USA Statutes : oregon
Title : TITLE 56 INSURANCE
Chapter : Chapter 757 Utility Regulation Generally
(1)(a) As used in this chapter, except as
provided in paragraph (b) of this subsection, “public utility” means:

(A) Any corporation, company, individual, association of
individuals, or its lessees, trustees or receivers, that owns, operates,
manages or controls all or a part of any plant or equipment in this state
for the production, transmission, delivery or furnishing of heat, light,
water or power, directly or indirectly to or for the public, whether or
not such plant or equipment or part thereof is wholly within any town or
city.

(B) Any corporation, company, individual or association of
individuals, which is party to an oral or written agreement for the
payment by a public utility, for service, managerial construction,
engineering or financing fees, and having an affiliated interest with the
public utility.

(b) As used in this chapter, “public utility” does not include:

(A) Any plant owned or operated by a municipality.

(B) Any railroad, as defined in ORS 824.020, or any industrial
concern by reason of the fact that it furnishes, without profit to
itself, heat, light, water or power to the inhabitants of any locality
where there is no municipal or public utility plant to furnish the same.

(C) Any corporation, company, individual or association of
individuals providing heat, light or power:

(i) From any energy resource to fewer than 20 customers, if it
began providing service to a customer prior to July 14, 1985;

(ii) From any energy resource to fewer than 20 residential
customers so long as the corporation, company, individual or association
of individuals serves only residential customers;

(iii) From solar or wind resources to any number of customers; or

(iv) From biogas, waste heat or geothermal resources for
nonelectric generation purposes to any number of customers.

(D) A qualifying facility on account of sales made under the
provisions of ORS 758.505 to 758.555.

(E) Any person furnishing heat, but not delivering electricity or
natural gas to its customers, except:

(i) As provided in ORS 757.007 and 757.009; or

(ii) With respect to heat furnished in municipalities which on
January 1, 1989, had a municipally owned system that was furnishing steam
or other thermal forms of heat to its customers.

(F) Notwithstanding subparagraph (E) of this paragraph, any
corporation, company, partnership, individual or association of
individuals furnishing heat to a single thermal end user from an electric
generating facility, plant or equipment that is physically interconnected
with the single thermal end user.

(G) Any corporation, company, partnership, individual or
association of individuals that furnishes natural gas, electricity,
ethanol, methanol, methane, biodiesel or other alternative fuel to any
number of customers for use in motor vehicles and does not furnish any
utility service described in paragraph (a) of this subsection.

(H) An electricity service supplier, as defined in ORS 757.600.

(2) Nothing in subsection (1)(b)(C) of this section shall prohibit
third party financing of acquisition or development by a utility customer
of energy resources to meet the heat, light or power requirements of that
customer. [Amended by 1953 c.583 §2; 1967 c.241 §1; 1967 c.314 §1; 1971
c.655 §64a; 1973 c.726 §1; 1979 c.62 §1; 1981 c.360 §1; 1981 c.749 §21;
1983 c.118 §1; 1983 c.799 §7; 1985 c.550 §1; 1985 c.633 §7; 1985 c.779
§1; 1987 c.447 §96; 1987 c.900 §3; 1989 c.5 §2; 1989 c.999 §§1,2; 1991
c.294 §1; 1995 c.267 §1; 1999 c.330 §2; 1999 c.491 §1; 1999 c.865 §21;
2001 c.104 §292; 2003 c.82 §4](1) Every person exempt from
regulation under ORS 757.005 (1)(b)(E) shall file with the Public Utility
Commission, not later than 30 days prior to their effective date, all
contracts and schedules establishing rates, terms and conditions for the
provision of heating services.

(2) Prior to the effective date, the commission may suspend the
effective date of such contracts or schedules for an additional period of
not more than 120 days in order to determine the reasonableness of such
contracts or schedules, taking into consideration the services being
provided, the costs and risks of service, the availability and costs of
alternative forms of service and other reasonable considerations,
including the impact on existing customers of the utilities furnishing
electricity and natural gas and on the public generally.

(3) If the contract or schedule is not suspended, or if the
contract or schedule is determined reasonable by the commission after
suspension, the contract or schedule shall not be subject to further
commission review during its term or such other period as the commission
may specify, except as provided in ORS 757.009.

(4) In any proceeding before the commission to determine the
reasonableness of contracts or schedules proposed under this section, the
burden shall be upon the proponent of the contract or schedule to
establish its reasonableness. [1989 c.999 §§4a,4c; 2003 c.82 §5] (1)
Except as provided in subsection (2) of this section, the Public Utility
Commission may, upon written complaint or upon the commission’s own
motion, regulate, under ORS 757.205 to 757.240, or any part thereof, any
person otherwise exempt from regulation under ORS 757.005 (1)(b)(E) as
follows:

(a) With respect to any or all customers, if the commission finds
that the activities of such person have an adverse effect upon the
customers of public utilities furnishing electricity or natural gas and
the benefits of such regulation outweigh any adverse effect on the public
generally; or

(b) With respect to any customer receiving service not exceeding
500 million British thermal units per year or any residential customer,
if the commission finds that such person has engaged in unjust or
unreasonable practices with respect to the services or rates available to
the customer and the customer has no reasonable alternative to the
services provided.

(2) The commission shall not regulate persons under subsection
(1)(a) of this section with respect to contracts that became effective
prior to the date of service of the complaint or with respect to heating
systems already in place on the date of service of the complaint if the
commission determines that continued expansion will increase the
efficiency of those systems. [1989 c.999 §§4b,4d; 2003 c.82 §6]As used in ORS 757.105 (1)
and in ORS 757.495, “affiliated interest” with a public utility means:

(1) Every corporation and person owning or holding directly or
indirectly five percent or more of the voting securities of such public
utility.

(2) Every corporation and person in any chain of successive
ownership of five percent or more of voting securities of such public
utility.

(3) Every corporation five percent or more of whose voting
securities are owned by any person or corporation owning five percent or
more of the voting securities of such public utility or by any person or
corporation in any chain of successive ownership of five percent or more
of voting securities of such public utility.

(4) Every person who is an officer or director of such public
utility or of any corporation in any chain of successive ownership of
five percent or more of voting securities of such public utility.

(5) Every corporation which has two or more officers or two or more
directors in common with such public utility.

(6) Every corporation and person, five percent or more of which is
directly or indirectly owned by a public utility.

(7) Every corporation or person which the Public Utility Commission
determines as a matter of fact after investigation and hearing actually
is exercising any substantial influence over the policies and actions of
such public utility, even though such influence is not based upon
stockholding, stockholders, directors or officers to the extent specified
in this section.

(8) Every person or corporation who or which the commission
determines as a matter of fact, after investigation and hearing, actually
is exercising such substantial influence over the policies and actions of
such public utility in conjunction with one or more other corporations or
persons with whom they are related by ownership or blood or by action in
concert that together they are affiliated with such public utility within
the meaning of this section even though no one of them alone is so
affiliated. [Amended by 1971 c.655 §65; 1989 c.17 §1]Every public utility is required to furnish adequate
and safe service, equipment and facilities, and the charges made by any
public utility for any service rendered or to be rendered in connection
therewith shall be reasonable and just, and every unjust or unreasonable
charge for such service is prohibited. [Amended by 1971 c.655 §66] (1)
The Public Utility Commission has power, after a hearing had upon the
motion of the commission or upon complaint, to require by general or
special orders embodying reasonable rules or regulations, every person or
municipality, their agents, lessees or acting trustees or receivers,
appointed by court, engaged in the management, operation, ownership or
control of telegraph, telephone, signal or power lines within this state,
upon the public streets or highways, and also upon all other premises
used, whether leased, owned or controlled by them, to construct, maintain
and operate every line, plant, system, equipment or apparatus in such
manner as to protect and safeguard the health and safety of all
employees, customers and the public, and to this end to adopt and
prescribe the installation, use, maintenance and operation of appropriate
safety or other devices, or appliances, to establish or adopt standards
of construction or equipment, and to require the performance of any other
act which seems to the commission necessary or proper for the protection
of the health or safety of all employees, customers or the public.

(2) When acting pursuant to subsection (1) of this section, the
Public Utility Commission shall adopt by rule as the standard of such
construction, operation and maintenance the 1973 edition of the American
National Standard, National Electrical Safety Code, C2.

(3) In lieu of subsection (2) of this section, or in addition
thereto, the commission may adopt by rule any revision or edition of or
amendment to the National Electrical Safety Code approved by the American
National Standards Institute after July 14, 1977, and in effect on the
date of adoption by the commission. [Amended by 1969 c.530 §1; 1971 c.655
§68; 1975 c.658 §1; 1977 c.346 §1](1) As used in this section, “hazardous substance or
material” means:

(a) Fuel gas, whether in a gaseous, liquid or semisolid state;

(b) Petroleum or petroleum products; and

(c) Any other substance or material which may pose an unreasonable
risk to life or property when transported by pipeline facilities.

(2) The Public Utility Commission has power, after a hearing had
upon the commission’s own motion or upon complaint, to require by general
or special orders embodying reasonable rules, every person or
municipality, their agents, lessees or acting trustees or receivers,
appointed by court, engaged in the management, operation, ownership or
control of facilities for the transmission or distribution of a hazardous
substance or material by pipeline; or of facilities for the storage or
treatment of a hazardous substance or material to be transmitted or
distributed by pipeline or upon the public streets or highways; or of any
other premises used, whether leased, owned or controlled by them, to
construct, maintain and operate every pipeline, plant, system, equipment
or apparatus used in the transmission, distribution, storage or treatment
of a hazardous substance or material to be transmitted by pipeline or
upon the public streets or highways in such manner as to protect and
safeguard the health and safety of all employees, customers and the
public, and to this end to adopt and prescribe the installation, use,
maintenance and operation of appropriate safety or other devices, or
appliances, to establish or adopt standards of construction or equipment,
and to require the performance of any other act which seems to the
commission necessary or proper for the protection of the health and
safety of all employees, customers or the public.

(3) The commission is authorized to cooperate with, make
certifications to and enter into agreements with the Secretary of
Transportation of the United States of America and to assume
responsibility for, and carry out on behalf of the Secretary of
Transportation, safety jurisdiction relating to pipeline facilities and
transportation of hazardous substances and materials in Oregon in any
manner not otherwise subject to the jurisdiction of any other agency of
this state.

(4) Notwithstanding any other provisions to the contrary, the
commission shall make public such reports as are required to be made
public under applicable federal law and regulations and provide such
information as is required by the Secretary of Transportation.

(5) The jurisdiction of the commission over propane, butane or
mixtures of these gases shall be limited to systems transporting such
gases to 10 or more customers, or to systems any portion of which is
located in a public place. [Formerly 757.095; 1983 c.540 §3; 2001 c.35 §1]The Public Utility Commission has power to require any
public utility, after a public hearing of all parties interested, to
extend its line, plant or system into, and to render service to, a
locality not already served when the existing public convenience and
necessity requires such extension and service. However, no such extension
of service shall be required until the public utility has been granted
such reasonable franchises as may be necessary for the extension of
service, and unless the conditions are such as to reasonably justify the
necessary investment by the public utility in extending its line, plant
or system into such locality and furnishing such service. [Amended by
1971 c.655 §67](1) As used in this section, “energy
conservation services” means services provided by public utilities to
educate and inform customers and the public about energy conservation.
Such services include but are not limited to providing answers to
questions concerning energy saving devices and providing inspections and
making suggestions concerning the construction and siting of buildings
and residences.

(2) All public utilities as defined in ORS 757.005, that produce,
transmit, deliver or furnish heat, light or power shall establish energy
conservation services and shall provide energy conservation information
to customers and to the public. The services shall be performed in
accordance with such rules as the Public Utility Commission may
prescribe. [1977 c.197 §2; 1977 c.887 §11] (1) For the purposes
of this section, “financial regulation” means regulation under ORS
757.105 to 757.110, 757.135, 757.140, 757.205 to 757.220, 757.400 to
757.460 and 757.480 to 757.495.

(2) Except as provided in this section, water utilities that serve
fewer than 500 customers are not subject to regulation under this chapter
or required to pay the fee provided for in ORS 756.310.

(3) A water utility that serves fewer than 500 customers and that
provides wastewater services to the public inside the boundaries of a
city is subject to regulation under this chapter and must pay the fee
provided for in ORS 756.310.

(4) A water utility that serves fewer than 500 customers and that
is found by the Public Utility Commission to have provided inadequate or
discriminatory service at any time is thereafter subject to regulation
under this chapter and must pay the fee provided for in ORS 756.310.

(5) A water utility that serves fewer than 500 customers and that
at any time charges an average annual residential rate of $18 per month
or more is thereafter subject to regulation under this chapter, other
than financial regulation, and must pay the fee provided for in ORS
756.310.

(6) A water utility that serves fewer than 500 customers is subject
to financial regulation under this chapter, and must pay the fee provided
for in ORS 756.310, if:

(a) The Public Utility Commission grants a petition from a water
utility requesting that the water utility be subject to financial
regulation; or

(b) The water utility charges a rate for water service that exceeds
a maximum rate established by the commission under subsection (7) of this
section and 20 percent or more of the customers of the water utility file
a petition with the commission requesting that the water utility be
subject to financial regulation under this chapter.

(7) The commission shall adopt rules establishing maximum rates for
water utilities serving fewer than 500 customers for the purpose of
determining whether a petition may be filed under subsection (6)(b) of
this section.

(8) Not less than 60 days before a water utility that serves fewer
than 500 customers increases any rate to exceed any maximum rate
prescribed under subsection (7) of this section, the water utility shall
provide written notice to all of its customers advising the customers of
their right to file a petition under subsection (6)(b) of this section.
The commission shall adopt rules prescribing the content of the written
notice. [1989 c.403 §2; 1999 c.330 §1; 2003 c.82 §1]
(1) Any association of individuals that furnishes water to members of the
association is subject to regulation in the same manner as provided by
this chapter for public utilities, and must pay the fee provided for in
ORS 756.310, if 20 percent or more of the members of the association file
a petition with the Public Utility Commission requesting that the
association be subject to such regulation.

(2) The provisions of this section apply to an association of
individuals even if the association does not furnish water directly to or
for the public. The provisions of this section do not apply to any
cooperative formed under ORS chapter 62 or to any public body as defined
by ORS 174.109. [2003 c.82 §3](1) In each biennium the Public Utility Commission may use not
more than $5,000 of the fees collected under ORS 756.310 to make
emergency repairs to the plants of public utilities providing water
service. The commission may expend moneys under the provisions of this
section only if the commission determines that:

(a) Customers of the utility are without service and are likely to
remain without service for an unreasonable period of time;

(b) The utility is unwilling or unable to make emergency repairs,
or cannot be found after reasonable effort; and

(c) Restoration of the service is necessary for the health and
safety of the customers of the utility.

(2) The commission shall attempt to recover fees used under this
section from the utility providing water service. The commission may also
recover a penalty as provided in ORS 756.350 from the time the fees are
expended. [2003 c.202 §8] (1) If a customer of a
water utility fails to pay a water bill for more than 120 days after the
bill becomes due, the water utility shall mail notice of the delinquency
to the persons who are listed as the owners of the property in the real
property tax records for the county. The notice must be mailed to the
addresses of the owners as reflected in the real property tax records.

(2) The provisions of this section apply to water utilities
operated by public utilities, municipalities, cooperatives and
unincorporated associations. [2005 c.168 §2](1) A public utility providing
electricity or natural gas may enter into a written agreement with an
organization that represents broad customer interests in regulatory
proceedings conducted by the Public Utility Commission relating to public
utilities that provide electricity or natural gas. The agreement shall
govern the manner in which financial assistance may be provided to the
organization. The agreement may provide for financial assistance to other
organizations found by the commission to be qualified under subsection
(2) of this section. More than one public utility or organization may
join in a single agreement. Any agreement entered into under this section
must be approved by the commission before any financial assistance is
provided under the agreement.

(2) Financial assistance under an agreement entered into under this
section may be provided only to organizations that represent broad
customer interests in regulatory proceedings before the commission
relating to public utilities that provide electricity or natural gas. The
commission by rule shall establish such qualifications as the commission
deems appropriate for determining which organizations are eligible for
financial assistance under an agreement entered into under this section.

(3) In administering an agreement entered into under this section,
the commission by rule or order may determine:

(a) The amount of financial assistance that may be provided to any
organization;

(b) The manner in which the financial assistance will be
distributed;

(c) The manner in which the financial assistance will be recovered
in the rates of the public utility under subsection (4) of this section;
and

(d) Other matters necessary to administer the agreement.

(4) The commission shall allow a public utility that provides
financial assistance under this section to recover the amounts so
provided in rates. The commission shall allow a public utility to defer
inclusion of those amounts in rates as provided in ORS 757.259 if the
public utility so elects. An agreement under this section may not provide
for payment of any amounts to the commission. [2003 c.234 §2]BUDGET, ACCOUNTS AND REPORTS OF UTILITIES(1) The Public Utility Commission has the right and
power of regulation, restriction and control over the budgets of
expenditures of public utilities, as to all items covering:

(a) Proposed payment of salaries of executive officers;

(b) Donations;

(c) Political contributions and political advertising;

(d) Expenditures for pensions or for a trust to provide pensions
for employees and officers;

(e) Other expenditures and major contracts for the sale or purchase
of equipment; and

(f) Any payment or contemplated payment to any person or
corporation having an affiliated interest for service, advice, auditing,
associating, sponsoring, engineering, managing, operating, financing,
legal or other services.

(2) On or before November 1 of each year each public utility shall
prepare a budget showing the amount of money which, in its judgment,
shall be needed during the ensuing year for covering all such activities
and expenditures, and file it with the commission.

(3) When any such budget has been filed with the commission, the
commission shall examine into and investigate the same and unless
rejected within 60 days thereafter, the proposed budget is presumptively
fair and reasonable and not contrary to public interest.

(4) Proposed expenditures for pensions or for a trust to provide
pensions for the employees and officers of such utility whether for
future service or past service or both, shall be recognized as an
operating expense if the trust fund is irrevocably committed to the
payment of pensions or benefits to employees and if such pensions are
reasonable and nondiscriminatory. The commission may disallow as an
operating expense any expenditure for pension purposes in excess of the
amount necessary and proper to maintain an actuarially sound retirement
plan for the employees of the utility in Oregon. [Amended by 1957 c.593
§1; 1971 c.655 §82] Adjustment and additions
to such budget expenditures may be made from time to time during the year
by filing supplementary budgets with the Public Utility Commission. The
provisions of ORS 757.105 (3) apply to adjustments and additions to
budgets. [Amended by 1971 c.655 §83] (1) Any finding and order made and
entered by the Public Utility Commission under ORS 757.105 or 757.107
shall have the effect of prohibiting any unapproved or rejected
expenditure from being recognized as an operating expense or capital
expenditure in any rate valuation proceeding or in any proceeding or
hearing unless and until the propriety thereof has been established to
the satisfaction of the commission. Any such finding and order shall
remain in full force and effect, unless and until it is modified or set
aside by the commission or is set aside, modified or remanded in a
proceeding for judicial review of an order in a contested case in the
manner provided by ORS 756.610.

(2) Nothing in ORS 757.105 or 757.107 prevents the commission from
at any time making and filing orders rejecting imprudent and unwise
expenditures or payments. Such orders when so made shall be in full force
and effect, and the public utility shall not have the right to make such
expenditures or payments found to be imprudent or unwise until the order
has been modified or set aside by the commission or is set aside,
modified or remanded in a proceeding for judicial review of an order in a
contested case in the manner provided by ORS 756.610. [Amended by 1971
c.655 §84; 2005 c.638 §7] (1) Every public utility shall keep and
render to the Public Utility Commission, in the manner and form
prescribed by the commission, uniform accounts of all business
transacted. All forms of accounts which may be prescribed by the
commission shall conform as nearly as practicable to similar forms
prescribed by federal authority.

(2) Every public utility engaged directly or indirectly in any
other business than that of a public utility shall, if required by the
commission, keep and render separately to the commission, in like manner
and form, the accounts of all such other business, in which case all the
provisions of this chapter shall apply with like force and effect to the
accounts and records of such other business. [Amended by 1971 c.655 §85](1) The Public Utility Commission shall
prescribe the accounts and records required to be kept, and every public
utility is required to keep and render its accounts and records
accurately and faithfully in the manner prescribed by the commission and
to comply with all directions of the commission relating to such accounts
and records.

(2) No public utility shall keep any other accounts or records of
its public utility business transacted than those prescribed or approved
by the commission except such as may be required by the laws of the
United States.

(3) The commission shall cause to be prepared suitable blanks for
reports for carrying out the purposes of this chapter, and shall, when
necessary, furnish such blanks for reports to each public utility.
[Amended by 1971 c.655 §86](1) Except as provided in subsection (2) of this section, the
accounts required under ORS 757.120 and 757.125 shall be closed annually
on December 31 and a balance sheet of that date promptly taken therefrom.
On or before April 1 following, such balance sheet, together with such
other information as the Public Utility Commission shall prescribe,
verified by an officer of the public utility, shall be filed with the
commission.

(2) If a public utility maintains its accounts and records on a
fiscal year basis, the accounts required by ORS 757.120 and 757.125 shall
be closed annually on the last day of the fiscal year and a balance sheet
shall be promptly taken from those accounts. On or before the first day
of the fourth month following the end of the public utility’s fiscal
year, the balance sheet together with such information as the commission
shall prescribe must be verified by an officer of the public utility and
filed with the commission. The commission may require that a public
utility filing information at the time specified in this subsection also
file with the commission on a calendar year basis such additional
information as may be prescribed by the commission.

(3) The commission may examine and audit any account. Items shall
be allocated to the accounts in the manner prescribed by the commission.
[Amended by 1983 c.540 §4; 2001 c.733 §1](1) Every public utility shall carry a proper and
adequate depreciation account. The Public Utility Commission shall
ascertain and determine the proper and adequate rates of depreciation of
the several classes of property of each public utility. The rates shall
be such as will provide the amounts required over and above the expenses
of maintenance, to keep such property in a state of efficiency
corresponding to the progress of the industry. Each public utility shall
conform its depreciation accounts to the rates so ascertained and
determined by the commission. The commission may make changes in such
rates of depreciation from time to time as the commission may find to be
necessary.

(2) In the following cases the commission may allow in rates,
directly or indirectly, amounts on the utility’s books of account which
the commission finds represent undepreciated investment in a utility
plant, including that which has been retired from service:

(a) When the retirement is due to ordinary wear and tear,
casualties, acts of God, acts of governmental authority; or

(b) When the commission finds that the retirement is in the public
interest. [Amended by 1971 c.655 §87; 1989 c.956 §2]RATE SCHEDULES; MEASURING EQUIPMENT(1) Every public utility shall file with the Public Utility
Commission, within a time to be fixed by the commission, schedules which
shall be open to public inspection, showing all rates, tolls and charges
which it has established and which are in force at the time for any
service performed by it within the state, or for any service in
connection therewith or performed by any public utility controlled or
operated by it.

(2) Every public utility shall file with and as part of every such
schedule all rules and regulations that in any manner affect the rates
charged or to be charged for any service. Every public utility shall also
file with the commission copies of interstate rate schedules and rules
and regulations issued by it or to which it is a party.

(3) Where a schedule of joint rates or charges is or may be in
force between two or more public utilities, such schedules shall in like
manner be printed and filed with the commission. [Amended by 1971 c.655
§70](1)(a) Whenever any public utility files with the Public Utility
Commission any rate or schedule of rates stating or establishing a new
rate or schedule of rates or increasing an existing rate or schedule of
rates, the commission may, either upon written complaint or upon the
commission’s own initiative, after reasonable notice, conduct a hearing
to determine whether the rate or schedule is fair, just and reasonable.
The commission shall conduct the hearing upon written complaint filed by
the utility, its customer or customers, or any other proper party within
60 days of the utility’s filing; provided that no hearing need be held if
the particular rate change is the result of an automatic adjustment
clause. At the hearing the utility shall bear the burden of showing that
the rate or schedule of rates proposed to be established or increased or
changed is fair, just and reasonable. The commission may not authorize a
rate or schedule of rates that is not fair, just and reasonable.

(b) As used in this subsection, “automatic adjustment clause” means
a provision of a rate schedule that provides for rate increases or
decreases or both, without prior hearing, reflecting increases or
decreases or both in costs incurred, taxes paid to units of government or
revenues earned by a utility and that is subject to review by the
commission at least once every two years.

(2)(a) Subsection (1) of this section does not apply to rate
changes under an approved alternative form of regulation plan, including
a resource rate plan under ORS 757.212.

(b) Any alternative form of regulation plan shall include
provisions to ensure that the plan operates in the interests of utility
customers and the public generally and results in rates that are just and
reasonable and may include provisions establishing a reasonable range for
rate of return on investment. In approving a plan, the commission shall,
at a minimum, consider whether the plan:

(A) Promotes increased efficiencies and cost control;

(B) Is consistent with least-cost resources acquisition policies;

(C) Yields rates that are consistent with those that would be
obtained following application of ORS 757.268;

(D) Is consistent with maintenance of safe, adequate and reliable
service; and

(E) Is beneficial to utility customers generally, for example, by
minimizing utility rates.

(c) As used in this subsection, “alternative form of regulation
plan” means a plan adopted by the commission upon petition by a public
utility, after notice and an opportunity for a hearing, that sets rates
and revenues and a method for changes in rates and revenues using
alternatives to cost-of-service rate regulation.

(d) Prior to implementing a rate change under an alternative form
of regulation plan, the utility shall present a report that demonstrates
the calculation of any proposed rate change at a public meeting of the
commission.

(3) Except as provided in ORS 757.212, the commission, at any time,
may order a utility to appear and establish that any, or all, of its
rates in a plan authorized under subsection (2) of this section are in
conformity with the plan and are just and reasonable. Except as provided
in ORS 757.212, such rates, and the alternative form of regulation plan
under which the rates are set, also shall be subject to complaint under
ORS 756.500.

(4) Periodically, but not less often than every two years after the
implementation of a plan referred to in subsection (2) of this section,
the commission shall submit a report to the Legislative Assembly that
shows the impact of the plan on rates paid by utility customers.

(5) The commission and staff may consult at any time with, and
provide technical assistance to, utilities, their customers, and other
interested parties on matters relevant to utility rates and charges. If a
hearing is held with respect to a rate change, the commission’s decisions
shall be based on the record made at the hearing. [Amended by 1971 c.655
§70a; 1981 c.715 §1; 1985 c.550 §2; 1987 c.447 §97; 1987 c.613 §1; 1989
c.5 §§3,23; 1995 c.785 §1; 2001 c.913 §3; 2005 c.845 §5](1) For purposes of this
section:

(a) “Resource rate plan” means a plan by a public utility to
construct a generating plant or to enter into a wholesale power purchase
or sales agreement with a term that is longer than one year.

(b) “Site” means:

(A) Buildings or other related structures that are interconnected
by facilities owned by a single public utility customer and that are
served through a single electric meter; or

(B) A single contiguous area of land containing buildings or other
structures that are separated by not more than 1,000 feet, such that:

(i) Each building or structure included in the site is not more
than 1,000 feet from at least one other building or structure in the site;

(ii) Buildings and structures in the site, and land containing and
connecting buildings and structures in the site, are owned by a public
utility customer who is billed for electricity use at the buildings and
structures; and

(iii) Land shall be considered to be contiguous even if there is an
intervening public or railroad right of way, provided that rights-of-way
land on which municipal infrastructure facilities exist, such as street
lighting, sewerage transmission and roadway controls, shall not be
considered contiguous.

(2) The Public Utility Commission may approve a resource rate plan
as an alternative form of regulation plan under ORS 757.210. A public
utility must make a separate tariff filing for each proposed resource
rate plan. If the commission approves a resource rate plan by a public
utility based on the construction of a generating plant, the order
approving the plan must state how the commission will reflect the costs
and revenues of the generating plant in the utility’s rates during all or
a portion of the expected useful life of the generating plant. If the
commission approves a resource rate plan based on a wholesale power
purchase or sales agreement with a term longer than one year, the order
approving the plan must state how the commission will reflect the costs
and revenues under the wholesale power purchase or sales agreement in the
utility’s rates during all or a portion of the term of the agreement.

(3) A customer receiving electricity from a public utility may
elect to be exempt from the costs and benefits of a resource rate plan
for any single site at which the customer has had a peak load in excess
of nine megawatts in any hour during the 12-month period immediately
preceding the date on which the public utility files a tariff under this
section. A public utility filing a tariff under this section must give
written notice of the provisions of this subsection to all of its
customers that are eligible to make an election under this subsection.
The notice must be given within three days after the tariff is filed. An
election under this subsection must be made by a customer within 30 days
after the tariff is filed.

(4) A public utility customer that elects to be exempt under
subsection (3) of this section may also elect to be exempt from the costs
and benefits of a resource rate plan for any single site at which the
customer has had a peak load in excess of one megawatt in any hour during
the 12-month period immediately preceding the date on which the public
utility files a tariff under this section. An election under this
subsection must be made as part of the election under subsection (3) of
this section.

(5) The commission shall ensure that customers making an election
under subsection (3) or (4) of this section are charged the market cost
for all electricity that is required to replace the electricity that
would otherwise have been provided under the resource rate plan, and that
the election does not result in increased costs or risks to the public
utility or to other customers of the public utility.

(6) The commission, by rule, may allow customers of a public
utility other than those customers described in subsection (3) of this
section to elect to be exempt from the costs and benefits of a resource
rate plan.

(7) If the commission approves a resource rate plan, the order of
the commission must also address:

(a) The extent to which the public utility will use power from the
generating plant or from the power purchase or sales agreement to serve
its retail customers in Oregon;

(b) The allocation of power available from the generating plant or
power purchase or sales agreement among different classes of the public
utility’s customers;

(c) The ratemaking consequences of the generating plant or power
purchase or sales agreement, including the consequences of variations in
the amount of power that is actually available after the plan is in
operation compared with the amount of power that was anticipated to be
available at the time the plan was approved; and

(d) Any other issue the commission chooses to consider.

(8) If the commission approves a resource rate plan, the commission
may not thereafter review the costs and rates specific to the resource
rate plan or other obligations of the public utility under the plan, or
consider any complaint under ORS 756.500 seeking review of the costs and
rates specific to the resource rate plan or other obligations of the
public utility under the plan, except for the purpose of determining
whether the public utility is in compliance with the plan and has
established rates in accordance with the plan.

(9) A resource rate plan and a public utility’s rates under a
resource rate plan are not subject to ORS 757.355.

(10) The commission may not set aside or modify an order approving
a resource rate plan unless the public utility operating under the plan
approves the setting aside or modification. [2001 c.913 §2; 2005 c.638 §8]Note: 757.212 was added to and made a part of 757.205 to 757.220 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.(1) The Public Utility Commission may,
pending such investigation and determination, order the suspension of the
rate or schedule of rates, provided the initial period of suspension
shall not extend more than six months beyond the time when such rate or
schedule would otherwise go into effect. If the commission finds that the
investigation will not be completed at the expiration of the initial
suspension, the commission may enter an order further suspending such
rate or schedule for not more than three months beyond the last day of
the initial suspension.

(2) This section does not prevent the commission and the utility
from entering into a written stipulation at any time extending any period
of suspension.

(3) After full hearing, whether completed before or after such rate
or schedule has gone into effect, the commission may make such order in
reference thereto as would be proper in a proceeding initiated after such
rate or schedule has become effective.

(4) If the commission is required to or determines to conduct a
hearing on a rate or schedule of rates filed pursuant to ORS 757.210, but
does not order a suspension thereof, any increased revenue collected by
the utility as a result of such rate or rate schedule becoming effective
shall be received subject to being refunded. If the rate or rate schedule
thereafter approved by the commission is for a lesser increase or for no
increase, the utility shall refund the amount of revenues received that
exceeds the amount approved as nearly as possible to the customers from
whom such excess revenues were collected, by a credit against future
bills or otherwise, in such manner as the commission orders.

(5) The commission may in a suspension order authorize an interim
rate or rate schedule under which the utility’s revenues will be
increased by an amount deemed reasonable by the commission, not exceeding
the amount requested by the utility. Any such interim increase for a
public utility as defined in ORS 757.005 that produces, transmits,
delivers or furnishes heat, light or power shall be effected by rates
designed to increase the utility’s revenues without materially changing
the revenue relationships among customer classes or between the revenues
derived from demand charges and from energy charges. An interim rate or
rate schedule shall remain in effect until terminated by the commission.
Upon completion of the hearing and decision, the commission shall order
the utility to refund that portion of the increase in the interim rate or
schedule that the commission finds is not justified. Any refund of an
interim increase under this subsection shall be based upon an analysis of
the utility’s earnings for a period reasonably representative of the
period during which the interim increase was in effect. Refunds shall be
made as nearly as possible to the customers against whom the interim
rates were charged, by credits against future bills or in such other
manner as the commission orders.

(6) Refunds ordered by the commission under subsection (4) or (5)
of this section shall include interest on the amount determined to be
subject to refund from the date such interim rate or rate schedules took
effect. [Amended by 1981 c.715 §2; 1991 c.964 §1]No change shall be made in any schedule,
including schedules of joint rates, except upon 30 days’ notice to the
Public Utility Commission. All changes shall be plainly indicated upon
existing schedules, or by filing new schedules in lieu thereof 30 days
prior to the time they are to take effect. However, the commission, for
good cause shown, may allow changes without requiring the 30 days’ notice
by filing an order specifying the changes to be made and the time when
they shall take effect. This section does not apply to rate changes
authorized under an alternative form of regulation plan under ORS 757.210
(2). [Amended by 1995 c.785 §2]No public utility shall charge, demand,
collect or receive a greater or less compensation for any service
performed by it within the state, or for any service in connection
therewith, than is specified in printed rate schedules as may at the time
be in force, or demand, collect or receive any rate not specified in such
schedule. The rates named therein are the lawful rates until they are
changed as provided in ORS 757.210 to 757.220. [Amended by 1971 c.655
§71; 1985 c.550 §3; 1991 c.67 §204](1) As used in this section, “electric company” has the
meaning given that term in ORS 757.600.

(2) The Public Utility Commission shall require that an electric
company mitigate a rate increase payable by a class of customers
described in subsection (5) of this section if:

(a) The increase results from a transition to an electric company’s
generally applicable cost-based rate from the rates established under the
contracts described in subsection (5) of this section; and

(b) The increase in the cost of electricity to that class of
customers by reason of the transition will exceed 50 percent during the
first 12 calendar months after the transition occurs.

(3) The commission shall require an electric company to mitigate a
rate increase under this section by means of a schedule of rate credits
for the class of customers described in subsection (5) of this section.
The rate credits provided by an electric company under the schedule shall
automatically decrease each year to the lowest credit necessary to avoid
a rate increase that is greater than 50 percent in any subsequent year.
Rate credits under this section may not be provided for more than seven
years after the transition occurs.

(4) For the purpose of determining the increase in the cost of
electricity to a class of customers by reason of a transition described
in subsection (2)(a) of this section, the commission shall:

(a) Include the total charges for electricity service, including
all special charges and credits other than the rate credit provided under
this section; and

(b) Exclude any local taxes or fees paid by the class of customers.

(5) This section applies only to customers of an electric company
that purchase electricity at metering points that before the transition
described in subsection (2)(a) of this section were eligible for rates
that were set under contracts entered into before 1960 and remained
unchanged throughout the period of the contract.

(6) The full cost of providing rate credits under this section
shall be spread equally among all other customers of the electric
company. [2005 c.594 §3](1) The Public Utility Commission shall
provide for a comprehensive classification of service for each public
utility, and such classification may take into account the quantity used,
the time when used, the purpose for which used, the existence of price
competition or a service alternative, the services being provided, the
conditions of service and any other reasonable consideration. Based on
such considerations the commission may authorize classifications or
schedules of rates applicable to individual customers or groups of
customers. The service classifications and schedule forms shall be
designed consistently with the requirements of ORS 469.010. Each public
utility is required to conform its schedules of rates to such
classification. If the commission determines that a tariff filing under
ORS 757.205 results in a rate classification primarily related to price
competition or a service alternative, the commission, at a minimum, shall
consider the following:

(a) Whether the rate generates revenues at least sufficient to
cover relevant short and long run costs of the utility during the term of
the rates;

(b) Whether the rate generates revenues sufficient to insure that
just and reasonable rates are established for remaining customers of the
utility;

(c) For electric and natural gas utilities:

(A) Whether it is appropriate to incorporate interruption of
service in the utility’s rate agreement with the customer; and

(B) Whether the rate agreement requires the utility to acquire new
resources to serve the load; and

(d) For electric utilities, for service to load not previously
served, the effect of the rate on the utility’s average system cost
through the residential exchange provision of the Pacific Northwest
Electric Power Planning and Conservation Act of 1980, Public Law 96-501,
as amended.

(2) The commission may prescribe such changes in the form in which
the schedules are issued by any public utility as may be found to be
expedient. The commission shall adopt rules which allow any person who
requests notice of tariff filings described under subsection (1) of this
section to receive such notice. [Amended by 1971 c.655 §72; 1977 c.682
§1; 1987 c.900 §1] (1) A copy of so much
of all schedules, including schedules of joint rates and charges, as the
Public Utility Commission deems necessary for the use of the public shall
be printed in plain type and kept on file in every business office of
such public utility, open to the public, and in such form and place as to
be readily accessible to the public for convenient inspection.

(2) Copies of all new schedules shall be filed in every business
office of such public utility 30 days prior to the time the schedules are
to take effect, unless the commission prescribes a shorter time. [Amended
by 1971 c.655 §73] (1) A public utility may
establish reasonable through service and joint rates and classifications
with other public utilities. Public utilities establishing joint rates
shall establish just and reasonable regulations and practices in
connection therewith and just, reasonable and equitable divisions thereof
as between the public utilities participating therein, which shall not
unduly prefer or prejudice any of such participating public utilities,
and every unjust and unreasonable rate, classification, regulation,
practice and division is prohibited.

(2) The Public Utility Commission may, and shall, whenever deemed
by the commission to be necessary or desirable in the public interest,
after full hearing upon complaint, or upon the commission’s own
initiative without complaint, establish through service, classifications
and joint rates, the divisions of such rates and the terms and conditions
under which such through service shall be rendered. If any tariff or
schedule canceling any through service or joint rate or classification
without the consent of all the public utilities parties thereto or
authorization by the commission is suspended by the commission for
investigation, the burden of proof is upon the public utilities proposing
such cancellation to show that it is consistent with the public interest.

(3) Whenever, after full hearing upon complaint or upon the
commission’s own initiative without complaint, the commission is of the
opinion that the divisions of joint rates between the public utilities
are or will be unjust, unreasonable, inequitable or unduly preferential
or prejudicial as between the public utilities parties thereto, whether
agreed upon by such public utilities or otherwise established, the
commission shall, by order, prescribe the just, reasonable and equitable
divisions thereof to be received by the several public utilities. In
cases where the joint rate was established pursuant to the finding or
order of the commission and the divisions thereto are found by the
commission to have been unjust, unreasonable or inequitable, or unduly
preferential or prejudicial, the commission may also by order determine
what, for the period subsequent to the filing of the complaint or
petition or the making of the order of investigation, would have been the
just, reasonable and equitable division thereof to be received by the
several public utilities and require adjustment to be made in accordance
therewith.

(4) In so prescribing and determining the divisions of joint rates,
the commission shall give due consideration, among other things, to:

(a) The efficiency with which the public utilities concerned are
operated;

(b) The amount of revenue to pay their respective operating
expenses, taxes and a fair return on their public utility property held
for and used in service;

(c) The importance to the public of the services of such public
utilities;

(d) Whether any particular participating public utility is an
originating, intermediate or delivering utility; and

(e) Any other fact or circumstance which ordinarily would entitle
one public utility to a greater or less proportion of the joint rate than
another. [Amended by 1971 c.655 §74] The Public
Utility Commission may authorize a public utility to file and place into
effect tariff schedules establishing rates or charges for energy
conservation measures, services or payments provided to individual
property owners or customers. Application of the schedule shall be
subject to agreement between the public utility and the property owner or
customer receiving service at the time the conservation measures,
services or payments are initially provided. The schedule may include
provisions for the payment of the rates or charges over a period of time
and for the application of the payment obligation to successive property
owners or customers at the premises where the conservation measures or
services were installed or performed or with respect to which the
conservation payments were made. The public utility shall record a notice
of the payment obligation in the records maintained by the county clerk
under ORS 205.130. The commission may prescribe by rule under the
applicable provisions of ORS 183.325 to 183.400 other methods by which
the public utility shall notify property owners or customers of any such
payment obligation. [1991 c.268 §2] (1)
The Public Utility Commission shall ascertain and prescribe for each kind
of public utility suitable and convenient standard commercial units of
service. These shall be lawful units for the purposes of this chapter.

(2) The commission shall ascertain and fix adequate and serviceable
standards for the measurement of quality, pressure, initial voltage or
other conditions pertaining to the supply of the service rendered by any
public utility and prescribe reasonable regulations for examination and
testing of such service and for the measurement thereof. It shall
establish reasonable rules, regulations, specifications and standards to
secure the accuracy of all meters and appliances for the measurements,
and every public utility is required to carry into effect all orders
issued by the commission relative thereto. [Amended by 1971 c.655 §75] (1) The
Public Utility Commission may provide for the examination and testing of
any and all appliances used for the measuring of any service of a public
utility, and may provide by rule that no such appliance shall be
installed and used for the measuring of any service of any public utility
until it has been examined and tested by the commission and found to be
accurate.

(2) The commission shall declare and establish a reasonable fee
governing the cost of such examination and test, which shall be paid to
the commission by the public utility.

(3) The commission shall declare and establish reasonable fees for
the testing of such appliances on the application of the customer, the
fee to be paid by the customer at the time of the customer’s request, but
to be repaid to the customer by the commission and to be paid by the
public utility if the appliance is found defective or incorrect to the
disadvantage of the customer or used beyond such reasonable limit as may
be prescribed by the commission.

(4) All fees collected under the provisions of this section shall
be paid by the commission into the State Treasury.

(5) The commission may purchase such materials, apparatus and
standard measuring instruments for the examination and tests as the
commission deems necessary. [Amended by 1971 c.655 §76](1) In addition to powers otherwise
vested in the Public Utility Commission, and subject to the limitations
contained in this section, under amortization schedules set by the
commission, a rate or rate schedule:

(a) May reflect:

(A) Amounts lawfully imposed retroactively by order of another
governmental agency; or

(B) Amounts deferred under subsection (2) of this section.

(b) Shall reflect amounts deferred under subsection (3) of this
section if the public utility so requests.

(2) Upon application of a utility or ratepayer or upon the
commission’s own motion and after public notice, opportunity for comment
and a hearing if any party requests a hearing, the commission by order
may authorize deferral of the following amounts for later incorporation
in rates:

(a) Amounts incurred by a utility resulting from changes in the
wholesale price of natural gas or electricity approved by the Federal
Energy Regulatory Commission;

(b) Balances resulting from the administration of Section 5(c) of
the Pacific Northwest Electric Power Planning and Conservation Act of
1980;

(c) Direct or indirect costs arising from any purchase made by a
public utility from the Bonneville Power Administration pursuant to ORS
757.663, provided that such costs shall be recovered only from
residential and small-farm retail electricity consumers;

(d) Amounts accruing under a plan for the protection of short-term
earnings under ORS 757.262 (2); or

(e) Identifiable utility expenses or revenues, the recovery or
refund of which the commission finds should be deferred in order to
minimize the frequency of rate changes or the fluctuation of rate levels
or to match appropriately the costs borne by and benefits received by
ratepayers.

(3) Upon request of the public utility, the commission by order
shall allow deferral of amounts provided as financial assistance under an
agreement entered into under ORS 757.072 for later incorporation in rates.

(4) The commission may authorize deferrals under subsection (2) of
this section beginning with the date of application, together with
interest established by the commission. A deferral may be authorized for
a period not to exceed 12 months beginning on or after the date of
application. However, amounts deferred under subsection (2)(c) and (d) or
(3) of this section are not subject to subsection (5), (6), (7), (8) or
(10) of this section, but are subject to such limitations and
requirements that the commission may prescribe and that are consistent
with the provisions of this section.

(5) Unless subject to an automatic adjustment clause under ORS
757.210 (1), amounts described in this section shall be allowed in rates
only to the extent authorized by the commission in a proceeding under ORS
757.210 to change rates and upon review of the utility’s earnings at the
time of application to amortize the deferral. The commission may require
that amortization of deferred amounts be subject to refund. The
commission’s final determination on the amount of deferrals allowable in
the rates of the utility is subject to a finding by the commission that
the amount was prudently incurred by the utility.

(6) Except as provided in subsections (7), (8) and (10) of this
section, the overall average rate impact of the amortizations authorized
under this section in any one year may not exceed three percent of the
utility’s gross revenues for the preceding calendar year.

(7) The commission may allow an overall average rate impact greater
than that specified in subsection (6) of this section for natural gas
commodity and pipeline transportation costs incurred by a natural gas
utility if the commission finds that allowing a higher amortization rate
is reasonable under the circumstances.

(8) The commission may authorize amortizations for an electric
utility under this section with an overall average rate impact not to
exceed six percent of the electric utility’s gross revenues for the
preceding calendar year. If the commission allows an overall average rate
impact greater than that specified in subsection (6) of this section, the
commission shall estimate the electric utility’s cost of capital for the
deferral period and may also consider estimated changes in the electric
utility’s costs and revenues during the deferral period for the purpose
of reviewing the earnings of the electric utility under the provisions of
subsection (5) of this section.

(9) The commission may impose requirements similar to those
described in subsection (8) of this section for the amortization of other
deferrals under this section, but may not impose such requirements for
deferrals under subsection (2)(c) or (d) or (3) of this section.

(10) The commission may authorize amortization of a deferred amount
for an electric utility under this section with an overall average rate
impact greater than that allowed by subsections (6) and (8) of this
section if:

(a) The deferral was directly related to extraordinary power supply
expenses incurred during 2001;

(b) The amount to be deferred was greater than 40 percent of the
revenue received by the electric utility in 2001 from Oregon customers;
and

(c) The commission determines that the higher rate impact is
reasonable under the circumstances.

(11) If the commission authorizes amortization of a deferred amount
under subsection (10) of this section, an electric utility customer that
uses more than one average megawatt of electricity at any site in the
immediately preceding calendar year may prepay the customer’s share of
the deferred amount. The commission shall adopt rules governing the
manner in which:

(a) The customer’s share of the deferred amount is calculated; and

(b) The customer’s rates are to be adjusted to reflect the
prepayment of the deferred amount.

(12) The provisions of this section do not apply to a
telecommunications utility. [1987 c.563 §2; 1989 c.18 §1; 1989 c.956 §1;
1993 c.175 §1; 1999 c.865 §31; 2001 c.733 §3; 2003 c.132 §1; 2003 c.234
§3](1) The Public Utility Commission, by
rule, may adopt policies designed to encourage the acquisition of
cost-effective conservation resources and small-scale, renewable-fuel
electric generating resources.

(2) In furtherance of the policies adopted pursuant to subsection
(1) of this section, and in such manner as the commission considers
proper, the commission may authorize periodic rate adjustments for the
purpose of providing some protection to a utility from reduction of
short-term earnings that may result from implementation of such policies.
The adjustments may include, but are not limited to, adjustments based in
whole or in part upon the extent to which actual sales deviate from a
base level of sales the commission considers appropriate. [1993 c.175 §3;
1999 c.944 §3]The Public Utility Commission of Oregon may
allow a rate or rate schedule of a public utility to reflect amounts for
small scale programs that enable the utility to gain experience with tree
planting on underproducing forestland, as defined by the State Forestry
Department, as an offset to carbon dioxide emissions. [1993 c.286 §1]Note: 757.266 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 757 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.(1) The Legislative Assembly finds and declares
that:

(a) The alignment of taxes collected by public utilities from
utility customers with taxes paid to units of government by utilities, or
affiliated groups that include utilities, is of special interest to this
state.

(b) Taxes are a unique utility cost because the tax liability is
affected by the operations or tax attributes of the parent company or
other affiliates of the utility.

(c) The Public Utility Commission permits a utility to include
costs for taxes that assume the utility is not part of an affiliated
group of corporations for tax purposes.

(d) The parent company of a utility may employ accounting methods,
debt, consolidated tax return rules and other techniques in a way that
results in a difference between the tax liability paid to units of
government by the utility, or the affiliated group of corporations of
which the utility is a member, and the amount of taxes collected,
directly or indirectly, from customers.

(e) Tax uncertainty in the ratemaking process may result in
collecting taxes from ratepayers that are not paid to units of government.

(f) Utility rates that include amounts for taxes should reflect the
taxes that are paid to units of government to be considered fair, just
and reasonable.

(g) Tax information of a business is commercially sensitive. Public
disclosure of tax information could provide a commercial advantage to
other businesses.

(2) The definitions in ORS 757.268 apply to this section. [2005
c.845 §2](1) Every public utility shall file a tax report with the Public
Utility Commission annually, on or before October 15 following the year
for which the report is being made. The tax report shall contain the
information required by the commission, including:

(a) The amount of taxes that was paid by the utility in the three
preceding years, or that was paid by the affiliated group and that is
properly attributed to the regulated operations of the utility,
determined without regard to the tax year for which the taxes were paid;
and

(b) The amount of taxes authorized to be collected in rates for the
three preceding years.

(2) Every public utility shall be required to obtain and provide to
the commission any other information that the commission requires to
review the tax report and to implement and administer this section and
ORS 757.210.

(3) The commission may disclose, or any intervenor may obtain and
disclose, the amount by which the amount of taxes that units of
government received from the public utility or from the affiliated group
differs from the amount of costs for taxes collected, directly or
indirectly, as part of rates paid by customers, including whether the
difference is positive or negative.

(4) The commission shall review the tax report and any other
information the commission has obtained and make the determinations
described in this section within 90 days following the filing of the
report, or within a further period of time that the commission may by
rule establish for making determinations under this section that does not
exceed 180 days following the filing of the report. If the commission
determines that the amount of taxes assumed in rates or otherwise
collected from ratepayers for any of the three preceding years differed
by $100,000 or more from the amount of taxes paid to units of government
by the public utility, or by the affiliated group and properly attributed
to the regulated operations of the utility, the commission shall require
the utility to establish an automatic adjustment clause, as defined in
ORS 757.210, within 30 days following the date of the commission’s
determinations under this section, or by a later date that the commission
may by rule prescribe for establishing an automatic adjustment clause
that does not exceed 60 days following the date of the commission’s
determinations under this section.

(5) If an adjustment to rates is made under an automatic adjustment
clause established under this section, the automatic adjustment clause
shall remain in effect for each successive year after an adjustment is
made and until an order terminating the automatic adjustment clause is
made under subsection (9) of this section.

(6) The automatic adjustment clause shall account for all taxes
paid to units of government by the public utility that are properly
attributed to the regulated operations of the utility, or by the
affiliated group that are properly attributed to the regulated operations
of the utility, and all taxes that are authorized to be collected through
rates, so that ratepayers are not charged for more tax than:

(a) The utility pays to units of government and that is properly
attributed to the regulated operations of the utility; or

(b) In the case of an affiliated group, the affiliated group pays
to units of government and that is properly attributed to the regulated
operations of the utility.

(7) An automatic adjustment clause established under this section
may not be used to make adjustments to rates for taxes paid that are
properly attributed to any unregulated affiliate of the public utility or
to the parent of the utility.

(8) Notwithstanding subsections (1) to (7) of this section, the
commission may authorize a public utility to include in rates:

(a) Deferred taxes resulting from accelerated depreciation or other
tax treatment of utility investment; and

(b) Tax requirements and benefits that are required to be included
in order to ensure compliance with the normalization requirements of
federal tax law.

(9) If the commission determines that establishing an automatic
adjustment clause under this section would have a material adverse effect
on customers of the public utility, the commission shall issue an order
terminating the automatic adjustment clause. The order shall set forth
the reasons for the commission’s determination under this subsection.

(10) The commission shall conduct a hearing under ORS 757.210 prior
to making a determination under subsection (9) of this section that an
automatic adjustment clause would have a material adverse effect on
customers of the public utility.

(11) The commission may not use the tax information obtained by the
commission under this section for any purpose other than those described
in subsections (1) to (10) of this section. An intervenor in a commission
proceeding to review the tax report or make rate adjustments described in
this section may, upon signing a protective order prepared by the
commission, obtain and use the information obtained by the commission
that is not otherwise required to be made publicly available under this
section, according to the terms of the protective order.

(12) For purposes of this section, taxes paid that are properly
attributed to the regulated operations of the public utility may not
exceed the lesser of:

(a) That portion of the total taxes paid that is incurred as a
result of income generated by the regulated operations of the utility; or

(b) The total amount of taxes paid to units of government by the
utility or by the affiliated group, whichever applies.

(13) As used in this section:

(a) “Affiliated group” means an affiliated group of corporations of
which the public utility is a member and that files a consolidated
federal income tax return.

(b) “Public utility” or “utility” means:

(A) A regulated investor-owned utility that provided electric or
natural gas service to an average of 50,000 or more customers in Oregon
in 2003; or

(B) A successor in interest to an entity described in subparagraph
(A) of this paragraph that continues to be a regulated investor-owned
utility.

(c) “Regulated operations of the utility” means those activities of
a public utility that are subject to rate regulation by the commission.

(d) “Tax”:

(A) Means a federal, state or local tax or fee that is imposed on
or measured by income and that is paid to units of government.

(B) Does not include any amount that is refunded by a unit of
government as a tax refund.

(C) Does not include franchise fees or privilege taxes.

(e) “Taxes authorized to be collected in rates” means the product
determined by multiplying the following three values:

(A) The revenues the utility collects from ratepayers in Oregon,
adjusted for any rate adjustment imposed under this section;

(B) The ratio of the net revenues from regulated operations of the
utility to gross revenues from regulated operations of the utility, as
determined by the commission in establishing rates; and

(C) The effective tax rate used by the commission in establishing
rates.

(f) “Taxes paid” means amounts received by units of government from
the utility or from the affiliated group of which the utility is a
member, whichever is applicable, adjusted as follows:

(A) Increased by the amount of tax savings realized as a result of
charitable contribution deductions allowed because of charitable
contributions made by the utility;

(B) Increased by the amount of tax savings realized as a result of
tax credits associated with investment by the utility in the regulated
operations of the utility, to the extent the expenditures giving rise to
the tax credits and tax savings resulting from the tax credits have not
been taken into account by the commission in the utility’s last general
ratemaking proceeding; and

(C) Adjusted by deferred taxes related to the regulated operations
of the utility.

(g) “Three preceding years” means the three most recent consecutive
fiscal years preceding the date the tax report is required to be filed.
[2005 c.845 §3]Note: Section 4, chapter 845, Oregon Laws 2005, provides:

Sec. 4. (1) The tax report that, under section 3 of this 2005 Act
[757.268], is required to be filed on or before October 15, 2005, shall
set forth the information required to be reported under section 3 of this
2005 Act for the three most recent consecutive fiscal years of the public
utility that concluded prior to the date of the filing of the tax report.

(2) If an automatic adjustment clause is established under section
3 of this 2005 Act, notwithstanding any other provision of section 3 of
this 2005 Act, the automatic adjustment clause shall apply only to taxes
paid to units of government and collected from ratepayers on or after
January 1, 2006. [2005 c.845 §4]ATTACHMENTS REGULATION As used in ORS
757.270 to 757.290, unless the context requires otherwise:

(1) “Attachment” means any wire or cable for the transmission of
intelligence by telegraph, telephone or television (including cable
television), light waves, or other phenomena, or for the transmission of
electricity for light, heat or power, and any related device, apparatus,
or auxiliary equipment, installed upon any pole or in any telegraph,
telephone, electrical, cable television or communications right of way,
duct, conduit, manhole or handhole or other similar facility or
facilities owned or controlled, in whole or in part, by one or more
public utility, telecommunications utility or consumer-owned utility.

(2) “Consumer-owned utility” means a people’s utility district
organized under ORS chapter 261, a municipal utility organized under ORS
chapter 225 or an electric cooperative organized under ORS chapter 62.

(3) “Licensee” means any person, firm, corporation, partnership,
company, association, joint stock association or cooperatively organized
association that is authorized to construct attachments upon, along,
under or across the public ways.

(4) “Public utility” has the meaning for that term provided in ORS
757.005, and does not include any entity cooperatively organized or owned
by federal, state or local government, or a subdivision of state or local
government.

(5) “Telecommunications utility” has the meaning for that term
provided in ORS 759.005, and does not include any entity cooperatively
organized or owned by federal, state or local government or a subdivision
of state or local government. [1979 c.356 §2; 1989 c.5 §4; 1999 c.832 §4] (1)
Subject to applicable regulations of the Public Utility Commission, a
person shall not establish an attachment to a pole or other facility of a
public utility, telecommunications utility or consumer-owned utility
unless the person has executed a contract with and has authorization from
the utility allowing the attachment.

(2) A licensee shall report all pole attachments to the pole owner.
A pole owner may impose on a licensee a penalty charge for failing to
report an attachment. The pole owner also may charge the licensee for any
expenses incurred as a result of an unauthorized attachment or any
attachment that exceeds safety limits established by rule of the
commission. [1999 c.832 §2] (1) A licensee
shall notify a public utility, telecommunications utility or
consumer-owned utility of all attachments to the utility’s poles
according to the terms of any agreement between the licensee and the
utility.

(2) Notwithstanding subsection (1) of this section, the public
utility, telecommunications utility or consumer-owned utility may approve
or reject the attachment. If the attachment is rejected, the licensee
shall remove the attachment within three business days of the date the
attachment is rejected. If the attachment is not removed within three
business days of the date the attachment is rejected, the utility may
remove the attachment and charge the licensee for all costs incurred by
the utility in removing the attachment. [1999 c.832 §3]The Public Utility Commission of Oregon
shall have the authority to regulate in the public interest the rates,
terms and conditions for attachments by licensees to poles or other
facilities of public utilities and telecommunications utilities. All
rates, terms and conditions made, demanded or received by any public
utility or telecommunications utility for any attachment by a licensee
shall be just, fair and reasonable. [1979 c.356 §3; 1989 c.5 §5]The Public Utility Commission of Oregon shall have
the authority to regulate the rates, terms and conditions for attachments
by licensees to poles or other facilities of consumer-owned utilities.
All rates, terms and conditions made, demanded or received by any
consumer-owned utility for any attachment by a licensee shall be just,
fair and reasonable. [1979 c.356 §4; 1987 c.414 §164; 1999 c.832 §5] (1)
Whenever the Public Utility Commission of Oregon finds, after hearing had
upon complaint by a licensee, a public utility, a telecommunications
utility or a consumer-owned utility that the rates, terms or conditions
demanded, exacted, charged or collected in connection with attachments or
availability of surplus space for such attachments are unjust or
unreasonable, or that such rates or charges are insufficient to yield a
reasonable compensation for the attachment and the costs of administering
the same, the commission shall determine the just and reasonable rates,
terms and conditions thereafter to be observed and in force and shall fix
the same by order. In determining and fixing such rates, terms and
conditions, the commission shall consider the interest of the customers
of the licensee, as well as the interest of the customers of the public
utility, telecommunications utility or consumer-owned utility that owns
the facility upon which the attachment is made.

(2) When the order applies to a consumer-owned utility, the order
shall also provide for payment by the parties of the cost of the hearing.
The payment shall be made in a manner which the commission considers
equitable. [1979 c.356 §5; 1983 c.251 §1; 1987 c.414 §165; 1989 c.5 §6;
1999 c.832 §6](1) A just and reasonable rate shall ensure the public
utility, telecommunications utility or consumer-owned utility the
recovery from the licensee of not less than all the additional costs of
providing and maintaining pole attachment space for the licensee nor more
than the actual capital and operating expenses, including just
compensation, of the public utility, telecommunications utility or
consumer-owned utility attributable to that portion of the pole, duct or
conduit used for the pole attachment, including a share of the required
support and clearance space in proportion to the space used for pole
attachment above minimum attachment grade level, as compared to all other
uses made of the subject facilities, and uses that remain available to
the owner or owners of the subject facilities.

(2) A licensee shall receive a rental deduction if the licensee is
in compliance with rules adopted by the Public Utility Commission for
certifying compliance with the laws regulating pole attachments. A
licensee is eligible for the rental reduction unless the commission or
the utility authorizing the attachment notifies the licensee in writing
that the licensee has failed to comply with either the commission’s rules
or the terms of a contract between the licensee and the utility
authorizing the attachment.

(3) For purposes of determining the rental rate for a pole
attachment, the usable space on the pole shall include 20 inches of
safety clearance space between communication circuits and electric
circuits, provided the licensee is in compliance with rules and
agreements as described in subsection (2) of this section. [1979 c.356
§6; 1989 c.5 §7; 1999 c.832 §7]Agreements regarding rates, terms and conditions of
attachments shall be deemed to be just, fair and reasonable, unless the
Public Utility Commission finds upon complaint by a public utility,
telecommunications utility, consumer-owned utility or licensee party to
such agreement and after hearing, that such rates, terms and conditions
are adverse to the public interest and fail to comply with the provisions
hereof. [1979 c.356 §7; 1987 c.414 §166; 1989 c.5 §8; 1999 c.832 §8] Nothing in
ORS 757.270 to 757.290 shall be deemed to apply to any attachment by one
or more electrical utilities on the facilities of one or more other
electrical utilities. [1979 c.356 §8] The procedures of the Public Utility
Commission for petition, regulation and enforcement relative to
attachments, including any rights of appeal from any decision thereof,
shall be the same as those otherwise generally applicable to the
commission. [1979 c.356 §9; 1987 c.414 §167]Note: Section 9, chapter 832, Oregon Laws 1999, provides:

Sec. 9. (1) The Public Utility Commission shall establish a task
force consisting of utility pole owners and utility pole users to advise
the commission on policies and regulations for accommodating changes in
the utility industries while maintaining safe and efficient utility
poles, attachment installation practices and rights of way.

(2) In addition to the duties described in subsection (1) of this
section, the task force shall:

(a) Develop and submit to the commission proposed rules for
determining appropriate sanctions for unauthorized attachments; and

(b) Develop and submit to the commission proposed criteria for
certifying compliance with laws regulating pole attachments.

(3) The commission shall adopt rules for certifying a licensee’s
compliance with laws regulating pole attachments and establishing
appropriate sanctions for unauthorized pole attachments. [1999 c.832 §9]NET METERING FACILITIES(1) As used in this section:

(a) “Customer-generator” means a user of a net metering facility.

(b) “Electric utility” means a public utility, a people’s utility
district operating under ORS chapter 261, a municipal utility operating
under ORS chapter 225 or an electric cooperative organized under ORS
chapter 62.

(c) “Net metering” means measuring the difference between the
electricity supplied by an electric utility and the electricity generated
by a customer-generator and fed back to the electric utility over the
applicable billing period.

(d) “Net metering facility” means a facility for the production of
electrical energy that:

(A) Generates electricity using solar power, wind power, fuel
cells, hydroelectric power, landfill gas, digester gas, waste, dedicated
energy crops available on a renewable basis or low-emission, nontoxic
biomass based on solid organic fuels from wood, forest or field residues;

(B) Is located on the customer-generator’s premises;

(C) Can operate in parallel with an electric utility’s existing
transmission and distribution facilities; and

(D) Is intended primarily to offset part or all of the
customer-generator’s requirements for electricity.

(2) An electric utility that offers residential and commercial
electric service:

(a) Shall allow net metering facilities to be interconnected using
a standard meter that is capable of registering the flow of electricity
in two directions.

(b) May at its own expense install one or more additional meters to
monitor the flow of electricity in each direction.

(c) May not charge a customer-generator a fee or charge that would
increase the customer-generator’s minimum monthly charge to an amount
greater than that of other customers in the same rate class as the
customer-generator. However, the Public Utility Commission, for a public
utility, or the governing body, for a municipal electric utility,
electric cooperative or people’s utility district, may authorize an
electric utility to assess a greater fee or charge, of any type, if the
electric utility’s direct costs of interconnection and administration of
the net metering outweigh the distribution system, environmental and
public policy benefits of allocating such costs among the electric
utility’s entire customer base. The commission may authorize a public
utility to assess a greater fee or charge under this paragraph only
following notice and opportunity for public comment. The governing body
of a municipal electric utility, electric cooperative or people’s utility
district may assess a greater fee or charge under this paragraph only
following notice and opportunity for comment from the customers of the
utility, cooperative or district.

(3)(a) For a customer-generator, an electric utility shall measure
the net electricity produced or consumed during the billing period in
accordance with normal metering practices.

(b) If an electric utility supplies a customer-generator more
electricity than the customer-generator feeds back to the electric
utility during a billing period, the electric utility shall charge the
customer-generator for the net electricity that the electric utility
supplied.

(c) Except as provided in paragraph (d) of this subsection, if a
customer-generator feeds back to an electric utility more electricity
than the electric utility supplies the customer-generator during a
billing period, the electric utility may charge the minimum monthly
charge described in subsection (2) of this section but must credit the
customer-generator for the excess kilowatt-hours generated during the
billing period. An electric utility may value the excess kilowatt-hours
at the avoided cost of the utility, as determined by the commission or
the appropriate governing body. An electric utility that values the
excess kilowatt-hours at the avoided cost shall bear the cost of
measuring the excess kilowatt-hours, issuing payments and billing for the
excess hours. The electric utility also shall bear the cost of providing
and installing additional metering to measure the reverse flow of
electricity.

(d) For the billing cycle ending in March of each year, or on such
other date as agreed to by the electric utility and the
customer-generator, any remaining unused kilowatt-hour credit accumulated
during the previous year shall be granted to the electric utility for
distribution to customers enrolled in the electric utility’s low-income
assistance programs, credited to the customer-generator or dedicated for
other use as determined by the commission, for a public utility, or the
governing body, for a municipal electric utility, electric cooperative or
people’s utility district, following notice and opportunity for public
comment.

(4)(a) A net metering facility shall meet all applicable safety and
performance standards established in the state building code. The
standards shall be consistent with the applicable standards established
by the National Electrical Code, the Institute of Electrical and
Electronics Engineers and Underwriters Laboratories or other similarly
accredited laboratory.

(b) Following notice and opportunity for public comment, the
commission, for a public utility, or the governing body, for a municipal
electric utility, electric cooperative or people’s utility district, may
adopt additional control and testing requirements for customer-generators
to protect public safety or system reliability.

(c) An electric utility may not require a customer-generator whose
net metering facility meets the standards in paragraphs (a) and (b) of
this subsection to comply with additional safety or performance
standards, perform or pay for additional tests or purchase additional
liability insurance. However, an electric utility shall not be liable
directly or indirectly for permitting or continuing to allow an
attachment of a net metering facility, or for the acts or omissions of
the customer-generator that cause loss or injury, including death, to any
third party.

(5) Nothing in this section is intended to prevent an electric
utility from offering, or a customer-generator from accepting, products
or services related to the customer-generator’s net metering facility
that are different from the net metering services described in this
section.

(6) The commission, for a public utility, or the governing body,
for a municipal electric utility, electric cooperative or people’s
utility district, may not limit the cumulative generating capacity of
solar, wind, fuel cell and microhydroelectric net metering systems to
less than one-half of one percent of a utility’s, cooperative’s or
district’s historic single-hour peak load. After a cumulative limit of
one-half of one percent has been reached, the obligation of a public
utility, municipal electric utility, electric cooperative or people’s
utility district to offer net metering to a new customer-generator may be
limited by the commission or governing body in order to balance the
interests of retail customers. When limiting net metering obligations
under this subsection, the commission or the governing body shall
consider the environmental and other public policy benefits of net
metering systems. The commission may limit net metering obligations under
this subsection only following notice and opportunity for public comment.
The governing body of a municipal electric utility, electric cooperative
or people’s utility district may limit net metering obligations under
this subsection only following notice and opportunity for comment from
the customers of the utility, cooperative or district.

(7) The commission or the governing body may adopt rules or
ordinances to ensure that the obligations and costs associated with net
metering apply to all power suppliers within the service territory of a
public utility, municipal electric utility, electric cooperative or
people’s utility district.

(8) This section applies only to net metering facilities that have
a generating capacity of 25 kilowatts or less, except that the commission
by rule may provide for a higher limit for customers of a public utility.

(9) Notwithstanding subsections (2) to (8) of this section, an
electric utility serving fewer than 25,000 customers in Oregon that has
its headquarters located in another state and offers net metering
services or a substantial equivalent offset against retail sales in that
state shall be deemed to be in compliance with this section if the
electric utility offers net metering services to its customers in Oregon
in accordance with tariffs, schedules and other regulations promulgated
by the appropriate authority in the state where the electric utility’s
headquarters are located. [1999 c.944 §2; 2005 c.145 §1]ILLEGAL PRACTICES (1) A public
utility may not charge a customer a rate or an amount for a service that
is different from the rate or amount prescribed in the schedules or
tariffs for the public utility.

(2) A public utility may not charge a customer a rate or an amount
for a service that is different from the rate or amount the public
utility charges any other customer for a like and contemporaneous service
under substantially similar circumstances.

(3) A difference in rates or amounts charged does not constitute a
violation of subsection (2) of this section if the difference is based on:

(a) Service classification under ORS 757.230;

(b) Contracts for services under ORS 757.516; or

(c) An optional schedule or tariff for the provision of energy
service that takes into account a customer’s past energy usage and
provides price incentives designed to encourage changes in the customer’s
energy usage that correspond to changes in the cost of providing energy.
[Amended by 1971 c.655 §78; 1987 c.900 §2; 1993 c.485 §3; 2005 c.594 §1](1) ORS 757.310
does not prevent any public utility from giving free service, or reduced
rates therefor, to:

(a) Its officers, directors, employees and members of their
families;

(b) Former employees of such public utilities or members of their
families where such former employees have become disabled in the service
of such public utility or are unable from physical disqualification,
including retirement, to continue in the service; or

(c) Members of families of deceased employees of such public
utility.

(2) The Public Utility Commission may require any public utility to
file with the commission a list, verified under oath, of all free or
reduced rate privileges granted by a public utility under the provisions
of this section.

(3) The Public Utility Commission may authorize a natural gas
public utility, upon application of the utility, to include in rates for
residential customers of the utility amounts for the purpose of
generating funds to be used for bill payment assistance to low-income
residential customers of the utility. [Amended by 1971 c.655 §79; 2001
c.856 §1](1) No public utility shall demand, charge, collect or
receive from any person less compensation for any service rendered or to
be rendered by the public utility in consideration of the furnishing by
such person of any part of the facilities incident thereto.

(2) This section does not prohibit any public utility from renting
any customer’s facilities incident to providing its services and for
paying a reasonable rental therefor.

(3) This section does not require a public utility to furnish any
part of such appliances which are situated in and upon the premises of
any customer, except meters and appliances for measurements of any
service, unless otherwise ordered by the Public Utility Commission.
[Amended by 1971 c.655 §80] (1) No public utility
shall make or give undue or unreasonable preference or advantage to any
particular person or locality, or shall subject any particular person or
locality to any undue or unreasonable prejudice or disadvantage in any
respect.

(2) Any public utility violating this section is guilty of unjust
discrimination.
No person shall knowingly solicit, accept or receive any rebate,
concession or discrimination in respect to any service whereby any such
service shall, by any device, be rendered free or at a lesser rate than
that named in the published schedules and tariffs in force, or whereby
any service or advantage is received other than authorized in this
chapter. [Amended by 1971 c.655 §81](1) Except as provided in subsection
(2) of this section, a public utility may not, directly or indirectly, by
any device, charge, demand, collect or receive from any customer rates
that include the costs of construction, building, installation or real or
personal property not presently used for providing utility service to the
customer.

(2) The Public Utility Commission may allow rates for a water
utility that include the costs of a specific capital improvement if the
water utility is required to use the additional revenues solely for the
purpose of completing the capital improvement. [1979 c.3 §2; 2003 c.202
§2]ISSUANCE OF SECURITIES As used in ORS 757.400 to 757.460,
“stocks” means stocks, stock certificates or other evidence of interest
or ownership. The power
of public utilities to issue stocks and bonds, notes and other evidences
of indebtedness and to create liens on their property situated within
this state is a special privilege, the right of supervision, regulation,
restriction and control of which is and shall continue to be vested in
the state. Such power shall be exercised as provided by law and under
such rules and regulations as the Public Utility Commission may prescribe. All stocks and bonds,
notes or other evidences of indebtedness, and any security of a public
utility shall be void when issued:

(1) Without an order of the Public Utility Commission authorizing
the same then in effect except as provided in ORS 757.412 or 757.415 (3).

(2) With the authorization of the commission, but not conforming in
its provisions to the provisions, if any, which it is required by the
order of authorization of the commission to contain; but no failure to
comply with the terms or conditions of the order of authorization of the
commission and no informality or defect in the application or in the
proceedings in connection therewith or with the issuance of such order
shall render void any stock or bond, note or other evidence of
indebtedness, or security issued pursuant to and in substantial
conformity with an order of the commission, except as to a person taking
the same otherwise than in good faith and for value and without actual
notice. [Amended by 1997 c.261 §1] Subject to such terms
and conditions as the Public Utility Commission may prescribe, the
commission, by rule or order, may exempt the following from any or all of
the provisions of ORS 757.400 to 757.480, if the commission finds that
application of the law is not required by the public interest:

(1) Any stocks and bonds, notes or other evidences of indebtedness
and any other security or guarantee or class of securities or guarantees
for which commission authorization would otherwise be required prior to
the issuance, incurrence or assumption thereof.

(2) Any public utility or class of public utilities. [1997 c.261 §3]Note: 757.412 was added to and made a part of ORS chapter 757 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.(1) Except as otherwise permitted by subsection (4) of
this section, a public utility may issue stocks and bonds, notes and
other evidences of indebtedness, certificates of beneficial interests in
a trust and securities for the following purposes and no others:

(a) The acquisition of property, or the construction, completion,
extension or improvement of its facilities.

(b) The improvement or maintenance of its service.

(c) The discharge or lawful refunding of its obligations.

(d) The reimbursement of money actually expended from income or
from any other money in the treasury of the public utility not secured by
or obtained from the issue of stocks or bonds, notes or other evidences
of indebtedness, or securities of such public utility, for any of the
purposes listed in paragraphs (a) to (c) of this subsection except the
maintenance of service and replacements, in cases where the applicant has
kept its accounts and vouchers for such expenditures in such manner as to
enable the Public Utility Commission of Oregon to ascertain the amount of
money so expended and the purposes for which such expenditures were made.

(e) The compliance with terms and conditions of options granted to
its employees to purchase its stock, if the commission first finds that
such terms and conditions are reasonable and in the public interest.

(f) The finance or refinance of bondable conservation investment as
described in ORS 757.455. Bonds, notes, certificates of beneficial
interests in a trust and other evidences of indebtedness or ownership,
issued for this purpose are conservation bonds for the purposes of ORS
757.460. Conservation bonds may rely partly or wholly for repayment on
conservation investment assets and revenues arising with respect to
conservation investment assets.

(2) Before issuing such securities a public utility, in addition to
the other requirements of law, shall secure from the commission upon
application an order authorizing such issue, stating:

(a) The amount of the issue and the purposes to which the issue or
the proceeds thereof are to be applied;

(b) In the opinion of the commission, the money, property or labor
to be procured or paid for by such issue reasonably is required for the
purposes specified in the order and compatible with the public interest,
which is necessary or appropriate for or consistent with the proper
performance by the applicant of service as a public utility, and will not
impair its ability to perform that service; and

(c) Except as otherwise permitted in the order in the case of
bonds, notes or other evidences of indebtedness, such purposes are not,
in whole or in part, reasonably chargeable to operating expenses or to
income.

(3) This section and ORS 757.410 apply to demand notes but do not
apply to the issuance or renewal of a note or evidence of indebtedness
maturing not more than one year after date of such issue or renewal.

(4) Nothing in ORS 757.400 to 757.460 shall prevent issuance of
stock to stockholders as a stock dividend if there has been secured from
the commission an order:

(a) Finding that the stock dividend is compatible with the public
interest;

(b) Authorizing such issue and a transfer of surplus to capital in
an amount equal to the par or stated value of the stock so authorized; and

(c) Finding that a sum equal to the amount to be so transferred was
expended for the purposes enumerated in subsection (1) of this section.

(5) Conservation bonds authorized pursuant to subsection (1) of
this section may be issued directly by a public utility or through a
finance subsidiary. A “finance subsidiary” means any corporation, limited
liability company, company, association, trust or other entity that is:

(a) Beneficially owned, directly or indirectly, by a public utility
or, in the case of a trust, for which a public utility or subsidiary
thereof is the grantor; or

(b) Unaffiliated with a public utility and acquires bondable
conservation investment directly or indirectly from a public utility in a
transaction approved by the commission. [Amended by 1961 c.319 §1; 1995
c.539 §4; 2005 c.22 §504]ORS 757.415 does
not apply to the issuance, renewal or assumption of liability on any
evidence of indebtedness when such issuance, renewal or assumption is for
the purpose of acquiring specific real or personal property, if the
aggregate principal amount thereof, together with all other then
outstanding evidences of indebtedness issued, renewed or assumed under
this section, does not exceed whichever is the greater of the following
amounts:

(1) The amount of $75,000.

(2) The amount of one-half of one percent of the sum of:

(a) The total principal amount of all bonds or other securities
representing secured indebtedness of the public utility issued or assumed
and then outstanding; and

(b) The capital and surplus as then stated on the books of account
of the public utility. [1971 c.655 §88](1) To
enable the Public Utility Commission to determine whether the commission
will issue an order under ORS 757.415, the commission may hold a hearing
and may make such additional inquiry or investigation, examine such
witnesses, books, papers, documents and contracts and require the filing
of such data as the commission deems necessary. The application for such
order shall be given priority and shall be disposed of by the commission
within 30 days after the filing of such application, unless that period
is extended with the consent of the public utility.

(2) The commission may, upon application of the public utility,
after opportunity for hearing and for good cause shown, make such
supplemental orders in the premises as the commission finds necessary or
appropriate, and may by any such supplemental order modify the provisions
of any previous order as to the particular purposes, uses, extent to
which, or the condition under which, any security theretofore authorized
or its proceeds may be applied. Such supplemental orders are subject to
the requirements of ORS 757.415. The period of time permitted under
subsection (1) of this section for disposing of applications shall not
apply to supplemental orders.

(3) If a commission or other agency is empowered by another state
to regulate and control the amount and character of securities to be
issued by any public utility within such other state, the commission of
Oregon has power to agree with such commission or agency of such other
state on the issue of stocks, bonds, notes, other evidences of
indebtedness or securities by a public utility owning or operating a
public utility both in such state and in this state, and has power to
approve such issue jointly with such commission or agency and to issue a
joint certificate of such approval. However, no such joint approval is
required in order to express the consent to and approval of such issue by
the State of Oregon if the issue is separately approved by the Oregon
commission. No
provision of ORS 757.405 to 757.450, and no deed or act done or performed
under or in connection therewith, shall be held or construed to obligate
the State of Oregon to pay or guarantee, in any manner whatsoever, any
stock or bond, note or other evidence of indebtedness, authorized, issued
or executed under the provisions of ORS 757.405 to 757.450. The Public
Utility Commission may by order grant permission for the issue of stocks
or bonds, notes or other evidences of indebtedness in the amount applied
for, or in a lesser amount, or not at all, and may attach to the exercise
of the permission such condition or conditions as the commission deems
reasonable and necessary. (1) No
public utility shall, without the consent of the Public Utility
Commission, apply the issue of any stock or bond, note or other evidence
of indebtedness, or any part or proceeds thereof, to any purpose not
specified in the commission’s order, or to any purpose specified in the
commission’s order in excess of the amount authorized for such purpose,
or issue or dispose of the same on any terms less favorable than those
specified in such order, or a modification thereof.

(2) The commission has power to require public utilities to account
for the disposition of the proceeds of all sales of stocks and bonds,
notes and other evidences of indebtedness, in such form and detail as the
commission deems advisable, and to establish such rules and regulations
as the commission deems reasonable and necessary to insure the
disposition of such proceeds for the purpose or purposes specified in the
order.No public utility shall assume any obligation or liability
as guarantor, indorser, surety or otherwise in respect to the securities
of any other person, firm or corporation, when such securities are
payable at periods of more than 12 months after the date thereof, without
first having secured from the Public Utility Commission an order
authorizing it so to do. Every assumption made other than in accordance
with such an order is void. No public
utility shall directly or indirectly, issue or cause to be issued any
stock or bond, note or other evidence of indebtedness, in nonconformity
with the order of the Public Utility Commission authorizing the same or
contrary to the provisions of ORS 757.400 to 757.460, or of the
Constitution of this state, or apply the proceeds from the sale thereof,
or any part thereof, to any purpose other than the purposes specified in
the commission’s order, or to any purpose specified in the commission’s
order in excess of the amount in the order authorized for such purpose. No person
shall:

(1) Knowingly authorize, direct, aid in, issue or execute, or cause
to be issued or executed, any stock or bond, note or other evidence of
indebtedness, in nonconformity with the order of the Public Utility
Commission authorizing the same, or contrary to the provisions of ORS
757.400 to 757.460 or of the Constitution of this state.

(2) In any proceeding before the commission, knowingly make any
false statement or representation or with knowledge of its falsity file
or cause to be filed with the commission any false statement or
representation which may tend in any way to influence the commission to
make an order authorizing the issue of any stock or bond, note or other
evidence of indebtedness, or which results in procuring from the
commission the making of any such order.

(3) With knowledge that any false statement or representation was
made to the commission in any proceeding tending in any way to influence
the commission to make such order, issue, execute or negotiate, or cause
to be issued, executed or negotiated, any stock or bond, note or other
evidence of indebtedness.

(4) Directly or indirectly, knowingly apply, or cause or assist to
be applied, the proceeds, or any part thereof, from the sale of any stock
or bond, note or other evidence of indebtedness, to any purpose not
specified in the commission’s order, or to any purpose specified in the
commission’s order in excess of the amount authorized for such purpose.

(5) With knowledge that any stock or bond, note or other evidence
of indebtedness, has been issued or executed in violation of ORS 757.400
to 757.460, negotiate, or cause the same to be negotiated.(1) It
is the policy of the Public Utility Commission of Oregon to encourage
financing investments at the lowest possible cost to utility customers,
including but not limited to conservation program expenditures.

(2) If the commission decides that a public utility should defer
and amortize certain conservation program expenditures, the public
utility may apply to the commission for an order designating all or part
of the conservation program expenditures as bondable conservation
investment, for the purpose of financing or refinancing the designated
expenditures under ORS 757.415 (1)(f). After notice and an opportunity
for a hearing, the commission may approve the application if it finds
that the conservation program expenditures included in the application
are used, useful and prudent and that financing or refinancing is likely
to be more favorable to customers than other reasonably available
alternatives. Upon approval, the commission shall issue an order stating
the amount of the conservation program expenditures that qualify as
bondable conservation investment.

(3) The commission shall set rates to include in revenue
requirement recovery of a public utility’s bondable conservation
investment, as well as the costs of equity and debt capital associated
with it, including, without limitation, the payment of principal,
premium, if any, and interest on conservation bonds. Revenues collectible
or collected under this subsection shall be known as “conservation
investment assets.” The commission shall not revalue bondable
conservation investment for rate-making purposes, determine that revenues
required to recover bondable conservation investment and associated
equity and debt capital costs are unjust or unreasonable, impair or
reduce in any way the value of conservation investment assets, or impair
the timing or the amount of revenues arising with respect to conservation
investment assets that have been used to secure financing or refinancing
under ORS 757.415 (1)(f).

(4) Subsections (2) and (3) of this section shall apply to any
amounts presently deferred by a utility regardless of whether expended
prior to September 9, 1995.

(5) As used in this section, “conservation program expenditures”
includes, without limitation, loans and cash payments made to customers,
the costs of conservation measures installed at the expense of the public
utility, specific acquisition program development, promotion and labor
costs and associated general supervision, rents, leases and overheads.
[1995 c.539 §3](1) A public
utility or finance subsidiary may pledge conservation investment assets
as collateral for conservation bonds by providing for a security interest
in the conservation investment assets. A security interest in
conservation investment assets is created and perfected only upon entry
of an order by the Public Utility Commission of Oregon approving a
contract governing the granting of the security interest, and the filing
with the Secretary of State of a Uniform Commercial Code Article I
financing statement showing such pledger as “debtor” and identifying the
conservation investment assets and the bondable conservation investment
pledged as security. The security interest is enforceable against the
debtor and all third parties, subject to the rights of any third parties
holding security interests in the conservation investment assets
perfected in the manner described in this section if value has been given
by the purchasers of the conservation bonds. An approved security
interest in conservation investment assets is a continuously perfected
security interest in all revenues and proceeds arising with respect to
the associated bondable conservation investment, whether or not those
revenues have accrued. Upon approval by the commission, the priority of
the security interest shall be as set forth in the contract governing the
conservation bonds. Conservation investment assets constitute property
for the purposes of contracts securing the conservation bonds, whether or
not the related revenues have accrued.

(2) The relative priority of a security interest created under this
section is not defeated or adversely affected by the commingling of
revenues arising with respect to conservation investment assets with
other funds of the debtor. The holders of conservation bonds shall have a
perfected security interest in all cash and deposit accounts of the
debtor in which revenues arising with respect to conservation investment
assets pledged to the holders of conservation bonds have been commingled
with other funds, but the perfected security interest is limited to an
amount not greater than the amount of the revenues received by the debtor
within 12 months before any default under the conservation bonds held by
the holders or the institution of insolvency proceedings by or against
the debtor, less payments made from the revenues to the holders during
that 12-month period. If a default occurs under an approved contract
governing conservation bonds, the holders of the conservation bonds or
their authorized representatives, as secured parties, may foreclose or
otherwise enforce the perfected security interest in the conservation
investment assets securing the conservation bonds, subject to the rights
of any third parties holding prior security interests in the conservation
investment assets perfected in the manner provided in this section. Upon
application by the holders of the conservation bonds or their
representatives, without limiting other remedies of those holders or
representatives, the commission shall order the sequestration and payment
to the holders or their representatives of revenues arising with respect
to the debtor.

(3) The granting, perfection and enforcement of security interests
in conservation investment assets to secure conservation bonds is
governed by this section and not by ORS chapter 79.

(4) A transfer of conservation investment assets by a public
utility to a finance subsidiary that the parties have expressly stated in
the governing documentation to be a sale or other absolute transfer, in a
transaction approved in an order issued by the commission and made in
connection with the issuance by the finance subsidiary of conservation
bonds, shall be treated as a true sale and not as a pledge or other
financing of the conservation investment assets. According the holders of
conservation bonds a preferred right to revenues of the public utility or
the provision by the utility of other credit enhancement with respect to
conservation bonds does not impair or negate the characterization of any
transfer as a true sale.

(5) Any successor to a public utility pursuant to any bankruptcy,
reorganization or other insolvency proceeding shall perform and satisfy
all obligations of the utility under an approved contract governing
conservation bonds in the same manner and to the same extent as was
required of the utility before the proceeding, including, without
limitation, collecting and paying to the holders of the conservation
bonds or their representatives revenues arising with respect to the
conservation investment assets pledged to secure the conservation bonds.

(6) As used in this section:

(a) “Conservation investment assets” has the meaning given under
ORS 757.455.

(b) “Finance subsidiary” has the meaning given under ORS 757.415.
[1995 c.539 §2]TRANSACTIONS INVOLVING UTILITIES(1) A public utility doing business in Oregon
shall not, without first obtaining the Public Utility Commission’s
approval of such transaction:

(a) Except as provided in subsection (5) of this section, sell,
lease, assign or otherwise dispose of the whole of the property of such
public utility necessary or useful in the performance of its duties to
the public or any part thereof of a value in excess of $100,000, or sell,
lease, assign or otherwise dispose of any franchise, permit or right to
maintain and operate such public utility or public utility property, or
perform any service as a public utility;

(b) Mortgage or otherwise encumber the whole or any part of the
property of such public utility necessary or useful in the performance of
its duties to the public, including any franchise, permit or right to
maintain and operate such public utility or public utility property, or
perform any service as a public utility; or

(c) By any means whatsoever, directly or indirectly, merge or
consolidate any of its lines, plant, system or other property whatsoever,
or franchise or permit to maintain or operate any public utility
property, or perform any service as a public utility, or any part
thereof, with any other public utility.

(2) A public utility that sells, leases, assigns or otherwise
disposes of the whole of the property of such public utility necessary or
useful in the performance of its duties to the public or any part thereof
of a value in excess of $25,000, but less than $100,000, shall notify the
commission of the sale within 60 days following the date of the sale.

(3) Every sale, lease, assignment, mortgage, disposition,
encumbrance, merger or consolidation subject to subsection (1) of this
section made other than in accordance with the order of the commission
authorizing the same is void.

(4) This section does not prohibit or invalidate the sale, lease or
other disposition by any public utility of property which is not
necessary or useful in the performance of its duties to the public.

(5) A water utility doing business in Oregon shall not, without
first obtaining the Public Utility Commission’s approval of such
transaction, sell, lease, assign or otherwise dispose of the whole of the
property of such water utility necessary or useful in the performance of
its duties to the public or any part thereof of a value in excess of
$10,000, or sell, lease, assign or otherwise dispose of any franchise,
permit or right to maintain and operate such water utility or water
utility property, or perform any service as a water utility. [Formerly
757.155; 1999 c.530 §1]
(1) No public utility shall, directly or indirectly, purchase, acquire or
become the owner of any of the stocks or bonds or property utilized for
utility purposes and having a value in excess of $10,000 of any other
public utility unless authorized so to do by the Public Utility
Commission.

(2) Every contract by any public utility for the purchase,
acquisition, assignment or transfer to it of any of the stock of any
other public utility by or through any person, partnership or corporation
without the approval of the commission shall be void and of no effect,
and no such transfer or assignment of such stock upon the books of the
corporation pursuant to any such contract is effective for any purpose.
[Formerly 757.160] (1) When any public
utility doing business in this state enters into a contract with another
corporation with relation to the construction, operation, maintenance or
use of the property of said public utility in Oregon, or the use of the
property of the other contracting party, or any part thereof, or for
service, advice, engineering, financing, rentals, leasing or for any
construction or management charges in respect of any such property, or
for the purchase of property, materials or supplies, the proposed
contract shall be filed with the Public Utility Commission for the
investigation and approval when the public utility owns a majority of or
controls directly or indirectly the voting stock of the other contracting
corporations.

(2) Any such proposed contract shall be filed with the commission
within 90 days of execution of the contract. The contract shall be deemed
to be executed on the date the parties sign a written contract or on the
date the parties begin to transact business under the contract, whichever
date is earlier. The commission shall promptly investigate and act upon
the contract in accordance with ORS 757.495 (3) and (6).

(3) In making such investigation the commission and accountants,
examiners and agents, appointed by the commission for the purpose, shall
be given free access to all books, books of account, documents, data and
records of the public utility as well as of the corporation with which it
is proposing to contract, which the commission may deem material to the
investigation. The failure or refusal of either of the parties to the
proposed contract to comply with this subsection is prima facie evidence
that such contract is unfair, unreasonable and contrary to public
interest, and is sufficient to justify a determination and finding of the
commission to that effect, which has the same force and effect as any
other determination or order of the commission. [Formerly 757.165; 1989
c.956 §6](1) When any public utility doing business in this state
enters into any contract to make any payment, directly or indirectly, to
any person or corporation having an affiliated interest, for service,
advice, auditing, accounting, sponsoring, engineering, managing,
operating, financing, legal or other services, or enter any charges
therefor on its books, which shall be recognized as an operating expense
or capital expenditure in any rate valuation or any other hearing or
proceeding, the contract shall be filed with the Public Utility
Commission within 90 days of execution of the contract. The contract
shall be deemed to be executed on the date the parties sign a written
contract or on the date the parties begin to transact business under the
contract, whichever date is earlier.

(2) When any public utility doing business in this state enters
into any contract, oral or written, with any person or corporation having
an affiliated interest relating to the construction, operation,
maintenance, leasing or use of the property of such public utility in
Oregon, or the purchase of property, materials or supplies, which shall
be recognized as the basis of an operating expense or capital expenditure
in any rate valuation or any other hearing or proceeding, the contract
shall be filed with the commission within 90 days of execution of the
contract. The contract shall be deemed to be executed on the date the
parties sign a written contract or on the date the parties begin to
transact business under the contract, whichever date is earlier.

(3) When any such contract has been submitted to the commission,
the commission promptly shall examine and investigate the contract. If,
after such investigation, the commission determines that the contract is
fair and reasonable and not contrary to the public interest, the
commission shall enter findings and an order to this effect and serve a
copy thereof upon the public utility, whereupon any expenses and capital
expenditures incurred by the public utility under the contract may be
recognized in any rate valuation or other hearing or proceeding. If,
after such investigation, the commission determines that the contract is
not fair and reasonable in all its terms and is contrary to the public
interest, the commission shall enter findings and an order accordingly
and serve a copy thereof upon the public utility, and, except as provided
in subsection (4) of this section, it shall be unlawful to recognize the
contract for the purposes specified in this section.

(4) When any such contract has been filed with the commission
within 90 days of execution and the commission has not entered an order
disapproving the contract under subsection (3) of this section, the
commission may not base its refusal to recognize any expenses or capital
expenditures incurred under the contract in any rate valuation or other
hearing or proceeding solely on the basis that such contract has not been
approved under subsection (3) of this section.

(5) No public utility shall issue notes or lend its funds or give
credit on its books or otherwise to any person or corporation having an
affiliated interest, either directly or indirectly, without the approval
of the commission.

(6) The action of the commission with respect to all the matters
described in this section when submitted to the commission shall be by
findings and an order to be entered within 90 days after the matter has
been submitted to the commission for consideration, and the findings and
order of the commission with respect to any of such matters shall be and
remain in full force and effect, unless and until set aside, modified or
remanded in a proceeding for judicial review of an order in a contested
case in the manner provided by ORS 756.610. The public utility, or any
other person or corporation affected by any such findings and order, may
seek judicial review in the manner provided by ORS 756.610. [Formerly
757.170; 1989 c.956 §7; 2005 c.22 §505; 2005 c.638 §9] When any public
utility is primarily engaged in another enterprise and is only indirectly
engaged in the production, transmission, delivery or furnishing of heat,
light, water or power to or for the public by reason of a contract or
agreement, express or implied, between itself and another public utility
which is directly engaged in such business, the jurisdiction of the
Public Utility Commission over such public utility extends only to the
right to modify, control, rescind, alter or amend any such existing
contract or agreement where the interest of the customers of such public
utility directly engaged in such business demands. No such contract or
agreement is valid or enforceable until it has been approved by the
commission as being in the public interest. [Formerly 757.175](1) The Legislative
Assembly finds and declares that:

(a) The protection of customers of public utilities which provide
heat, light or power is a matter of fundamental statewide concern;

(b) Existing legislation requires the Public Utility Commission’s
approval of one public utility’s acquisition of another public utility’s
stocks, bonds and certain property used for utility purposes, but does
not require the commission’s approval of such acquisitions by persons not
engaged in the public utility business in Oregon; and

(c) An attempt by a person not engaged in the public utility
business in Oregon to acquire the power to exercise any substantial
influence over the policies and actions of an Oregon public utility which
provides heat, light or power could result in harm to such utility’s
customers, including but not limited to the degradation of utility
service, higher rates, weakened financial structure and diminution of
utility assets.

(2) It is, therefore, the policy of the State of Oregon to regulate
acquisitions by persons not engaged in the public utility business in
Oregon of the power to exercise any substantial influence over the
policies and actions of an Oregon public utility which provides heat,
light or power in the manner set forth in this section and ORS 757.511 in
order to prevent unnecessary and unwarranted harm to such utilities’
customers. [1985 c.632 §2](1) No person, directly or indirectly,
shall acquire the power to exercise any substantial influence over the
policies and actions of a public utility which provides heat, light or
power without first securing from the Public Utility Commission, upon
application, an order authorizing such acquisition if such person is, or
by such acquisition would become, an affiliated interest with such public
utility as defined in ORS 757.015 (1), (2) or (3).

(2) The application required by subsection (1) of this section
shall set forth detailed information regarding:

(a) The applicant’s identity and financial ability;

(b) The background of the key personnel associated with the
applicant;

(c) The source and amounts of funds or other consideration to be
used in the acquisition;

(d) The applicant’s compliance with federal law in carrying out the
acquisition;

(e) Whether the applicant or the key personnel associated with the
applicant have violated any state or federal statutes regulating the
activities of public utilities;

(f) All documents relating to the transaction giving rise to the
application;

(g) The applicant’s experience in operating public utilities
providing heat, light or power;

(h) The applicant’s plan for operating the public utility;

(i) How the acquisition will serve the public utility’s customers
in the public interest; and

(j) Such other information as the commission may require by rule.

(3) The commission promptly shall examine and investigate each
application received pursuant to this section and shall issue an order
disposing of the application within 19 business days of its receipt. If
the commission determines that approval of the application will serve the
public utility’s customers in the public interest, the commission shall
issue an order granting the application. The commission may condition an
order authorizing the acquisition upon the applicant’s satisfactory
performance or adherence to specific requirements. The commission
otherwise shall issue an order denying the application. The applicant
shall bear the burden of showing that granting the application is in the
public interest.

(4) Nothing in this section shall prohibit dissemination by any
party of information concerning the acquisition so long as such
dissemination is not otherwise in conflict with state or federal law.
[1985 c.632 §3](1) Following a Public Utility
Commission determination that such services are subject to competition, a
natural gas utility may enter into a contract with any customer for the
provision of natural gas commodity, rights to pipeline capacity and
natural gas transportation services when such services are provided in
advance of the point of interconnection between the facility of the
natural gas utility and the facility of an interstate pipeline.

(2) Contracts for services described under subsection (1) of this
section are not schedules of rates, tolls or charges within the meaning
of ORS 757.205 and are not subject to the requirements of ORS 757.205,
757.230 and 757.310.

(3) A contract for services described under subsection (1) of this
section may include services provided after the point of interconnection
between a natural gas utility’s facility and the interstate pipeline’s
facility. Services provided after the point of interconnection are
subject to the requirements of ORS 757.205, 757.230 and 757.310 and shall
be separately priced in accordance with the utility’s filed tariffs.

(4) A natural gas utility entering contracts for services described
under subsection (1) of this section shall make available to the
commission any information necessary for review of such contracts for
ratemaking purposes. Notwithstanding ORS 192.410 to 192.505, the
commission shall not release the terms of any contract or portion of a
contract for services described in subsection (1) of this section without
the consent of the customer and the natural gas utility except for
contracts entered into between a natural gas utility and an affiliated
interest of that natural gas utility. Notwithstanding any other provision
of this section, a contract for services described in subsection (1) of
this section between a natural gas utility and another public utility may
be released by the commission pursuant to a hearing held under ORS
757.210.

(5) Nothing in this section shall restrict the commission from
subsequent investigation of the reasonableness of contracts entered into
under subsection (1) of this section for ratemaking purposes. The
commission’s review of such contracts for ratemaking purposes shall not
in any way affect the obligations or rights of the parties under the
contracts.

(6) In accordance with ORS 756.515, the commission may investigate
the activities of a natural gas utility related to contracts described
under subsection (1) of this section. Notwithstanding any other provision
of this section, if the commission finds that the activities of a natural
gas utility have not generally been in the public interest, the
commission, by order, may require the natural gas utility to file all
future contracts described under subsection (1) of this section as
provided under ORS 757.205 or 757.240. Any such finding by the commission
shall not affect the obligations or rights of the parties under any
existing contracts.

(7) Nothing in this section, nor any action taken by the commission
pursuant to this section, shall be deemed state action for the purpose of
exempting a natural gas utility from liability for anticompetitive
conduct or other unlawful practices.

(8) As used in this section, “natural gas utility” means a public
utility providing natural gas service to customers. [1993 c.485 §2]OREGON UTILITY NOTIFICATION CENTERAs used in ORS 757.542 to 757.562 and 757.993:

(1) “Business day” means any 24-hour day other than a Saturday,
Sunday or federal or state legal holiday.

(2) “Damage” means harm to or destruction of underground facilities
including, but not limited to, the weakening of structural, lateral or
subjacent support; the penetration, impairment or destruction of any
coating, housing or other protective device; and the denting of,
penetration into or severance of underground facilities.

(3) “Excavation” means any operation in which earth, rock or other
material on or below the ground is moved or otherwise displaced by any
means, except sidewalk, road and ditch maintenance less than 12 inches in
depth that does not lower the road grade or original ditch flow line.
“Excavation” does not include the tilling of soil for agricultural
purposes conducted on private property that is not within the boundaries
of a recorded right of way or easement for underground facilities.

(4) “Excavator” means any person who engages in excavation.

(5) “Operator” means any person, public utility, municipal
corporation, political subdivision of the state or other person with
control over underground facilities.

(6) “Underground facilities” means items partially or entirely
below the surface of the ground for use in connection with the storage or
conveyance of electrical energy, water, sewage, petroleum products, gas,
gaseous vapors or hazardous liquids, or the transmission of electronic,
telephonic, telegraphic or cable communications. Such items include, but
are not limited to, pipes, sewers, conduits, cables, valves, lines,
wires, manholes, attachments and those parts of poles or anchors that are
underground.

(7) “Unlocatable underground facilities” means underground
facilities that cannot be marked with reasonable accuracy, including
nonconductive sewers and nonmetallic underground facilities that have no
trace wires. [1995 c.691 §1]Note: 757.542 to 757.562 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 757 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.(1)(a) The Oregon Utility
Notification Center is created as an independent not-for-profit public
corporation. The corporation shall be governed by a board of directors
consisting of one member appointed to represent each of the following:

(A) Cities with a population of 25,000 or more;

(B) Cities with a population under 25,000;

(C) Counties;

(D) Natural gas utilities regulated by the Public Utility
Commission under ORS chapter 757;

(E) Electric utilities regulated by the Public Utility Commission
under ORS chapter 757;

(F) Water districts, special districts, sanitary districts or water
and sanitary authorities;

(G) Telecommunications utilities serving fewer than 50,000 access
lines and regulated by the Public Utility Commission under ORS chapter
759;

(H) Telecommunications utilities serving 50,000 access lines or
more and regulated by the Public Utility Commission under ORS chapter 759;

(I) Telecommunications cooperatives;

(J) Electric cooperatives;

(K) People’s utility districts;

(L) Contractors;

(M) Excavators;

(N) Railroads;

(O) Cable system operators; and

(P) Municipal electric utilities.

(b) To facilitate appointment of members of the first board of
directors, the Public Utility Commission shall, by order, select
organizations that are most representative of each of the groups set
forth in paragraph (a) of this subsection. Each organization so selected
may nominate a member for the board and may, within the time allowed by
the commission’s order, submit the name of the nominee to the Governor,
who shall consider the nominee before making any other appointment to the
board.

(c) After appointment of the first board of directors, to
facilitate appointment of new members to the board, the board shall, by
rule, select organizations that are most representative of each of the
groups set forth in paragraph (a) of this subsection. Each organization
so selected may nominate a member for the board and may, within the time
allowed by rule, submit the name of the nominee to the Governor, who
shall consider the nominee before making any other appointment to the
board.

(d) If the board of directors determines that a group not listed in
paragraph (a) of this subsection should be represented on the board, the
board may select an organization that is most representative of the group
and may ask that organization to nominate a member. Upon receipt of the
nomination, the board may request that the Governor appoint the nominee.

(e) The Governor shall also appoint to the board of directors one
employee of the commission and one employee of the Department of
Transportation.

(2) The term of office of a member is four years. A member is
eligible for reappointment. Before the expiration of the term of a
member, the board of directors shall solicit a nomination as provided in
subsection (1) of this section and the Governor shall appoint a
successor. If there is a vacancy for any cause, the board shall solicit a
nomination as provided in subsection (1) of this section and the Governor
shall make an appointment to become immediately effective for the
unexpired term. A member may continue to serve until a successor is
appointed. Nothing in this subsection or subsection (1) of this section
shall restrict the authority of the Governor to appoint a person other
than one of the persons nominated according to this subsection or
subsection (1) of this section.

(3) The board of directors shall select one of its members as
chairperson and another as vice chairperson, for such terms and with such
duties and powers as the board considers necessary for the performance of
the functions of those offices. A minimum of seven of the members of the
board constitutes a quorum for the transaction of business.

(4) The board of directors shall meet at least once every three
months at a time and place determined by the board. The board shall meet
at such other times and places specified by the call of the chairperson
or of a majority of the members of the board. [1995 c.691 §2; 1999 c.451
§2]Note: See note under 757.542.(1) It is the function of the
board of directors to operate the Oregon Utility Notification Center,
through which a person shall notify operators of underground facilities
of proposed excavations and request that the underground facilities be
marked.

(2) The board of directors shall:

(a) Utilize a competitive process to contract with any qualified
person to provide the notification required under subsection (1) of this
section.

(b) Subject to subsection (3) of this section, establish rates, on
a per call basis, under which subscribers shall pay to fund all of the
activities of the Oregon Utility Notification Center.

(c) Adopt rules according to ORS chapter 183 that regulate the
notification and marking of underground facilities to prevent damage to
underground facilities. The rules, insofar as is practicable, shall be
consistent with the Oregon Utilities Coordinating Council Standards
Manual of March 31, 1995.

(3) The Oregon Utility Notification Center shall have all of the
powers of a state agency. Except as provided in subsection (2) of this
section, the provisions of ORS 279.835 to 279.855 and ORS chapters 240,
276, 279A, 279B, 279C, 282, 283, 291, 292 and 293 shall not apply to the
Oregon Utility Notification Center.

(4) Notwithstanding subsection (2)(b) of this section, the board of
directors shall not establish rates or other charges that require
payments from any subscriber who receives fewer than 50 telephone calls
in the calendar year or that result in annual payments of more than $500
for any of the following subscribers:

(a) Cities with a population under 15,000;

(b) Telecommunications utilities serving fewer than 50,000 access
lines and regulated by the Public Utility Commission under ORS chapter
759;

(c) Cable system operators serving fewer than 15,000 customers;

(d) Utilities, special districts, people’s utility districts or
authorities providing electricity, water or sanitary sewer service to
fewer than 15,000 residential customers; and

(e) Telecommunications cooperatives. [1995 c.691 §3; 1999 c.451 §3;
2001 c.104 §293; 2003 c.794 §329]Note: See note under 757.542.(1) Every operator of underground facilities
shall subscribe to the Oregon Utility Notification Center.

(2) Any person intending to excavate shall notify the Oregon
Utility Notification Center at least two but not more than 10 business
days before commencing an excavation. The board of directors shall, by
rule, provide an exception to the requirement of advance notice for
excavators in cases that involve an immediate danger to life or property,
or a customer service outage. The board may adopt additional exceptions
as the board, in its discretion, determines necessary.

(3) Nonsubscribing operators of underground facilities shall be
responsible to all injured parties for all costs associated with damages
to such facilities, loss of product or service or damages that occur as a
result of excavation where the facilities damaged are under the control
of the nonsubscribing operator and proper notice was given to the Oregon
Utility Notification Center.

(4) The provisions of this section shall not apply to operators of
underground facilities that are located entirely on private property and
that provide services exclusively for the use of residents or owners of
the property. [1995 c.691 §4; 2001 c.104 §294]Note: See note under 757.542.(1) The board of directors shall file with
the Legislative Assembly and the Governor, not later than April 15 of
each year, a report covering the activities and operations of the Oregon
Utility Notification Center for the preceding calendar year according to
the provisions of ORS 192.230 to 192.250.

(2) In carrying out the duties, functions and powers imposed by law
on the Oregon Utility Notification Center, the board of directors may
contract with any state agency or private party for the performance of
such duties, functions and powers as the board considers appropriate.
[1995 c.691 §5]Note: See note under 757.542.DIRECT ACCESS REGULATION As used in ORS
757.600 to 757.687, unless the context requires otherwise:

(1) “Aggregate” means combining retail electricity consumers into a
buying group for the purchase of electricity and related services.

(2) “Ancillary services” means services necessary or incidental to
the transmission and delivery of electricity from generating facilities
to retail electricity consumers, including but not limited to scheduling,
load shaping, reactive power, voltage control and energy balancing
services.

(3) “Commission” means the Public Utility Commission.

(4) “Consumer-owned utility” means a municipal electric utility, a
people’s utility district or an electric cooperative.

(5) “Default supplier” means an electricity service supplier or
electric company that has a legal obligation to provide electricity
services to a consumer, as determined by the commission.

(6) “Direct access” means the ability of a retail electricity
consumer to purchase electricity and certain ancillary services, as
determined by the commission for an electric company or the governing
body of a consumer-owned utility, directly from an entity other than the
distribution utility.

(7) “Direct service industrial consumer” means an end user of
electricity that obtains electricity directly from the transmission grid
and not through a distribution utility.

(8) “Distribution” means the delivery of electricity to retail
electricity consumers through a distribution system consisting of local
area power poles, transformers, conductors, meters, substations and other
equipment.

(9) “Distribution utility” means an electric utility that owns and
operates a distribution system connecting the transmission grid to the
retail electricity consumer.

(10) “Economic utility investment” means all electric company
investments, including plants and equipment and contractual or other
legal obligations, properly dedicated to generation or conservation, that
were prudent at the time the obligations were assumed but the full
benefits of which are no longer available to consumers as a direct result
of ORS 757.600 to 757.667, absent transition credits. “Economic utility
investment” does not include costs or expenses disallowed by the
commission in a prudence review or other proceeding, to the extent of
such disallowance, and does not include fines or penalties authorized and
imposed under state or federal law.

(11) “Electric company” means an entity engaged in the business of
distributing electricity to retail electricity consumers in this state,
but does not include a consumer-owned utility.

(12) “Electric cooperative” means an electric cooperative
corporation organized under ORS chapter 62 or under the laws of another
state if the service territory of the electric cooperative includes a
portion of this state.

(13) “Electric utility” means an electric company or consumer-owned
utility that is engaged in the business of distributing electricity to
retail electricity consumers in this state.

(14) “Electricity” means electric energy, measured in
kilowatt-hours, or electric capacity, measured in kilowatts, or both.

(15) “Electricity services” means electricity distribution,
transmission, generation or generation-related services.

(16) “Electricity service supplier” means a person or entity that
offers to sell electricity services available pursuant to direct access
to more than one retail electricity consumer. “Electricity service
supplier” does not include an electric utility selling electricity to
retail electricity consumers in its own service territory.

(17) “Governing body” means the board of directors or the
commissioners of an electric cooperative or people’s utility district, or
the council or board of a city with respect to a municipal electric
utility.

(18) “Load” means the amount of electricity delivered to or
required by a retail electricity consumer at a specific point of delivery.

(19) “Low-income weatherization” means repairs, weatherization and
installation of energy efficient appliances and fixtures for low-income
residences for the purpose of enhancing energy efficiency.

(20) “Municipal electric utility” means an electric distribution
utility owned and operated by or on behalf of a city.

(21) “New renewable energy resource” means a renewable energy
resource project, or a new addition to an existing renewable energy
resource project, or the electricity produced by the project, that is not
in operation on July 23, 1999. “New renewable energy resource” does not
include any portion of a renewable energy resource project under contract
to the Bonneville Power Administration on or before July 23, 1999.

(22) “One average megawatt” means 8,760,000 kilowatt-hours of
electricity per year.

(23) “People’s utility district” has the meaning given that term in
ORS 261.010.

(24) “Portfolio access” means the ability of a retail electricity
consumer to choose from a set of product and pricing options for
electricity determined by the governing board of a consumer-owned utility
and may include product and pricing options offered by the utility or by
an electricity service supplier.

(25) “Power generation company” means a company engaged in the
production and sale of electricity to wholesale customers, including but
not limited to independent power producers, affiliated generation
companies, municipal and state authorities, provided the company is not
regulated by the commission.

(26) “Qualifying expenditures” means those expenditures for energy
conservation measures that have a simple payback period of not less than
one year and not more than 10 years, and expenditures for the
above-market costs of new renewable energy resources, provided that the
State Department of Energy by rule may establish a limit on the maximum
above-market cost for renewable energy that is allowed as a credit.

(27) “Renewable energy resources” means:

(a) Electricity generation facilities fueled by wind, waste, solar
or geothermal power or by low-emission nontoxic biomass based on solid
organic fuels from wood, forest and field residues.

(b) Dedicated energy crops available on a renewable basis.

(c) Landfill gas and digester gas.

(d) Hydroelectric facilities located outside protected areas as
defined by federal law in effect on July 23, 1999.

(28) “Residential electricity consumer” means an electricity
consumer who resides at a dwelling primarily used for residential
purposes. “Residential electricity consumer” does not include retail
electricity consumers in a dwelling typically used for residency periods
of less than 30 days, including hotels, motels, camps, lodges and clubs.
As used in this subsection, “dwelling” includes but is not limited to
single family dwellings, separately metered apartments, adult foster
homes, manufactured dwellings, recreational vehicles and floating homes.

(29) “Retail electricity consumer” means the end user of
electricity for specific purposes such as heating, lighting or operating
equipment, and includes all end users of electricity served through the
distribution system of an electric utility on or after July 23, 1999,
whether or not each end user purchases the electricity from the electric
utility.

(30) “Site” means a single contiguous area of land containing
buildings or other structures that are separated by not more than 1,000
feet, or buildings and related structures that are interconnected by
facilities owned by a single retail electricity consumer and that are
served through a single electric meter.

(31) “Transition charge” means a charge or fee that recovers all or
a portion of an uneconomic utility investment.

(32) “Transition credit” means a credit that returns to consumers
all or a portion of the benefits from an economic utility investment.

(33) “Transmission facility” means the plant and equipment used to
transmit electricity in interstate commerce.

(34) “Undue market power” means the unfair or improper exercise of
influence to increase or decrease the availability or price of a service
or product in a manner inconsistent with competitive markets.

(35) “Uneconomic utility investment” means all electric company
investments, including plants and equipment and contractual or other
legal obligations, properly dedicated to generation, conservation and
workforce commitments, that were prudent at the time the obligations were
assumed but the full costs of which are no longer recoverable as a direct
result of ORS 757.600 to 757.667, absent transition charges. “Uneconomic
utility investment” does not include costs or expenses disallowed by the
commission in a prudence review or other proceeding, to the extent of
such disallowance, and does not include fines or penalties as authorized
by state or federal law. [1999 c.865 §1; 2001 c.134 §8; 2003 c.186 §75](1) All
retail electricity consumers of an electric company, other than
residential electricity consumers, shall be allowed direct access
beginning on March 1, 2002. Retail electricity consumers shall not be
allowed direct access before that date.

(2) Residential electricity consumers shall be allowed to purchase
electricity from among a portfolio of rate options as described in ORS
757.603 not later than March 1, 2002.

(3) ORS 757.600 to 757.691 do not apply to an electric company
providing electricity services to fewer than 25,000 consumers in this
state unless the electric company offers direct access to any of its
retail electricity consumers in this state or offers to sell electricity
services available under direct access to more than one retail
electricity consumer of another electric utility. [1999 c.865 §2; 2001
c.819 §1; 2003 c.14 §454]Note: 757.601 was added to and made a part of ORS chapter 757 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.(1)(a) Except as provided in this
subsection, on and after March 1, 2002, an electric company shall provide
all retail electricity consumers that are connected to the electric
company’s distribution system with a regulated, cost-of-service rate
option.

(b) The Public Utility Commission by order may waive the
requirement of paragraph (a) of this subsection for any retail
electricity consumer other than residential electricity consumers and
small commercial electricity consumers. A waiver under this paragraph may
not take effect before July 1, 2003. Before ordering a waiver under this
paragraph, the commission shall conduct such studies as the commission
deems necessary and provide notice and opportunity for public comment and
hearings. The commission may order a waiver under this paragraph if the
commission finds, based on an evidentiary record developed through public
comment and hearings, that a market exists in which retail electricity
consumers subject to the waiver are able to:

(A) Purchase supplies of electricity adequate to meet the needs of
the retail electricity consumers;

(B) Obtain multiple offers for electricity supplies within a
reasonable period of time;

(C) Obtain reliable supplies of electricity; and

(D) Purchase electricity at prices that are not unduly volatile and
that are just and reasonable.

(2) Not later than March 1, 2002, each electric company shall
provide each residential electricity consumer that is connected to its
distribution system a portfolio of rate options. The portfolio shall
include at least the following options:

(a) A rate that reflects significant new renewable energy
resources; and

(b) A market-based rate.

(3)(a) The commission shall regulate the cost-of-service rate
option under subsection (1) of this section and the portfolio of rate
options under subsection (2) of this section. The commission shall
reasonably ensure that the costs and risks of serving each option are
reflected in the rates for each option.

(b) The commission may prohibit or otherwise limit the use of a
cost-of-service rate by retail electricity consumers who have been served
through direct access, and may limit switching among portfolio options
and the cost-of-service rate by residential electricity consumers. [1999
c.865 §4; 2001 c.819 §2] The Public Utility
Commission shall ensure that direct access programs offered by electric
companies meet the following conditions:

(1) The provision of direct access to some retail electricity
consumers must not cause the unwarranted shifting of costs to other
retail electricity consumers of the electric company. The commission may,
in establishing any rates and charges under ORS 757.600 to 757.667,
consider and mitigate the rate impact on consumers from the reduction or
elimination of subsidies in existing rate structures.

(2) The direct access, portfolio of rate options and
cost-of-service rates may include transition charges or transition
credits that reasonably balance the interests of retail electricity
consumers and utility investors. The commission may determine that full
or partial recovery of the costs of uneconomic utility investments, or
full or partial pass-through of the benefits of economic utility
investments to retail electricity consumers, is in the public interest.

(3) The commission shall allow recovery, through a transition
charge, of any otherwise unrecoverable costs arising from or related to
an electric company’s contractual or other legal obligations to the
Bonneville Power Administration under ORS 757.663, or arising from or
related to a failure of the Bonneville Power Administration to meet its
contractual or other legal obligations to the electric company, from
those classes of consumers for which electric power was purchased from
the Bonneville Power Administration.

(4) Notwithstanding ORS 757.355, the commission may allow a return
on the unamortized balance of an uneconomic utility investment or an
economic utility investment that is included in rates. [1999 c.865 §8](1) The Public Utility Commission shall
set a date on which all electric companies must announce prices that will
be charged for electricity by the companies in the subsequent calendar
year. Retail electricity consumers who are eligible for direct access
must be allowed at least three business days after the date set by the
commission to elect whether to use direct access or to purchase
electricity from an electric company.

(2) All electricity service suppliers and electric companies must
announce estimated prices that will be charged for electricity by the
suppliers and companies in the subsequent calendar year or contract
period at least five days before the date set by the commission under
subsection (1) of this section. [2003 c.478 §2]Note: 757.609 was added to and made a part of 757.600 to 757.687 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.(1) There is established an annual
public purpose expenditure standard for electric companies to fund new
cost-effective local energy conservation, new market transformation
efforts, the above-market costs of new renewable energy resources and new
low-income weatherization. The public purpose expenditure standard shall
be funded by the public purpose charge described in subsection (2) of
this section.

(2)(a) Beginning on the date an electric company offers direct
access to its retail electricity consumers, except residential
electricity consumers, the electric company shall collect a public
purpose charge from all of the retail electricity consumers located
within its service area for a period of 10 years. Except as provided in
paragraph (b) of this subsection, the public purpose charge shall be
equal to three percent of the total revenues collected by the electric
company or electricity service supplier from its retail electricity
consumers for electricity services, distribution, ancillary services,
metering and billing, transition charges and other types of costs
included in electric rates on July 23, 1999.

(b) For an aluminum plant that averages more than 100 average
megawatts of electricity use per year, beginning on March 1, 2002, the
electric company whose territory abuts the greatest percentage of the
site of the aluminum plant shall collect from the aluminum company a
public purpose charge equal to one percent of the total revenue from the
sale of electricity services to the aluminum plant from any source.

(3)(a) The Public Utility Commission shall establish rules
implementing the provisions of this section relating to electric
companies.

(b) Subject to paragraph (e) of this subsection, funds collected by
an electric company through public purpose charges shall be allocated as
follows:

(A) Sixty-three percent for new cost-effective conservation and new
market transformation.

(B) Nineteen percent for the above-market costs of new renewable
energy resources.

(C) Thirteen percent for new low-income weatherization.

(D) Five percent shall be transferred to the Housing and Community
Services Department Revolving Account created under ORS 456.574 and used
for the purpose of providing grants as described in ORS 458.625 (2).
Moneys deposited in the account under this subparagraph are continuously
appropriated to the Housing and Community Services Department for the
purposes of ORS 458.625 (2). Interest on moneys deposited in the account
under this subparagraph shall accrue to the account.

(c) The costs of administering subsections (1) to (6) of this
section for an electric company shall be paid out of the funds collected
through public purpose charges. The commission may require that an
electric company direct funds collected through public purpose charges to
the state agencies responsible for implementing subsections (1) to (6) of
this section in order to pay the costs of administering such
responsibilities.

(d) The commission shall direct the manner in which public purpose
charges are collected and spent by an electric company and may require an
electric company to expend funds through competitive bids or other means
designed to encourage competition, except that funds dedicated for
low-income weatherization shall be directed to the Housing and Community
Services Department as provided in subsection (7) of this section. The
commission may also direct that funds collected by an electric company
through public purpose charges be paid to a nongovernmental entity for
investment in public purposes described in subsection (1) of this
section. Notwithstanding any other provision of this subsection, at least
80 percent of the funds allocated for conservation shall be spent within
the service area of the electric company that collected the funds.

(e)(A) The first 10 percent of the funds collected annually by an
electric company under subsection (2) of this section shall be
distributed to education service districts, as described in ORS 334.010,
that are located in the service territory of the electric company. The
funds shall be distributed to individual education service districts
according to the weighted average daily membership (ADMw) of the
component school districts of the education service district for the
prior fiscal year as calculated under ORS 327.013. The commission shall
establish by rule a methodology for distributing a proportionate share of
funds under this paragraph to education service districts that are only
partially located in the service territory of the electric company.

(B) An education service district that receives funds under this
paragraph shall use the funds first to pay for energy audits for school
districts located within the education service district. An education
service district may not expend additional funds received under this
paragraph on a school district facility until an energy audit has been
completed for that school district. To the extent practicable, an
education service district shall coordinate with the State Department of
Energy and incorporate federal funding in complying with this paragraph.
Following completion of an energy audit for an individual school
district, the education service district may expend funds received under
this paragraph to implement the energy audit. Once an energy audit has
been conducted and completely implemented for each school district within
the education service district, the education service district may expend
funds received under this paragraph for any of the following purposes:

(i) Conducting energy audits. A school district shall conduct an
energy audit prior to expending funds on any other purpose authorized
under this paragraph unless the school district has performed an energy
audit within the three years immediately prior to receiving the funds.

(ii) Weatherization and upgrading the energy efficiency of school
district facilities.

(iii) Energy conservation education programs.

(iv) Purchasing electricity from environmentally focused sources
and investing in renewable energy resources.

(f) The commission may establish a different public purpose charge
than the public purpose charge otherwise described in subsection (2) of
this section for an individual retail electricity consumer or any class
of retail electricity consumers located within the service area of an
electric company, provided that a retail electricity consumer with a load
greater than one average megawatt is not required to pay a public purpose
charge in excess of three percent of its total cost of electricity
services.

(g) The commission shall remove from the rates of each electric
company any costs for public purposes described in subsection (1) of this
section that are included in rates. A rate adjustment under this
paragraph shall be effective on the date that the electric company begins
collecting public purpose charges.

(4) An electric company that satisfies its obligations under this
section shall have no further obligation to invest in conservation, new
market transformation, new renewable energy resources or new low-income
weatherization or to provide a commercial energy conservation services
program and is not subject to ORS 469.631 to 469.645, 469.860 to 469.900
and 758.505 to 758.555.

(5)(a) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year shall
receive a credit against public purpose charges billed by an electric
company for that site. The amount of the credit shall be equal to the
total amount of qualifying expenditures for new energy conservation, not
to exceed 68 percent of the annual public purpose charges, and the
above-market costs of purchases of new renewable energy resources
incurred by the retail electricity consumer, not to exceed 19 percent of
the annual public purpose charges, less administration costs incurred
under this subsection. The credit may not exceed, on an annual basis, the
lesser of:

(A) The amount of the retail electricity consumer’s qualifying
expenditures; or

(B) The portion of the public purpose charge billed to the retail
electricity consumer that is dedicated to new energy conservation, new
market transformation or the above-market costs of new renewable energy
resources.

(b) To obtain a credit under this subsection, a retail electricity
consumer shall file with the State Department of Energy a description of
the proposed conservation project or new renewable energy resource and a
declaration that the retail electricity consumer plans to incur the
qualifying expenditure. The State Department of Energy shall issue a
notice of precertification within 30 days of receipt of the filing, if
such filing is consistent with this subsection. The credit may be taken
after a retail electricity consumer provides a letter from a certified
public accountant to the State Department of Energy verifying that the
precertified qualifying expenditure has been made.

(c) Credits earned by a retail electricity consumer as a result of
qualifying expenditures that are not used in one year may be carried
forward for use in subsequent years.

(d)(A) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year may request
that the State Department of Energy hire an independent auditor to assess
the potential for conservation investments at the site. If the
independent auditor determines there is no available conservation measure
at the site that would have a simple payback of one to 10 years, the
retail electricity consumer shall be relieved of 54 percent of its
payment obligation for public purpose charges related to the site. If the
independent auditor determines that there are potential conservation
measures available at the site, the retail electricity consumer shall be
entitled to a credit against public purpose charges related to the site
equal to 54 percent of the public purpose charges less the estimated cost
of available conservation measures.

(B) A retail electricity consumer shall be entitled each year to
the credit described in this subsection unless a subsequent independent
audit determines that new conservation investment opportunities are
available. The State Department of Energy may require that a new
independent audit be performed on the site to determine whether new
conservation measures are available, provided that the independent audits
shall occur no more than once every two years.

(C) The retail electricity consumer shall pay the cost of the
independent audits described in this subsection.

(6) Electric utilities and retail electricity consumers shall
receive a fair and reasonable credit for the public purpose expenditures
of their energy suppliers. The State Department of Energy shall adopt
rules to determine eligible expenditures and the methodology by which
such credits are accounted for and used. The rules also shall adopt
methods to account for eligible public purpose expenditures made through
consortia or collaborative projects.

(7)(a) In addition to the public purpose charge provided under
subsection (2) of this section, beginning on October 1, 2001, an electric
company shall collect funds for low-income electric bill payment
assistance in an amount determined under paragraph (b) of this subsection.

(b) The total amount collected for low-income electric bill payment
assistance under this section shall be $10 million per year. The
commission shall determine each electric company’s proportionate share of
the total amount. The commission shall determine the amount to be
collected from a retail electricity consumer, except that a retail
electricity consumer is not required to pay more than $500 per month per
site for low-income electric bill payment assistance.

(c) Funds collected by the low-income electric bill payment
assistance charge shall be paid into the Housing and Community Services
Department Revolving Account created under ORS 456.574. Moneys deposited
in the account under this paragraph are continuously appropriated to the
Housing and Community Services Department for the purpose of funding
low-income electric bill payment assistance. Interest earned on moneys
deposited in the account under this paragraph shall accrue to the
account. The department’s cost of administering this subsection shall be
paid out of funds collected by the low-income electric bill payment
assistance charge. Moneys deposited in the account under this paragraph
shall be expended solely for low-income electric bill payment assistance.
Funds collected from an electric company shall be expended in the service
area of the electric company from which the funds are collected.

(d) The Housing and Community Services Department, in consultation
with the federal Advisory Committee on Energy, shall determine the manner
in which funds collected under this subsection will be allocated by the
department to energy assistance program providers for the purpose of
providing low-income bill payment and crisis assistance, including
programs that effectively reduce service disconnections and related costs
to retail electricity consumers and electric utilities. Priority
assistance shall be directed to low-income electricity consumers who are
in danger of having their electricity service disconnected.

(e) Notwithstanding ORS 293.140, interest on moneys deposited in
the Housing and Community Services Department Revolving Account under
this subsection shall accrue to the account and may be used to provide
heating bill payment and crisis assistance to electricity consumers whose
primary source of heat is not electricity.

(f) Notwithstanding ORS 757.310, the commission may allow an
electric company to provide reduced rates or other payment or crisis
assistance or low-income program assistance to a low-income household
eligible for assistance under the federal Low Income Home Energy
Assistance Act of 1981, as amended and in effect on July 23, 1999.

(8) For purposes of this section, “retail electricity consumers”
includes any direct service industrial consumer that purchases
electricity without purchasing distribution services from the electric
utility. [1999 c.865 §3; 2001 c.134 §9; 2001 c.819 §3; 2005 c.22 §506](1)(a) The Public Utility
Commission and the State Department of Energy jointly shall select an
independent nongovernmental entity to prepare a biennial report to the
Legislative Assembly describing program spending and results for public
purpose requirements undertaken pursuant to ORS 757.612. The first report
shall be due on January 1, 2003.

(b) The commission and the department jointly shall select an
independent nongovernmental entity to prepare a report to the Legislative
Assembly describing proposed modifications to public purpose requirements
undertaken pursuant to ORS 757.612. The report shall be due on January 1,
2007.

(c) The commission and the department jointly shall select an
independent nongovernmental entity to prepare a report to the Legislative
Assembly recommending whether the public purpose funding requirements
under ORS 757.612 should be renewed. The report shall be due on January
1, 2011.

(2) The Housing and Community Services Department shall prepare a
biennial report to the Legislative Assembly describing program spending
and needs for low-income bill assistance. The first report shall be due
on January 1, 2003. [1999 c.865 §3a]The Public Utility
Commission shall establish the terms and conditions for providing default
electricity service for nonresidential electricity consumers in an
emergency. The commission also shall establish reasonable terms and
conditions for providing default service to a nonresidential electricity
consumer in circumstances when the consumer is receiving electricity
services through direct access and elects instead to receive such
services through the default service. The terms and conditions for
default service established by the commission shall provide for viable
competition among electricity service suppliers. [1999 c.865 §4a](1) An electric company shall permit retail
electricity consumers that are eligible for direct access to voluntarily
aggregate their electricity loads.

(2) A retail electricity consumer that is eligible for direct
access may voluntarily aggregate its electricity load with the
electricity load of any other retail electricity consumer that is
eligible for direct access. [1999 c.865 §9]
An electric utility that sells electricity, either directly or through a
related party, to a nonresidential electricity consumer of another
electric utility in this state shall permit any other electricity service
supplier to sell electricity to nonresidential electricity consumers of
the electric utility. [1999 c.865 §11]Every electricity service supplier is authorized
to use the distribution facilities of an electric company on a
nondiscriminatory basis after the retail electricity consumers of the
electricity service supplier are afforded direct access pursuant to ORS
757.601. [1999 c.865 §7]To the extent permissible under federal law, the Public
Utility Commission shall ensure that an electric company that offers
direct access:

(1) Provides electricity service suppliers and retail electricity
consumers access to its transmission facilities and distribution system
comparable to that provided for its own use; and

(2) Provides electricity service suppliers and retail electricity
consumers timely access to information about its transmission facilities
and distribution system, metering and loads comparable to that provided
to its own nondistribution divisions, affiliates and related parties.
[1999 c.865 §10] (1) Not later than
March 1, 2002, an electric company shall unbundle the costs of
electricity services into power generation, transmission, distribution
and retail services.

(2) Every electric company shall maintain separate accounting
records for each component of electricity service provided by the
electric company to retail electricity consumers. Accounts shall be
maintained according to regulations issued by the Federal Energy
Regulatory Commission.

(3) Unless required to provide a different accounting under federal
requirements, each electric company shall, to a reasonable level of
detail, separately identify and account for its costs of:

(a) Generation;

(b) Transmission services;

(c) Distribution services;

(d) Ancillary services;

(e) Consumer service charges levied on retail electricity
consumers, including but not limited to metering and billing;

(f) Investment in public purposes; and

(g) State and local taxes paid by retail electricity consumers.

(4) An electric company shall separately identify and account for
the costs of any additional components as the Public Utility Commission
may require. [1999 c.865 §5; 2001 c.819 §4](1) The duties, functions and powers of the Public
Utility Commission shall include developing policies to eliminate
barriers to the development of a competitive retail market structure. The
policies shall be designed to mitigate the vertical and horizontal market
power of incumbent electric companies, prohibit preferential treatment,
or the appearance of such treatment, of generation or market affiliates
and determine the electricity services likely to be competitive. The
commission may require an electric company acting as an electricity
service supplier do so through an affiliate.

(2) The commission shall establish by rule a code of conduct for
electric companies and their affiliates to protect against market abuses
and anticompetitive practices. The code shall, at a minimum:

(a) Require an electric company and any affiliate that shares the
same name and logo to disclose to all consumers the relationship between
the company and affiliate and to clarify that the affiliate is not the
same as the electric company and that in order to receive service from
the company a consumer does not have to purchase the services of the
affiliate;

(b) Prohibit preferential access by an electric company affiliate
to confidential consumer information;

(c) Prohibit cross-subsidization between competitive operations and
regulated operations, including the use of electric company personnel and
other resources;

(d) Prohibit joint marketing activities and exclusive referral
arrangements between an electric company and its affiliates;

(e) Provide the commission with all necessary access to books and
records;

(f) Require electric companies to make regular compliance filings;
and

(g) Require fair treatment of all competitors by a distribution
utility.

(3) An electric company shall provide the commission access to all
books and records necessary for the commission to monitor the electric
company and its affiliate relationships. The commission shall require an
electric company biannually to file a report detailing compliance with
this subsection. [1999 c.865 §6; 2001 c.683 §18](1)(a) A
person or other entity shall not act as an electricity service supplier
unless the person or entity is certified by the Public Utility
Commission. The commission, by rule, shall establish standards for
certification of persons or other entities as electricity service
suppliers in this state. The rules shall, at a minimum, address:

(A) The ability of the person or entity to meet the person’s or
entity’s obligation to provide electricity services pursuant to direct
access; and

(B) The ability of the person or entity to comply with applicable
consumer protection laws.

(b) The commission may require an electricity service supplier to
provide a bond or other security.

(c) The commission may establish a fee, not to exceed $500, for
initial certification and annual recertification of electricity service
suppliers.

(d) The commission, at any time, may revoke an electricity service
supplier’s certification for failure to comply with applicable statutes
and rules.

(e) The commission may require an electricity service supplier to
provide information necessary to ensure compliance with ORS 757.612. The
commission shall ensure the privacy of all information and the protection
of any proprietary information provided.

(2) Every electric utility shall maintain the integrity of its
transmission facilities and distribution system and provide safe,
reliable service to all retail electricity consumers. Nothing in ORS
757.600 to 757.667 or 757.669 to 757.687 shall reduce or diminish the
statutory or contractual obligations of electric utilities to maintain
the safety and reliability of their transmission facilities and
distribution system and other infrastructure and equipment used to
deliver electricity.

(3) The commission for electric companies, or the governing body
for other electric utilities, shall adopt rules, ordinances, policies and
service quality standards designed to maintain a reliable, safe and
efficient distribution system. The commission shall regulate electrical
safety regarding generation, transmission, substation and distribution
facilities for electric utilities and other electrical system owners and
operators as provided under ORS 757.035.

(4) Every bill to a direct access retail electricity consumer from
an electricity service supplier shall contain at least:

(a) The rate and amount due for each service or product that the
retail electricity consumer is purchasing and other price information
necessary to facilitate direct access, as determined by the commission;

(b) The rates and amounts of state and local taxes or fees, if any,
imposed on the retail electricity consumer;

(c) The amount of any public purpose charge or credit;

(d) The amount of any transition charge or transition credit; and

(e) Power source and environmental impact information necessary to
ensure that all consumers have useful, reliable and necessary information
to exercise informed choice, as determined by the commission.

(5)(a) A retail electricity consumer of an electric company shall
receive, upon request, a separate bill from every individual electricity
service supplier that provides products or services to the retail
electricity consumer. If a retail electricity consumer of an electric
company does not request separate bills, or a consolidated bill from an
electricity service supplier as provided in paragraph (c) of this
subsection, the electric company shall consolidate the bills for all
electricity services into a single statement, and electricity service
suppliers shall provide to the electric company the information necessary
to prepare a consolidated statement.

(b) The requirement for bill consolidation by an electric company
shall continue through December 31, 2001, after which time the commission
may waive the requirement if the waiver results in effective billing
procedures for retail electricity consumers.

(c) Upon the request of a retail electricity consumer of an
electric company, an electricity service supplier shall consolidate the
bills for all electricity services into a single statement, and electric
utilities and other electricity service suppliers shall provide to the
billing electricity service supplier any information necessary to prepare
a consolidated statement.

(d) For retail electricity consumers of an electric company, the
commission shall adopt by rule provisions relating to the failure of a
consumer to make full payment on a consolidated bill. The rules shall
address collection of payments, service disconnection and reconnection,
and the allocation of costs associated with collection, disconnection and
reconnection. A distribution utility shall be solely responsible for
actual disconnection and reconnection. [1999 c.865 §14]Upon receiving a complaint, or on its own motion, the
Public Utility Commission is authorized to investigate, as provided under
ORS 756.515, whether any electric company that is an electricity service
supplier has exercised undue market power with respect to the sale or
distribution of electricity services. The commission may take such action
as authorized by law to mitigate an exercise of undue market power. [1999
c.865 §12]Any claim that an electric company has failed to comply with ORS
757.600 to 757.667 shall be filed as a complaint with the Public Utility
Commission pursuant to ORS 756.500. After reasonable notice to the
electric company and exhausting all available remedies before the
commission, any person injured by an electric company’s failure to comply
with any provision of ORS 757.600 to 757.667 may file an action in the
circuit court for the county where the electric company has its principal
business office in this state for an order requiring compliance with ORS
757.600 to 757.667. [1999 c.865 §13] According to the applicable
provisions of ORS 756.060 and ORS chapter 183, the Public Utility
Commission shall adopt such rules as are necessary to implement ORS
757.600 to 757.667. Rules adopted by the commission shall address at
least the following:

(1) Requirements and methodologies for each electric company to
provide unbundled rates and services pursuant to ORS 757.642.

(2) Requirements for each electric company allowing aggregation of
electricity loads pursuant to ORS 757.627, which may include aggregation
of demand for other services available under direct access.

(3) Requirements for consumer protection. Consumer protection rules
adopted by the commission that relate to electricity service suppliers
shall be applicable throughout this state and shall, at a minimum,
contain provisions for the disclosure of price, power source and
environmental impact in contract offers and marketing information.

(4) Market valuation methodologies for determining the amount and
recovery of the costs of uneconomic utility investment and the amount of
and credit for economic utility investment.

(5) Requirements for each electric company to offer a portfolio of
rate options under ORS 757.603.

(6) The method of determining a default supplier for those
consumers who are not eligible to participate in a portfolio program
under ORS 757.603 in a manner that provides for viable competition among
electricity service suppliers and among power generation companies. The
commission may condition the use of a default service option by requiring
reasonable notice and commitment from a consumer who intends to use the
default service option in nonemergency situations.

(7) Requirements for market structure described in ORS 757.646.

(8) Requirements for public purpose charges and credits under ORS
757.612.

(9) Requirements for meters, metering services, billing and
collection services, and customer response functions. [1999 c.865 §15;
2001 c.683 §19](1) In adopting market
valuation methodologies under ORS 757.659 (4), the Public Utility
Commission may provide for use of arbitration to resolve disputes
relating to valuation of electric company investments.

(2) The commission shall adopt rules for the following purposes:

(a) Establishing the process for selecting an arbitrator under this
section.

(b) Establishing the type, scope and subject matter of arbitrations
under this section, and the procedure for conducting those arbitrations.

(c) Establishing standards for the decision of an arbitrator under
this section.

(d) Governing who may be a party to an arbitration under this
section.

(3)(a) An arbitrator selected under rules adopted pursuant to
subsection (2) of this section must be experienced in valuing generating
resources and may not have any material conflict of interest in the
result of the arbitration.

(b) Any party to the arbitration may challenge the selection of an
arbitrator by direct petition to the commission. The commission’s review
of the selection shall be limited to allegations of bias and lack of
qualifications. The commission shall hold a hearing within 10 days after
the filing of a petition, and the commission shall issue a final decision
within 10 days after the hearing. The commission may require selection of
a different arbitrator.

(4) The arbitrator shall control the time, manner and place of the
arbitration, subject to any limitations established by commission rule.

(5) An arbitrator acts on behalf of the commission in performing
duties and powers under this section and under rules adopted by the
commission pursuant to this section. Nothing in this section shall be
construed to grant any rights or privileges to an arbitrator that are
otherwise afforded to persons employed by the state.

(6) The commission shall enforce an arbitration decision made
pursuant to this section, unless any party to the arbitration files
written exceptions with the commission for any of the following causes:

(a) The decision was procured by corruption, fraud or undue means;

(b) There was evident partiality or corruption on the part of the
arbitrator;

(c) The arbitrator exceeded the arbitrator’s powers, or so
imperfectly executed the arbitrator’s powers that the rights of the party
were substantially prejudiced;

(d) There was an evident material miscalculation of figures or an
evident material mistake in the description of any thing or property
referred to in the decision; or

(e) The decision was based on an erroneous interpretation of a
statute, rule or other law.

(7) If, after a hearing on the exceptions filed as provided in
subsection (6) of this section, it appears to the commission that the
decision should be set aside or modified, the commission may by order
refer the decision back to the arbitrator with proper instructions for
correction or rehearing.

(8) A commission order or decision under this section may not be
appealed until after the commission issues a final order adopting the
arbitration decision. [2001 c.134 §1a; 2005 c.22 §507; 2005 c.638 §10]Note: 757.660 was added to and made a part of 757.600 to 757.687 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation. The Public Utility
Commission may require an electric company to make any filings under this
chapter that the commission determines necessary to implement ORS 757.600
to 757.667. [1999 c.865 §20]In order to preserve
the benefits of federal low-cost power for residential and small-farm
consumers of electric utilities, the Public Utility Commission may
require an electric company to enter into contracts with the Bonneville
Power Administration for the purpose of securing such benefits. The
contracts shall be subject to approval by the commission. In reviewing a
contract, the commission, at a minimum, shall consider:

(1) The short-term expected cost of electric power from the
Bonneville Power Administration compared to market-priced alternatives;

(2) The long-term benefit of retaining the rights to purchase
electric power from the Bonneville Power Administration at cost, compared
to market-priced alternatives; and

(3) Other factors deemed relevant by the commission. [1999 c.865
§19]
Electric meter installation, testing and maintenance shall be performed
only by a distribution utility. [1999 c.865 §15a]Nothing in ORS 757.600
to 757.667 shall diminish, or authorize regulations that diminish, a
city’s authority to control the use of its rights of way and to collect
license fees, privilege taxes, rent or other charges for the use of the
city’s rights of way. [1999 c.865 §17] The
Legislative Assembly declares that it is the policy of the State of
Oregon regarding consumer-owned utilities to:

(1) Preserve and enhance the ability of community-based,
consumer-owned utilities to provide reliable electric power to their
consumers;

(2) Recognize that communities served by consumer-owned utilities
located in various parts of the State of Oregon may differ in their needs
and desires concerning the provision of electricity and related products
and services;

(3) Preserve and enhance the ability of consumer-owned utilities
and their elected governing bodies to respond to their consumers’ needs
and desires;

(4) Retain local control over consumer-owned utilities that provide
or distribute electricity to retail electricity consumers;

(5) Preserve, clarify and, as provided herein, enhance the rights
and authorities of consumer-owned utilities and their governing bodies;
and

(6) Preserve the existing exclusive distribution rights of electric
utilities as and to the extent such rights exist under current law. [1999
c.865 §22](1) Nothing in ORS
757.603 to 757.667 is intended to limit or restrict the rights and
authority of a consumer-owned utility, or to subject a consumer-owned
utility to the regulatory authority of the Public Utility Commission not
otherwise provided by law. ORS 757.603 to 757.667 shall not apply to a
consumer-owned utility.

(2) Notwithstanding subsection (1) of this section, a
consumer-owned utility that sells electricity, either directly or through
a related party, to a nonresidential electricity consumer of another
electric utility in this state, shall permit any other electricity
service supplier to sell electricity to the consumer-owned utility’s
nonresidential electricity consumers whose electricity use, measured in
average megawatts per year, is equal to or greater than the use of the
nonresidential electricity consumer of the other electric utility. Such
consumer-owned utility shall be subject to ORS 757.649 (1) to (4) and
rules adopted thereunder. [1999 c.865 §23]The governing
body of a consumer-owned utility is authorized to determine whether and
under what terms and conditions it will offer its retail electricity
consumers direct access, portfolio access or other forms of access to
electric service suppliers. In making such determination, the governing
body of a consumer-owned utility shall consider such factors as it deems
appropriate. A consumer-owned utility shall have sole authority to
determine:

(1) The quality and nature of electric service, including but not
limited to different product and pricing options, which shall be made
available to its retail electricity consumers.

(2) The extent to which products and services will be unbundled and
the rates, tariffs, terms and conditions on which they may be offered.

(3) Whether one or more pilot programs for direct access, portfolio
access or other forms of access to alternative suppliers will be offered.

(4) Notwithstanding ORS 757.600 (10) and (35), what constitutes an
economic or uneconomic utility investment, the value of such investments
and, in the case of uneconomic utility investments, the manner and means
of mitigating such investments.

(5) Whether and on what basis a transition charge will be adopted,
assessed and collected from a retail electricity consumer located within
the utility’s service territory, including but not limited to a
nonbypassable distribution charge, the amount and period of recovery for
the charges, the allocation of the charges among retail electricity
consumers located within the utility’s service territory and the method
of collecting such charges including but not limited to whether to impose
a nonbypassable distribution charge.

(6) The manner of collecting stranded distribution charges, systems
benefit charges, franchise fees, taxes and payments made in lieu of taxes
from retail electricity consumers located within the utility’s service
territory for electric power transactions using transmission facilities,
whether or not such transactions use distribution facilities. The
governing body may assign charges on the basis of usage, demand or any
combination or method it finds appropriate. Charges need not be assigned
to specific facilities.

(7) The collection from retail electricity consumers located within
the utility’s service territory through rates, fees or charges, including
the imposition of a nonbypassable distribution charge, in amounts
sufficient to recover 100 percent of stranded costs imposed by, or
incurred pursuant to the purchase of cost-based electric power from, the
Bonneville Power Administration. Such stranded cost charges may include
the difference in cost associated with purchasing electric power from the
Bonneville Power Administration and the cost of purchasing a like and
similar amount of electric power at market prices.

(8) The establishment of technical capability requirements,
financial responsibility requirements and other protections for retail
electricity consumers located within the utility’s service territory and
the consumer-owned utility in dealings with electric service suppliers.

(9) Access to or use of the utility’s transmission facilities or
distribution system by retail electricity consumers or electric service
suppliers.

(10) The utility’s qualification standards for energy service
suppliers in addition to any certification standards established by the
Public Utility Commission, provided that the qualification standards are
uniformly applied to electricity service providers in a nondiscriminatory
manner. [1999 c.865 §24; 2003 c.186 §80](1) Nothing in ORS 757.669 to
757.687 is intended to impair the rights or obligations of any party to
net billing agreements. Notwithstanding any other provision of ORS
757.600 to 757.667, 757.676 and 757.687, and in the event a participating
utility is required to make payments pursuant to a net billing agreement,
the governing body of a participating utility may levy a rate, fee or
charge, including a nonbypassable distribution system access charge
against retail electricity consumers located within the utility’s service
territory, to meet its obligations.

(2) As used in this section:

(a) “EWEB” means the City of Eugene, Oregon, acting by and through
the Eugene Water and Electric Board.

(b) “Net billing agreements” means those certain agreements that
provide for the payment, through net billing of costs of certain nuclear
power projects, including the payment of bonds, notes or other evidences
of indebtedness issued by EWEB and by the supply system, respectively, to
pay such project costs entered into prior to July 23, 1999:

(A) Between the administrator of the Bonneville Power
Administration and EWEB;

(B) Among a participating utility, the administrator of the
Bonneville Power Administration and EWEB; or

(C) Among a participating utility, the administrator of the
Bonneville Power Administration and the supply system.

(c) “Participating utility” means a consumer-owned utility
established by, or organized and existing under, the Oregon Constitution
and laws of the State of Oregon, and that is a party to a net billing
agreement.

(d) “Supply system” means the Washington Public Power Supply
System, a municipal corporation or joint power agency organized and
existing under and pursuant to the laws of the State of Washington. [1999
c.865 §25]Notwithstanding the provisions of ORS 757.600
to 757.667, a consumer-owned utility shall have exclusive distribution
rights, to the extent such rights are provided by law, and exclusive
responsibility for the performance and oversight of its distribution
system including the acquisition, construction, financing, operation and
maintenance of distribution facilities and metering, billing, collection
and consumer response functions relating to the distribution of
electricity to retail electricity consumers located within the utility’s
service territory. Nothing in this section shall diminish or enlarge the
rights of any person under ORS 758.400 to 758.475. [1999 c.865 §26](1) Beginning on the date a
consumer-owned utility provides direct access to any class of retail
electric consumers, the consumer-owned utility shall collect from that
consumer class a nonbypassable public purpose charge for a period of 10
years. Except as provided in subsection (8) of this section, the amount
of the public purpose charge shall be sufficient to produce revenue of
not less than three percent of the total revenue collected by the
consumer-owned utility from its retail electricity consumers for
electricity services, distribution, ancillary services, metering and
billing, transition charges and any other costs included in rates as of
July 23, 1999, except that the consumer-owned utility may exclude from
the calculation of such costs any cost related to the public purposes
described in subsection (5) of this section. If a consumer-owned utility
has fewer than 17 consumers per mile of distribution line, the amount of
the public purpose charge shall be sufficient to produce revenue not less
than three percent of the total revenue from the sale of electricity
services in the utility’s service area to the consumer class that is
provided direct access, or the utility’s consumer class percentage share
of state total electricity sales multiplied by three percent of total
statewide retail electric revenue, whichever is less.

(2) Except as provided in subsection (9) of this section, the
governing body of a consumer-owned utility shall determine the manner of
collecting and expending funds for public purposes required by law to be
assessed against and paid by the retail electric consumers of the
utility. A determination by the governing body shall include:

(a) The manner for collecting public purpose charges;

(b) Public purpose programs upon which revenue from the charges may
be expended; and

(c) The allocation of expenditures for each program.

(3) Beginning on the same date two years after July 23, 1999, a
consumer-owned utility shall report annually to the State Department of
Energy created under ORS 469.030 on the public purpose charges paid to
the utility by its retail electric consumers and the public purposes on
which the revenue was expended.

(4) A consumer-owned utility may comply with the public purpose
requirements of this section by participating in collaborative efforts
with other consumer-owned utilities located in this state.

(5) Funds assessed and paid by, and credits or other financial
assistance issued or extended to, retail electric consumers for purposes
of this section may, in the discretion of the governing body of the
consumer-owned utility, be expended to fund programs for energy
conservation, renewable resources or low-income energy services otherwise
required by the laws of this state, adopted by the governing body
pursuant to the National Energy Conservation Policy Act (Public Law
95-619, as amended November 10, 1981), or conducted by the utility
pursuant to agreement with the Bonneville Power Administration under the
Pacific Northwest Electric Power Planning and Conservation Act (Public
Law 96-501). All such funds expended, credits issued and incremental
costs incurred in connection with the performance of a consumer-owned
utility’s obligations under this section shall be credited toward the
utility’s public purpose funding obligation under this section.

(6) A consumer-owned utility also may credit toward its funding
obligations under this section any incremental costs incurred by the
utility for capital expenditures made to reduce its distribution system
energy losses, existing biomass gas and waste to energy systems, existing
hydroelectric generation projects using fish attraction water, for new
energy conservation and renewable resource funding costs included in its
wholesale power supplier’s charges and for electric power generated by
renewable or cogeneration resources pursuant to requirements of the
Public Utilities Regulatory Policy Act of 1978 (Public Law 95-617), to
the extent that such costs exceed the average cost of the utility’s other
electric power resources.

(7) A consumer-owned utility also may credit toward its public
purpose funding obligations under this section any costs incurred in
complying with ORS 469.649 to 469.659.

(8) Beginning on March 1, 2002, a consumer-owned utility whose
territory abuts the greatest percentage of the site of an aluminum plant
that averages more than 100 megawatts of electricity use per year shall
collect from the aluminum company a public purpose charge equal to one
percent of the total revenue from the sale of electricity services to the
aluminum plant from any source.

(9)(a) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year shall
receive a credit against public purpose charges billed by a
consumer-owned utility for that site. The amount of the credit shall be
equal to the total amount of qualifying expenditures for new energy
conservation, not to exceed 68 percent of the annual public purpose
charges, and the above-market costs of purchases of new renewable energy
resources incurred by the retail electricity consumer, less
administration costs incurred under this subsection. The credit shall not
exceed, on an annual basis, the lesser of:

(A) The amount of the retail electricity consumer’s qualifying
expenditures; or

(B) The portion of the public purpose charge billed to the retail
electricity consumer that is dedicated to new energy conservation, new
market transformation or the above-market costs of new renewable
resources.

(b) To obtain a credit under this subsection, a retail electricity
consumer shall file with the department a description of the proposed
conservation project, new market transformation or new renewable energy
resource and a declaration that the retail electricity consumer plans to
incur the qualifying expenditure. The department shall issue a notice of
precertification within 30 days of receipt of the filing, if such filing
is consistent with this subsection. Notice shall be issued to the retail
electricity consumer and the appropriate consumer-owned utility. The
credit may be taken after a retail electricity consumer provides a letter
from a certified public accountant to the department verifying that the
precertified qualifying expenditure has been made.

(c) Credits earned by a retail electricity consumer as a result of
qualifying expenditures that are not used in one year may be carried
forward for use in subsequent years.

(d)(A) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year may request
that the department hire an independent auditor to assess the potential
for conservation measures at the site. If the independent auditor
determines there is no available conservation measure at the site that
would have a simple payback of one to 10 years, the retail electricity
consumer shall be relieved of 54 percent of its payment obligation for
public purpose charges related to the site. If the auditor determines
that there are potential conservation measures available at the site, the
retail electricity consumer shall be entitled to a credit against public
purpose charges related to the site equal to 54 percent of the public
purpose charges less the estimated cost of available conservation
measures.

(B) A retail electricity consumer shall be entitled each year to
the credit described in this paragraph unless a subsequent audit
determines that new conservation investment opportunities are available.
The department may require that a new audit be performed on the site to
determine whether new conservation measures are available, provided that
the audits occur no more than once every two years.

(C) The retail electricity consumer shall pay the cost of the
audits described in this subsection.

(10) A retail electricity consumer with a load greater than one
average megawatt shall not be required to pay a public purpose charge in
excess of three percent of the consumer’s total cost of electricity
services unless the charge is established in an agreement between the
consumer and the consumer-owned utility.

(11) Beginning on March 1, 2002, a consumer-owned utility shall
have in operation a bill assistance program for households that qualify
for federal low-income energy assistance in the consumer-owned utility’s
service area. A consumer-owned utility shall report annually to the
Housing and Community Services Department detailing the utility’s program
and program expenditures.

(12) A consumer-owned utility may require an electricity service
supplier to provide information necessary to ensure compliance with this
section. The consumer-owned utility shall ensure the privacy and
protection of any proprietary information provided. [1999 c.865 §27; 2001
c.819 §5]Nothing in ORS 757.669 to 757.687 is
intended to affect administration and enforcement of ORS 758.400 to
758.475 or to diminish or enlarge the rights of any person under ORS
758.400 to 758.475. [1999 c.865 §28]EMERGENCY CURTAILMENT OF ELECTRICITY OR NATURAL OR MANUFACTURED GAS(1) Any person, as defined in
ORS 758.400, engaged in the sale or resale of electricity or natural or
synthetic gas in this state shall present for approval by the Public
Utility Commission a plan for curtailment of electrical or gas load in
the event of any predictable circumstance that may jeopardize prolonged
continuity of service. Utility plans shall be submitted in such form and
within such time limits as the commission shall specify.

(2) Utility plans may provide for a credit against future
curtailment for a customer who has already accomplished a reduction in
demand for the utility’s service by installing an alternative energy
device or by weatherization or other installed conservation measures
equivalent to the proposed level of curtailment. Where the level of
curtailment exceeds the demand reduction produced, by the conservation
measures or installed alternative energy device of the customer, the
utility plan may provide for credit against the level of curtailment
ordered to the extent of the demand reduction produced by the
conservation measure or alternate energy device.

(3) The commission shall approve the feature of any plan concerning
such credit against curtailment to the extent of the demand reduction
produced and shall not penalize either the utility or the customer, in
the event of a curtailment order, under ORS 757.720 for the amount of
reduced demand. [1973 c.309 §2; 1975 c.606 §10; 1979 c.355 §1](1)
Approval of utility plans for the curtailment of load shall be based on
the following factors:

(a) The consistency of the plan with the public health, safety and
welfare;

(b) The technical feasibility of implementation of the plan;

(c) The effectiveness with which the plan minimizes the impact of
any curtailment; and

(d) Consistency with Oregon energy policies formulated under ORS
469.010 to 469.225, 469.300 to 469.563 and 757.710 and this section.

(2) In the event of an emergency threatening the health, safety and
welfare of the general public, the Public Utility Commission may on the
commission’s own motion and without hearing establish a plan for the
curtailment of load by any person referred to in ORS 757.710. If an
emergency is not present, the commission shall prior to approval hold
public hearings with respect to any proposed plan and give reasonable
notice of such hearings.

(3) The commission shall consult with the Director of the State
Department of Energy before approving a plan. [1973 c.309 §3; 1975 c.606
§11; 2005 c.22 §508] A utility shall not be
liable for damages to persons or property resulting from a curtailment of
service in accordance with a plan approved by the Public Utility
Commission. [1973 c.309 §4]HEALTH ENDANGERING TERMINATION OF RESIDENTIAL UTILITY SERVICE The Legislative Assembly finds that
the termination of residential electric and natural gas utility service
can lead to the serious impairment of human health and possibly to loss
of life; therefore, the Legislative Assembly has enacted ORS 757.750 to
757.760. [1979 c.868 §2; 1983 c.326 §1](1) The Public Utility Commission of
Oregon shall establish rules to prohibit the termination of residential
electric or natural gas service when such termination would significantly
endanger the physical health of the residential consumer.

(2) The commission shall provide by rule a method for determining
when the termination of residential electric or natural gas service would
significantly endanger the physical health of the residential consumer.
[1979 c.868 §3; 1983 c.326 §2]The Public Utility Commission shall establish rules to
require each electric and natural gas utility to:

(1) Give written or personal notice of a proposed termination of
residential service in a manner reasonably calculated to reach the
residential consumer within a reasonable period of time before the
proposed date of termination;

(2) Accept reasonable partial payment on the outstanding account
and to establish a reasonable payment schedule for any indebtedness,
including a deposit, that the utility claims the residential consumer
owes for service at any residential address in lieu of termination of or
refusal to provide service, and to inform the residential consumer of the
provisions of this subsection;

(3) Inform those residential consumers who cannot afford to pay
their bills or deposits of the names and telephone numbers of the
appropriate unit within the Department of Human Services or other
appropriate social service agencies that can help the consumer
investigate what federal, state or private aid might be available to that
consumer; and

(4) Provide that a transfer of service from one premises to another
within the utility’s service area shall not be considered a
discontinuation of service. [1979 c.868 §4; 1983 c.326 §3]HIGH VOLTAGE POWER LINE REGULATION As used in this
section and ORS 757.805, unless the context requires otherwise:

(1) “Authorized person” means:

(a) An employee of a utility which produces, transmits or delivers
electricity.

(b) An employee of a utility which provides and whose work relates
to communication services or state, county or municipal agencies which
have authorized circuit construction on or near the poles or structures
of a utility.

(c) An employee or agent of an industrial plant whose work relates
to the electric system of the industrial plant.

(d) An employee of a cable television or communication services
company or an employee of a contractor of a cable television or
communication services company if specifically authorized by the owners
of the poles to make cable television or communication services
attachments.

(e) An employee or agent of state, county or municipal agencies
which have or whose work relates to overhead electric lines or circuit
construction or conductors on poles or structures of any type.

(f) An employee of a transmission company as defined in ORS 758.015.

(2) “High voltage” means voltage in excess of 600 volts measured
between conductors or between a conductor and the ground.

(3) “Overhead line” means all bare or insulated electric conductors
installed above ground.

(4) “Person” or “business entity” means those parties who contract
to perform any function or activity upon any land, building, highway or
other premises.

(5) “Utility” means any electric or communication utility described
by ORS 757.005, any plant owned or operated by a municipality, any person
furnishing community antenna television service to the public and any
cooperative corporation or people’s utility district engaged in
furnishing electric or communication service to customers.

(6) “Proximity” means within 10 feet or such greater distance as
may be prescribed by rule adopted pursuant to ORS chapter 654. [1989
c.672 §2; 2001 c.913 §5](1) Any person or business entity responsible for performing
any function, activity, work or operation in proximity to a high voltage
overhead line shall guard effectively against accidents involving such
high voltage overhead line, as required by rules adopted pursuant to ORS
chapter 654.

(2) If any violation of subsection (1) of this section or rules
adopted pursuant to ORS chapter 654 results in, or is a contributing
cause of, a physical or electrical accident involving any high voltage
overhead line, the person or business entity violating subsection (1) of
this section or rules adopted pursuant to ORS chapter 654 is liable to
the utility operating the high voltage overhead lines for all damages to
its facilities and all costs and expenses, including damages to any third
persons, incurred by the utility as a result of the accident. However,
any person or business entity that has given advance notice of the
function, activity or work to the utility operating the high voltage
overhead line, and has otherwise substantially complied with rules
adopted pursuant to ORS chapter 654, shall only be liable for such
damages in proportion to that person or business entity’s comparative
fault in causing or contributing to the accident.

(3) This section and ORS 757.800 do not apply to:

(a) Construction, reconstruction, operation or maintenance by an
authorized person of overhead electric or communication circuits or
conductors and their supporting structures or electric generation,
transmission or distribution systems or communication systems.

(b) Fire, police or other emergency service workers acting under
authority of a state agency or other public body while engaged in
emergency operations.

(4) The provisions of this section and ORS 757.800 are not intended
to displace any other remedies which may be available to the utility by
statute or common law. [1989 c.672 §§3,4,5,6]PENALTIES (1) Any person or municipality, or their agents,
lessees, trustees or receivers, who omits, fails or refuses to do any act
required by ORS 757.035, or fails to comply with any orders, rules or
regulations of the Public Utility Commission made in pursuance of ORS
757.035, shall forfeit and pay into the State Treasury a sum of not less
than $100, nor more than $10,000 for each such offense.

(2) Any public utility violating ORS 757.310 commits a Class A
violation and upon conviction the court shall impose a fine of not less
than $100. Violation of ORS 757.310 by an officer or agent of a public
utility is punishable, upon conviction, by a fine of not less than $50
nor more than $100 for each offense.

(3) Any person violating ORS 757.325 shall, upon conviction,
forfeit and pay to the State Treasurer not less than $100 and not more
than $10,000 for each offense. Violation of ORS 757.325 by any agent or
officer of any public utility or person is punishable, upon conviction,
by a fine of not less than $100 and not more than $1,000 for each offense.

(4) Violation of ORS 757.330 is a Class A violation.

(5) Violation of ORS 757.445 is punishable, upon conviction, by a
fine of not less than $500 nor more than $20,000 for each offense.

(6) Violation of ORS 757.450 is a felony and is punishable, upon
conviction, by a fine of not less than $1,000 nor more than $20,000, or
by imprisonment in the custody of the Department of Corrections for not
less than one nor more than five years, or both. [Amended by 1971 c.655
§95; 1979 c.990 §428; 1987 c.320 §245; 1999 c.1051 §224] Any
person or municipality, or their agents, lessees, trustees or receivers,
engaged in the management, operation, ownership or control of facilities
for the transmission or distribution of gas by pipeline, or facilities
for the storage or treatment of gas to be transmitted or distributed by
pipeline, who fails to do any act required by ORS 757.039, or fails to
comply with any orders, rules or regulations of the Public Utility
Commission made in pursuance of ORS 757.039, shall forfeit and pay into
the State Treasury a civil penalty not to exceed $10,000 for each such
failure for each day such failure persists, except that the maximum civil
penalty shall not exceed $500,000 for any related series of failures.
[1969 c.372 §4; 1991 c.199 §1](1) Except as provided in subsection (2) of this section and
in addition to all other penalties provided by law, every person who
violates or who procures, aids or abets in the violation of any rule of
the Oregon Utility Notification Center shall incur a penalty of not more
than $1,000 for the first violation and not more than $5,000 for each
subsequent violation.

(2) In addition to all other penalties provided by law, every
person who intentionally violates or who intentionally procures, aids or
abets in the violation of any rule of the Oregon Utility Notification
Center shall incur a penalty of not more than $5,000 for the first
violation and not more than $10,000 for each subsequent violation.

(3) Each violation of any rule of the Oregon Utility Notification
Center shall be a separate offense. In the case of a continuing
violation, each day that the violation continues shall constitute a
separate violation.

(4) Penalties under this section shall not be imposed except by
order following complaint as provided in ORS 756.500 to 756.610. A
complaint must be filed within two years following the date of the
violation.

(5) The Public Utility Commission may reduce any penalty provided
in this section on such terms as the commission considers proper if:

(a) The defendant admits to the violation or violations alleged in
the complaint and makes a timely request for reduction of the penalty; or

(b) The defendant submits to the commission a written request for
reduction of the penalty within 15 days from the date of the penalty
order.

(6) If the amount of the penalty is not paid to the commission, the
Attorney General, at the request of the commission, shall bring an action
in the name of the State of Oregon in the Circuit Court for Marion County
to recover the penalty. The action shall not be commenced until after the
time has expired for an appeal from the findings, conclusions and order
of the commission.

(7) Notwithstanding any other provision of law, the commission
shall pay penalties recovered under this section to the Oregon Utility
Notification Center.

(8) The commission shall not seek penalties under this section
except in response to a complaint alleging a violation of a rule or rules
adopted by the Oregon Utility Notification Center. The commission may
investigate any such complaint, and the commission shall have sole
discretion to seek penalties under this section. [1995 c.691 §7](1) In addition to all other penalties
provided by law, a person who violates any statute, rule or order of the
Public Utility Commission related to water utilities is subject to a
civil penalty of not more than $500 for each violation. The commission
may require that penalties imposed under this section be used for the
benefit of the customers of water utilities affected by the violation.

(2) Notwithstanding ORS 183.745 (7)(d), 183.315 (6) and 756.500 to
756.610, civil penalties under this section must be imposed by the
commission as provided in ORS 183.745. [2003 c.202 §3]Note: 757.994 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 757 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.

_______________