Chapter 733 Oregon Laws 2001
AN ACT
HB 2630
Relating to public
utilities; creating new provisions; amending ORS 225.470, 757.135 and 757.259;
and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 757.135 is amended to read:
757.135. (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.
[(2)] (3) The commission may examine and
audit any account. Items shall be allocated to the accounts in the manner
prescribed by the commission.
SECTION 2.
Any public utility that maintains its
accounts and records on a fiscal year basis and that is required to file a
balance sheet with the Public Utility Commission under the provisions of ORS
757.135 (1999 Edition) on or before April 1, 2002, must also file a balance
sheet together with such information as the commission may prescribe under the
provisions of ORS 757.135, as amended by section 1 of this 2001 Act, on or
before the first day of the fourth month following the end of the public
utility's fiscal year in 2002.
SECTION 3.
ORS 757.259 is amended to read:
757.259. (1) In addition to powers otherwise vested in the
Public Utility Commission, and subject to the limitations contained in [subsection (6) of] this section, under
amortization schedules set by the commission, a rate or rate schedule may
reflect the following:
(a) Amounts lawfully imposed retroactively by order of
another governmental agency; or
(b) Amounts deferred under subsection (2) of this section.
(2) Upon application of a utility or ratepayer or upon the
commission's own motion and after public notice, [and] 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) 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) of this section are
not subject to [subsections (4) and (6)]
subsection (4), (5), (6) or (7) of
this section, but are subject to such limitations and requirements [as] that
the commission may prescribe and that
are consistent with the provisions of this section.
(4) 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.
[(5) Amounts that
have accrued in deferred accounts with commission authorization before July 10,
1987, also may be reflected in rates. However, in order to continue to use such
accounts the public utility shall apply for authorization of the commission under
subsection (2) of this section.]
[(6)] (5) [In any one year] Except as
provided in subsections (6) and (7) of this section, the overall average
rate impact of the amortizations authorized under this section [shall] in any one year may not exceed three percent of the utility's gross
revenues for the preceding calendar year.
(6) The commission
may allow an overall average rate impact greater than that specified in
subsection (5) 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.
(7) 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 (5) 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 (4) of this section.
(8) The provisions of
subsection (7) of this section do not limit the ability of the commission to
impose requirements similar to those described in subsection (7) of this
section for the amortization of deferrals under this section that are not
subject to subsection (7) of this section.
[(7)] (9) The provisions of this section [shall] do not apply to a telecommunications utility.
SECTION 4.
ORS 225.470 is amended to read:
225.470. In addition to the powers otherwise conferred on
cities of this state, [such a city owning
and operating] a city that owns or
operates an electric light and power system, or a city that owns or operates an electric cogeneration facility as
defined in ORS 758.505, may plan, finance, construct, acquire, operate, own
and maintain an undivided interest in common facilities within or without the
state jointly with one or more other cities, with one or more districts, with
one or more electric cooperatives or with one or more [privately owned electric utility companies subject to regulation by
other] persons, or with any combination of such cities, districts, electric
cooperatives or persons, and may make such plans and enter into such contracts
and agreements as are necessary or appropriate for such joint planning, financing,
construction, acquisition, operation, ownership or maintenance.
SECTION 5.
This 2001 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 2001 Act takes effect on its passage.
Approved by the Governor
July 3, 2001
Filed in the office of
Secretary of State July 3, 2001
Effective date July 3, 2001
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