Chapter 394
Oregon Laws 2011
AN ACT
HB 3461
Relating to
Klamath River dams; amending ORS 757.736 and 757.738.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 757.736 is amended to
read:
757.736. (1) Not more than 30 days
after the execution of a final agreement, PacifiCorp must file a copy of the
final agreement with the Public Utility Commission along with full and complete
copies of all analyses or studies that relate to the rate-related costs,
benefits and risks for customers of removing or relicensing Klamath River dams
and that were reviewed by PacifiCorp during the decision-making process that
led to PacifiCorp’s entering into the final agreement.
(2) PacifiCorp must include with the
filing made under subsection (1) of this section tariffs for the collection of
two nonbypassable surcharges from its customers for the purpose of paying the
costs of removing Klamath River dams as described in subsection (11) of this
section. Notwithstanding the commission’s findings and conclusions under
subsection (4) of this section, the commission shall require PacifiCorp to
begin collecting the surcharges on the date that the filing is made under
subsection (1) of this section, or on January 1, 2010, whichever is later, and
PacifiCorp shall continue to collect the surcharges pending a final decision on
the commission’s order under subsection (4) of this section. The surcharges
imposed under this section shall be:
(a) A surcharge for the costs of
removing the J.C. Boyle Dam; and
(b) A surcharge for the costs of
removing the Copco 1 Dam, the Copco 2 Dam and the Iron Gate Dam.
(3) The surcharges imposed under this
section may not exceed the amounts necessary to fund Oregon’s share of the
customer contribution of $200 million identified in the agreement in principle.
In addition, the total amount collected in a calendar year under both
surcharges may not exceed more than two percent of PacifiCorp’s annual revenue
requirement as determined in PacifiCorp’s last case under ORS 757.210 decided
by the commission before January 1, 2010.
(4) Not more than six months after a
filing is made under subsection (1) of this section, the commission shall
conduct a hearing under ORS 757.210 on the surcharges imposed under this
section, and shall enter an order setting forth findings and conclusions as to
whether the imposition of surcharges under the terms of the final agreement
results in rates that are fair, just and reasonable.
(5) Notwithstanding ORS 183.482 (1),
jurisdiction for judicial review of any appeal of an order entered under
subsection (4) of this section is conferred on the Supreme Court, and a person
seeking judicial review of the order must file a petition for review with the
Supreme Court in the manner provided by ORS 183.482. ORS 183.482 (3) does not
apply to an order entered under subsection (4) of this section. If a petition
for review is filed, the surcharges imposed under the terms of the final
agreement shall remain in effect pending a final decision on the petition, but
shall be refunded if the rates resulting from the surcharges are finally
determined not to be fair, just and reasonable. A petition filed under this
subsection must indicate on its face that the petition is filed pursuant to
this subsection.
(6) The commission may not use any
commercially sensitive information provided to the commission in a filing made
under subsection (1) of this section for any purpose other than determining
whether the imposition of surcharges under the terms of the final agreement
results in rates that are fair, just and reasonable. Notwithstanding ORS
192.410 to 192.505, the commission may not release commercially sensitive
information provided to the commission under this section, and shall require
any person participating in a proceeding relating to the surcharge to sign a
protective order prepared by the commission before allowing the participant to
obtain and use the information.
(7) The surcharges imposed under this
section must be of a specified amount per kilowatt hour billed to retail
customers, as determined by the commission. The amount of each surcharge shall
be calculated based on a collection schedule that will fund, by December 31,
2019, Oregon’s share of the customer contribution of $200 million identified in
the agreement in principle. To the extent practicable, the commission shall set
the surcharges so that total annual collections of the surcharges remain
approximately the same during the collection period, and, when setting the
rate for the surcharges, the commission shall account for the actual and
expected changes in energy usage over the collection period and account for the
actual and expected changes in interest rates on the collected funds over the
collection period. The commission may change the collection schedule if a
Klamath River dam will be removed during a year other than 2020.
(8) Except as provided in ORS 757.738
(2), all amounts collected under the surcharges imposed under this section
shall be paid into the appropriate trust account established under ORS 757.738.
(9) If the commission determines at
any time that amounts have been collected under this section in excess of those
needed, or in excess of those allowed, the commission must:
(a) Direct the trustee of the
appropriate trust account under ORS 757.738 to refund these excess amounts to
customers or to otherwise use these amounts for the benefit of customers; or
(b) Adjust future surcharge amounts as
necessary to offset the excess amounts.
(10) If one or more Klamath River dams
will not be removed, the commission shall direct PacifiCorp to terminate
collection of all or part of the surcharges imposed under this section. In
addition, the commission shall direct the trustee of the appropriate trust
account under ORS 757.738 to apply any excess balances in the accounts to
Oregon’s allocated share of prudently incurred costs to implement Federal
Energy Regulatory Commission relicensing requirements. If any excess amounts
remain in the trust accounts after that application, the Public Utility
Commission shall order that the excess amounts be refunded to customers or
otherwise be used for the benefit of customers in accordance with Public
Utility Commission rules and policies.
(11) For the purposes of subsection
(2) of this section, “the costs of removing Klamath River dams” includes costs
of:
(a) Physical removal of the dams;
(b) Site remediation and restoration;
(c) Avoiding downstream impacts of dam
removal;
(d) Downstream impacts of dam removal;
(e) Permits that are required for the
removal;
(f) Removal and disposal of sediment,
debris and other materials, if necessary; and
(g) Compliance with environmental
laws.
SECTION 2. ORS 757.738 is amended to
read:
757.738. [(1) The Public Utility Commission shall establish a separate trust
account for amounts generated by each of the two surcharges imposed under ORS
757.736. The commission shall establish the trust accounts as interest-bearing
accounts with an agency of the United States identified in the final agreement,
or in a depository that is qualified under ORS 295.001 to 295.108 to receive
public funds. The commission may authorize transfer of funds from one trust
account to another as necessary to fund removal of the Klamath River dams.]
(1)(a) The Public Utility
Commission shall establish a separate trust account for amounts generated by
each of the two surcharges imposed under ORS 757.736. The commission shall
establish the trust accounts as interest-bearing accounts:
(A) With an agency of the United
States identified in the final agreement;
(B) In a depository that is qualified
under ORS 295.001 to 295.108 to receive public funds; or
(C) With the State Treasurer, to be
invested as provided in ORS 293.701 to 293.820.
(b) The commission may establish each
of the two trust accounts with a different trustee among those listed in
paragraph (a) of this subsection.
(c) The commission may authorize
transfer of funds from one trust account to another as necessary to fund
removal of the Klamath River dams.
(2) If an agreement is entered into
under ORS 757.742 (2), the parties to the agreement may agree that a portion of
the amounts collected under one surcharge may be deposited in the trust account
established for amounts collected under the other surcharge.
(3) Upon request of an agency of the
United States, or upon request of the designee of an agency of the United
States, the commission shall require the trustee of the appropriate trust
account established under this section to transfer to the agency or designee
the amounts that are necessary to pay the costs of removing the Klamath River
dams as described in ORS 757.736 (11).
(4) If any amounts remain in a trust
account established under this section after the trustee makes all payments
necessary for the costs of removing the Klamath River dams as described in ORS
757.736 (11), the commission shall direct the trustee of the account to refund
those amounts to customers or to otherwise use the excess amounts for the
benefit of customers.
Approved by
the Governor June 16, 2011
Filed in the
office of Secretary of State June 16, 2011
Effective date
January 1, 2012
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