed to you.

When the Commission acts on this agenda item, it may adopt all or part of it as written, amend or modify it, or set aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

As set forth in Rule 77.6(d), parties to the proceeding may file comments on the enclosed alternate at least seven days before the Commission meeting or no later than June 20, 2002. An original and four copies of the comments with a certificate of service shall be filed with the Commission's Docket Office and copies shall be served on all parties on the same day of filing. The Commissioners and ALJ shall be served separately by overnight service.

Carl K. Oshiro, Interim Chief

Administrative Law Judge

COM/LYN/GIG/epg ALTERNATE DRAFT

Decision ALTERNATE PROPOSED DECISION OF COMMISSIONER LYNCH (Mailed June 13, 2002)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of PacifiCorp (U-901-E) for an Order Authorizing an Immediate Interim Rate Increase, Subject to Refund and for Consideration of a Rate Stabilization Plan.

Application 01-03-026

(Filed March 16, 2001)

INTERIM OPINION

I. Summary

PacifiCorp seeks an end to the rate freeze imposed by Assembly Bill (AB) 1890 (Stats. 1996, Ch. 854), a one-cent per kilowatt-hour (kWh) interim rate increase, and a valuation of its generation assets at net book value if the Commission determines that such a valuation is needed. In this interim opinion, we find that a rate increase is warranted. We grant an interim rate increase of one-cent per kWh, except that the resulting interim rates may not exceed the corresponding rates requested in the general rate increase filing. The interim rate increase will be subject to refund with interest, and implemented as a surcharge.

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