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 3923
 
                           A-Engrossed
 
                         House Bill 3502
                   Ordered by the House May 14
             Including House Amendments dated May 14
 
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.
 
  Directs Public Utility Commission to establish rates for
utility services that are fair and reasonable   { - and that will
enable utilities to attract financial capital necessary to
provide adequate service over long term. Specifies that such
rates include return on shareholder common equity adequate to
ensure that utility will not be at disadvantage in competing with
utilities in other states for financial capital - } .
 { + Requires commission to balance interests of utility investor
and consumer in establishing fair and reasonable rates. Defines
fair and reasonable rates. + }
 
                        A BILL FOR AN ACT
Relating to utility rates; amending ORS 756.040 and 756.062.
  Whereas the public welfare of the citizens of Oregon is
dependent upon reasonable economic growth and prosperity in this
state; and
  Whereas Oregon's economic growth and prosperity require that
Oregon businesses and citizens be served at reasonable prices
with adequate and timely telecommunications and energy supply
resources and infrastructure; and
  Whereas the public utilities serving Oregon must be able to
compete for the capital necessary to ensure adequate and timely
investment in telecommunications and energy resources and
infrastructure; now, therefore,
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 756.040 is amended to read:
  756.040. (1) In addition to the powers and duties now or
hereafter transferred to or vested in the Public Utility
Commission, the commission shall represent the customers of any
public utility or telecommunications utility and the public
generally in all controversies respecting rates, valuations,
service and all matters of which the commission has jurisdiction.
In respect thereof the commission shall make use of the
jurisdiction and powers of the office to protect such customers,
and the public generally, from unjust and unreasonable exactions
and practices and to obtain for them adequate   { - service at
fair and reasonable rates. - }   { + service at fair and
reasonable rates. The commission shall balance the interests of
the utility investor and the consumer in establishing fair and
reasonable rates. Rates are fair and reasonable for the purposes
of this subsection if the rates provide adequate revenue both for
operating expenses of the public utility or telecommunications
utility and for capital costs of the utility, with a return to
the equity holder that is:
  (a) Commensurate with the return on investments in other
enterprises having corresponding risks; and
  (b) Sufficient to ensure confidence in the financial integrity
of the utility, allowing the utility to maintain its credit and
attract capital. + }
  (2) The commission is vested with power and jurisdiction to
supervise and regulate every public utility and
telecommunications utility in this state, and to do all things
necessary and convenient in the exercise of such power and
jurisdiction.
  (3) The commission may participate in any proceeding before any
public officer, commission or body of the United States or any
state for the purpose of representing the public generally and
the customers of the services of any public utility or
telecommunications utility operating or providing service to or
within this state.
  (4) The commission may make joint investigations, hold joint
hearings within or without this state and issue concurrent orders
in conjunction or concurrence with any official, board,
commission or agency of any state or of the United States.
  SECTION 2. ORS 756.062 is amended to read:
  756.062. (1) A substantial compliance with the requirements of
the laws administered by the Public Utility Commission is
sufficient to give effect to all the rules, orders, acts and
regulations of the commission and they shall not be declared
inoperative, illegal or void for any omission of a technical
nature in respect thereto.
  (2) The provisions of such laws shall be liberally construed
  { - with a view to - }   { + in a manner consistent with the
directives of ORS 756.040 (1) to promote + } the public welfare,
efficient facilities and substantial justice between customers
and public and telecommunications utilities.
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