GLASGOW, U.K., Dec. 18, 2003 (PRIMEZONE) -- ScottishPower announces that on 17 December, the Utah Public Service Commission (UPSC) granted $65 million of additional annual revenues to its subsidiary, PacifiCorp.
The award follows an all-parties settlement to the general rate request filed in July 2003 on the basis of a partial future test year. The rate increase reflects more current levels of expenditure, including lower power costs and other adjustments, which effectively reduced the amount requested to $83 million from $125 million as originally filed. In line with recent awards in other jurisdictions, the settlement provides a return on equity of 10.7%.
The company received no disallowances against rate base with full recovery awarded for all new system investments for generation, transmission and distribution, higher insurance and pension costs and costs incurred to re-license the North Umpqua Hydroelectric Project.
The settlement will lead to an average overall price increase in Utah of approximately 7%, with effect from 1 April 2004, and keeps PacifiCorp electricity prices among the lowest in the Western US.
PacifiCorp CEO Judi Johansen said: "With this award PacifiCorp continues to make good progress towards the goal of achieving the target of $1 billion EBIT by fiscal year 2004/05. This order provides full recovery of all new investments and allowable operating costs in Utah, and reflects the Commission's recognition of the investments made by PacifiCorp in support of Utah's recent strong economic growth."
This information is provided by RNS
The company news service from the London Stock Exchange