Parties to a class-action lawsuit have reached agreement with PacifiCorp, and the utility now will be able to complete the refund to its Multnomah County customers of over-collections of the county income tax.

PacifiCorp customers see a line item each month that shows what portion of their bill goes toward the county tax.

Previously, PacifiCorp voluntarily refunded amounts related to the Multnomah County Business Income Tax to customers for the period 2001 to early 2004. The lawsuit settled today requires a similar refund for a time frame going back to 1999 and including 2004 - early 2005. During those years, PacifiCorp had charged customers more for the tax than the utility actually paid to the county. PacifiCorp currently reviews and balances the account annually to ensure collections are in line with taxes owed.

Under the terms of the settlement, PacifiCorp will pay $2.2 million, which is expected to provide full refund of the tax overcharges, plus interest, to Multnomah County customers, cover the cost of administration and plaintiffs’ attorney fees, and leave unclaimed funds available for donation to charities benefiting residents of Multnomah County. PacifiCorp Multnomah County customers will receive the refunds whether or not they are still on the PacifiCorp system. Those who still are PacifiCorp customers will automatically receive credits on their bills. Those who have left the PacifiCorp system will receive refund checks.

The suit was filed in October 2005. The settlement contains no admission of liability or wrongdoing on PacifiCorp's part. David Delk, one of the lead plaintiffs, said, "This is a fair settlement, and it gives back to ratepayers Multnomah County taxes they were charged by PacifiCorp since 1998 that the company did not pay to Multnomah County, plus interest."

“We are pleased to have reached settlement,” said Paul Vogel, PacifiCorp spokesman. “We’ve had this money set aside for our customers for the past two years during protracted legal proceedings and negotiations. Now that the case is finally settled, we can complete the refund process we previously started and give our customers a refund."

The settlement is not final until it is approved by the Multnomah County Circuit Court, which will conduct a hearing on its adequacy and fairness. The case is being heard on Oct. 5 at 4 p.m. in Courtroom 508 of the Multnomah County Courthouse by Judge Janice Wilson. The court will later determine reasonable costs and fees. PacifiCorp will pay all of the costs of the settlement, which will not be charged to customers.

If the agreement is approved, PacifiCorp residential customers who paid Multnomah County taxes during 1999-2005 and who did not previously receive a refund will receive refunds of approximately $2.50 each. Larger-use customers, such as schools, commercial and industrial customers, will receive larger refunds because the tax charge was calculated as a percentage of usage for each bill. PacifiCorp has approximately 72,000 customers in Multnomah County.

The case is Beth Alt & David Delk v. PacifiCorp (Multnomah County Circuit Court Case No. 0510-10786).

The class-action plaintiffs are represented by attorneys Linda Williams and Dan Meek. PacifiCorp is represented by its counsel Natalie Hocken and attorneys William Crow and Nancy Erfle.

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Contact Information:

Attorneys for Plaintiffs:

Linda Williams

503-293-0399     voice

503-245-2772     fax

linda@lindawilliams.net

Dan Meek

503-293-9021     voice

503-293-9099     fax

dan@meek.net

PacifiCorp:

Paul Vogel

503-813-6642

paul.vogel@pacificorp.com