SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported):
May 24, 1994
PACIFICORP
(Exact name of registrant as specified in its charter)
State of Oregon 1-5152 93-0246090
(State of Incorporation) (Commission (I.R.S. Employer
File No.) Identification No.)
700 N.E. Multnomah, Suite 1600, Portland, Oregon 97232-4116
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(503) 731-2000
No Change
(Former Name or Former Address, if changed since last report)
Item 5. OTHER EVENTS
PacifiCorp's 87 percent-owned subsidiary, Pacific Telecom, Inc.
("Pacific Telecom"), announced that the Federal Communications Commission
("FCC") released a written order on May 24, 1994, in which it adopted, with
some modifications and clarifications, the Final Recommended Decision ("FRD")
proposed last October by the Federal-State Alaska Joint Board. (See "Part I,
Item 1, Business - Telecommunications Operations - Alaska Market Restructur-
ing" on page 7 of the Pacific Telecom Annual Report on Form 10-K for the year
ended December 31, 1993, incorporated by reference in PacifiCorp's Annual
Report on Form 10-K for the year ended December 31, 1993.) The modifications
suggested by various interested parties and supported, in part, by Alascom,
Inc. ("Alascom"), a wholly-owned subsidiary of Pacific Telecom, clarified AT&T
Communications, Inc.'s ("AT&T") obligation to provide interstate Message Toll
Service/Wide Area Telephone Service ("MTS/WATS") throughout all of Alaska and
to utilize the Bush service facilities of Alascom in meeting that obligation.
The FCC's written order also affirms Alascom's obligation to provide
interstate common carrier services on a nondiscriminatory basis to all
interstate interexchange carriers, under tariffs reflecting separate rate
schedules for locations subject to facilities competition (non-Bush) and for
locations where Alascom has a facilities monopoly (Bush). The costs of
service in each of these categories would be defined pursuant to a cost
allocation plan developed by Alascom and approved by the FCC.
Based upon the FRD, the FCC's order incorporated the following
points:
The Joint Services Agreement between AT&T and Alascom would continue
in effect until January 1, 1996;
AT&T would make Accelerated Cost Recovery ("ACR") payments to
Alascom, each in the amount of $75 million, on July 1, 1994 and
December 31, 1995;
In the event Alascom was unable to provide a successor spacecraft to
Aurora II, the FCC would retain authority to order AT&T or another
carrier to provide such a facility;
Alascom would be required to file its cost allocation plan within 90
days of this order and to file its tariffs and cost support
information for common carrier services it would provide to AT&T and
other carriers 120 days before the scheduled effective date for the
tariffs of January 1, 1996, using the authorized interstate rate of
return applicable to local exchange carriers; and
The amount of interstate services that AT&T would be required to
purchase from Alascom during the transition period after January 1,
1996, would be adjusted by revenues, if any, associated with new
services purchased by other interexchange carriers and by the
proportion of the interstate MTS/WATS network use by Alascom.
The FCC also ordered AT&T and Alascom to request a ruling from the
Internal Revenue Service and the State of Alaska regarding the taxability of
the ACR payments. Should the payments be deemed nontaxable by those
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authorities, the amount of the ACR would be reduced by the tax that otherwise
would have been payable by Alascom.
Pacific Telecom believes the modifications made by the FCC improve
upon the FRD from a public interest perspective. However, Pacific Telecom is
analyzing the impact of the order on its operations and is considering whether
to pursue further regulatory or judicial action. Pacific Telecom has stated
that it intends to act in a manner that will best serve its customers in
Alaska and its shareholders.
Information with respect to the realignment of senior officer
responsibilities contained in the news release of PacifiCorp issued on May 27,
1994, is herein incorporated by reference.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
a) Exhibit
99. PacifiCorp news release issued May 27, 1994.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PACIFICORP
(Registrant)
By:
__________________________________
Daniel L. Spalding
Senior Vice President
Date: June 2, 1994
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