Chapter 259 Oregon Laws 1999

Session Law

AN ACT

HB 3220

Relating to recovery of investment in retired utility property; creating new provisions; and amending ORS 757.140 and 759.135.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 757.140 is amended to read:

757.140. (1) Every public utility shall carry a proper and adequate depreciation account. The Public Utility Commission shall ascertain and determine the proper and adequate rates of depreciation of the several classes of property of each public utility. The rates shall be such as will provide the amounts required over and above the expenses of maintenance, to keep such property in a state of efficiency corresponding to the progress of the industry. Each public utility shall conform its depreciation accounts to the rates so ascertained and determined by the commission. The commission may make changes in such rates of depreciation from time to time as the commission may find to be necessary.

(2) Notwithstanding ORS 757.355, in the following cases the commission may allow in rates, directly or indirectly, the return of and a return on amounts on the utility's books of account which the commission finds represent undepreciated investment in [a] utility [plant, including that which] property that has been retired from service:

(a) When the retirement is due to ordinary wear and tear, casualties, acts of God, acts of governmental authority; or

(b) When the commission finds that the retirement is in the public interest.

SECTION 2. ORS 759.135 is amended to read:

759.135. (1) Every telecommunications utility shall carry a proper and adequate depreciation account. The Public Utility Commission shall ascertain and determine the proper and adequate rates of depreciation of the several classes of property of each telecommunications utility. The rates shall be such as will provide the amounts required over and above the expenses of maintenance, to keep such property in a state of efficiency corresponding to the progress of the industry. Each telecommunications utility shall conform its depreciation accounts to the rates so ascertained and determined by the commission. The commission may make changes in such rates of depreciation from time to time as the commission may find to be necessary.

(2) Notwithstanding ORS 757.355, in the following cases the commission may allow in rates, directly or indirectly, the return of and a return on amounts on the utility's books of account which the commission finds represent undepreciated investment in [a] utility [plant, including that which] property that has been retired from service:

(a) When the retirement is due to ordinary wear and tear, casualties, acts of God, acts of governmental authority; or

(b) When the commission finds that the retirement is in the public interest.

SECTION 3. The amendments to ORS 757.140 and 759.135 by sections 1 and 2 of this 1999 Act apply to public utility and telecommunications utility property retired from service before, on or after the effective date of this 1999 Act.

SECTION 4. The amendments to ORS 757.140 and 759.135 by sections 1 and 2 of this 1999 Act apply to orders of the Public Utility Commission entered before, on or after the effective date of this 1999 Act.

Approved by the Governor June 16, 1999

Filed in the office of Secretary of State June 16, 1999

Effective date October 23, 1999

__________