July 9, 2008 (10:40a)- Washington UTC Status
While
the overall perception of this transaction remains highly negative, it
must be pointed out at this time that: a) the Washington UTC settlement
conferences are apparently proceeding without delay, and; b) the
companies have provided pro-consumer publicity for the transaction over
the last few weeks. Both of these developments are considered
significant with respect to moving this transaction towards the
possibility of successful conclusion.
The UTC process is
significant in that is have been, and remains, expected that the
procedural schedule in this case will encounter some revisions and
substantial delays. The fact that the settlement conferences have not
been postponed suggests that the UTC staff is willing to start the
negotiations despite the current posture of the staff against the
transaction. This should be considered very tentative and essentially
the preliminary stages of negotiations, but the lack of procedural
schedule alteration must also be viewed as an overall positive at this
stage. Naturally, the settlement conferences are subject to delays as
the continue over the next two weeks.
Second, as widely reported
last week, certain PSD investors have offered to cut roughly $100
million from future rate increases (over a ten year period) if the
transaction is consummated. This offer was made as a direct response to
staff and state official (Attorney General) opposition to the deal.
While this is perceived as a token gesture, it is nonetheless a
starting point for lessening and perhaps ultimately appeasing, growing
public/political opposition. This gesture will certainly not ensure UTC
consent or turn the Attorney General in favor of the transaction, but
it may serve as the foundation for future good will via concessions.
Provided
below is the current procedural schedule for the UTC review. Note that
the settlement conferences are scheduled to conclude on July 18 and
evidentiary hearings are scheduled for the last four days of this
month. It will be somewhat surprising if the evidentiary hearings are
not postponed into August or September.
Applicants’ Rebuttal and Cross- Answering Testimony July 2, 2008
Settlement Conferences July 7-11 and 16-18, 2008
Evidentiary Hearing July 28-31, 2008
Simultaneous Briefs August 13, 2008
Requested Date for Final Order September 2, 2008
