71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 3522
 
                         House Bill 3501
 
Sponsored by Representative WITT
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Allows Public Utility Commission to provide for use of
arbitration to resolve disputes relating to valuation of plants
and facilities.
 
                        A BILL FOR AN ACT
Relating to arbitration of disputes arising out of valuations.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2001 Act is added to and made
a part of ORS chapter 757. + }
  SECTION 2.  { + (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 the
valuation of plants and other facilities. The commission may
adopt rules consistent with the provisions of this section
governing the selection of arbitrators, the scope of the matters
subject to arbitration, arbitration procedures and whether the
arbitration will be conducted as final offer arbitration or
another form of arbitration.
  (2) Notwithstanding ORS 756.055, the commission may designate
an employee of the commission to engage in arbitration under the
provisions of this section and to make binding offers on behalf
of the commission in arbitrations conducted under this section.
  (3) The commission shall designate an arbitrator to conduct
arbitrations under this section. The person designated as
arbitrator must be experienced in valuing generating resources.
The arbitrator may not have any material conflict of interest in
the result of the arbitration. The commission may establish
reasonable limits on expenses associated with retaining an
arbitrator.
  (4) A public utility may challenge the person designated by the
commission as arbitrator by direct petition to the commission.
The commission's review of the challenge is limited to a
determination as to whether the person designated is biased or is
not qualified to conduct the arbitration. The commission must
hold a hearing within 10 days after the filing of the challenge
and shall issue a final decision within 10 days after the
hearing.
  (5) The arbitrator shall control the time, manner and place of
the arbitration, subject to any limitations established by
commission rule.
 
  (6) An arbitrator conducting an arbitration under this section
must value a plant or facility in the amount that equals or most
nearly approximates fair market value of the plant or facility,
as determined by considering the value of the plant or facility
in an arm's-length transaction between a willing seller and a
willing buyer. The arbitrator shall base the decision solely on
the evidentiary record made during the arbitration, but may
request written or oral testimony by any party, limited in scope
to evidence already in the record.
  (7) The commission shall be bound by and enforce an arbitration
decision made under this section, unless the public utility or
the employee of the commission designated under subsection (2) of
this section files written exceptions to the decision. The
commission may reject an arbitration decision made under the
provisions of this section only for the following reasons:
  (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 them that the rights of any 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.
  (8) If after a hearing on the exceptions filed as provided in
subsection (7) of this section it appears to the commission that
the decision should be vacated or modified, the commission may by
order refer the decision back to the arbitrator with
instructions.  If the arbitrator fails to follow the instructions
of the commission, or if the commission determines that referral
or rehearing is unnecessary, the commission may decide the value
of the plant or facilities by order or require a new arbitration.
  (9) Notwithstanding ORS 756.580, a party to an arbitration
under this section may appeal a commission order adopting an
arbitration decision, or may appeal a decision of the commission
under subsection (4) of this section, only as provided in ORS
183.482. Review by the Court of Appeals shall be limited to the
grounds set forth under subsection (7) of this section. A public
utility may not appeal a commission order or decision under this
subsection until the commission issues a final order adopting the
arbitration decision. + }
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