71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
HA to A-Eng. HB 3696
LC 3120/HB 3696-A8
HOUSE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 3696
By COMMITTEE ON ADVANCING E-GOVERNMENT
May 31
On page 1 of the printed A-engrossed bill, line 2, after '
provisions;' delete the rest of the line and lines 3 through 6
and insert 'amending ORS 757.210, 757.800, 758.015, 758.020,
772.205 and 772.210; and declaring an emergency.'.
Before line 7, insert:
' Whereas the western United States is experiencing a shortage
of electrical generating capacity, and as a result consumers in
Oregon are faced with the prospect of significant increases in
the cost of electricity; and
' Whereas wholesale power markets in the western United States
are reflecting extreme price volatility, and there is substantial
uncertainty with respect to the level of wholesale electricity
prices in the future; and
' Whereas there is considerable uncertainty about the extent to
which electric companies will be called upon to supply
electricity to Oregon consumers at cost-based rates; and
' Whereas the current regulation of electric companies and
electric services may not sufficiently promote the development of
new electric generating resources; and
' Whereas in the current economic and regulatory environment,
electric companies face substantial risk in respect to the
construction or acquisition of new electric generating resources;
and
' Whereas the Public Utility Commission has the unique
expertise to understand and lead changes in the regulation of
electric companies that are necessary to further the purpose of
this 2001 Act for the benefit of Oregon consumers; now,
therefore,'.
Delete lines 8 through 22 and delete pages 2 and 3 and insert:
' { + SECTION 1. + } { + Section 2 of this 2001 Act is added
to and made a part of ORS 757.205 to 757.220. + }
' { + SECTION 2. + } { + (1) For purposes of this section,
'resource rate plan' means a plan by a public utility to
construct a generating plant or to enter into a wholesale power
purchase or sales agreement with a term that is longer than one
year.
' (2) The Public Utility Commission may approve a resource rate
plan as an alternative form of regulation plan under ORS 757.210.
If the commission approves a resource rate plan by a public
utility based on the construction of a generating plant, the
order approving the plan must state how the commission will
reflect the costs and revenues of the generating plant in the
utility's rates during all or a portion of the expected useful
life of the generating plant. If the commission approves a
resource rate plan based on a wholesale power purchase or sales
agreement with a term longer than one year, the order approving
the plan must state how the commission will reflect the costs and
revenues under the wholesale power purchase or sales agreement in
the utility's rates during all or a portion of the term of the
agreement.
' (3) If the commission approves a resource rate plan, the
order of the commission must also address:
' (a) The extent to which the public utility will use power
from the generating plant or from the power purchase or sales
agreement to serve its retail customers in Oregon;
' (b) The allocation of power available from the generating
plant or power purchase or sales agreement among different
classes of the public utility's customers;
' (c) The ratemaking consequences of the generating plant or
power purchase or sales agreement, including the consequences of
variations in the amount of power that is actually available
after the plan is in operation compared with the amount of power
that was anticipated to be available at the time the plan was
approved; and
' (d) Any other issue the commission chooses to consider.
' (4) If the commission approves a resource rate plan, the
commission may not thereafter review the rates charged by the
public utility under the plan except for the purpose of
determining whether the rates are in conformity with the plan.
The commission may not consider any complaint under ORS 756.500
relating to the public utility's rates except for those relating
to whether the rates are in conformity with the resource rate
plan.
' (5) A resource rate plan and a public utility's rates under a
resource rate plan are not subject to ORS 757.355.
' (6) The commission may not vacate or amend an order approving
a resource rate plan unless the public utility operating under
the plan approves the vacation or amendment.
' (7) Notwithstanding ORS 756.580, any appeal of a commission
order disapproving or approving a resource rate plan must be
pursuant to the provisions of ORS 183.482. + }
' { + SECTION 3. + } ORS 757.210 is amended to read:
' 757.210. (1) Whenever any public utility files with the
Public Utility Commission any rate or schedule of rates stating
or establishing a new rate or schedule of rates or increasing an
existing rate or schedule of rates, the commission may, either
upon written complaint or upon the commission's own initiative,
after reasonable notice, conduct a hearing to determine the
propriety and reasonableness of such rate or schedule. The
commission shall conduct such a hearing upon written complaint
filed by the utility, its customer or customers, or any other
proper party within 60 days of the utility's filing; provided
that no hearing need be held if the particular rate change is the
result of an automatic adjustment clause. At such hearing the
utility shall bear the burden of showing that the rate or
schedule of rates proposed to be established or increased or
changed is just and reasonable. The term 'automatic adjustment
clause' means a provision of a rate schedule which provides for
rate increases or decreases or both, without prior hearing,
reflecting increases or decreases or both in costs incurred or
revenues earned by a utility and which is subject to review by
the commission at least once every two years.
' (2)(a) Subsection (1) of this section does not apply to rate
changes under an approved alternative form of regulation
plan { + , including a resource rate plan under section 2 of this
2001 Act + }.
' (b) Any alternative form of regulation plan shall include
provisions to ensure that the plan operates in the interests of
utility customers and the public generally and results in rates
that are just and reasonable and may include provisions
establishing a reasonable range for rate of return on investment.
In approving a plan, the commission shall, at a minimum, consider
whether the plan:
' (A) Promotes increased efficiencies and cost control;
' (B) Is consistent with least-cost resources acquisition
policies;
' (C) Is consistent with maintenance of safe, adequate and
reliable service; and
' (D) Is beneficial to utility customers generally, for
example, by minimizing utility rates.
' (c) As used in this subsection, 'alternative form of
regulation plan' means a plan adopted by the commission upon
petition by a public utility, after notice and an opportunity for
a hearing, that sets rates and revenues and a method for changes
in rates and revenues using alternatives to cost-of-service rate
regulation.
' (d) Prior to implementing a rate change under an alternative
form of regulation plan, the utility shall present a report that
demonstrates the calculation of any proposed rate change at a
public meeting of the commission.
' (3) { + Except as provided in section 2 of this 2001
Act, + } the commission, at any time, may order a utility to
appear and establish that any, or all, of its rates in a plan
authorized under subsection (2) of this section are in conformity
with the plan and are just and reasonable. { + Except as
provided in section 2 of this 2001 Act, + } such rates, and the
alternative form of regulation plan under which the rates are
set, also shall be subject to complaint under ORS 756.500.
' (4) Periodically, but not less often than every two years
after the implementation of a plan referred to in subsection (2)
of this section, the commission shall submit a report to the
Legislative Assembly that shows the impact of the plan on rates
paid by utility customers.
' (5) The commission and staff may consult at any time with,
and provide technical assistance to, utilities, their customers,
and other interested parties on matters relevant to utility rates
and charges. If a hearing is held with respect to a rate change,
the commission's decisions shall be based on the record made at
the hearing.
' { + SECTION 4. + } { + The Public Utility Commission may
not approve resource rate plans under section 2 of this 2001 Act
for generation resources or power purchase or sales agreements
that have been included in rates of the public utility before the
effective date of this 2001 Act. + }
' { + SECTION 5. + } ORS 757.800 is amended to read:
' 757.800. As used in this section and ORS 757.805, unless the
context requires otherwise:
' (1) 'Authorized person' means:
' (a) An employee of a utility which produces, transmits or
delivers electricity.
' (b) An employee of a utility which provides and whose work
relates to communication services or state, county or municipal
agencies which have authorized circuit construction on or near
the poles or structures of a utility.
' (c) An employee or agent of an industrial plant whose work
relates to the electric system of the industrial plant.
' (d) An employee of a cable television or communication
services company or an employee of a contractor of a cable
television or communication services company if specifically
authorized by the owners of the poles to make cable television or
communication services attachments.
' (e) An employee or agent of state, county or municipal
agencies which have or whose work relates to overhead electric
lines or circuit construction or conductors on poles or
structures of any type.
' { + (f) An employee of a transmission company as defined in
ORS 758.015. + }
' (2) 'High voltage' means voltage in excess of 600 volts
measured between conductors or between a conductor and the
ground.
' (3) 'Overhead line' means all bare or insulated electric
conductors installed above ground.
' (4) 'Person' or 'business entity' means those parties who
contract to perform any function or activity upon any land,
building, highway or other premises.
' (5) 'Utility' means any electric or communication utility
described by ORS 757.005, any plant owned or operated by a
municipality, any person furnishing community antenna television
service to the public and any cooperative corporation or people's
utility district engaged in furnishing electric or communication
service to customers.
' (6) 'Proximity' means within 10 feet or such greater distance
as may be prescribed by rule adopted pursuant to ORS chapter 654.
' { + SECTION 6. + } ORS 758.015 is amended to read:
' 758.015. (1) When any person, as defined in ORS 758.400,
providing electric utility service, as defined in ORS 758.400,
{ + or any transmission company, + } proposes to construct an
overhead transmission line which will necessitate a condemnation
of land or an interest therein, it shall petition the Public
Utility Commission for a certificate of public convenience and
necessity setting forth a detailed description and the purpose of
the proposed transmission line, the estimated cost, the route to
be followed, the availability of alternate routes, a description
of other transmission lines connecting the same areas, and such
other information in such form as the commission may reasonably
require in determining the public convenience and necessity.
' (2) The commission shall give notice and hold a public
hearing on such petition. The commission, in addition to
considering facts presented at such hearing, shall make the
commission's own investigation to determine the necessity,
safety, practicability and justification in the public interest
for the proposed transmission line and shall enter an order
accordingly. The order shall be subject to review as in other
cases. In any proceeding for condemnation, a certified copy of
such order shall be conclusive evidence that the transmission
line for which the land is required is a public use and necessary
for public convenience.
' (3) This section shall not apply to construction of
transmission lines in connection with a project for which a
permit or license is otherwise obtained pursuant to state or
federal law.
' { + (4) As used in this section and ORS 758.020,
'transmission company' means a person or entity that owns or
operates high voltage transmission lines and is subject to the
jurisdiction of the Federal Energy Regulatory Commission.
'Transmission company ' does not include a cooperative organized
under ORS chapter 62. + }
' { + SECTION 7. + } ORS 758.020 is amended to read:
' 758.020. (1) The county court, board of county commissioners
or the Department of Transportation, when designating the
location where poles or other aboveground facilities described in
ORS 758.010 may be placed on a road or highway which fronts on
the ocean or on a river or other body of water and the water
frontage of the highway is being developed or maintained for its
scenic or recreational value, may require all lines to occupy the
opposite side of the right of way, if such joint occupancy can be
maintained without undue impairment of service or damage to
public life and property.
' (2) If the owners of such lines are unable to agree on the
terms and conditions of joint occupancy, such department, court
or board shall request the Public Utility Commission to determine
the practicability of such joint occupancy and the effect thereof
upon adequate and safe service by the prospective joint
occupants, the location of the lines, and, if found to be
practicable, to fix and prescribe the terms and conditions
pursuant to which joint occupancy shall be accomplished. Before
making or entering an order, such commission shall hold a hearing
and make findings in accordance with ORS 756.500 to 756.610,
subject to review as provided in ORS 756.580 to 756.610. In
fixing terms and conditions pursuant to which joint occupancy
shall be accomplished, the Public Utility Commission shall
require the installation by each occupant of standards, devices
and equipment reasonably necessary to protect the equipment of
the other occupants from damage and the public from injury
arising from such joint occupancy.
' (3) The right of any public utility { + , + } { - or - }
telecommunications utility { + or transmission company + } to
construct, maintain and operate on a public highway poles or
fixtures is contingent on compliance with reasonable requirements
established by the Department of Transportation, county courts,
boards of county commissioners or the Public Utility Commission
under authority of this section and ORS 758.010. Such rights are
likewise contingent and conditioned on all facilities, equipment
and installations being constructed and maintained in strict
conformance with modern and approved standards.
' { + SECTION 8. + } ORS 772.205 is amended to read:
' 772.205. As used in ORS 772.210 and 772.215, unless the
context requires otherwise:
' (1) 'Electrical cooperative association' means a cooperative
association which is subject to a tax on gross revenue derived
from the use or operation of transmission and distribution lines
pursuant to ORS 308.805 to 308.820.
' (2) 'Public utility' has the meaning given that term in ORS
757.005.
' (3) 'Service facilities' include any line, wire, pipe,
conduit, main, pump, pole, tower, fixture, structure, shop,
office or building for any use or purpose reasonably necessary
and incident to the conduct of the business of a public utility.
' { + (4) 'Transmission company' has the meaning given that
term in ORS 758.015. + }
' { + SECTION 9. + } ORS 772.210 is amended to read:
' 772.210. (1) Any public utility { + , + } { - or - }
electrical cooperative association { + or transmission
company + } may:
' (a) Enter upon lands within this state for the purpose of
examining, locating and surveying the line thereof and also other
lands necessary and convenient for the purpose of construction of
service facilities, doing no unnecessary damage thereby.
' (b) Condemn such lands not exceeding 100 feet in width for
its lines (including poles, towers, wires, supports and necessary
equipment therefor) and in addition thereto, other lands
necessary and convenient for the purpose of construction of
service facilities; and if the lands are covered by trees which
are liable to fall and constitute a hazard to its wire or line,
any public utility { + or transmission company + } organized for
the purpose of building, maintaining and operating a line of
poles and wires for the transmission of electricity for lighting
or power purposes, may condemn such trees for a width not
exceeding 300 feet, as may be necessary or convenient for such
purpose.
' (2) Notwithstanding subsection (1) of this section, any
public utility { + , + } { - or - } electrical cooperative
association { + or transmission company + } may, when necessary
or convenient for transmission lines (including poles, towers,
wires, supports and necessary equipment therefor) designed for
voltages in excess of 330,000 volts, condemn land not to exceed
300 feet in width. In addition, if the lands are covered by trees
which are liable to fall and constitute a hazard to its wire or
line, such public utility { + or transmission company + } may
condemn such trees for a width not exceeding 100 feet on either
side of the condemned land, as may be necessary or convenient for
such purpose.
' (3) Notwithstanding subsection (1) of this section, a water
or gas public utility may condemn such lands, not exceeding 50
feet in width, as may be necessary or convenient for purposes of
constructing, laying, maintaining and operating its lines,
including necessary equipment therefor.
' (4) The proceedings for the condemnation of such lands shall
be the same as that provided in ORS chapter 35, provided that any
award shall include, but shall not be limited to, damages for
destruction of forest growth, premature cutting of timber, and
diminution in value to remaining timber caused by increased
harvesting costs.
' { + SECTION 10. + } { + 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. + } ' .
----------