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
 
                         House Bill 3502
 
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.
 
  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.
 
                        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 with adequate and timely
telecommunications and energy supply resources and
infrastructure; and
  Whereas the public utilities serving Oregon must be able to
compete with utilities in other states for the financial capital
necessary to ensure adequate and timely investment in
telecommunications and energy resources and infrastructure; and
  Whereas the current regulation of public utilities does not
provide a sufficient standard to be followed by the Public
Utility Commission in assessing the needs of utilities to compete
to acquire financial 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 { +  that are fair and
reasonable and that will enable utilities to attract the
financial capital necessary to provide adequate service over the
long term. Rates that are fair and reasonable, and that will
enable utilities to attract the financial capital necessary to
provide adequate service over the long term, are rates that
include a return on shareholder common equity for the public
utility or telecommunications utility. The return on shareholder
common equity must be adequate to ensure that the utility will
not be at a disadvantage in competing with utilities in other
states for the financial capital necessary for timely and
adequate investment in energy supply and infrastructure required
to provide service to Oregon consumers + }.
  (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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