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 3120
B-Engrossed
House Bill 3696
Ordered by the House May 31
Including House Amendments dated May 9 and May 31
Sponsored by COMMITTEE ON ADVANCING E-GOVERNMENT
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.
{ - Repeals provisions dealing with restructuring of electric
power industry. Provides for recovery of restructuring
investments by public utilities. - }
{ + Defines resource rate plan as plan by public utility to
construct generating plant or enter into wholesale power purchase
or sales agreement with term longer than one year. Authorizes
Public Utility Commission to approve resource rate plan.
Specifies matters that must be addressed in commission order
approving resource rate plan. Provides that once commission has
approved resource rate plan it may not review rates charged by
utility under plan except to determine whether rates are in
conformity with resource rate plan. Includes transmission company
in group of entities that may enter or condemn lands and condemn
trees in connection with construction of service facilities. + }
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to utility regulation; creating new provisions; amending
ORS 757.210, 757.800, 758.015, 758.020, 772.205 and 772.210;
and declaring an emergency.
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,
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 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. + }
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