USA Statutes : oregon
Title : TITLE 56 INSURANCE
Chapter : Chapter 758 Utility Rights of Way and Territory Allocation; Cogeneration
(1) Except within cities, any person
or corporation has a right and privilege to construct, maintain and
operate its water, gas, electric or communication service lines, fixtures
and other facilities along the public roads in this state, as defined in
ORS 368.001 or across rivers or over any lands belonging to the state,
free of any charge other than charges allowed under section 2, chapter
664, Oregon Laws 2001, and over lands of private individuals, as provided
in ORS 772.210. Such lines, fixtures and facilities shall not be
constructed so as to obstruct any public road or navigable stream.

(2) A county governing body and the Department of Transportation
have authority to designate the location upon roads under their
respective jurisdiction, outside of cities, where lines, fixtures and
facilities described in this section may be located, and may order the
location of any such line, fixture or facility to be changed when such
governing body or department deems it expedient. Any line, fixture or
facility erected or remaining in a different location upon such road than
that designated in any order of the governing body or department is a
public nuisance and may be abated accordingly.

(3) The state officer, agency, board or commission having
jurisdiction over any land belonging to the state with respect to which
the right and privilege granted under subsection (1) of this section is
exercised may impose reasonable requirements for the location,
construction, operation and maintenance of the lines, fixtures and
facilities on such land. The person or corporation exercising such right
and privilege over any land belonging to the state shall pay the current
market value for the existing forest products that are damaged or
destroyed in exercising such right and privilege. Such right and
privilege of any person or corporation is conditioned upon compliance
with the requirements imposed by this subsection. [Amended by 1955 c.123
§1; 1971 c.655 §100; 1981 c.153 §76; 2001 c.664 §3]Note: The amendments to 758.010 by section 6, chapter 664, Oregon
Laws 2001, become operative January 2, 2008. See section 7, chapter 664,
Oregon Laws 2001, as amended by section 2, chapter 178, Oregon Laws 2005.
The text that is operative on and after January 2, 2008, is set forth for
the user’s convenience.

758.010. (1) Except within cities, any person or corporation has a
right and privilege to construct, maintain and operate its water, gas,
electric or communication service lines, fixtures and other facilities
along the public roads in this state, as defined in ORS 368.001 or across
rivers or over any lands belonging to the state, free of charge, and over
lands of private individuals, as provided in ORS 772.210. Such lines,
fixtures and facilities shall not be constructed so as to obstruct any
public road or navigable stream.

(2) A county governing body and the Department of Transportation
have authority to designate the location upon roads under their
respective jurisdiction, outside of cities, where lines, fixtures and
facilities described in this section may be located, and may order the
location of any such line, fixture or facility to be changed when such
governing body or department deems it expedient. Any line, fixture or
facility erected or remaining in a different location upon such road than
that designated in any order of the governing body or department is a
public nuisance and may be abated accordingly.

(3) The state officer, agency, board or commission having
jurisdiction over any land belonging to the state with respect to which
the right and privilege granted under subsection (1) of this section is
exercised may impose reasonable requirements for the location,
construction, operation and maintenance of the lines, fixtures and
facilities on such land. The person or corporation exercising such right
and privilege over any land belonging to the state shall pay the current
market value for the existing forest products that are damaged or
destroyed in exercising such right and privilege. Such right and
privilege of any person or corporation is conditioned upon compliance
with the requirements imposed by this subsection. (1) When
any person, as defined in ORS 758.400, providing electric utility
service, as defined in ORS 758.400, or any transmission company, proposes
to construct an overhead transmission line which will necessitate a
condemnation of land or an interest therein, it shall petition the Public
Utility Commission for a certificate of public convenience and necessity
setting forth a detailed description and the purpose of the proposed
transmission line, the estimated cost, the route to be followed, the
availability of alternate routes, a description of other transmission
lines connecting the same areas, and such other information in such form
as the commission may reasonably require in determining the public
convenience and necessity.

(2) The commission shall give notice and hold a public hearing on
such petition. The commission, in addition to considering facts presented
at such hearing, shall make the commission’s own investigation to
determine the necessity, safety, practicability and justification in the
public interest for the proposed transmission line and shall enter an
order accordingly. The order shall be subject to review as in other
cases. In any proceeding for condemnation, a certified copy of such order
shall be conclusive evidence that the transmission line for which the
land is required is a public use and necessary for public convenience.

(3) This section shall not apply to construction of transmission
lines in connection with a project for which a permit or license is
otherwise obtained pursuant to state or federal law.

(4) As used in this section and ORS 758.020, “transmission company”
means a person or entity that owns or operates high voltage transmission
lines and is subject to the jurisdiction of the Federal Energy Regulatory
Commission. “Transmission company” does not include a cooperative
organized under ORS chapter 62. [1961 c.691 §19; 2001 c.913 §6] (1) The county court, board of
county commissioners or the Department of Transportation, when
designating the location where poles or other aboveground facilities
described in ORS 758.010 may be placed on a road or highway which fronts
on the ocean or on a river or other body of water and the water frontage
of the highway is being developed or maintained for its scenic or
recreational value, may require all lines to occupy the opposite side of
the right of way, if such joint occupancy can be maintained without undue
impairment of service or damage to public life and property.

(2) If the owners of such lines are unable to agree on the terms
and conditions of joint occupancy, such department, court or board shall
request the Public Utility Commission to determine the practicability of
such joint occupancy and the effect thereof upon adequate and safe
service by the prospective joint occupants, the location of the lines,
and, if found to be practicable, to fix and prescribe the terms and
conditions pursuant to which joint occupancy shall be accomplished.
Before making or entering an order, such commission shall hold a hearing
and make findings in accordance with ORS 756.500 to 756.610. The order of
the commission is subject to judicial review as an order in a contested
case in the manner provided by ORS 756.610. In fixing terms and
conditions pursuant to which joint occupancy shall be accomplished, the
Public Utility Commission shall require the installation by each occupant
of standards, devices and equipment reasonably necessary to protect the
equipment of the other occupants from damage and the public from injury
arising from such joint occupancy.

(3) The right of any public utility, telecommunications utility or
transmission company to construct, maintain and operate on a public
highway poles or fixtures is contingent on compliance with reasonable
requirements established by the Department of Transportation, county
courts, boards of county commissioners or the Public Utility Commission
under authority of this section and ORS 758.010. Such rights are likewise
contingent and conditioned on all facilities, equipment and installations
being constructed and maintained in strict conformance with modern and
approved standards. [Amended by 1971 c.655 §102; 1987 c.447 §98; 2001
c.913 §7; 2005 c.638 §11] (1)
Every public utility, telecommunications utility, person, association or
corporation having conduits, subways, street railway tracks, poles or
other equipment on, over or under any street or highway shall for a
reasonable compensation permit the use of the same by any public utility
or telecommunications utility whenever public convenience or necessity
requires such use and such use will not result in irreparable injury to
the owner or other users of such equipment nor in any substantial
detriment to the service to be rendered by such owners or other users.

(2) In case of failure to agree upon such use or the conditions or
compensation for such use, any public utility, telecommunications
utility, person, association or corporation interested may apply to the
Public Utility Commission, and if after investigation the commission
ascertains that public convenience or necessity requires such use and
that it would not result in irreparable injury to the owner or other
users of such equipment, the commission shall by order direct that such
use be permitted and prescribe reasonable conditions and compensation for
such joint use.

(3) The use so ordered shall be permitted and the prescribed
conditions and compensation shall be the lawful conditions and
compensation to be observed, followed and paid. The order of the
commission is subject to judicial review as an order in a contested case
in the manner provided by ORS 756.610. The order may be modified by the
commission upon application of any interested party or upon the
commission’s own motion. All public utilities and telecommunications
utilities shall afford all reasonable facilities and make all necessary
regulations for the interchange of business, or traffic carried or their
product between them, when ordered by the commission so to do. [Formerly
757.040; 1987 c.447 §99; 2005 c.638 §12]UNDERGROUND ELECTRIC AND COMMUNICATIONS FACILITIES The legislature finds that in many areas of this
state landowners, utilities and public authorities desire to convert
existing overhead electric and communication facilities to underground
facilities by means of special assessment proceedings. The legislature
declares that a public purpose will be served and that the public welfare
will be promoted by providing a procedure to accomplish such conversion
by special assessment proceedings and that it is in the public interest
for such conversion to be accomplished as provided in ORS 758.210 to
758.270. [1969 c.385 §1] As used in ORS
758.210 to 758.270, unless the context requires otherwise:

(1) “Convert,” “converting” or “conversion” means the removal of
overhead electric or communication facilities and the replacement thereof
with underground electric or communication facilities at the same or
different locations.

(2) “Electric or communication facilities” means any works or
improvements used or useful in providing electric or communication
service, including but not limited to poles, supports, tunnels, manholes,
vaults, conduits, pipes, wires, conductors, guys, stubs, platforms,
crossarms, braces, transformers, insulators, cutouts, switches,
capacitors, meters, communication circuits, appliances, attachments and
appurtenances, and all related facilities required for the acceptance of
electric or communication services; however:

(a) “Electric facilities” does not include any facilities used or
intended to be used for the transmission of electric energy at nominal
voltages in excess of 35,000 volts.

(b) “Communication facilities” does not include facilities used or
intended to be used for the transmission of intelligence by microwave or
radio, apparatus cabinets or outdoor public telephones.

(c) “Electric or communication facilities” does not include any
electric or communication facilities owned or used by or provided for a
railroad or pipeline and located upon or above the right of way of the
railroad or pipeline.

(3) “Landowner” or “owner” means the owner of the title to real
property or the contract purchaser of real property of record as shown on
the last available complete assessment roll in the office of the county
assessor.

(4) “Overhead electric or communication facilities” means electric
or communication facilities located above the surface of the ground.

(5) “Public authority” means a city or county.

(6) “Public lands and right of way” includes rights of way for
streets, roads and highways and all land or interests in land owned by a
public authority.

(7) “Underground assessment district” or “district” means an
assessment district created as provided by ORS 758.210 to 758.270.

(8) “Underground electric or communication facilities” means
electric or communication facilities located below the surface of the
ground exclusive of those facilities such as substations, transformers,
pull boxes, service terminals, pedestal terminals, splice closures,
apparatus cabinets and similar facilities which normally are above the
surface in areas where utility facilities are underground in accordance
with standard underground practices.

(9) “Utility” means any electric or communication utility described
by ORS 757.005 or any telecommunications utility described by ORS
759.005, 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 consumers. [1969 c.385
§2; 1971 c.360 §1; 1987 c.447 §100](1) A public authority shall have the
power to require the conversion of overhead electric or communication
facilities to underground facilities; to provide and receive funds to pay
for such conversion; and to assess the whole or any part of the cost
thereof against the real property included in the underground assessment
district specially benefited by such conversion.

(2) An underground assessment district shall include an area having
a frontage of not less than 400 feet upon a public street, road or
highway along which overhead electric or communication facilities are
located.

(3) An underground assessment district:

(a) Created by a city, may include area along city streets, county
roads and state highways or any part thereof located within the district.

(b) Created by a county, may include areas along county roads,
state highways or any part thereof located within the district. [1969
c.385 §3](1) A proceeding for conversion may be initiated:

(a) By a petition signed by not less than 60 percent of the
landowners within the proposed assessment district who own not less than
60 percent of the land area within the district; or

(b) By an ordinance or resolution of a public authority declaring
its intention to order a conversion.

(2) A petition shall:

(a) Describe the proposed boundaries of the assessment district;

(b) Generally describe the proposed conversion; and

(c) Request that a proceeding for such conversion be taken pursuant
to ORS 758.210 to 758.270.

(3) The petition shall be filed with the city recorder, county
clerk or other person designated by the public authority to receive the
petition and to verify the signatures. If the petition is signed by the
requisite number of qualified signers, the official so designated shall
execute a certificate of sufficiency and present the petition and
certificate to the governing body of the city or to the county court or
board of county commissioners, as the case may be. [1969 c.385 §4] (1) Upon
presentation of the petition and certificate of sufficiency, or upon
adoption of an ordinance or resolution, the public authority shall
proceed in the manner provided by ORS 223.389.

(2) Unless the charter of a county provides otherwise, a county
shall declare a proposed conversion abandoned if, after notice as
provided by ORS 223.389, objections to the conversion are received by a
county court or board of county commissioners signed by more than 50
percent of the landowners within the proposed assessment district who own
more than 50 percent of land within the district. If a proposed
conversion is abandoned because of objections, no new proceeding for the
conversion shall be undertaken within a period of one year thereafter.
[1969 c.385 §5]
Unless otherwise provided by ORS 758.210 to 758.270, the provisions
relating to the procedure for local improvements in cities, as set forth
in ORS 223.205, 223.210 to 223.295, 223.387 to 223.399, 223.401, 223.405
to 223.485, 223.505 to 223.595, 223.610, 223.615 to 223.650 and 223.770,
apply to proceedings for a conversion by a city or county under ORS
758.210 to 758.270. In a proceeding conducted by a county, where the
statutes referred to in this section refer to officials of cities, the
corresponding officials of the county shall perform the required
functions, unless otherwise provided by order of the county court or
board of county commissioners. Cities and counties may, as provided by
ORS 223.205 and 223.210 to 223.295, issue improvement bonds in the total
amount of the valid applications received to pay assessments in
installments. [1969 c.385 §6; 1995 c.333 §20] (1) When a public
authority in accordance with ORS 758.230 determines that a conversion
shall be made, it may contract with the utilities supplying electric or
communication service within the underground assessment district to
perform the conversion. A contract shall provide:

(a) A description of the electric and communication facilities to
be converted;

(b) That plans and specifications for such conversion shall be
supplied or approved by the affected utility;

(c) The time and manner in which underground electric and
communication facilities will be installed and overhead electric and
communication facilities will be removed;

(d) The estimated cost of converting overhead facilities located on
public lands and right of way to underground facilities;

(e) The estimated cost of converting related utility service
facilities located on privately owned lots and parcels;

(f) The time and manner of making payments and the source of funds
for such payments; and

(g) That upon completion of the work of conversion, the utility
performing the conversion shall have legal title to the electric or
communication facilities, which shall thereafter constitute a part of a
system of the utility and be used, operated, maintained and managed by it
as part of its system.

(2) Upon approval and execution of the conversion contracts by the
utilities and public authority, the public authority shall direct the
utilities owning overhead electric or communication facilities within the
district to convert such facilities as required by the contract. [1969
c.385 §7]Upon completion of the conversion of the overhead electric or
communication facilities on public lands and right of way to underground,
the affected utility shall file a verified statement of the costs of such
conversion with the public authority. The public authority shall adopt an
ordinance assessing the whole or any part of the cost of the conversion
against the real property in the underground assessment district
specifically benefited and shall promptly thereafter mail to each
landowner a statement of the amount of such costs assessed to the
property of the landowner. With the statement the public authority shall
mail to each landowner a notice stating that:

(1) Service from the underground facilities is available;

(2) The landowner has 90 days after the date of the mailing of such
notice to convert all overhead electric or communication facilities
providing service to any structure or improvement located on the lot or
parcel to underground service facilities; and

(3) After the 90-day period following the date of the mailing of
the notice, the public authority will order the utilities to disconnect
and remove all overhead electric and communication facilities providing
service to any structure or improvement within the area. [1969 c.385 §8](1) Any conversion of electric or communication service
facilities, including service connections, located on a privately owned
lot or parcel shall be made at the expense of the landowner by the
utility owning the facility. The conversion shall be made in accordance
with applicable safety rules, codes, regulations, tariffs or ordinances.
The utility shall not be required to convert service lines on property,
other than public lands and right of way, until the landowner furnishes
to the utility a permit or easement authorizing the utility and its
employees, agents and contractors to enter upon real property of the
landowner for the purpose of performing conversion work thereon.

(2) Upon completion of the conversion of overhead electric or
communication service facilities on privately owned lots and parcels
within a district, the utility shall file with the public authority a
verified statement of the costs of the conversion of such service
facilities of each landowner in the district. Promptly thereafter the
public authority shall mail to each landowner a copy of such verified
statement. [1969 c.385 §9]If the owner of any structure or improvement
served from the overhead electric or communication service facilities
within an underground assessment district does not grant the utility a
permit or easement referred to in ORS 758.250 or if such an owner fails
to convert to underground service facilities within 90 days after the
mailing to the owner of the notice provided by ORS 758.245, the public
authority shall order the utility to complete the conversion and to
disconnect and remove all overhead facilities, including service
facilities, providing service to such structure or improvement. [1969
c.385 §10] To
the extent that the contract between the utility and the public authority
provides that all or any part of the conversion work shall be performed
by the utility, any statute or charter provision requiring competitive
bidding and the award of a contract to the lowest responsible bidder does
not apply. [1969 c.385 §11]Once converted, no overhead electric or communication
facilities shall be installed, maintained or operated in any underground
assessment district except as authorized by ORS 758.210 to 758.270. [1969
c.385 §12]ORS 758.210 to 758.270 are supplemental and cumulative of
existing rights, laws, charters, ordinances and franchises and shall not
abrogate or modify any franchise granted to a utility by any local
government or abrogate or modify in any way existing rights, laws,
charters or ordinances of any local government. [1969 c.385 §13]LIABILITY OF ELECTRIC UTILITY FOR PRUNING AND REMOVING VEGETATION For the purposes of
ORS 758.280 to 758.286:

(1) “Electric facilities” means lines, conduits, ducts, poles,
wires, pipes, conductors, cables, crossarms, receivers, transmitters,
transformers, instruments, machines, appliances and all other devices and
apparatuses used, operated, owned or controlled by an electric utility
for the purposes of manufacturing, transforming, transmitting,
distributing, selling or furnishing electricity.

(2) “Electric utility” has the meaning given that term in ORS
758.505.

(3) “Vegetation” means trees, shrubs, vines and all other plants.
[2001 c.420 §1]Note: 758.280 to 758.286 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 758 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.(1) An
electric utility is immune from any civil liability for pruning or
removing vegetation that is growing on property on which electric
facilities are located, or growing on property that is adjacent to
property on which electric facilities are located, if the pruning or
removal is consistent with policies of the Public Utility Commission
relating to the pruning or removal of vegetation, or is consistent with a
local ordinance or resolution applicable to the property that relates to
the pruning or removal of vegetation, and:

(a) The vegetation has come in contact with or caused damage to
electric facilities; or

(b) Pruning or removing the vegetation is necessary to protect life
or property or to restore electric service.

(2) ORS 105.810 and 105.815 do not apply to any claim against an
electric utility based on the pruning or removal of vegetation growing on
property on which electric facilities are located, or growing on property
that is adjacent to property on which electric facilities are located.
[2001 c.420 §2]Note: See note under 758.280.(1) An electric
utility is immune from any civil liability for pruning or removing
vegetation that is growing on property on which electric facilities are
located, or growing on property that is adjacent to property on which
electric facilities are located, if the pruning or removal is consistent
with policies of the Public Utility Commission relating to the pruning or
removal of vegetation, or is consistent with a local ordinance or
resolution applicable to the property that relates to the pruning or
removal of vegetation, and any of the following apply:

(a) The vegetation to be pruned or removed is hanging over electric
facilities or growing in such close proximity to overhead electric
facilities that the vegetation constitutes an electrical hazard under any
electrical safety code adopted by the Public Utility Commission or
constitutes a danger under state or federal health and safety codes to a
person working on the facilities or with access to the facilities.

(b) The vegetation to be removed is diseased, dead or dying or is
close enough to electric facilities that pruning or removal of the
vegetation is necessary to avoid contact between the vegetation and
electric facilities. A determination under this paragraph must be made by
a qualified forester or arborist if a local ordinance or resolution
requires that such determinations be made by a qualified forester or
arborist.

(c) The vegetation is of such size, condition and proximity to
electric facilities that the vegetation can reasonably be expected to
cause damage to electric facilities in the future. A determination under
this paragraph must be made by a qualified forester or arborist if a
local ordinance or resolution requires that such determinations be made
by a qualified forester or arborist.

(2) The limitation on liability provided by this section does not
apply unless the electric utility has provided notice to owners of the
property where the vegetation is located. Notice may be provided by
posting a flyer in a conspicuous location on the property where the
vegetation is located. The flyer must:

(a) Indicate that the electric utility intends to prune or remove
vegetation on the property;

(b) Include a brief statement of the nature of the work to be
performed and the reason the work is needed;

(c) Include an estimate of the time period during which the work
will occur; and

(d) Provide information on how the electric utility can be
contacted.

(3) The limitation on liability provided by this section does not
apply unless the pruning or removal complies with rules adopted by the
Public Utility Commission relating to pruning or removal. In adopting
rules, the commission shall give consideration to the American National
Standard for Tree Care Operations adopted by the American National
Standards Institute. [2001 c.420 §3]Note: See note under 758.280.The immunities provided by ORS 758.280 to 758.284 do not affect
any liability that an electric utility may have for the costs of abating
fires under ORS 477.064 to 477.120. [2001 c.420 §4]Note: See note under 758.280.WATER UTILITIES As used in ORS
758.300 to 758.320:

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

(2) “Community water supply system” means a water source and
distribution system, whether publicly or privately owned, that serves
more than three residences or other users to whom water is provided for
public consumption, including but not limited to schools, farm labor
camps, industrial establishments, recreational facilities, restaurants,
motels, mobile home parks or group care homes.

(3) “Water utility” means any corporation, company, individual or
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 water, 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. “Water utility” does not include a municipal corporation. [1999
c.695 §1]Note: 758.300 to 758.320 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 758 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation. (1) A water
utility may apply to the Public Utility Commission for an order
designating an exclusive service territory for the water utility. The
commission may designate as an exclusive service territory any area that
on the date of application is being served in an adequate manner by the
applicant and is not being served by any other water provider.

(2) In addition to the area described in subsection (1) of this
section, a private water utility may apply for inclusion in an exclusive
service territory designated for the private water utility any area
adjacent to the area described in subsection (1) of this section if:

(a) The applicant plans to extend service to the adjacent area in
the six months immediately following the date of the application;

(b) The adjacent area is not being served by any other water
provider; and

(c) The applicant demonstrates that it is more economical and
feasible to provide services to the adjacent area by an extension of the
applicant’s existing facilities than by an extension of the facilities of
another water provider or community water supply system.

(3) An application under this section shall be made on forms
provided by the commission and shall contain all information required by
commission rule.

(4) Within 30 days after the filing of an application under this
section, the commission shall give notice of the filing:

(a) By publication at least once weekly for two consecutive weeks
in a newspaper or newspapers of general circulation in the area described
in the application; and

(b) By written notice of the application to all other water
providers in the areas adjacent to the area described in the application.

(5) The commission may, on its own motion, hold a hearing on the
application. The commission shall hold a hearing on the application if a
customer of the water utility requests a hearing on the application
within 30 days after the final publication of notice in the manner
required by subsection (4) of this section. If a hearing is scheduled,
the commission shall give notice of the time and place of the hearing in
the manner provided by subsection (4) of this section for notice of the
filing of an application. If the hearing is held by reason of a
customer’s request, the commission shall give notice of the hearing
within 30 days after the request is received by the commission. The
hearing shall be held at a place within or conveniently accessible to the
area described in the application.

(6) The commission may make such investigations relating to an
application under this section as the commission deems proper, including
physical examination and evaluation of the facilities and systems of the
applicant, estimates of their operating costs and revenues, and studies
of such other information as the commission deems relevant.

(7) The commission shall enter an order granting or denying an
application for an exclusive service territory under this section. The
order must contain findings of fact supporting the order. The commission
may grant an application subject to such conditions and limitations as
the commission deems appropriate.

(8) ORS 756.500 to 756.610 govern the conduct of hearings under
this section and any appeal of the commission’s order.

(9) If the commission considers competing applications under
subsection (2) of this section to extend exclusive service to the same
area, there is a disputable presumption that applicants have an equal
ability to extend, improve, enlarge, build, operate and maintain existing
or proposed facilities. [1999 c.695 §2; 2003 c.202 §4]Note: See note under 758.300. (1) Designated service
territories of a water utility approved by the Public Utility Commission
shall be exclusive. A water utility or community water supply system
shall not provide water utility service within the designated exclusive
service territory of another water utility without the express approval
of the commission.

(2) A water utility shall serve only customers within its
designated exclusive service territory and shall serve all applicants for
service within its designated territory. The water utility may refuse
service only as provided by commission rule.

(3) Upon petition by the water utility for an order, or by the
commission on its own motion, a designated service territory may be
expanded to include unserved areas. In reviewing a petition, the
commission shall consider at least the current ability of the water
utility to serve the expanded area, the demand for service in the
expanded area, the impact on existing customers and the availability of
alternative service. The commission may take other factors into
consideration as prescribed by commission rule. Notice and hearing of the
proposed expansion shall be given as provided in ORS 758.302.

(4) Upon petition by the water utility or a customer of the utility
for an order, or by the commission on its own motion, a designated
exclusive service territory may be decreased upon a showing that the
water utility is not providing adequate service to its customers or does
not have the capacity to serve the designated area. Notice of the
proposed decrease of service territory shall be given as provided in ORS
758.302. [1999 c.695 §6]Note: See note under 758.300.(1) The rights acquired by the
designation of an exclusive service territory may be assigned or
transferred only with the approval of the Public Utility Commission after
a finding that the assignment or transfer is in the public interest.
However, a hearing is not required if at least 75 percent of the affected
customers agree to the proposed assignment or transfer.

(2) An order designating an exclusive service territory shall not
be construed to confer any property right. However, upon the death of an
applicant under an approved designation, the executor or administrator
shall continue operating the water utility for the purpose of
transferring such rights for a period not to exceed two years from the
date of death.

(3) The territory served by a water utility under an order of the
commission designating exclusive service territory shall not be altered
solely as the result of a change in ownership or form of ownership. [1999
c.695 §5]Note: See note under 758.300.In the event a designated exclusive service territory
is served by a person not authorized by the Public Utility Commission,
the commission or the water utility designated by the commission to serve
the area may file an action for injunctive relief in the circuit court
for any county where some or all of the designated service territory is
located. The action shall proceed as in an action not triable by right to
a jury. Any party to the action may appeal to the Court of Appeals from
the trial court’s order. An injunction ordered under this section shall
be in addition to any other remedy provided by law. [1999 c.695 §7]Note: See note under 758.300.(1) The
provisions of ORS 758.300 to 758.320 shall not be construed to restrict
the powers granted to cities to issue franchises or to restrict the
powers of condemnation of a municipality.

(2) The provisions of ORS 758.300 to 758.320 shall not be construed
to restrict the formation of homeowners associations pursuant to ORS
chapter 94, cooperatives pursuant to ORS chapter 62 or districts pursuant
to ORS chapter 198 within the designated exclusive service territory of a
water utility. A homeowners association, cooperative or district may
petition the Public Utility Commission for an order excluding the
association, cooperative or district from the exclusive service territory
of a water utility. Upon a showing by the association, cooperative or
district that exclusion is not detrimental to the public interest, the
commission may issue an order excluding the association, cooperative or
district from the exclusive service territory of a water utility.

(3) The commission shall recognize the service territories of a
water utility that has an existing franchise on October 23, 1999, with a
municipality as exclusive service territories. Upon application as
provided in ORS 758.302, any such water utility may request an order from
the commission to designate exclusive service territories in addition to
those identified in the franchise agreement if the water utility is
providing adequate and exclusive service to areas outside the areas
identified in the franchise agreement.

(4) A district, as defined in ORS 198.010, that provides water
utility service shall be exempt from the requirements of ORS 758.302.
However, upon request of the commission, the district shall provide to
the commission a map of its service territory and shall in all other
respects comply with the requirements of ORS 758.300 to 758.320. [1999
c.695 §8; 2003 c.202 §6]Note: See note under 758.300.ELECTRIC AND GAS UTILITIES; ALLOCATION OF TERRITORIES AND CUSTOMERS As used
in ORS 758.015 and 758.400 to 758.475 unless the context requires
otherwise:

(1) “Allocated territory” means an area with boundaries established
by a contract between persons furnishing a similar utility service and
approved by the Public Utility Commission or established by an order of
the commission approving an application for the allocation of territory.

(2) “Person” includes individuals, firms, partnerships,
corporations, associations, cooperatives and municipalities, or their
agent, lessee, trustee or referee.

(3) “Utility service” means service provided by any equipment,
plant or facility for the distribution of electricity to users or the
distribution of natural or manufactured gas to consumers through a
connected and interrelated distribution system. “Utility service” does
not include service provided through or by the use of any equipment,
plant or facilities for the production or transmission of electricity or
gas which pass through or over but are not used to provide service in or
do not terminate in an area allocated to another person providing a
similar utility service. [Formerly 757.605; 1979 c.62 §2; 1985 c.550 §8;
1987 c.447 §101; 1999 c.59 §232] The elimination and
future prevention of duplication of utility facilities is a matter of
statewide concern; and in order to promote the efficient and economic use
and development and the safety of operation of utility services while
providing adequate and reasonable service to all territories and
customers affected thereby, it is necessary to regulate in the manner
provided in ORS 758.400 to 758.475 all persons and entities providing
utility services. [Formerly 757.610](1)
Any person providing a utility service may contract with any other person
providing a similar utility service for the purpose of allocating
territories and customers between the parties and designating which
territories and customers are to be served by which of said contracting
parties; and the territories and customers so allocated and designated
may include all or any portion of the territories and customers which are
being served by either or both of the parties at the time the contract is
entered into, or which could be economically served by the then existing
facilities of either party, or by reasonable and economic extensions
thereto.

(2) Any such contracting parties may also contract in writing for
the sale, exchange, transfer, or lease of equipment or facilities located
within territory which is the subject of the allocation agreed upon
pursuant to subsection (1) of this section. Any sale, exchange, transfer
or lease of equipment, plant or facilities made pursuant to this
subsection by any person which is a “public utility” as defined in ORS
757.005 is also subject to the approval of the Public Utility Commission
to the extent required by ORS chapter 757.

(3) The commission may approve a contract entered into under this
section that authorizes Coos County to construct a natural gas pipeline
into allocated territory in Coos County and that contains terms for the
allocation of industrial customers in Coos County between the county and
the other party to the contract. The contract need not specify the
territory in which industrial customers subject to the allocation are
located. The commission may approve the provisions of a contract under
this subsection that govern allocation of industrial customers only if
the commission determines that the provisions promote the purposes
specified in ORS 758.405. The commission shall actively supervise the
implementation of any contract entered into pursuant to this subsection
to ensure that the contract continues to promote the purposes specified
in ORS 758.405. A contract entered into under this subsection is not
subject to ORS 758.420 (2). [Formerly 757.615; 2003 c.32 §1]Notwithstanding any other provisions of law, a contract
entered into pursuant to ORS 758.410, when approved by the Public Utility
Commission as provided in ORS 758.420 to 758.475, shall be valid and
enforceable; provided, that the commission shall approve such a contract
only if the commission finds, after a hearing as provided in ORS 758.420
to 758.475, that the contract will eliminate or avoid unnecessary
duplicating facilities, and will promote the efficient and economic use
and development and the safety of operation of the utility systems of the
parties to the contract, while providing adequate and reasonable service
to all territories and customers affected thereby. [Formerly 757.620] (1) A
contract entered into pursuant to ORS 758.410 shall be promptly filed
with the Public Utility Commission, and the commission shall, within 30
days after such filing, give notice of such filing. If the commission
chooses or if any customer or customers request a hearing on the matter
within 30 days of the notice, the commission shall hold a hearing by
telephone or in person. The commission shall give notice of such hearing
within 30 days of the customer’s request which notice shall set the date
and place of hearing on the question as to whether or not such contract
will be approved. The hearing shall be held at a place within or
conveniently accessible to the territories affected by the contract.

(2) The commission shall publish notice of the filing in a
newspaper or newspapers of general circulation in each of the territories
affected by the contract. Each such notice shall be published at least
once weekly for two successive weeks. [Formerly 757.625; 1985 c.633 §3] (1) On the basis of the
applicant’s filing or, if there is a hearing, on the record made at the
hearing held pursuant to ORS 758.420, the Public Utility Commission shall
enter an order either approving or disapproving the contract as filed,
together with any appropriate findings of the facts supporting such order.

(2) An order of the commission under this section is subject to
judicial review as an order in a contested case in the manner provided by
ORS 756.610.

(3) If the commission approves a contract and a petition for
judicial review is not filed, the contract shall be deemed to be valid
and enforceable for all purposes from the date on which the right to file
a petition for judicial review expires. [Formerly 757.630; 1985 c.633 §4;
2005 c.638 §13] Any contract
that has been approved as provided in ORS 758.400 to 758.475 may be
subsequently amended by the parties thereto, but any such amendatory
agreement shall be filed with the Public Utility Commission and shall
thereafter be approved or disapproved by the commission in the manner
provided in ORS 758.420 and 758.425. However, no hearing is required if
all affected customers approve the amendatory agreement. An amendatory
agreement may be enforced in the manner provided in ORS 758.465.
[Formerly 757.635; 1983 c.540 §5](1) Any person providing a
utility service in a territory that is not served by another person
providing a similar utility service may make application to the Public
Utility Commission for an order allocating such territory to it. The
application may include any adjacent area that it is more economical and
feasible to serve by an extension of the applicant’s existing facilities
than by an extension of the facilities of another person.

(2) The commission shall within 30 days after the filing of such
application give notice of the filing. If the commission chooses, or if a
customer requests a hearing on the matter within 30 days of the notice,
the commission shall hold a hearing by telephone or in person. The
commission shall give notice of the hearing within 30 days of the request
which notice shall set the date and place of hearing. The hearing shall
be held at a place within or conveniently accessible to the territory
covered by the application. Notice of the filing shall be by publication
in a newspaper or newspapers of general circulation in the territory
covered by the application and shall be published at least once weekly
for two successive weeks. Written notice of the filing shall be given to
providers of similar utility service in adjacent territory.

(3) Territory within the limits of a city, as fixed on May 31,
1961, shall not be deemed to be served exclusively by any person, if such
city is, on such date, served by more than one person having necessary
municipal or franchise authority to serve within the entire city.
[Formerly 757.640; 1985 c.633 §1] (1) On the basis of the
application, or, if there is a hearing, on the record made at the hearing
held pursuant to ORS 758.435, the Public Utility Commission shall enter
an order either approving or disapproving the application as filed, or as
amended, together with findings of the facts supporting such order.

(2) The commission, before approving an application for the
allocation of territory, shall find that the applicant is exclusively
serving the territory covered by the application and in the case of an
adjacent unserved area that it is more economical and feasible to serve
by an extension of the applicant’s existing facilities than by an
extension of the facilities of another person. [Formerly 757.645; 1985
c.633 §2] An order of the
Public Utility Commission under ORS 758.440 is subject to judicial review
as an order in a contested case in the manner provided by ORS 756.610. If
a petition for judicial review is not filed within the specified time,
the order shall thereafter be valid and enforceable for the purposes
herein specified from the date on which the right to file a petition for
judicial review expires. [Formerly 757.650; 2005 c.638 §14](1) Territory served by more than one
person providing similar utility service may only become an allocated
territory by a contract approved by the Public Utility Commission.

(2) Except as provided in subsection (4) of this section, no other
person shall offer, construct or extend utility service in or into an
allocated territory.

(3) Except as provided in subsection (4) of this section, during
the pendency of an application for an allocation of exclusively served
territory, no person other than applicant shall offer, construct or
extend utility service in or into the territory applied for; nor shall
any person, without the express consent of the commission, offer,
construct or extend utility service in or into any unserved territory
which is the subject of a filing pending before the commission under ORS
758.420 or 758.435.

(4) The provisions of ORS 758.400 to 758.475 do not apply to any
corporation, company, individual or association of individuals providing
heat, light or power:

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

(b) 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;

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

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

(5) Nothing in subsection (4) 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. [Formerly 757.652; 1981 c.360 §2; 1985 c.779 §2](1) The Public Utility Commission may
make such investigations respecting a contract or an application for the
allocation of territory as the commission deems proper including the
physical examinations and evaluations of the facilities and systems of
the parties to the contract, estimates of their operating costs and
revenues and studies of such other information as the commission deems
pertinent.

(2) Insofar as applicable and consistent herewith, the provisions
of ORS 756.500 to 756.610 shall govern the conduct of hearings.

(3) In considering competing applications to serve the same
territory, there shall be a disputable presumption that applicants have
an equal ability to extend, improve, enlarge, build, operate and maintain
existing or proposed facilities. [Formerly 757.655](1) The rights acquired by an allocation of
territory may only be assigned or transferred with the approval of the
Public Utility Commission after a finding that such assignment or
transfer is not contrary to the public interest. However, no hearing is
required if all affected customers agree to the proposed assignment or
transfer.

(2) No approved contract or order approving an allocation of
territory shall be construed to confer any property right; providing,
however, upon the death of an individual who is a party to an approved
contract or the applicant under an approved order, the executor or
administrator shall continue the operation thereunder for the purpose of
transferring such rights for a period of not to exceed two years from the
date of death.

(3) In the event the property of a person serving an allocated
territory is condemned, no value shall be claimed or awarded by reason of
the contract or order making such allocation. [Formerly 757.670; 1983
c.540 §6] In the event a contract approved by
the Public Utility Commission is breached or in the event an allocated
territory is served by a person not authorized by such contract, or order
of the commission, the aggrieved person or the commission may file an
action in the circuit court for any county in which is located some or
all of the allocated territory allegedly involved in said breach or
invasion, for an injunction against said alleged breach or invasion. The
trial of such action shall proceed as in an action not triable by right
to a jury. Any party may appeal to the Court of Appeals from the court’s
judgment, as in other equity cases. The remedy provided in this section
shall be in addition to any other remedy provided by law. [Formerly
757.675; 1979 c.284 §198; 2003 c.576 §561](1) ORS 758.015 and 758.400 to 758.475 shall not
be construed or applied to restrict the powers granted to cities to issue
franchises, or to restrict the exercise of the power of condemnation by a
municipality; and when a municipality has condemned or otherwise acquired
another person’s equipment, plant or facilities for rendering utility
service, it shall acquire all of the rights of the person whose property
is condemned to serve the territory served by the acquired properties.

(2) ORS 758.015 and 758.400 to 758.475 shall not be construed to
restrict the right of a municipality to provide utility service for
street lights, fire alarm systems, airports, buildings and other
municipal installations regardless of their location.

(3) ORS 758.015 and 758.400 to 758.475 shall not be construed to
confer upon the Public Utility Commission any regulatory authority over
rates, service or financing of cooperatives or municipalities. [Formerly
757.680]Except in cases under ORS 758.430 and 758.460 where
no hearing is required, to cover the costs of administering ORS 758.015
and 758.400 to 758.475 the Public Utility Commission is required to
receive fees before filing any contract, application, petition,
complaint, protest, appearance, motion, answer or other pleading and for
holding any hearing. All fees shall be collected in accordance with the
following schedule:

(1) Filing application for allocated territory under ORS 758.435 by
a person having annual gross revenue derived from within the state for
the calendar year 1960:

(a) In excess of $5 million or more, a fee of two-tenths of one
mill of such revenue but in no event shall such fee exceed, $10,000.

(b) In excess of $100,000 but less than $5 million, $100.

(c) Less than $100,000, $50.

(2) Filing a contract or application under ORS 758.015 or 758.420,
$100.

(3) Filing petition or complaint, $25.

(4) Filing protest, appearance, motion, answer or other pleading,
$10.

(5) Filing an application for allocated territory under ORS 758.435
subsequent to an original allocation and payment of fee under subsection
(1) of this section, $100. [Formerly 757.685; 1983 c.540 §7]TROJAN NUCLEAR PLANT(1) As used in this section:

(a) “Agreement” means the agreement dated October 5, 1970, and
titled “Agreement for Construction, Ownership and Operation of the Trojan
Nuclear Plant,” as amended.

(b) “Allocated territory” has the meaning given that term in ORS
758.400.

(c) “Person” means:

(A) A person as defined in ORS 174.100;

(B) A person as defined in ORS 758.400;

(C) A public body as defined in ORS 174.109; or

(D) Any combination of entities described in subparagraphs (A), (B)
and (C) of this paragraph.

(d) “Trojan obligations” means all of the obligations and
liabilities of the Portland General Electric Company to pay amounts that
are due or that may become due under the agreement or that are due or
that may become due as a result of a requirement imposed by a federal,
state or local governmental body, agency or instrumentality.

(e) “Utility service” has the meaning given that term in ORS
758.400.

(2) Any person acquiring all or a portion of any allocated
territory of the Portland General Electric Company, or acquiring the
right to provide utility service within the allocated territory of the
Portland General Electric Company, shall assume a share of Trojan
obligations that is proportionate to the total amount of allocated
territory or the percentage of retail customer load for which the person
has acquired the right to provide utility service, whichever is greater.

(3) The assumption of Trojan obligations described in this section
shall occur without regard to whether the acquisition described in
subsection (2) of this section occurs through market transactions or
condemnation proceedings or by any other means.

(4) Any person assuming a share of Trojan obligations shall pay all
required or necessary amounts, when due, into any decommissioning or
other fund established, required or approved by any federal, state or
local governmental body, agency or instrumentality for the purpose of
meeting Trojan obligations. A person making payments into a fund
described in this subsection may use the person’s share of the fund for
the purpose of meeting the person’s Trojan obligations, subject to any
limitation imposed by a federal, state or local governmental body, agency
or instrumentality.

(5) The obligations imposed by subsection (2) of this section do
not apply to any person acquiring allocated territory or customers of the
Portland General Electric Company when:

(a) The acquisition occurs pursuant to the terms of a contract
allocating territory that has been approved by the Public Utility
Commission under ORS 758.400 to 758.475 and that is in effect on July 22,
2005; or

(b) The acquisition comprises less than one percent of the total
allocated territory of the Portland General Electric Company or less than
one-tenth of one percent of the total retail customer load of the
Portland General Electric Company at the time of acquisition, whichever
is greater. [2005 c.630 §1]Note: 758.480 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 758 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.COGENERATION AND SMALL POWER PRODUCTION FACILITIES As used in ORS
758.505 to 758.555:

(1) “Avoided cost” means the incremental cost to an electric
utility of electric energy or energy and capacity that the utility would
generate itself or purchase from another source but for the purchase from
a qualifying facility.

(2) “Cogeneration facility” means a facility that:

(a) Produces, through the sequential use of energy, electric energy
and useful thermal energy including but not limited to heat or steam,
used for industrial, commercial, heating or cooling purposes; and

(b) Is more than 50 percent owned by a person who is not an
electric utility, an electric holding company, an affiliated interest or
any combination thereof.

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

(4) “Electric utility” means a nonregulated utility or a public
utility.

(5) “Index rate” means the lowest avoided cost approved by the
commission for a generating utility for the purchase of energy or energy
and capacity of similar characteristics including online date, duration
of obligation and quality and degree of reliability.

(6) “Nonregulated utility” means an entity providing retail
electric utility service to Oregon consumers that is a people’s utility
district organized under ORS chapter 261, a municipal utility operating
under ORS chapter 225 or an electric cooperative organized under ORS
chapter 62.

(7) “Public utility” means a utility regulated by the commission
under ORS chapter 757, that provides electric power to consumers.

(8) “Qualifying facility” means a cogeneration facility or a small
power production facility.

(9) “Small power production facility” means a facility that:

(a) Produces energy primarily by the use of biomass, waste, solar
energy, wind power, water power, geothermal energy or any combination
thereof;

(b) Is more than 50 percent owned by a person who is not an
electric utility, an electric utility holding company, an affiliated
interest or any combination thereof; and

(c) Has a power production capacity that, together with any other
small power production facility located at the same site and owned by the
same person, is not greater than 80 megawatts. [1983 c.799 §1] The Legislative Assembly finds and
declares that:

(1) The State of Oregon has abundant renewable resources.

(2) It is the goal of Oregon to:

(a) Promote the development of a diverse array of permanently
sustainable energy resources using the public and private sectors to the
highest degree possible; and

(b) Insure that rates for purchases by an electric utility from,
and rates for sales to, a qualifying facility shall over the term of a
contract be just and reasonable to the electric consumers of the electric
utility, the qualifying facility and in the public interest.

(3) It is, therefore, the policy of the State of Oregon to:

(a) Increase the marketability of electric energy produced by
qualifying facilities located throughout the state for the benefit of
Oregon’s citizens; and

(b) Create a settled and uniform institutional climate for the
qualifying facilities in Oregon. [1983 c.799 §2](1) At least
once every two years each electric utility shall prepare, publish and
file with the Public Utility Commission a schedule of avoided costs
equaling the utility’s forecasted incremental cost of electric resources
over at least the next 20 years. Prices contained in the schedules filed
by public utilities shall be reviewed and approved by the commission.

(2) An electric utility shall offer to purchase energy or energy
and capacity whether delivered directly or indirectly from a qualifying
facility. Except as provided in subsection (3) of this section, the price
for such a purchase shall not be less than the utility’s avoided costs.
At the option of the qualifying facility, exercised before beginning
delivery of the energy or energy and capacity, such prices may be based
on:

(a) The avoided costs calculated at the time of delivery; or

(b) The projected avoided costs calculated at the time the legal
obligation to purchase the energy or energy and capacity is incurred.

(3) Nothing contained in ORS 543.610, 757.005 and 758.505 to
758.555 shall be construed to require an electric utility to pay full
avoided-cost prices for a purchase from a qualifying facility on which
construction began before November 8, 1978, but the price for a purchase
from such a facility shall be sufficient to encourage production of
energy or energy and capacity.

(4) The rates of an electric utility for the sale of electricity
shall not discriminate against qualifying facilities. [1983 c.799 §3](1) The Public Utility Commission shall establish minimum
criteria that a cogeneration facility or small power production facility
must meet to qualify as a qualifying facility under ORS 543.610, 757.005
and 758.505 to 758.555.

(2) The terms and conditions for the purchase of energy or energy
and capacity from a qualifying facility shall:

(a) Be established by rule by the commission if the purchase is by
a public utility;

(b) Be adopted by an electric cooperative or people’s utility
district according to the applicable provision of ORS chapter 62 or 261;
and

(c) Be established by a municipal utility according to the
requirements of the municipality’s charter and ordinance.

(3) The rules or policies adopted under subsection (2) of this
section also shall:

(a) Establish safety and operating requirements necessary to
adequately protect all systems, facilities and equipment of the electric
utility and qualifying facility;

(b) Be consistent with applicable standards required by the Public
Utility Regulatory Policies Act of 1978 (P.L. 95-617); and

(c) Be made available to the public at the commission’s office.
[1983 c.799 §4](1) If an electric utility
fails to make a good faith effort to comply with a request from a
qualifying facility to transmit energy or energy and capacity produced by
the qualifying facility to another electric utility or to the Bonneville
Power Administration, the electric utility shall purchase the qualifying
facility’s energy or energy and capacity at a price which is the higher
of:

(a) The electric utility’s avoided cost; or

(b) The index rate.

(2) As used in this section, “good faith effort” shall be
demonstrated by the electric utility’s publication of a generally
applicable, reasonable policy of the electric utility to allow a
qualifying facility to use the electric utility’s transmission facilities
on a cost-related basis. [1983 c.799 §5]A qualifying facility shall not become a public utility
within the meaning of ORS 757.005 on account of sales made under ORS
543.610, 757.005 and 758.505 to 758.555. [1983 c.799 §6]_______________