Dreyer vs. PGE

In 1993 PGE decided to close its Trojan nuclear power plant.  Since then, the company has been mired in both litigation and administrative proceedings over whether its customers or its shareholders have to bear the consequences of that decision.

Yesterday, the Oregon Supreme Court issued a decision which at first blush appears to be a victory for PGE's customers and a defeat for its shareholders.  In Dreyer v. PGE the Supreme Court refused to issue an order directing Marion County Circuit Court Judge Lipscomb to dismiss a customer class action for damages against PGE.  The suit had alleged that PGE had illegally charged customers for a return on PGE's investment in Trojan in violation of the decision by the Oregon Court of Appeals in Citizens' Utility Board v. PUC, 154 Or App 702, 962 P2d 744 (1998).  By refusing to dismiss this customer class action, the Supreme Court rejected PGE's argument that ORS 756.518, as interpreted by the Circuit Court, was inconsistent with the "filed rate doctrine."

The Supreme Court did, however, save PGE--at least for now--by not remanding the case to the Circuit Court so that the litigation could be brought to trial.  Rather, the Supreme Court found that the Circuit Court should have abated the case pending completion of the PUC's administrative proceeding on this same controversy.

Thus, the ball is now in the PUC's court to try to determine who has to bear the costs of closing Trojan.  Once the PUC determination has been made, there is no doubt the parties will be back in court on these same issues.