71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
HA to HB 3696
 
LC 3120/HB 3696-5
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 3696
 
             By COMMITTEE ON ADVANCING E-GOVERNMENT
 
                              May 9
 
  On page 1 of the printed bill, line 2, after 'provisions; '
delete the rest of the line and delete lines 3 and 4 and insert '
amending ORS 221.450, 225.270 and 757.005; repealing ORS 221.655,
757.600, 757.603, 757.607, 757.612, 757.617, 757.622, 757.627,
757.629, 757.632, 757.637, 757.642, 757.646, 757.649, 757.654,
757.656, 757.659, 757.661, 757.665, 757.667, 757.669, 757.672,
757.676, 757.679, 757.683, 757.687 and 757.691 and sections 2 and
18, chapter 865, Oregon Laws 1999; and declaring an emergency.'.
  Delete lines 5 through 27.
  On page 2, delete line 1.
  Delete lines 3 through 45 and delete pages 3 through 11 and
insert:
  '  { +  SECTION 1. + }  { + ORS 221.655, 757.600, 757.603,
757.607, 757.612, 757.617, 757.622, 757.627, 757.629, 757.632,
757.637, 757.642, 757.646, 757.649, 757.654, 757.656, 757.659,
757.661, 757.665, 757.667, 757.669, 757.672, 757.676, 757.679,
757.683, 757.687 and 757.691 and sections 2 and 18, chapter 865,
Oregon Laws 1999, are repealed. + }
  '  { +  SECTION 2. + } ORS 221.450 is amended to read:
  ' 221.450.   { - Except as provided in ORS 221.655, - }  The
city council or other governing body of every incorporated city
may levy and collect from every electric cooperative, people's
utility district, privately owned public utility,
telecommunications carrier as defined in ORS 133.721 or heating
company operating for a period of 30 days within the city without
a franchise from the city and actually using the streets, alleys
or highways, or all of them, in such city for other than travel
on such streets or highways, a privilege tax for the use of those
public streets, alleys or highways, or all of them, in such city
in an amount not exceeding five percent of the gross revenues of
the cooperative, utility, district or company currently earned
within the boundary of the city. However, the gross revenues
earned in interstate commerce or on the business of the United
States Government shall be exempt from the provisions of this
section. The privilege tax authorized in this section shall be
for each year, or part of each year, such utility, cooperative,
district or company operates without a franchise.
  '  { +  SECTION 3. + } ORS 225.270 is amended to read:
  ' 225.270. When any city which owns or operates a municipal
electric power plant or system or distributing system, has paid
principal and interest to date on all indebtedness incurred in
connection therewith, and has created and accumulated an adequate
depreciation and replacement reserve in the judgment of the
officer having control of such plant or system, the city shall,
for the purpose of reducing general property taxes within such
city, pay to itself not less than three percent of the annual
gross operating revenue of such plant or system  { - , or a
volumetric charge based upon the amounts of electricity
delivered, transmitted or distributed to retail electricity
consumers regardless of the source. The volumetric charge shall
not be less than the equivalent of three percent of the gross
operating revenues of the municipality utility in 1999. The city
shall adjust a volumetric charge to end users such that charges
established for different customer classes bear the same
approximate relationship as the gross revenues per kilowatt hour
paid by the classes in 1999 - } .
  '  { +  SECTION 4. + }  { + Section 5 of this 2001 Act is added
to and made a part of ORS chapter 757. + }
  '  { +  SECTION 5. + }  { + (1) After notice and opportunity
for hearing, the Public Utility Commission shall determine the
amount of all costs prudently incurred by a public utility for
the acquisition, development, operation and maintenance of
investments, systems and procedures, including arrangements with
third parties, that were necessary to comply with chapter 865,
Oregon Laws 1999, that are no longer needed by reason of the
repeal of statutes by section 1 of this 2001 Act, and that the
public utility could not mitigate through prudent action. Costs
subject to the provisions of this section include all costs of
mitigation incurred by the public utility by reason of the repeal
of statutes by section 1 of this 2001 Act, including workforce
severance payments. The commission shall issue an order stating
the amount of the costs determined by the commission under this
subsection, and shall designate those costs as restructuring
investments of the public utility.
  ' (2) Notwithstanding ORS 757.355, the commission shall set
rates for public utilities to allow recovery of a public
utility's restructuring investments determined under this
section. If the rates are set to recover restructuring
investments over a period of more than one year, the commission
shall include a return on restructuring investments that is not
less than the return on investment allowed on property of such
public utility that is necessary or useful in the performance of
the utility's duties to the public. The commission may not
revalue restructuring investments for rate-making purposes,
determine that revenues required to recover restructuring
investments are unjust or unreasonable, impair or reduce in any
way the value of restructuring investments, or impair the timing
or the amount of revenues needed to compensate the public utility
for restructuring investments. + }
  '  { +  SECTION 6. + } ORS 757.005 is amended to read:
  ' 757.005. (1)(a) As used in this chapter, except as provided
in paragraph (b) of this subsection, 'public utility' means:
  ' (A) Any corporation, company, individual, association of
individuals, or its lessees, trustees or receivers, that owns,
operates, manages or controls all or a part of any plant or
equipment in this state for the production, transmission,
delivery or furnishing of heat, light, water or power, directly
or indirectly to or for the public, whether or not such plant or
equipment or part thereof is wholly within any town or city.  '
Public utility' includes a privately owned water utility that
provides wastewater services to the public inside the boundaries
of a city, either directly or through an affiliate, regardless of
the number of customers receiving wastewater services.
  ' (B) Any corporation, company, individual or association of
individuals, which is party to an oral or written agreement for
the payment by a public utility, for service, managerial
construction, engineering or financing fees, and having an
affiliated interest with the public utility.
  ' (b) As used in this chapter, 'public utility' does not
include:
  ' (A) Any plant owned or operated by a municipality.
  ' (B) Any railroad, as defined in ORS 824.020, or any
industrial concern by reason of the fact that it furnishes,
without profit to itself, heat, light, water or power to the
inhabitants of any locality where there is no municipal or public
utility plant to furnish the same.
  ' (C) Any corporation, company, individual or association of
individuals providing heat, light or power:
  ' (i) From any energy resource to fewer than 20 customers, if
it began providing service to a customer prior to July 14, 1985;
  ' (ii) From any energy resource to fewer than 20 residential
customers so long as the corporation, company, individual or
association of individuals serves only residential customers;
  ' (iii) From solar or wind resources to any number of
customers; or
  ' (iv) From biogas, waste heat or geothermal resources for
nonelectric generation purposes to any number of customers.
  ' (D) A qualifying facility on account of sales made under the
provisions of ORS 758.505 to 758.555.
  ' (E) Any water utility serving less than 300 customers at an
average annual residential rate of $18 per month or less that
provides adequate and nondiscriminatory service and that does not
provide wastewater services.
  ' (F) Any person furnishing heat, but not delivering
electricity or natural gas to its customers, except:
  ' (i) As provided in ORS 757.007 and 757.009; or
  ' (ii) With respect to heat furnished in municipalities which
on January 1, 1989, had a municipally owned system that was
furnishing steam or other thermal forms of heat to its customers.
  ' (G) Notwithstanding subparagraph (F) of this paragraph, any
corporation, company, partnership, individual or association of
individuals furnishing heat to a single thermal end user from an
electric generating facility, plant or equipment that is
physically interconnected with the single thermal end user.
  ' (H) Any corporation, company, partnership, individual or
association of individuals that furnishes natural gas,
electricity, ethanol, methanol, methane, biodiesel or other
alternative fuel to any number of customers for use in motor
vehicles and does not furnish any utility service described in
paragraph (a) of this subsection.
  '  { - (I) An electricity service supplier, as defined in ORS
757.600. - }
  ' (2) Nothing in subsection (1)(b)(C)(iv) of this section shall
prohibit third party financing of acquisition or development by a
utility customer of energy resources to meet the heat, light or
power requirements of that customer.
  '  { +  SECTION 7. + }  { + 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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