9. Should PacifiCorp Report on the Status of the KHSA?

PacifiCorp proposes that it provide an annual report filed with the Commission on May 1^st of each year that identifies the status of key milestones of the KHSA, including those listed in Exhibit 2 to Exhibit PPL-104 titled Sequence of Performance Chart. PacifiCorp states that this information would provide the Commission with a comprehensive update on the progress of implementation of the KHSA.⁵⁷ DRA agrees that PacifiCorp should file an annual status report, but recommends that the content include a discussion of the risks, uncertainties, and milestones identified in the KHSA and elsewhere.⁵⁸

Alternatively, the Conservation Groups recommend that PacifiCorp submit a semi-annual report on KHSA implementation (served on all parties to the current proceeding) that addresses, at a minimum: 1) enactment of conforming federal legislation; 2) the Interior Secretary's determination to proceed with dam removal; 3) designation of a DRE; 4) concurrence of Oregon and California in that determination and designation; 5) securing of state funds through rates and California Bond as needed to perform dam removal up to $450 million; 6) DRE's development of a detailed plan to effect dam removal consistent with budget and liability controls; 7) securing of all permits and funding necessary to perform the detailed plan; and 8) any other items that in PacifiCorp's judgment bear on the probability, schedule, and cost of implementing the KHSA.⁵⁹

We find that, given the extended time over which the KHSA implementation will take place, the multiple events that are proposed to take place, and the timing of those events, it is important for parties to be kept informed of the progress towards achievement of the goals of the KHSA. We therefore require PacifiCorp to file a Status Report as an information only filing with the Energy Division on an annual basis beginning May 1, 2012, and serve this Status Report on the service list of the current proceeding. At a minimum, the Status Report must address:

a. All items listed in Exhibit 2 to Exhibit PPL-104;

b. The enactment of conforming federal legislation;

c. The enactment of California legislation to authorize the issuance of a California Bond;

d. The availability of sufficient funds to cover estimated costs of dam removal, provided by California and Oregon customers, as set forth in Section 4.1 of the KHSA;

e. An Affirmative Determination by the United Stated Secretary of the Interior determining that the costs of dam removal will not exceed available funds, removal of the dams will advance restoration of the salmon fisheries of the Klamath basin, and removal of the dams is in the public interest as required in Section 3 of the KHSA;

f. A list of all necessary permits, approvals, and contracts for removal of the Klamath assets and the date PacifiCorp receives, or expects to receive each;

g. The Interior Secretary's determination to proceed with dam removal;

h. The concurrence of Oregon and California in that determination and designation of a DRE;

i. The securing of California state funds through a California Bond or other form of state funding;

j. The DRE's development of a detailed plan to effect dam removal consistent with budget and liability controls;

k. The securing of all permits and funding necessary to perform the detailed plan;

l. The amount of surcharge revenue collected in California by year and cumulatively;

m. Both the amounts of interest accrued on the balances in the California Klamath Trust Accounts since the last Status Report and the cumulative total of interest earned to date;

n. Whether the combined total of surcharge collected and interest earned to date is expected to equal $16 million by the start of dam removal;

o. Based on the surcharge collected and interest earned to date, what adjustment, if any, should be made to the surcharge if it appears that there will be either more or less than $16 million by the start of dam removal;

p. Any other items that bear on the probability, schedule, and cost of implementing the KHSA; and

q. Any other significant events related to the KHSA that have occurred in the past 12 months.

Since PacifiCorp will now be required to file and serve an annual Status Report, we will no longer require PacifiCorp to file and serve the monthly status report it has been filing during the processing of this application. Requiring a report on an annual basis will provide important and time sensitive information to stakeholders. By doing so, all stakeholders in the current case, as well as the Commission, will remain informed regarding progress of the KHSA, and be able to act promptly on events as necessary.

⁵⁷ PacifiCorp Opening Brief at 23.

⁵⁸ Exhibit DRA-001R at 14.

⁵⁹ Exhibit CG-01R at 15-16.