71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
SA to A-Eng. HB 2630
 
LC 1960/HB 2630-A3
 
                      SENATE AMENDMENTS TO
                   A-ENGROSSED HOUSE BILL 2630
 
    By COMMITTEE ON BUSINESS, LABOR, AND ECONOMIC DEVELOPMENT
 
                             May 15
 
  In line 2 of the printed A-engrossed bill, after ' provisions;'
delete the rest of the line and insert 'amending ORS 225.470,
757.135 and 757.259; and declaring an emergency.'.
  After line 26, insert:
  '  { +  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. + } ' .
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