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 4015
House Bill 3699
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 as
introduced.
Postpones restructuring of electric power industry until
October 1, 2005.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to restructuring by electric power industry; creating
new provisions; amending ORS 221.655, 757.600, 757.603,
757.612, 757.632, 757.642 and 757.687 and sections 2, 18 and
42, chapter 865, Oregon Laws 1999; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 18, chapter 865, Oregon Laws 1999, is
amended to read:
{ + Sec. 18. + } { - (1) Sections 2, 3 (1) to (7) and (9),
4, 6, 11 and 29 of this 1999 Act - } { + ORS 221.655, 757.603,
757.612 (1) to (7), 757.629 and 757.646 + } { - shall not - }
become operative { - until the Public Utility Commission
determines by order, made following notice and public comment,
that implementation of sections 2 and 6 of this 1999 Act will not
have a material adverse impact on the ability of an electric
company to access cost-based power from the Bonneville Power
Administration pursuant to the Pacific Northwest Electric Power
Planning and Conservation Act of 1980 (Public Law 96-501), on
behalf of the company's residential and small-farm consumers - }
{ + October 1, 2005 + }. { + The Public Utility Commission
shall take all actions necessary before October 1, 2005, to allow
full implementation of ORS 757.600 to 757.691 on that date. + }
{ - (2) The commission shall make an initial determination
under subsection (1) of this section not later than May 1, 2001.
If the commission determines that implementation of section 2 or
6 of this 1999 Act will have a material adverse impact on the
ability of an electric company to access cost-based power from
the Bonneville Power Administration on behalf of the electric
company's residential and small-farm consumers, or if the
commission is unable to make a determination, the commission may
make second and subsequent determinations, following notice and
public comment, that implementation of sections 2 and 6 will not
have such adverse impact. - }
{ - (3) If the commission is unable to make a determination
under this section by January 1, 2003, the commission shall make
a report to the Seventy-second Legislative Assembly detailing the
reasons the commission is unable to make a determination. - }
{ - (4) In addition to subsections (1) to (3) of this
section, sections 2, 3 (1) to (7) and (9), 4, 6, 11 and 29 of
this 1999 Act shall not become operative until the
commission: - }
{ - (a) Has approved a rate or schedule of rates for an
electric company that provides the electric company the
opportunity to recover all costs prudently incurred in the
acquisition, development, operation and maintenance of
investments, systems and procedures, including arrangements with
third parties, necessary to comply with sections 1 to 20 and 29
of this 1999 Act, or authorizes the deferral of costs for later
recovery in rates; and - }
{ - (b) Following investigation and review of the electric
company's investments, systems and procedures, including
arrangements with third parties, necessary to comply with
sections 1 to 20 and 29 of this 1999 Act, certifies that allowing
sections 2, 3 (1) to (7) and (9), 4, 6, 11 and 29 of this 1999
Act to become operative will neither diminish the electric
company's ability to comply with its statutory or contractual
obligations to maintain the safety and reliability of its
transmission facilities and distribution system and other
infrastructure and equipment used to deliver electricity, nor
impair its ability to attract capital for future investments in
such transmission facilities, distribution system or other
infrastructure and equipment. - }
SECTION 2. { + Section 3 of this 2001 Act is added to and made
a part of ORS 757.600 to 757.687. + }
SECTION 3. { + (1) The Public Utility Commission shall study
whether residential electricity consumers would benefit from
direct access to electricity services. The study shall consider,
at a minimum, issues of market development for residential and
small-farm consumers and the impact of direct access on
residential and small-farm consumers' access to benefits from the
federal Columbia River power system.
(2) The Public Utility Commission shall study whether the
implementation of ORS 759.600 to 759.691 would have a material
adverse impact on the ability of an electric company to access
cost-based power from the Bonneville Power Administration
pursuant to the Pacific Northwest Electric Power Planning and
Conservation Act of 1980 (Public Law 96-501), on behalf of the
company's residential and small-farm consumers.
(3) The Public Utility Commission shall study the investments,
systems and procedures of all electric companies in this state
that would be subject to ORS 759.600 to 759.691, including
arrangements between those electric companies and third parties,
and determine whether implementation of ORS 759.600 to 759.691
would:
(a) Diminish the ability of any electric company to comply with
its statutory or contractual obligations to maintain the safety
and reliability of its transmission facilities, distribution
system and other infrastructure and equipment used to deliver
electricity; or
(b) Impair the ability of any electric company to attract
capital for future investments in such transmission facilities,
distribution system or other infrastructure and equipment.
(4) The Public Utility Commission shall study and establish the
anticipated rates or schedule of rates that electric companies
would require to allow each electric company to recover all costs
prudently incurred in complying with ORS 759.600 to 759.691,
including costs of acquisitions, development, operation and
maintenance, and costs attributable to meeting the obligations of
an electric company to third parties under arrangements between
the electric company and third parties. Rates established by the
commission shall take into account any deferral of costs for
later recovery in rates that may be allowed.
(5) The Public Utility Commission shall make a report to the
Seventy-third Legislative Assembly that reflects the results of
the studies conducted under this section and the conclusions
reached by the commission by reason of those results. + }
SECTION 4. Section 2, chapter 865, Oregon Laws 1999, is amended
to read:
{ + Sec. 2. + } { - (1) All retail electricity consumers of
an electric company, other than residential electricity
consumers, shall be allowed direct access not later than October
1, 2001. - }
{ - (2) The Public Utility Commission shall report to the
Legislative Assembly not later than January 1, 2003, on whether
residential electricity consumers would benefit from direct
access to electricity services. The report shall address, at a
minimum, issues of market development for residential and
small-farm consumers and the impact of direct access on
residential and small-farm consumers' access to benefits from the
federal Columbia River power system. - }
{ - (3) Residential electricity consumers shall be allowed to
purchase electricity from among a portfolio of rate options as
described in section 4 of this 1999 Act, not later than October
1, 2001. - }
{ - (4) Sections 1 to 20 and 22 to 29 and the amendments to
ORS 192.502, 221.450, 225.270, 225.450, 225.460, 225.470,
225.490, 261.235, 261.240, 261.245, 261.255, 757.005 and 757.259
by sections 21 and 30 to 41 of this 1999 Act - } { + ORS
757.600 to 757.691 + } do not apply to an electric company
providing electricity services to fewer than 25,000 consumers in
this state unless the electric company offers direct access to
any of its retail electricity consumers in this state or offers
to sell electricity services available under direct access to
more than one retail electricity consumer of another electric
utility.
SECTION 5. Section 42, chapter 865, Oregon Laws 1999, is
amended to read:
{ + Sec. 42. + } The Public Utility Commission shall report
to the
{ - Seventy-first - } Legislative Assembly on the
implementation of
{ - sections 1 to 20 of this 1999 Act - } { + ORS 757.600 to
757.691 not later than January 1, 2009 + }.
SECTION 6. ORS 221.655 is amended to read:
221.655. (1) The city council or governing body of an
incorporated city may levy and collect from a distribution
utility providing direct access to electricity services under
{ - ORS 757.676 or section 2 (1), chapter 865, Oregon Laws
1999 - } { + ORS 757.600 to 757.691 + }, except a municipal
electric utility, operating for a period of 30 days within the
city without a franchise from the city and actually using the
streets, alleys or highways in such city for other than travel, a
privilege tax for the use of those public streets, alleys or
highways. The privilege tax shall be based on a volumetric rate
times the volume of electric energy in kilowatt hours delivered,
transmitted or distributed to retail electricity consumers within
the city by the distribution utility, provided that the privilege
tax shall not be applied to electric energy generated by a retail
electricity consumer's own generating facilities or to electric
energy delivered by the federal government. The volumetric rate
of the privilege tax for the distribution utility may vary by
customer class.
(2) The privilege tax described in subsection (1) of this
section shall be subject to the following:
(a) The volumetric rate, in cents per kilowatt hour, for any
customer class shall not exceed five percent of the 1999 gross
revenue of an electric utility within the city for the customer
class divided by the amount of electric energy in kilowatt hours
delivered to the customer class in 1999.
(b) A city with a franchise fee or privilege tax in effect on
July 1, 1999, that was less than five percent shall not establish
a volumetric rate for any customer class of the distribution
utility in an amount in excess of the city's 1999 franchise fee
or privilege tax rate times the 1999 gross revenue of any
electric utility within the city from the customer class divided
by the amount of electric energy in kilowatt hours delivered to
the customer class in 1999, except following a hearing with
notice and opportunity for public comment.
(3) Subject to the limitations established in subsection (2) of
this section, once a city has established volumetric rates for
the purpose of calculating the privilege tax under this section,
any subsequent change in the volumetric rates shall be applied on
an equal percentage basis to all customer classes.
(4)(a) The Public Utility Commission shall determine the manner
in which a privilege tax under this section is collected from the
customers of an electric company. The privilege tax shall be
allocated across an electric company's customer classes in the
same proportional amounts as levied by the city against the
electric company.
(b) The governing body of an electric cooperative or people's
utility district shall determine the manner in which a privilege
tax under this section is collected from the customers of the
electric cooperative or people's utility district. The governing
body shall allocate the privilege tax across customer classes in
the same proportional amounts as levied by the city against the
electric cooperative or people's utility district.
SECTION 7. ORS 757.600 is amended to read:
757.600. As used in ORS 757.600 to 757.687, unless the context
requires otherwise:
(1) 'Aggregate' means combining retail electricity consumers
into a buying group for the purchase of electricity and related
services.
(2) 'Ancillary services' means services necessary or incidental
to the transmission and delivery of electricity from generating
facilities to retail electricity consumers, including but not
limited to scheduling, load shaping, reactive power, voltage
control and energy balancing services.
(3) 'Commission' means the Public Utility Commission.
(4) 'Consumer-owned utility' means a municipal electric
utility, a people's utility district or an electric cooperative.
(5) 'Default supplier' means an electricity service supplier or
electric company that has a legal obligation to provide
electricity services to a consumer, as determined by the
commission.
(6) 'Direct access' means the ability of a retail electricity
consumer to purchase electricity and certain ancillary services,
as determined by the commission for an electric company or the
governing body of a consumer-owned utility, directly from an
entity other than the distribution utility.
(7) 'Direct service industrial consumer' means an end user of
electricity that obtains electricity directly from the
transmission grid and not through a distribution utility.
(8) 'Distribution' means the delivery of electricity to retail
electricity consumers through a distribution system consisting of
local area power poles, transformers, conductors, meters,
substations and other equipment.
(9) 'Distribution utility' means an electric utility that owns
and operates a distribution system connecting the transmission
grid to the retail electricity consumer.
(10) 'Economic utility investment' means all electric company
investments made { - prior to the date the electric company
offers direct access under ORS 757.600 to 757.667 - } { +
before October 1, 2005 + }, including plants and equipment and
contractual or other legal obligations, properly dedicated to
generation or conservation, that were prudent at the time the
obligations were assumed but the full benefits of which are no
longer available to consumers as a direct result of ORS 757.600
to 757.667, absent transition credits. 'Economic utility
investment' does not include costs or expenses disallowed by the
commission in a prudence review or other proceeding, to the
extent of such disallowance, and does not include fines or
penalties authorized and imposed under state or federal law.
(11) 'Electric company' means an entity engaged in the business
of distributing electricity to retail electricity consumers in
this state, but does not include a consumer-owned utility.
(12) 'Electric cooperative' means an electric cooperative
corporation organized under ORS chapter 62 or under the laws of
another state if the service territory of the electric
cooperative includes a portion of this state.
(13) 'Electric utility' means an electric company or
consumer-owned utility that is engaged in the business of
distributing electricity to retail electricity consumers in this
state.
(14) 'Electricity' means electric energy, measured in
kilowatt-hours, or electric capacity, measured in kilowatts, or
both.
(15) 'Electricity services' means electricity distribution,
transmission, generation or generation-related services.
(16) 'Electricity service supplier' means a person or entity
that offers to sell electricity services available pursuant to
direct access to more than one retail electricity consumer. '
Electricity service supplier' does not include an electric
utility selling electricity to retail electricity consumers in
its own service territory.
(17) 'Governing body' means the board of directors or the
commissioners of an electric cooperative or people's utility
district, or the council or board of a city with respect to a
municipal electric utility.
(18) 'Load' means the amount of electricity delivered to or
required by a retail electricity consumer at a specific point of
delivery.
(19) 'Low-income weatherization' means repairs, weatherization
and installation of energy efficient appliances and fixtures for
low-income residences for the purpose of enhancing energy
efficiency.
(20) 'Municipal electric utility' means an electric
distribution utility owned and operated by or on behalf of a
city.
(21) 'New renewable energy resource' means a renewable energy
resource project, or a new addition to an existing renewable
energy resource project, or the electricity produced by the
project, that is not in operation on July 23, 1999. 'New
renewable energy resource' does not include any portion of a
renewable energy resource project under contract to the
Bonneville Power Administration on or before July 23, 1999.
(22) 'Office of Energy' means the Office of Energy created
under ORS 469.030.
(23) 'One average megawatt' means 8,760,000 kilowatt-hours of
electricity per year.
(24) 'People's utility district' has the meaning given that
term in ORS 261.010.
(25) 'Portfolio access' means the ability of a retail
electricity consumer to choose from a set of product and pricing
options for electricity determined by the governing board of a
consumer-owned utility and may include product and pricing
options offered by the utility or by an electricity service
supplier.
(26) 'Power generation company' means a company engaged in the
production and sale of electricity to wholesale customers,
including but not limited to independent power producers,
affiliated generation companies, municipal and state authorities,
provided the company is not regulated by the commission.
(27) 'Qualifying expenditures' means those expenditures for
energy conservation measures that have a simple payback period of
not less than one year and not more than 10 years, and
expenditures for the above-market costs of new renewable energy
resources, provided that the Office of Energy by rule may
establish a limit on the maximum above-market cost for renewable
energy that is allowed as a credit.
(28) 'Renewable energy resources' means:
(a) Electricity generation facilities fueled by wind, waste,
solar or geothermal power or by low-emission nontoxic biomass
based on solid organic fuels from wood, forest and field
residues.
(b) Dedicated energy crops available on a renewable basis.
(c) Landfill gas and digester gas.
(d) Hydroelectric facilities located outside protected areas as
defined by federal law in effect on July 23, 1999.
(29) 'Residential electricity consumer' means an electricity
consumer who resides at a dwelling primarily used for residential
purposes. 'Residential electricity consumer' does not include
retail electricity consumers in a dwelling typically used for
residency periods of less than 30 days, including hotels, motels,
camps, lodges and clubs. As used in this subsection, ' dwelling'
includes but is not limited to single family dwellings,
separately metered apartments, adult foster homes, manufactured
dwellings, recreational vehicles and floating homes.
(30) 'Retail electricity consumer' means the end user of
electricity for specific purposes such as heating, lighting or
operating equipment, and includes all end users of electricity
served through the distribution system of an electric utility on
or after July 23, 1999, whether or not each end user purchases
the electricity from the electric utility.
(31) 'Site' means a single contiguous area of land containing
buildings or other structures that are separated by not more than
1,000 feet, or buildings and related structures that are
interconnected by facilities owned by a single retail electricity
consumer and that are served through a single electric meter.
(32) 'Transition charge' means a charge or fee that recovers
all or a portion of an uneconomic utility investment.
(33) 'Transition credit' means a credit that returns to
consumers all or a portion of the benefits from an economic
utility investment.
(34) 'Transmission facility' means the plant and equipment used
to transmit electricity in interstate commerce.
(35) 'Undue market power' means the unfair or improper exercise
of influence to increase or decrease the availability or price of
a service or product in a manner inconsistent with competitive
markets.
(36) 'Uneconomic utility investment' means all investments made
by an electric company { - prior to the date the electric
company offers direct access under ORS 757.600 to 757.667 - }
{ + before October 1, 2005 + }, including plants and equipment
and contractual or other legal obligations, properly dedicated to
generation, conservation and workforce commitments, that were
prudent at the time the obligations were assumed but the full
costs of which are no longer recoverable as a direct result of
ORS 757.600 to 757.667, absent transition charges. 'Uneconomic
utility investment' does not include costs or expenses disallowed
by the commission in a prudence review or other proceeding, to
the extent of such disallowance, and does not include fines or
penalties as authorized by state or federal law.
SECTION 8. ORS 757.603 is amended to read:
757.603. (1) Not later than October 1, { - 2001 - } { +
2005 + }, an electric company shall provide residential
electricity consumers and small commercial electricity consumers,
as defined by the Public Utility Commission, that are connected
to the electric company's distribution system with a
cost-of-service rate option. The commission may require, by
order made following a public hearing, an electric company to
provide a cost-of-service rate option to other electricity
consumers.
(2) Not later than October 1, { - 2001 - } { + 2005 + },
each electric company shall provide each residential electricity
consumer that is connected to its distribution system a portfolio
of rate options. The portfolio shall include at least the
following options:
(a) A rate that reflects significant new renewable energy
resources; and
(b) A market-based rate.
(3)(a) The commission shall regulate the cost-of-service rate
option under subsection (1) of this section and the portfolio of
rate options under subsection (2) of this section. The commission
shall reasonably ensure that the costs and risks of serving each
option are reflected in the rates for each option.
(b) The commission may prohibit or otherwise limit the use of a
cost-of-service rate by retail electricity consumers who have
been served through direct access, and may limit switching among
portfolio options and the cost-of-service rate by residential
electricity consumers.
SECTION 9. ORS 757.612 is amended to read:
757.612. (1) There is established an annual public purpose
expenditure standard for electric companies to fund new
cost-effective local energy conservation, new market
transformation efforts, the above-market costs of new renewable
energy resources, and new low-income weatherization. The public
purpose expenditure standard shall be funded by the public
purpose charge described in subsection (2) of this section.
(2)(a) Beginning on { - the date an electric company offers
direct access to its retail electricity consumers - } { +
October 1, 2005 + }, except residential electricity consumers,
the electric company shall collect a public purpose charge from
all of the retail electricity consumers located within its
service area for a period of 10 years. Except as provided in
paragraph (b) of this subsection, the public purpose charge shall
be equal to three percent of the total revenues collected by the
electric company or electricity service supplier from its retail
electricity consumers for electricity services, distribution,
ancillary services, metering and billing, transition charges and
other types of costs included in electric rates on July 23, 1999.
(b) For an aluminum plant that averages more than 100 average
megawatts of electricity use per year, beginning on October 1,
{ - 2001 - } { + 2005 + }, the electric company whose
territory abuts the greatest percentage of the site of the
aluminum plant shall collect from the aluminum company a public
purpose charge equal to one percent of the total revenue from the
sale of electricity services to the aluminum plant from any
source.
(3)(a) The Public Utility Commission shall establish rules
implementing the provisions of this section relating to electric
companies.
(b) Subject to paragraph (e) of this subsection, funds
collected by an electric company through public purpose charges
shall be allocated as follows:
(A) Sixty-three percent for new cost-effective conservation and
new market transformation.
(B) Nineteen percent for the above-market costs of new
renewable energy resources.
(C) Thirteen percent for new low-income weatherization.
(D) Five percent shall be transferred to the Housing and
Community Services Department Revolving Account created under ORS
456.574 and used for the purpose of providing grants as described
in ORS 458.625 (2). Moneys deposited in the account under this
subparagraph are continuously appropriated to the Housing and
Community Services Department for the purposes of ORS 458.625
(2). Interest on moneys deposited in the account under this
subparagraph shall accrue to the account.
(c) The costs of administering subsections (1) to (6) of this
section for an electric company shall be paid out of the funds
collected through public purpose charges. The commission may
require that an electric company direct funds collected through
public purpose charges to the state agencies responsible for
implementing subsections (1) to (6) of this section in order to
pay the costs of administering such responsibilities.
(d) The commission shall direct the manner in which public
purpose charges are collected and spent by an electric company
and may require an electric company to expend funds through
competitive bids or other means designed to encourage
competition, except that funds dedicated for low-income
weatherization shall be directed to the Housing and Community
Services Department as provided in subsection (7) of this
section. The commission may also direct that funds collected by
an electric company through public purpose charges be paid to a
nongovernmental entity for investment in public purposes
described in subsection (1) of this section. Notwithstanding any
other provision of this subsection, at least 80 percent of the
funds allocated for conservation shall be spent within the
service area of the electric company that collected the funds.
(e)(A) The first 10 percent of the funds collected annually by
an electric company under subsection (2) of this section shall be
distributed to education service districts, as described in ORS
334.010, that are located in the service territory of the
electric company. The funds shall be distributed to individual
education service districts according to the weighted average
daily membership (ADMw) of the education service district for the
prior fiscal year as calculated under ORS 327.013. The commission
shall establish by rule a methodology for distributing a
proportionate share of funds under this paragraph to education
service districts that are only partially located in the service
territory of the electric company.
(B) An education service district that receives funds under
this paragraph shall use the funds first to pay for energy audits
for school districts located within the education service
district. An education service district shall not expend
additional funds received under this paragraph on a school
district facility until an energy audit has been completed for
that school district. To the extent practicable, an education
service district shall coordinate with the Office of Energy and
incorporate federal funding in complying with this paragraph.
Following completion of an energy audit for an individual school
district, the education service district may expend funds
received under this paragraph to implement the energy audit. Once
an energy audit has been conducted and completely implemented for
each school district within the education service district, the
education service district may expend funds received under this
paragraph for any of the following purposes:
(i) Conducting energy audits. A school district shall conduct
an energy audit prior to expending funds on any other purpose
authorized under this paragraph unless the school district has
performed an energy audit within the three years immediately
prior to receiving the funds.
(ii) Weatherization and upgrading the energy efficiency of
school district facilities.
(iii) Energy conservation education programs.
(iv) Purchasing electricity from environmentally focused
sources and investing in renewable energy resources.
(f) The commission may establish a different public purpose
charge than the public purpose charge otherwise described in
subsection (2) of this section for an individual retail
electricity consumer or any class of retail electricity consumers
located within the service area of an electric company, provided
that a retail electricity consumer with a load greater than one
average megawatt shall not be required to pay a public purpose
charge in excess of three percent of its total cost of
electricity services.
(g) The commission shall remove from the rates of each electric
company any costs for public purposes described in subsection (1)
of this section that are included in rates. A rate adjustment
under this paragraph shall be effective on the date that the
electric company begins collecting public purpose charges.
(4) An electric company that satisfies its obligations under
this section shall have no further obligation to invest in
conservation, new market transformation, new renewable energy
resources or new low-income weatherization and is not subject to
ORS 469.631 to 469.645 and 758.505 to 758.555.
(5)(a) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year
shall receive a credit against public purpose charges billed by
an electric company for that site. The amount of the credit shall
be equal to the total amount of qualifying expenditures for new
energy conservation, not to exceed 68 percent of the annual
public purpose charges, and the above-market costs of purchases
of new renewable energy resources incurred by the retail
electricity consumer, not to exceed 19 percent of the annual
public purpose charges, less administration costs incurred under
this subsection. The credit shall not exceed, on an annual
basis, the lesser of:
(A) The amount of the retail electricity consumer's qualifying
expenditures; or
(B) The portion of the public purpose charge billed to the
retail electricity consumer that is dedicated to new energy
conservation, new market transformation or the above-market costs
of new renewable energy resources.
(b) To obtain a credit under this subsection, a retail
electricity consumer shall file with the Office of Energy a
description of the proposed conservation project or new renewable
energy resource and a declaration that the retail electricity
consumer plans to incur the qualifying expenditure. The Office of
Energy shall issue a notice of precertification within 30 days of
receipt of the filing, if such filing is consistent with this
subsection. The credit may be taken after a retail electricity
consumer provides a letter from a certified public accountant to
the Office of Energy verifying that the precertified qualifying
expenditure has been made.
(c) Credits earned by a retail electricity consumer as a result
of qualifying expenditures that are not used in one year may be
carried forward for use in subsequent years.
(d)(A) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year may
request that the Office of Energy hire an independent auditor to
assess the potential for conservation investments at the site. If
the independent auditor determines there is no available
conservation measure at the site that would have a simple payback
of one to 10 years, the retail electricity consumer shall be
relieved of 54 percent of its payment obligation for public
purpose charges related to the site. If the independent auditor
determines that there are potential conservation measures
available at the site, the retail electricity consumer shall be
entitled to a credit against public purpose charges related to
the site equal to 54 percent of the public purpose charges less
the estimated cost of available conservation measures.
(B) A retail electricity consumer shall be entitled each year
to the credit described in this subsection unless a subsequent
independent audit determines that new conservation investment
opportunities are available. The Office of Energy may require
that a new independent audit be performed on the site to
determine whether new conservation measures are available,
provided that the independent audits shall occur no more than
once every two years.
(C) The retail electricity consumer shall pay the cost of the
independent audits described in this subsection.
(6) Electric utilities and retail electricity consumers shall
receive a fair and reasonable credit for the public purpose
expenditures of their energy suppliers. The Office of Energy
shall adopt rules to determine eligible expenditures and the
methodology by which such credits are accounted for and used. The
rules also shall adopt methods to account for eligible public
purpose expenditures made through consortia or collaborative
projects.
(7)(a) In addition to the public purpose charge provided under
subsection (2) of this section, beginning on { - the date
direct access is offered under section 2 (1), chapter 865, Oregon
Laws 1999 - } { + October 1, 2005 + }, an electric company
shall collect funds for low-income electric bill payment
assistance in an amount determined under paragraph (b) of this
subsection.
(b) The total amount collected for low-income electric bill
payment assistance under this section shall be $10 million. The
commission shall determine each electric company's proportionate
share of the total amount. The commission shall determine the
amount to be collected from a retail electricity consumer, except
that a retail electricity consumer shall not be required to pay
more than $500 per month per site for low-income electric bill
payment assistance.
(c) Funds collected by the low-income electric bill payment
assistance charge shall be paid into the Housing and Community
Services Department Revolving Account created under ORS 456.574.
Moneys deposited in the account under this paragraph are
continuously appropriated to the Housing and Community Services
Department for the purpose of funding low-income electric bill
payment assistance. Interest earned on moneys deposited in the
account under this paragraph shall accrue to the account. The
department's cost of administering this subsection shall be paid
out of funds collected by the low-income electric bill payment
assistance charge. Moneys deposited in the account under this
paragraph shall be expended solely for low-income electric bill
payment assistance. Funds collected from an electric company
shall be expended in the service area of the electric company
from which the funds are collected.
(d) The Housing and Community Services Department, in
consultation with the federal Advisory Committee on Energy, shall
determine the manner in which funds collected under this
subsection will be allocated by the department to energy
assistance program providers for the purpose of providing
low-income bill payment and crisis assistance, including programs
that effectively reduce service disconnections and related costs
to retail electricity consumers and electric utilities. Priority
assistance shall be directed to low-income electricity consumers
who are in danger of having their electricity service
disconnected.
(e) Notwithstanding ORS 293.140, interest on moneys deposited
in the Housing and Community Services Department Revolving
Account under this subsection shall accrue to the account and may
be used to provide heating bill payment and crisis assistance to
electricity consumers whose primary source of heat is not
electricity.
(f) Notwithstanding ORS 757.310, the commission may allow an
electric company to provide reduced rates or other payment or
crisis assistance or low-income program assistance to a
low-income household eligible for assistance under the federal
Low Income Home Energy Assistance Act of 1981, as amended and in
effect on July 23, 1999.
(8) In addition to all other charges provided in this section,
{ - for the period - } from January 1, 2000, { - to the date
direct access is offered under section 2 (1), chapter 865, Oregon
Laws 1999 - } { + until October 1, 2005 + }, an electric
company shall collect from its retail electricity consumers an
electric bill payment assistance charge. A retail electricity
consumer shall not be required to pay more than $500 per month
per site for low-income electric bill payment assistance under
this subsection. The statewide total amount collected under this
subsection shall equal $5 million per year, prorated for any
fraction of a year. The commission shall determine each electric
company's proportionate share of the statewide total amount.
Moneys collected under this subsection shall be deposited in the
Housing and Community Services Department Revolving Account
created under ORS 456.574 and expended for low-income electric
bill payment assistance in the manner provided in subsection
(7)(d) of this section.
(9) For purposes of this section, 'retail electricity
consumers' includes any direct service industrial consumer that
purchases electricity without purchasing distribution services
from the electric utility.
SECTION 10. ORS 757.632 is amended to read:
757.632. Every electricity service supplier is authorized to
use the distribution facilities of an electric company on a
nondiscriminatory basis after { - the retail electricity
consumers of the electricity service supplier are afforded direct
access pursuant to section 2, chapter 865, Oregon Laws 1999 - }
{ + October 1, 2005 + }.
SECTION 11. ORS 757.642 is amended to read:
757.642. (1) Not later than October 1, { - 2001 - } { +
2005 + }, an electric company shall unbundle the costs of
electricity services into power generation, transmission,
distribution and retail services.
(2) Every electric company shall maintain separate accounting
records for each component of electricity service provided by the
electric company to retail electricity consumers. Accounts shall
be maintained according to regulations issued by the Federal
Energy Regulatory Commission.
(3) Unless required to provide a different accounting under
federal requirements, each electric company shall, to a
reasonable level of detail, separately identify and account for
its costs of:
(a) Generation;
(b) Transmission services;
(c) Distribution services;
(d) Ancillary services;
(e) Consumer service charges levied on retail electricity
consumers, including but not limited to metering and billing;
(f) Investment in public purposes; and
(g) State and local taxes paid by retail electricity consumers.
(4) An electric company shall separately identify and account
for the costs of any additional components as the Public Utility
Commission may require.
SECTION 12. ORS 757.687 is amended to read:
757.687. (1) Beginning on { - the date a consumer-owned
utility provides direct access to any class of retail electric
consumers - } { + October 1, 2005 + }, the consumer-owned
utility shall collect from that consumer class a nonbypassable
public purpose charge for a period of 10 years. Except as
provided in subsection (8) of this section, the amount of the
public purpose charge shall be sufficient to produce revenue of
not less than three percent of the total revenue collected by the
consumer-owned utility from its retail electricity consumers for
electricity services, distribution, ancillary services, metering
and billing, transition charges and any other costs included in
rates as of July 23, 1999, except that the consumer-owned utility
may exclude from the calculation of such costs any cost related
to the public purposes described in subsection (5) of this
section. If a consumer-owned utility has fewer than 17 consumers
per mile of distribution line, the amount of the public purpose
charge shall be sufficient to produce revenue not less than three
percent of the total revenue from the sale of electricity
services in the utility's service area to the consumer class that
is provided direct access, or the utility's consumer class
percentage share of state total electricity sales multiplied by
three percent of total statewide retail electric revenue,
whichever is less.
(2) Except as provided in subsection (9) of this section, the
governing body of a consumer-owned utility shall determine the
manner of collecting and expending funds for public purposes
required by law to be assessed against and paid by the retail
electric consumers of the utility. A determination by the
governing body shall include:
(a) The manner for collecting public purpose charges;
(b) Public purpose programs upon which revenue from the charges
may be expended; and
(c) The allocation of expenditures for each program.
(3) Beginning on the same date two years after July 23, 1999, a
consumer-owned utility shall report annually to the Office of
Energy created under ORS 469.030 on the public purpose charges
paid to the utility by its retail electric consumers and the
public purposes on which the revenue was expended.
(4) A consumer-owned utility may comply with the public purpose
requirements of this section by participating in collaborative
efforts with other consumer-owned utilities located in this
state.
(5) Funds assessed and paid by, and credits or other financial
assistance issued or extended to, retail electric consumers for
purposes of this section may, in the discretion of the governing
body of the consumer-owned utility, be expended to fund programs
for energy conservation, renewable resources or low-income energy
services otherwise required by the laws of this state, adopted by
the governing body pursuant to the National Energy Conservation
Policy Act (Public Law 95-619, as amended November 10, 1981), or
conducted by the utility pursuant to agreement with the
Bonneville Power Administration under the Pacific Northwest
Electric Power Planning and Conservation Act (Public Law 96-501).
All such funds expended, credits issued and incremental costs
incurred in connection with the performance of a consumer-owned
utility's obligations under this section shall be credited toward
the utility's public purpose funding obligation under this
section.
(6) A consumer-owned utility also may credit toward its funding
obligations under this section any incremental costs incurred by
the utility for capital expenditures made to reduce its
distribution system energy losses, existing biomass gas and waste
to energy systems, existing hydroelectric generation projects
using fish attraction water, for new energy conservation and
renewable resource funding costs included in its wholesale power
supplier's charges and for electric power generated by renewable
or cogeneration resources pursuant to requirements of the Public
Utilities Regulatory Policy Act of 1978 (Public Law 95-617), to
the extent that such costs exceed the average cost of the
utility's other electric power resources.
(7) A consumer-owned utility also may credit toward its public
purpose funding obligations under this section any costs incurred
in complying with ORS 469.649 to 469.659.
(8) Beginning on October 1, { - 2001 - } { + 2005 + }, a
consumer-owned utility whose territory abuts the greatest
percentage of the site of an aluminum plant that averages more
than 100 megawatts of electricity use per year shall collect from
the aluminum company a public purpose charge equal to one percent
of the total revenue from the sale of electricity services to the
aluminum plant from any source.
(9)(a) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year
shall receive a credit against public purpose charges billed by a
consumer-owned utility for that site. The amount of the credit
shall be equal to the total amount of qualifying expenditures for
new energy conservation, not to exceed 68 percent of the annual
public purpose charges, and the above-market costs of purchases
of new renewable energy resources incurred by the retail
electricity consumer, less administration costs incurred under
this subsection. The credit shall not exceed, on an annual basis,
the lesser of:
(A) The amount of the retail electricity consumer's qualifying
expenditures; or
(B) The portion of the public purpose charge billed to the
retail electricity consumer that is dedicated to new energy
conservation, new market transformation or the above-market costs
of new renewable resources.
(b) To obtain a credit under this subsection, a retail
electricity consumer shall file with the Office of Energy a
description of the proposed conservation project, new market
transformation or new renewable energy resource and a declaration
that the retail electricity consumer plans to incur the
qualifying expenditure. The Office of Energy shall issue a notice
of precertification within 30 days of receipt of the filing, if
such filing is consistent with this subsection. Notice shall be
issued to the retail electricity consumer and the appropriate
consumer-owned utility. The credit may be taken after a retail
electricity consumer provides a letter from a certified public
accountant to the Office of Energy verifying that the
precertified qualifying expenditure has been made.
(c) Credits earned by a retail electricity consumer as a result
of qualifying expenditures that are not used in one year may be
carried forward for use in subsequent years.
(d)(A) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year may
request that the Office of Energy hire an independent auditor to
assess the potential for conservation measures at the site. If
the independent auditor determines there is no available
conservation measure at the site that would have a simple payback
of one to 10 years, the retail electricity consumer shall be
relieved of 54 percent of its payment obligation for public
purpose charges related to the site. If the auditor determines
that there are potential conservation measures available at the
site, the retail electricity consumer shall be entitled to a
credit against public purpose charges related to the site equal
to 54 percent of the public purpose charges less the estimated
cost of available conservation measures.
(B) A retail electricity consumer shall be entitled each year
to the credit described in this paragraph unless a subsequent
audit determines that new conservation investment opportunities
are available. The Office of Energy may require that a new audit
be performed on the site to determine whether new conservation
measures are available, provided that the audits occur no more
than once every two years.
(C) The retail electricity consumer shall pay the cost of the
audits described in this subsection.
(10) A retail electricity consumer with a load greater than one
average megawatt shall not be required to pay a public purpose
charge in excess of three percent of the consumer's total cost of
electricity services unless the charge is established in an
agreement between the consumer and the consumer-owned utility.
(11) Beginning on { - the later of October 1, 2001, or the
date direct access is offered under section 2 (1), chapter 865,
Oregon Laws 1999 - } { + October 1, 2005 + }, a consumer-owned
utility shall have in operation a bill assistance program for
households that qualify for federal low-income energy assistance
in the consumer-owned utility's service area. A consumer-owned
utility shall report annually to the Housing and Community
Services Department detailing the utility's program and program
expenditures.
(12) A consumer-owned utility may require an electricity
service supplier to provide information necessary to ensure
compliance with this section. The consumer-owned utility shall
ensure the privacy and protection of any proprietary information
provided.
SECTION 13. { + 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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