A legislative task force wants the Legislature to do something regarding PacifiCorp's desire to restructure.
It just isn't sure what that something is yet.
The task force has plenty of options and will meet again Nov. 6 to consider whether a special group will determine what to recommend. Task force members said Monday that something should be done to provide the company with guidance as it continues to seek plan approval in its six-state territory.
"I do think that in the 2002 session we need to define legislative intent in this area," said Rep. Sheryl Allen, R-Bountiful.
The utility's restructuring plan calls for the creation of individual state power distribution companies, a generation company and a service company, all under a PacifiCorp Holdings Inc. umbrella.
Company officials have said the complex plan would leave states with more control of their own power generation matters while also providing the company with regulatory stability to allow it to get a reasonable rate of return on investments, such as power plants — a stability that investors like.
The existing corporate structure requires the approval of six states before any new generation plants are built.
PacifiCorp wants the restructuring approval process in its six-state service territory finished by the first quarter of 2003.
The Utah Public Service Commission currently has final say on the matter, although there are no standards for approving such a restructuring.
The Legislature could require that it and/or the governor approve the plan. It could set state standards or conditions for restructuring. It could rely on the current policy framework — taking no legislative action — or state specific public policies for restructuring, such as requiring specific PSC findings, providing guiding principles to the PSC or just stating principles in a resolution.
The task force has discussed the matter since spring, but members said Monday that something should be done.
Sen. Dan Eastman, R-Bountiful, suggested a "compact" team to provide something the Legislature would accept.
"I would hate for PacifiCorp to go at it and take care of this, and then have us say, 'No, this won't work.' "
Rep. Judy Ann Buffmire, D-Salt Lake City, said the state's Division of Public Utilities should provide any relevant data before the upcoming session. "Somehow we've got to get involved," she said.
Task force co-chairman Sen. Leonard Blackham, R-Moroni, said he is not sure that the Legislature ought to have the ultimate approval on restructuring.
"But it's important that we clarify (this) for all the players," Blackham said. "PacifiCorp needs to know what the rules are before we proceed."
Allen also suggested that the staffs of the PSC, the division and the Committee of Consumer Services be increased to deal with the restructuring issue.
The consumer committee has expressed concerns about the possible ramifications of restructuring. It worries that states will lose regulatory control over PacifiCorp and that the Federal Energy Regulatory Commission, which would oversee the generation company, cannot be counted on for good regulation.
Others have said the decision will be important and long-lasting. Thirty-year power contracts between the distribution companies and the generation company would be the basis for customer rates. That differs from today's setup, which allows the PSC to revisit and adjust rates periodically.
E-MAIL: bwallace@desnews.com