71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2630
Sponsored by Representative HILL (at the request of PacifiCorp)
CHAPTER ................
AN ACT
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
Enrolled House Bill 2630 (HB 2630-B) Page 1
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
Enrolled House Bill 2630 (HB 2630-B) Page 2
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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Enrolled House Bill 2630 (HB 2630-B) Page 3
Passed by House February 28, 2001
Repassed by House June 21, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 17, 2001
...........................................................
President of Senate
Enrolled House Bill 2630 (HB 2630-B) Page 4
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
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Secretary of State
Enrolled House Bill 2630 (HB 2630-B) Page 5