SUBSTITUTE

RESOLUTION No.   36370  

Direct City Attorney to gather additional information regarding operations of Portland General Electric (Resolution)

WHEREAS,  pursuant to Council Resolution No. 36337, dated September 21, 2005, the City Attorney requested certain information and documents from Portland General Electric (PGE) regarding income taxes and claims and PGE responded to those information and document requests; and

WHEREAS,  the City Attorney has reported that PGE collected nearly $700 million in federal, state and local income taxes and that just over $11 million was paid to taxing authorities; and

WHEREAS,  the information obtained from PGE also indicated that some taxes collected by PGE may have been retained by PGE and not paid to Enron or taxing authorities and, given the uncertainty regarding such possible retention of taxes by PGE, the Council deems it prudent to further investigate the payment of taxes by PGE to Enron and the disposition of taxes that were collected but not paid to Enron; and

WHEREAS,  additional information is required for the Council to evaluate the issues regarding PGE’s claims against its parent Enron; and

WHEREAS,  since the previous Resolution, additional information has been brought to light that indicates the Council should further investigate PGE’s collection and payment of the Multnomah County Business Income Tax (MCBIT), PGE’s allocation of income to Multnomah County for MCBIT purposes, and the activities upon which the calculation and collection of the tax was based.

NOW, THEREFORE, BE IT RESOLVED, pursuant to Section 10-106 of the City Charter and other applicable laws, the City Attorney shall further investigate the issues set forth in the Whereas clauses above, and request the information and documents necessary to report back to the Council regarding:

1)  Any additional information that would be of assistance in determining the basis and amount of federal, state and local income taxes collected by PGE and paid to Enron; and

2)  Any additional information that would be of assistance in determining the basis and amount of federal, state and local income taxes paid by Enron as agent for PGE, and the effect Enron’s consolidation of tax returns with PGE has on current and further payment of income taxes by PGE; and

3)  Any additional information that would be of assistance in determining the basis and amount of any federal, state or local income taxes PGE has retained, and the effect of such retention on current and future payment of income taxes by PGE; and

4)  Any additional information that would be of assistance in understanding and clarifying PGE’s apportionment of income to Multnomah County subject to the MCBIT, including PGE’s wholesale and retail power during the period of 1997 through 2005; and

5)  Any additional information that would be of assistance in determining the reasonableness of PGE’s rates.

BACKING SHEET INFORMATION

AGENDA NO. S-18-2006

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. SUBSTITUTE 36370