Opinion ID: 751394
Heading Depth: 3
Heading Rank: 4

Heading: Impact of a rate increase

Text: 71 In its amended judgment, the district court stated that the Tribe's proposed judgment of about $30 million 72 would increase the rates 3.10 mills/kwh. It is doubtful that the District could sell bonds in this amount for a nonrevenue producing purpose or otherwise borrow the money to pay such an outrageous amount. Furthermore, the large commercial user is in a rate-sensitive business and if forced to pay 80% of a $29 million judgment would undoubtedly relocate, thereby depriving the district of its main consumer. 73 The large commercial user referred to was Ponderay Newsprint, which came into PUD's service area in Pend Oreille County in the late 1980s. See City of Seattle v. FERC, 923 F.2d 713, 714-15 (9th Cir.1991). The Tribe argues that these conclusions are not supported by the evidence. Yet the court heard testimony that the newsprint plant might leave if utility rates increased and that the impact of that departure would be severe. The district court thus did not clearly err in its evaluation of this evidence.