BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
 
 
In the Matter of the Application of
PACIFICORP dba PACIFIC POWER AND LIGHT
for an Order Approving the Sale of its Interest in (1) the Centralia Steam 
Electric Generating Plant, (2) the Ratebased Portion of the Centralia Coal 
Mine, and (3) related facilities; for a Determination of the Amount of And the 
Proper Ratemaking Treatment of the Gain Associated with the Sale, and for an 
EWG Determination.	 
	Docket No. UE-991262
	ORDER 
	RE: EXEMPT WHOLESALE GENERATOR STATUS


MEMORANDUM

 On August 12, 1999, PacifiCorp filed an Application for “An Order Approving 
the Sale of its Interest in (1) the Centralia Steam Electric Generating Plant, 
(2) the Ratebased Portion of the Centralia Coal Mine, and (3) related 
facilities; for a Determination of the Amount of And the Proper Ratemaking 
Treatment of the Gain Associated with the Sale, and for an EWG Determination.”  
PacifiCorp’s application seeks an order authorizing the sale of its 47.5 
percent ownership interest in the 1340-megawatt Centralia Power Plant 
(Centralia) and the ratebased portion (47.5 percent) of the adjacent Centralia 
Coal Mine (Mine) to TECWA Power, Inc.  The Application also seeks a 
determination that TECWA Power, Inc., should be allowed to operate the 
Centralia Power Plant as an Exempt Wholesale Generator (EWG).

 TECWA is a Washington corporation and a subsidiary of TransAlta Corporation, 
headquartered in Calgary, Alberta, Canada. The parent company, TransAlta, is a 
Canadian energy company with $5 billion (Canadian) in assets and is the leading 
producer of independent power in Canada.   TECWA has agreed to  purchase 
Centralia for $425,598,000 and the adjacent Centralia Mine for $101,400,000.

 As set forth in PacifiCorp’s application, TECWA Power, Inc., intends to seek 
Federal Energy Regulatory Commission (“FERC”) approval to own and operate the 
Centralia facilities with exempt wholesale generator status.  Because the 
Centralia Power Plant is currently in PacifiCorp’s rate base for its 
jurisdictional sales of electricity in this state, 15 U.S.C. § 79z-5a(c) 
requires that TECWA include with its EWG application to FERC a statement that 
the Washington Utilities and Transportation Commission has determined that 
allowing the facility to be a wholesale facility operated by an EWG: “(1) will 
benefit consumers; (2) is in the public interest; and (3) does not violate 
state law.” 

FINDINGS
THE COMMISSION FINDS:
1. PacifiCorp is engaged in the business of furnishing electric service within 
the state of Washington as a public service company, and is subject to the 
jurisdiction of this Commission. 
2. PacifiCorp filed an Application on August 12, 1999, for an order under 
chapter 80.12 RCW authorizing the sale of PacifiCorp’s ownership interests in 
the Centralia Power Plant and adjacent Centralia Coal Mine to TECWA Power, 
Inc.  The Application also sought a determination from the Commission that 
allowing these facilities to be operated by an exempt wholesale generator meets 
the requirements of 15 U.S.C. § 79z-5a(c).

3. If the Commission eventually approves the sale of the Centralia Power Plant, 
allowing the purchaser to operate the Centralia Power Plant as an EWG will 
benefit consumers and is in the public interest.  Under these conditions, 
allowing the purchaser to operate the Centralia Power Plant as an EWG would not 
violate state law.

ORDER

WHEREFORE, THE COMMISSION HEREBY ORDERS:

1. PacifiCorp’s application for a determination under 15 U.S.C. § 79z-5a(c) is 
granted, conditioned upon a Commission order approving the proposed sale of the 
Centralia Power Plant and the Centralia Coal Mine.  If the Commission does not 
ultimately issue an order approving the proposed sale, this EWG determination 
will be null and void.

2. This order shall in no way affect the authority of this Commission over 
rates, services, accounts, evaluations, estimates, or determination of cost or 
any matters whatsoever that may come before it, nor shall anything herein be 
construed as an 
acquiescence in any estimate or determination of cost or any valuation of 
property claimed or asserted.

3. The Commission retains jurisdiction over the subject matter and Pacific 
Power and Light to effect the provisions of this order.

 DATED at Olympia, Washington, and effective this    13th day of October, 1999.
 WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

     MARILYN SHOWALTER, Chairwoman

     RICHARD HEMSTAD, Commissioner

     WILLIAM R. GILLIS, Commissioner