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					                           2007

        OREGON REVISED STATUTES



                         Including

Acts of the 2007 regular session of the Seventy-fourth Legislative
Assembly.




    The following pages contain direct reproductions of official
    publication of pertinent Oregon laws relating to and
    administered by the Public Utility Commission of Oregon.

    Rules and regulations promulgated by the Commission are on
    file with the Secretary of State, copies of which are available
    from the PUC at 550 Capitol Street, N.E., Suite 215, Salem,
    Oregon 97301-2551.




                    Printed March 2008
The Public Utility Commission of Oregon does not discriminate on
the basis of race, color, national origin, sex, sexual orientation,
religion, age, or disability in employment or the provision of services.

      This document is available in alternate formats by calling
      (503) 378-8962 (voice), or (800) 648-3458 (TDD/TT).
                                                              TABLE OF CONTENTS

Chapter 756                                                     Page            Facilities ...............................................90-93
 PUBLIC UTILITY COMMISSION ................ 5-6                             Liability of Electric Utility for Pruning
  Definitions; General Provisions ........................7                     and Removing Vegetation....................93-94
  Commission Powers and Duties Generally . 7-10                             Water Utilities............................................94-96
  Investigatory Powers................................. 10-11               Electric and Gas Utilities; Allocation of
  Enforcement and Remedies....................... 11-12                         Territories and Customers ....................96-99
  Funds and Fees.......................................... 12-14            Trojan Nuclear Plant................................99-100
  Declaratory Rulings ........................................14            Cogeneration and Small Power Production
  Complaint and Investigation Procedure .... 14-15                              Facilities ...........................................100-102
  Hearing Procedure..................................... 16-19             Chapter 759
  Penalties ..........................................................19    TELECOMMUNICATIONS UTILITY

Chapter 757                                                                   REGULATION....................................... 103-105

 UT'ILITY REGULATION GENERALLY . 21-24                                          Definitions; General Provisions ........... 107-109

  Definitions; General Provisions ................ 25-29                      Regulation of Telecommunications

  Budget, Accounts & Reports of Utilities .. 29-31                                  Services ........................................... 109-113

  Rate Schedules; Measuring Equipment..... 31-40                                Rights of Way ..............................................113

  Attachments Regulation ............................ 40-42                     Accounts and Records.......................... 113-114

  Net Metering Facilities.............................. 42-44                   Rate Regulation and Procedures; Measuring

  Illegal Practices ......................................... 44-45                 Equipment ........................................ 114-122

  Issuance of Securities................................ 45-49                  Illegal Practices ............................................122

  Transactions Involving Utilities................ 49-53                        Issuance of Securities........................... 123-125

  Oregon Utility Notification Center ........... 53-55                          Transactions of Utilities ....................... 125-128

  Direct Access Regulation.......................... 55-70                      Price Cap Regulation ........................... 128-136

  Emergency Curtailment of Electricity or                                       Service Quality Standards and

    Natural or Manufactured Gas.......................70                            Prohibited Acts................................ 137-139

  Health Endangering Termination of                                             Allocation of Territories and Customers139-141

    Residential Utility Service...................... 70-71                     Attachment Regulation......................... 141-142

  High Voltage Power Line Regulation ....... 71-72                              Operator Service Providers ..........................142

  Oregon Community Power ....................... 72-85                          Residential Service Protection ............. 142-144

  Penalties .................................................... 85-86          Assistive Telecommunication Devices for
                                                                                      Persons with Disabilities................ 144-145
Chapter 758
                                                                                Information Services Providers............ 145-147
 UTILITY RIGHTS OF WAY AND TERRITORY
                                                                                 Unauthorized Changes in Telecommunications
  ALLOCATION; COGENERATION..............87
                                                                                      Carriers ..................................................147
  Rights of Way ........................................... 89-90
                                                                                Damages............................................... 147-148
  Underground Electric and Communications
       Oregon Telecommunication Coordinating                                    Readability of Public Writings........................201
         Council .............................................. 148-149
                                                                            Chapter 192
       Penalties ............................................... 149-150
                                                                             RECORDS; PUBLIC REPORTS AND
 Chapter 772                                                                  MEETINGS ............................................... 203-204
   RIGHTS OF WAY FOR PUBLIC USES......... 151                                   Public Records Policy .....................................205
     Condemnation of Property by Private                                        Archiving of Public Records................... 205-207
       Corporations Generally ........................ 153-154                  Public Reports......................................... 207-209
   Appropriation of Public Lands                                                Records and Reports in English ......................209
       for Railroads......................................... 154-155           Inspection of Public Records .................. 209-224
   Condemnation by Public Utilities and                                         Records of Individual with Disability or Mental
     Electrical Cooperative Associations........ 155-156                             Illness ................................................ 224-225
     Condemnation for Drainage or Irrigation....... 156                         Protected Health Information.................. 225-230
     Condemnation by Corporations for Reduction                                 Genetic Privacy....................................... 230-237
         of Ores, Mining, Quarries, Lumbering and                               Private Financial Records ....................... 238-242
         Transportation of Mining Products ... 156-157                          Public Meetings ...................................... 242-248
     Condemnation by Pipeline and                                               Financial Institution Record Disclosures 248-249
         Gas Companies.................................. 157-158                Address Confidentiality Program............ 249-254
     Condemnation for Underground Natural                                       Penalties ..........................................................254
         Gas Storage........................................ 158-159
                                                                             Chapter 469

Chapter 774                                                                  ENERGY CONSERVATION PROGRAMS;

   CITIZENS' UTILITY BOARD ................. 161-166                          ENERGY FACILITIES ............................ 255-258
                                                                                General Provisions, Definitions .............. 259-260
Chapter 183
                                                                                State Department of Energy;
ADMINISTRATIVE PROCEDURES ACT;
                                                                                     Administration................................... 260-264
   LEGISLATIVE REVIEW OF RULES; CIVIL
                                                                                Alternative Energy Devices .................... 264-270
   PENALTIES............................................... 167-168
                                                                                Renewable Energy Resources................. 270-275
     General Provisions .................................. 169-171
                                                                                Energy Efficiency Standards................... 275-288
     Adoption of Rules ................................... 171-179
                                                                                Regulation of Energy Facilities.......................288
     Contested Cases ...................................... 179-186
                                                                                  General Provisions ............................... 288-291
     Judicial Review ....................................... 186-189
                                                                                  Siting .................................................... 291-306
     Appeals from Circuit Courts .......................... 189
                                                                                  High Voltage Transmission Lines................306
     Alternative Dispute Resolution ............... 189-190
                                                                                  Administration ..................................... 307-308
     Housing Cost Impact Statement .............. 190-191
                                                                                  Rules; Standards; Compliance ............. 308-315
     Effects of Rules on Business.......................... 191
                                                                                  Plant Operations; Radioactive Wastes . 315-317
     Office of Administrative Hearings .......... 191-197
                                                                                  Records ........................................................317
     Permits and Licenses............................... 197-198
                                                                                  Insurance ......................................................318
     Legislative Review of Rules ................... 198-200
                                                                                  Enforcement .................................................318
     Civil Penalties ................................................ 200
                                                                                  Oregon Hanford Cleanup ..................... 318-321
  Federal Site Selection ........................... 321-322
  Hanford Nuclear Reservation............... 322-323
  Siting of Nuclear-Fueled Thermal Power
    Plants ................................................. 323-324
  Transportation of Radioactive Material 324-326
Residential Energy Conservation Act ............ 326
  Investor-Owned Utilities ...................... 326-330
  Publicly Owned Utilities ...................... 330-332
  Oil Dealers............................................ 333-334
  Miscellaneous....................................... 334-335
Energy Conservation Programs...................... 335
  Single Family Residence ............................. 335
  Low Interest Loans............................... 335-336
  Public Buildings ................................... 336-337
  State Agency Projects........................... 337-338
  Biofuels and Biomass ........................... 338-339
Pacific Northwest Electric Power &
  Conservation Planning Council............ 339-341
Commercial Energy Conservation Services
  Program ................................................ 341-343
Northwest Interstate Compact On Low-Level
  Radioactive Waste Management ................. 346
Power Costs and Rates ................................... 346
Penalties .................................................. 346-347
                                             TITLE 57

                              UTILITY REGULATION

Chapter 756.         Public Utility Commission
        757.         Utility Regulation Generally
        758.         Utility Rights of Way and Territory Allocation; Cogeneration
        759.         Telecommunications Utility Regulation
        772.         Rights of Way for Public Uses
        774.         Citizens′ Utility Board




                                           Chapter 756
                                              2007 EDITION

                               Public Utility Commission

                GENERAL PROVISIONS                        756.075   Right of entry for examination of equip-
756.010     Definitions                                             ment, records or employees; use of find-
                                                                    ings
          COMMISSION POWERS AND DUTIES                    756.090   Maintaining and producing records; ex-
                                                                    penses of examining out-of-state records
                       (Generally)                        756.105   Duty to furnish information to commis-
756.014     Public Utility Commission; appointment;                 sion
            confirmation; term; removal                   756.115   Failure to furnish requested information
756.016     Quorum; seal; individual commissioner         756.125   Interference with commission′s equipment
            authorized to act for commission
756.022     Oath of office                                          ENFORCEMENT AND REMEDIES
756.026     Prohibited interests of commissioner and      756.160   Enforcement of statutes and ordinances
            family                                                  relating to utilities
756.028     Employee statements regarding prohibited      756.180   Enforcing utility laws
            interests                                     756.185   Right to recover for wrongs and omis-
756.032     Employee dismissal for retention of pro-                sions; treble damages
            hibited interests or failure to file state-   756.200   Effect of utility laws on common law and
            ments                                                   other statutory rights of action, duties
756.034     Intent of prohibited interest provisions                and liabilities
756.036     Duties and functions                                            FUNDS AND FEES
756.037     Commission authority to provide assist-       756.305   Public Utility Commission Account
            ance, information, resources and advice
            to Legislative Assembly                       756.310   Annual fees payable by utilities and tele-
                                                                    communications providers
756.040     General powers
                                                          756.320   Statements accompanying fees; audit and
756.045     Employing legal counsel                                 refunding by commission
756.047     Authority of commission to require fin-       756.325   Distribution of information filed with
            gerprints                                               commission; fees; rules
756.050     Office, office supplies and sessions of       756.350   Penalty for failure to pay fees; action to
            commission                                              collect unpaid fees and penalties
756.055     Delegation of authority                       756.360   Disposal and use of fees and penalties
756.060     Authority to adopt rules and regulations                collected
756.062     Substantial compliance with laws ade-                     DECLARATORY RULINGS
            quate for commission activities; construc-
            tion of laws generally                        756.450   Declaratory rulings
756.068     Service of notice or other legal process              COMPLAINT AND INVESTIGATION
                                                                            PROCEDURE
                 (Investigatory Powers)                   756.500  Complaint; persons entitled to file; con-
756.070     Investigating management of utilities                  tents; amendments

Title 57                                            Page 1                                    (2007 Edition)
                                       UTILITY REGULATION

756.512    Notice of complaint to defendant; respon-    756.549   Self-incrimination of witnesses in com-
           sive pleadings; setting cause for hearing              mission proceedings
756.515    Investigations and hearings on commis-       756.552   Self-incrimination of witnesses in court
           sion′s own motion; hearings for aggrieved              proceedings
           persons                                      756.555   Powers of commission at hearings
                                                        756.558   Taking of evidence; findings; issuance of
                HEARING PROCEDURE                                 orders; providing copies of orders
756.518    Procedures applicable to all matters be-     756.561   Rehearing; reconsideration
           fore commission; oral hearing; rules         756.565   Prima facie effect of commission actions
756.521    Public hearings; record required; furnish-   756.568   Rescission, suspension and amendment of
           ing transcripts                                        orders
756.525    Parties to proceedings                       756.572   Effect of orders on successors in interest
756.528    Segregation of issues                        756.575   Notice of acceptance of terms of orders
756.534    Place of hearings; continuation              756.610   Judicial review
756.538    Taking and use of depositions; rules                               PENALTIES
756.543    Issuance of subpoenas; failure to comply     756.990   Penalties




Title 57                                          Page 2                                    (2007 Edition)
                                      PUBLIC UTILITY COMMISSION                                               756.026

           GENERAL PROVISIONS                                   by the Governor sufficient. Before such re-
     756.010 Definitions. As used in ORS                        moval the Governor shall give the commis-
chapters 756, 757, 758 and 759, except as                       sioner a copy of the charges, and shall fix a
otherwise specifically provided or unless the                   time when the commissioner can be heard,
context requires otherwise:                                     which shall not be less than 10 days thereaf-
                                                                ter. The hearing shall be open to the public.
     (1) “Commission” means the Public Util-                    If the commissioner is removed, the Gover-
ity Commission of Oregon.                                       nor shall file in the office of the Secretary
     (2) “Commissioner” means a member of                       of State a complete statement of all charges
the Public Utility Commission of Oregon.                        made against the commissioner, and the
     (3) “Customer” includes the patrons, pas-                  findings thereon with a record of the pro-
sengers, shippers, subscribers, users of the                    ceedings. Such power of removal is absolute,
service and consumers of the product of a                       and there is no right of review of the same
public utility or telecommunications utility.                   in any court. [1985 c.834 §2; 1999 c.1102 §1]
     (4) “Municipality” means any city, mu-                         756.016 Quorum; seal; individual com-
nicipal corporation or quasi-municipal corpo-                   missioner authorized to act for commis-
ration.                                                         sion. (1) A majority of the commissioners
     (5) “Person” includes individuals, joint                   shall constitute a quorum for the transaction
ventures, partnerships, corporations and as-                    of any business, for the performance of any
sociations or their officers, employees,                        duty or for the exercise of any power of the
agents, lessees, assignees, trustees or receiv-                 Public Utility Commission.
ers.                                                                (2) The commission shall have a seal with
     (6) “Public utility” has the meaning given                 the words “Public Utility Commission of Or-
that term in ORS 757.005.                                       egon” and such other design as the commis-
                                                                sion may prescribe engraved thereon, by
     (7) “Rate” means any fare, charge, joint                   which the proceedings of the commission
rate, schedule or groups of rates or other re-                  shall be authenticated and of which the
muneration or compensation for service.                         courts shall take judicial notice.
     (8) “Service” is used in its broadest and                      (3) Any investigation, inquiry or hearing
most inclusive sense and includes equipment                     which the commission has power to under-
and facilities related to providing the service                 take or to hold may be undertaken or held
or the product served.                                          by or before any commissioner designated by
     (9) “Telecommunications utility” has the                   order of the commission. Except as provided
meaning given that term in ORS 759.005.                         in ORS 756.055, all investigations, inquiries
[Amended by 1971 c.655 §2; 1973 c.776 §14; 1977 c.337 §1;       and hearings so held shall be conducted as
1985 c.834 §6; 1987 c.447 §75; 1991 c.841 §1; 1995 c.733 §52]   though by the full commission with such
                                                                commissioner empowered to exercise all the
  COMMISSION POWERS AND DUTIES                                  powers of the commission with respect
                 (Generally)                                    thereto. [1985 c.834 §§3,4,5]
                                                                     756.020 [Amended by 1973 c.792 §48; 1983 c.540 §1;
    756.014 Public Utility Commission; ap-                      repealed by 1985 c.834 §12]
pointment; confirmation; term; removal.
(1) There is created the Public Utility Com-                         756.022 Oath of office. Before entering
mission of Oregon. The commission shall be                      upon the duties of office, each commissioner
composed of three members appointed by the                      shall take and subscribe to an oath or affir-
Governor, subject to confirmation by the                        mation to support the Constitution of the
Senate pursuant to section 4, Article III of                    United States and of this state, and to
the Oregon Constitution. No more than two                       faithfully and honestly discharge the duties
of such members shall be of the same poli-                      of office. The oath shall be filed with the
tical party.                                                    Secretary of State. [1971 c.655 §3; 1985 c.834 §7]
    (2) Each commissioner shall hold office                          756.026 Prohibited interests of com-
for the term of four years. A commissioner                      missioner and family. (1) No member of the
shall hold office until a successor has been                    Public Utility Commission shall:
appointed and qualified. The chairperson                             (a) Hold any other office of profit;
shall be designated by the Governor and
shall serve as chairperson at the pleasure of                        (b) Hold any office or position under any
the Governor.                                                   political committee or party;
    (3) Any vacancy occurring in the office                          (c) Hold any pecuniary interest in any
of commissioner shall be filled by appoint-                     business entity conducting operations which
ment by the Governor to hold office for the                     if conducted in this state would be subject to
balance of the unexpired term.                                  the commission′s regulatory jurisdiction; or
    (4) The Governor may at any time re-                             (d) Hold any pecuniary interest in, have
move a commissioner for any cause deemed                        any contract of employment with, or have

Title 57                                                  Page 3                                      (2007 Edition)
756.028                                  UTILITY REGULATION

any substantial voluntary transactions with              (c) Who fails to cause divestiture of a
any business or activity subject to the com-         pecuniary interest within the time specified
mission′s regulatory jurisdiction.                   in an order issued pursuant to ORS 756.028.
    (2) The prohibitions of subsection (1)(c)            (2) Dismissal of an employee under sub-
and (d) of this section apply to the spouse          section (1) of this section is subject to the
and minor children of each commissioner.             procedure and appeal provided in ORS
    (3) If the Governor determines that any          240.555 and 240.560. An employee so dis-
commissioner has done any act prohibited by          missed is eligible for reemployment. [1971 c.655
                                                     §6; 1979 c.468 §34; 2003 c.14 §452]
subsection (1) of this section, or that a com-
missioner′s spouse or a minor child has done              756.034 Intent of prohibited interest
any act prohibited by subsection (2) of this         provisions. Nothing in ORS 756.022 to
section, the Governor shall remove the com-          756.032 is intended to authorize any act oth-
missioner in the manner provided in ORS              erwise prohibited by law. [1971 c.655 §7]
756.014 (4).                                              756.036 Duties and functions. (1) The
    (4) Subsection (3) of this section does not      Public Utility Commission may:
apply to a commissioner if the commissioner               (a) Organize and reorganize the office of
or the commissioner′s spouse or a minor              the Public Utility Commission in the manner
child acquires any pecuniary interest prohib-        that it considers necessary to properly dis-
ited by subsection (1) or (2) of this section,       charge the responsibilities of the Public
advises the Governor of such acquisition, and        Utility Commission.
causes divestiture of such interest within the            (b) Contract for or procure on a fee or
time specified by the Governor.                      part-time basis, or both, such experts, tech-
                                                     nical or other professional services as it may
    (5) For purposes of subsection (1) of this       require for the discharge of its duties.
section, a business or activity shall not be
considered subject to the commission′s regu-              (c) Obtain such other services as it con-
latory jurisdiction solely because the busi-         siders necessary or desirable.
ness or activity is a private carrier as                  (d) Participate in organizations of re-
defined by ORS 825.005. [1971 c.655 §4; 1985 c.834   gional and national utility commissions.
§8; 1987 c.123 §1; 1995 c.306 §41]
                                                          (e) Appoint advisory committees. A mem-
    756.028 Employee statements regard-              ber of an advisory committee so appointed
ing prohibited interests. Each employee of           shall receive no compensation for services as
the Public Utility Commission shall file with        a member. Subject to any applicable law
the commission a statement regarding                 regulating travel and other expenses of state
holdings of the employee and the holdings of         officers and employees, the member shall re-
the employee′s spouse and minor children of          ceive actual and necessary travel and other
any pecuniary interest in any business or            expenses incurred in the performance of offi-
activity subject to the commission′s regula-         cial duties.
tory jurisdiction. Supplementary statements               (2) Subject to any applicable law regulat-
shall be filed as such pecuniary interests are       ing travel and other expenses of state offi-
acquired or divested. The statements shall be        cers and employees, the commissioners and
in such form as the commission prescribes.           the officers and employees of the commission
If the commission determines that an em-             shall be reimbursed for such reasonable and
ployee or spouse or minor child of the em-           necessary travel and other expenses incurred
ployee holds any such pecuniary interest that        in the performance of their official duties.
may interfere with the impartial discharge                (3) The chairperson of the commission
of the employee′s duties, the commission             appointed under ORS 756.014 shall serve as
shall order divestiture of the interest. [1971       the administrative head of the commission
c.655 §5]                                            and has the power to:
     756.030 [Repealed by 1971 c.655 §250]                (a) With the consent of one or more of
    756.032 Employee dismissal for re-               the other members of the commission, ap-
tention of prohibited interests or failure           point and employ all subordinate officers and
to file statements. (1) The Public Utility           employees, including, but not limited to, dep-
Commission shall dismiss an employee:                uties, assistants, engineers, examiners, ac-
                                                     countants, auditors, inspectors and clerical
    (a) Who fails to file the statement re-          personnel, prescribe their duties and fix their
quired by ORS 756.028 before the 11th day            compensation, subject to the State Personnel
after the date of employment.                        Relations Law.
    (b) Who fails to file the supplementary               (b) Prescribe internal policies and proce-
statement required by ORS 756.028 before the         dures for the government of the commission,
11th day after the acquisition of a pecuniary        the conduct of its employees, the assignment
interest.                                            and performance of its business and the cus-

Title 57                                       Page 4                                      (2007 Edition)
                                  PUBLIC UTILITY COMMISSION                                              756.050

tody, use and preservation of its records, pa-             (4) The commission may make joint in-
pers and property in a manner consistent              vestigations, hold joint hearings within or
with applicable law. [1971 c.655 §8; 1985 c.834 §9;   without this state and issue concurrent or-
1999 c.1102 §2; 2003 c.14 §453]                       ders in conjunction or concurrence with any
     756.037 Commission authority to pro-             official, board, commission or agency of any
vide assistance, information, resources               state or of the United States. [Amended by 1961
                                                      c.467 §1; 1971 c.655 §9; 1973 c.776 §15; 1987 c.447 §76; 1995
and advice to Legislative Assembly. The               c.733 §53; 2001 c.569 §1]
Public Utility Commission and commission
staff may provide such assistance to the                  756.045 Employing legal counsel. Upon
Legislative Assembly and its committees as            request by the Public Utility Commission,
required by the Legislative Assembly for the          the Attorney General shall furnish to the
performance of its duties, and may furnish to         commission such attorneys as the commis-
the Legislative Assembly and its committees           sion finds necessary. [Formerly 756.150]
such information, resources and advice as                 756.047 Authority of commission to
the members of the Legislative Assembly               require fingerprints. For the purpose of re-
consider necessary for the performance of             questing a state or nationwide criminal re-
legislative duties. [2001 c.558 §2]                   cords check under ORS 181.534, the Public
     756.040 General powers. (1) In addition          Utility Commission may require the finger-
to the powers and duties now or hereafter             prints of a person who:
transferred to or vested in the Public Utility            (1)(a) Is employed or applying for em-
Commission, the commission shall represent            ployment by the commission; or
the customers of any public utility or tele-              (b) Provides services or seeks to provide
communications utility and the public gener-          services to the commission as a contractor
ally in all controversies respecting rates,           or volunteer; and
valuations, service and all matters of which              (2) Is, or will be, working or providing
the commission has jurisdiction. In respect           services in a position:
thereof the commission shall make use of the
jurisdiction and powers of the office to pro-             (a) In which the person has access to
tect such customers, and the public gener-            chemicals or hazardous materials, to facili-
ally, from unjust and unreasonable exactions          ties in which chemicals and hazardous mate-
and practices and to obtain for them ade-             rials are present or to information regarding
quate service at fair and reasonable rates.           the transportation of chemical or hazardous
The commission shall balance the interests            materials;
of the utility investor and the consumer in               (b) In which the person inspects gas or
establishing fair and reasonable rates. Rates         electrical lines or facilities;
are fair and reasonable for the purposes of               (c) In which the person has access to
this subsection if the rates provide adequate         critical infrastructure or security-sensitive
revenue both for operating expenses of the            facilities or information; or
public utility or telecommunications utility
and for capital costs of the utility, with a              (d) That has fiscal, payroll or purchasing
return to the equity holder that is:                  responsibilities as one of the position′s pri-
                                                      mary responsibilities. [2005 c.730 §69]
     (a) Commensurate with the return on in-
                                                           Note: 756.047 was enacted into law by the Legisla-
vestments in other enterprises having corre-          tive Assembly but was not added to or made a part of
sponding risks; and                                   ORS chapter 756 or any series therein by legislative
     (b) Sufficient to ensure confidence in the       action. See Preface to Oregon Revised Statutes for fur-
                                                      ther explanation.
financial integrity of the utility, allowing the
utility to maintain its credit and attract cap-           756.050 Office, office supplies and ses-
ital.                                                 sions of commission. (1) The Public Utility
                                                      Commission shall keep office at the capital
     (2) The commission is vested with power          and shall be provided with suitable office
and jurisdiction to supervise and regulate            quarters under ORS 276.004. Necessary office
every public utility and telecommunications           furniture, supplies, stationery, books, period-
utility in this state, and to do all things           icals and maps shall be furnished, and all
necessary and convenient in the exercise of           necessary expenses therefor shall be audited
such power and jurisdiction.                          and paid as other state expenses are audited
     (3) The commission may participate in            and paid.
any proceeding before any public officer,                 (2) The commission may hold sessions
commission or body of the United States or            and maintain offices at places other than the
any state for the purpose of representing the         capital for the more convenient and efficient
public generally and the customers of the             performance of the duties imposed upon the
services of any public utility or telecommu-          commission by law, and shall upon request
nications utility operating or providing ser-         be provided by the county court or board of
vice to or within this state.                         county commissioners of any county in the

Title 57                                        Page 5                                          (2007 Edition)
756.055                                      UTILITY REGULATION

state with suitable rooms for offices and                       756.068 Service of notice or other legal
hearings. [Amended by 1969 c.706 §64g; 1971 c.655 §11]     process. The service or delivery of any no-
                                                           tice, order, form or other document or legal
     756.055 Delegation of authority. (1)                  process required to be made by the Public
Except as provided in subsection (2) of this               Utility Commission may be made by mail. If
section, the Public Utility Commission may                 by mail, service or delivery is made when the
designate by order or rule any commissioner                required material is deposited in the post of-
or any named employee or category of em-                   fice, in a sealed envelope with postage paid,
ployees who shall have authority to exercise               addressed to the person on whom it is to be
any of the duties and powers imposed upon                  served or delivered, at the address as it last
the commission by law. The official act of                 appears in the records of the commission.
any commissioner or employee so exercising                 [1971 c.655 §16]
any such duties or powers is considered to
be an official act of the commission.
                                                                      (Investigatory Powers)
     (2) The commission may not delegate to
any commissioner, named employee or cate-                       756.070 Investigating management of
gory of employees under subsection (1) of                  utilities. The Public Utility Commission may
this section the authority to:                             inquire into the management of the business
     (a) Sign an interim or final order after              of all public utilities and telecommunications
hearing;                                                   utilities and shall keep informed as to the
                                                           manner and method in which they are con-
     (b) Sign any order upon any investigation             ducted and has the right to obtain from any
the commission causes to be initiated;                     public utility or telecommunications utility
     (c) Sign an order that makes effective a              all necessary information to enable the com-
rule;                                                      mission to perform duties. [Amended by 1971
                                                           c.655 §17; 1973 c.776 §19; 1987 c.447 §70; 1995 c.733 §56]
     (d) Enter orders on reconsideration or
following rehearing; or                                         756.075 Right of entry for examination
                                                           of equipment, records or employees; use
     (e) Grant immunity from prosecution,                  of findings. (1) The Public Utility Commis-
forfeiture or penalty. [1971 c.655 §12; 1985 c.834         sion or authorized representatives may enter
§10]                                                       upon any premises, or any equipment or fa-
    756.060 Authority to adopt rules and                   cilities operated or occupied by any public
regulations. The Public Utility Commission                 utility or telecommunications utility for the
may adopt and amend reasonable and proper                  purpose of making any inspection, examina-
rules and regulations relative to all statutes             tion or test reasonably required in the ad-
administered by the commission and may                     ministration of ORS chapter 756, 757, 758 or
adopt and publish reasonable and proper                    759 and to set up and use on such premises
                                                           equipment or facilities any apparatus and
rules to govern proceedings and to regulate                appliances and occupy reasonable space
the mode and manner of all investigations                  therefor.
and hearings of public utilities and telecom-
munications utilities and other parties before                  (2) The commission or authorized repre-
the commission. [Amended by 1971 c.655 §13; 1973           sentatives shall, upon demand, have the right
c.776 §16; 1987 c.447 §77; 1995 c.733 §54]                 to inspect the books, accounts, papers, re-
                                                           cords and memoranda of any public utility
    756.062 Substantial compliance with                    or telecommunications utility and to examine
laws adequate for commission activities;                   under oath any officer, agent or employee of
construction of laws generally. (1) A sub-                 such public utility or telecommunications
stantial compliance with the requirements of               utility in relation to its business and affairs.
the laws administered by the Public Utility
Commission is sufficient to give effect to all                  (3) Any person who on behalf of the
the rules, orders, acts and regulations of the             commission makes demand of a public utility
commission and they shall not be declared                  or telecommunications utility for an exam-
inoperative, illegal or void for any omission              ination, inspection or test shall, upon request
of a technical nature in respect thereto.                  therefor, produce a certificate under the seal
                                                           of the commission showing authority to make
    (2) The provisions of such laws shall be               such examination, inspection or test.
liberally construed in a manner consistent
with the directives of ORS 756.040 (1) to                       (4) Nothing in this section authorizes the
promote the public welfare, efficient facilities           commission to use any information developed
and substantial justice between customers                  thereunder for any purpose inconsistent with
and public and telecommunications utilities.               any statute administered by the commission
[Formerly 757.025; 1973 c.776 §17; 1987 c.447 §78; 1995    or to make a disclosure thereof for other
c.733 §55; 2001 c.569 §2]                                  than regulatory purposes. [Formerly 757.260; 1973
    756.064 [1971 c.655 §15; 1973 c.776 §18; repealed by   c.776 §20; 1987 c.447 §80; 1995 c.733 §57]
1975 c.605 §33]                                                 756.080 [Repealed by 1971 c.655 §250]

Title 57                                             Page 6                                         (2007 Edition)
                                     PUBLIC UTILITY COMMISSION                                             756.160

     756.090 Maintaining and producing re-                     public utility or telecommunications utility
cords; expenses of examining out-of-state                      which is in possession or under the control
records. (1) The Public Utility Commission                     of the person;
may require by rule, or by order or subpoena                       (5) Fail to properly use and keep a sys-
to be served on any public utility or tele-                    tem of accounting or any part thereof, as
communications utility the maintaining                         prescribed by the commission; or
within this state or the production within
this state at such time and place as the                           (6) Refuse to do any act or thing in con-
commission may designate, of any books, ac-                    nection with such system of accounting when
counts, papers or records kept by such public                  so directed by the commission or authorized
utility or telecommunications utility in any                   representative. [Formerly 757.180; 1973 c.776 §23;
                                                               1987 c.447 §83; 1995 c.733 §60]
office or place within or without this state,
or verified copies in lieu thereof, if the com-                    756.120 [Repealed by 1971 c.655 §250]
mission so orders, in order that an examina-                       756.125 Interference with commis-
tion thereof may be made by the commission                     sion′s equipment. No person shall destroy,
or under direction of the commission.                          injure or interfere with any apparatus or ap-
     (2) When a public utility or telecommu-                   pliance owned or operated by or in charge
nications utility keeps and maintains its                      of the Public Utility Commission, or any ap-
books, accounts, papers or records outside                     paratus or appliance sealed by the commis-
the state, the commission may examine such                     sion. [Formerly 757.340]
documents and shall be reimbursed by the                            756.130 [Repealed by 1971 c.655 §250]
public utility or telecommunications utility                        756.140 [Repealed by 1971 c.655 §250]
for all expenses incurred in making such                            756.150 [Amended by 1971 c.655 §10; renumbered
out-of-state examination. [Amended by 1971 c.655               756.045]
§19; 1973 c.776 §21; 1987 c.447 §81; 1995 c.733 §58]
     756.100 [Repealed by 1953 c.25 §2]                            ENFORCEMENT AND REMEDIES
     756.105 Duty to furnish information to                        756.160 Enforcement of statutes and
commission. (1) Every public utility or tele-                  ordinances relating to utilities. (1) The
communications utility shall furnish to the                    Public Utility Commission shall inquire into
Public Utility Commission all information                      any neglect or violation of any law of this
required by the commission to carry into ef-                   state or any law or ordinance of any munic-
fect the provisions of ORS chapters 756, 757,                  ipality thereof relating to public utilities and
758 and 759 and shall make specific answers                    telecommunications utilities by any public
to all questions submitted by the commission.                  utility or telecommunications utility doing
     (2) If a public utility or telecommuni-                   business therein, its officers, agents or em-
cations utility is unable to furnish any infor-                ployees and shall enforce all laws of this
mation required under subsection (1) of this                   state relating to public utilities and telecom-
section for any reason beyond its control, it                  munications utilities and may enforce all
is a good and sufficient reason for such fail-                 such laws and ordinances of a municipality.
ure. The answer or information shall be ver-                   The commission shall report all violations of
ified under oath and returned to the                           any such laws or ordinances to the Attorney
commission at the commission′s office within                   General.
the period fixed by the commission. [Formerly                      (2) The Attorney General, district attor-
757.115; 1973 c.776 §22; 1987 c.447 §82; 1995 c.733 §59]
                                                               ney of each county, and all state, county and
     756.110 [Repealed by 1953 c.25 §2]
                                                               city police officers shall assist the commis-
    756.115 Failure to furnish requested                       sion in the administration and enforcement
information. No officer, agent or employee                     of all laws administered by the commission,
of any public utility, or telecommunications                   and they, as well as assistants and employees
utility shall:                                                 of the commission, shall inform against and
    (1) Fail or refuse to fill out and return                  diligently prosecute all persons whom they
any forms required by the Public Utility                       have reasonable cause to believe guilty of
Commission;                                                    violation of any such laws or of the rules,
                                                               regulations, orders, decisions or require-
    (2) Fail or refuse to answer any question                  ments of the commission made pursuant
therein propounded;                                            thereto.
    (3) Knowingly or willfully give a false                        (3) Upon the request of the commission,
answer to any such question or evade the                       the Attorney General or the district attorney
answer to any such question where the fact                     of the proper county shall aid in any inves-
inquired of is within the person′s knowledge;                  tigation, hearing or trial, and shall institute
    (4) Upon proper demand, fail or refuse to                  and prosecute all necessary suits, actions or
exhibit to the commission or any person au-                    proceedings for the enforcement of those
thorized to examine the same, any book, pa-                    laws and ordinances referred to in subsection
per, account, record or memorandum of such                     (1) of this section.

Title 57                                                   Page 7                                    (2007 Edition)
756.180                                    UTILITY REGULATION

    (4) Any forfeiture or penalty provided for                     (2) The court may not award attorney
in any law administered by the commission                      fees to a prevailing defendant under the pro-
shall be recovered by an action brought                        visions of subsection (1) of this section if the
thereon in the name of the State of Oregon                     action under this section is maintained as a
in any court of appropriate jurisdiction.                      class action pursuant to ORCP 32.
[Amended by 1971 c.655 §23; 1973 c.776 §24; 1987 c.447
§84; 1995 c.733 §61]
                                                                   (3) Any recovery under this section does
                                                               not affect recovery by the state of the pen-
    756.170 [Repealed by 1971 c.655 §250]                      alty, forfeiture or fine prescribed for such
    756.180 Enforcing utility laws. (1)                        violation.
Whenever it appears to the Public Utility                          (4) This section does not apply with re-
Commission that any public utility or tele-                    spect to the liability of any public utility for
communications utility or any other person                     personal injury or property damage. [Formerly
subject to the jurisdiction of the commission                  757.335; 1973 c.776 §26; 1981 c.856 §1; 1981 c.897 §104a;
is engaged or about to engage in any acts or                   1987 c.447 §86; 1989 c.827 §1; 1995 c.696 §48; 1995 c.733
                                                               §63]
practices which constitute a violation of any
statute administered by the commission, or                          756.190 [Repealed by 1971 c.655 §250]
any rule, regulation, requirement, order,                          756.200 Effect of utility laws on com-
term or condition issued thereunder, the                       mon law and other statutory rights of
commission may apply to any circuit court                      action, duties and liabilities. (1) The reme-
of the state where such public utility or                      dies and enforcement procedures provided in
telecommunications utility or other person                     ORS chapters 756, 757, 758 and 759 do not
subject to the jurisdiction of the commission                  release or waive any right of action by the
operates for the enforcement of such statute,                  state or by any person for any right, penalty
rule, regulation, requirement, order, term or                  or forfeiture which may arise under any law
condition.                                                     of this state or under an ordinance of any
                                                               municipality thereof.
    (2) Such court, without bond, has juris-
diction to enforce obedience thereto by in-                        (2) All penalties and forfeiture accruing
junction, or by other processes, mandatory                     under said statutes and ordinances are cu-
or otherwise, restraining such public utility                  mulative and a suit for and recovery of one,
or telecommunications utility or any other                     shall not be a bar to the recovery of any
person subject to the jurisdiction of the                      other penalty.
commission, or its officers, agents, employees                     (3) The duties and liabilities of the public
and representatives from further violations                    utilities or telecommunications utilities shall
of such statute, rule, regulation, require-                    be the same as are prescribed by the common
ment, order, term or condition, and enjoining                  law, and the remedies against them the same,
upon them obedience thereto.                                   except where otherwise provided by the
    (3) The provisions of this section are in                  Constitution or statutes of this state, and the
addition to and not in lieu of any other en-                   provisions of ORS chapters 756, 757, 758 and
forcement provisions contained in any stat-                    759 are cumulative thereto. [Formerly 760.045;
                                                               1973 c.776 §27; 1987 c.447 §87; 1995 c.733 §64]
ute administered by the commission. [Amended
by 1971 c.655 §24; 1973 c.232 §5; 1973 c.776 §25; 1987 c.447
§85; 1995 c.733 §62]                                                          FUNDS AND FEES
    756.185 Right to recover for wrongs                            756.305 Public Utility Commission Ac-
and omissions; treble damages. (1) Any                         count. (1) There hereby is established in the
public utility which does, or causes or per-                   General Fund an account to be known as the
mits to be done, any matter, act or thing                      Public Utility Commission Account. Except
prohibited by ORS chapter 756, 757 or 758 or                   as limited by ORS 756.360, all moneys, with-
omits to do any act, matter or thing required                  out regard to their sources, credited to the
to be done by such statutes, is liable to the                  Public Utility Commission Account hereby
person injured thereby in the amount of                        are appropriated continuously to the Public
damages sustained in consequence of such                       Utility Commission for the payment of any
violation. If the party seeking damages al-                    and all of the expenses of the Public Utility
leges and proves that the wrong or omission                    Commission.
was the result of gross negligence or willful                      (2) The Public Utility Commission shall
misconduct, the public utility is liable to the                keep a record of all moneys deposited in the
person injured thereby in treble the amount                    Public Utility Commission Account. The re-
of damages sustained in consequence of the                     cord shall indicate by separate cumulative
violation. Except as provided in subsection                    accounts the source from which the moneys
(2) of this section, the court may award rea-                  are derived and the individual activity or
sonable attorney fees to the prevailing party                  program against which each withdrawal is
in an action under this section.                               charged. [1957 c.459 §1; 1971 c.655 §27; 1997 c.249 §220]

Title 57                                                 Page 8                                         (2007 Edition)
                              PUBLIC UTILITY COMMISSION                                                756.325

     756.310 Annual fees payable by utili-              (c) In the event a telecommunications
ties and telecommunications providers.             utility has an approved rate that includes the
(1) Subject to the provisions of subsections       fee required under subsection (1) of this sec-
(3) and (4) of this section, each public utility   tion and separately charges retail customers
and telecommunications provider shall pay a        for the fee described in this section, at the
fee to the Public Utility Commission in each       time the utility begins collecting the charge
calendar year. The amount of the fee shall         the utility shall file with the commission a
equal the amount that the commission finds         rate schedule reducing rates in an amount
and determines to be necessary, together           projected to equal the amount separately
with the amount of all other fees paid or          charged to customers.
payable to the commission by such public                (5) The commission may use any of its
utilities and telecommunications providers in      investigatory and enforcement powers pro-
the current calendar year, to defray the costs     vided under this chapter for the purpose of
of performing the duties imposed by law upon       administering and enforcing the provisions
the commission with respect to the public          of this section.
utilities and telecommunications providers,
and to pay those amounts as may be neces-               (6) As used in this section:
sary to obtain matching funds to implement              (a) “Electric company” means any entity
the program referred to in ORS 824.058.            that is a public utility under ORS 757.005
     (2) In each calendar year the percentage      that is engaged in the business of distribut-
rate of the fee required to be paid by public      ing electricity to retail electric customers in
utilities shall be determined by orders en-        Oregon.
tered by the commission on or after March               (b) “Retail customer” does not include a
1 of each year. Notice of the orders shall be      purchaser of intrastate telecommunications
given to each utility. The utility shall pay to    services who is a telecommunications pro-
the commission the fee or portion thereof so       vider, telecommunications cooperative, inter-
computed upon the date specified in the no-        exchange carrier or radio common carrier.
tice. The date of payment shall be at least 15          (c) “Telecommunications provider” means
days after the date of mailing of the notice.      any entity that is a telecommunications util-
     (3) The fee payable under subsection (1)      ity or a competitive telecommunications pro-
of this section by each public utility may not     vider as defined in ORS 759.005. [Amended by
be less than $10, or more than twenty-five         1953    c.10 §2; 1957 c.464 §1; 1959 c.355 §1; 1961 c.109 §1;
hundredths of one percent of the utility′s         1963    c.89 §1; 1971 c.132 §1; 1973 c.170 §1; 1975 c.127 §1;
                                                   1985   c.293 §1; 1987 c.439 §1; 1987 c.447 §88; 1991 c.841 §2;
gross operating revenues derived within this       1995   c.733 §65; 1997 c.826 §8; 1999 c.339 §1; 2007 c.245 §1]
state in the preceding calendar year. For the             756.315 [1989 c.1041 §2; repealed by 1991 c.841 §4]
purpose of this subsection, the gross operat-
ing revenues of an electric company do not             756.320    Statements     accompanying
include revenues from sales of power for re-       fees; audit and refunding by commission.
sale to the extent that the revenues from          Payment of each fee or portion thereof pro-
those sales exceed an amount equal to 25           vided for in ORS 756.310 shall be accompa-
percent of the total revenues received by the      nied by a statement verified by the public
electric company from sales of electricity to      utility or telecommunications provider in-
end users in the preceding calendar year.          volved, showing the basis upon which the fee
     (4)(a) For a telecommunications provider,     or portion thereof is computed. This state-
the fee payable under subsection (1) of this       ment shall be in such form and detail as the
section shall be a percentage amount not to        Public Utility Commission shall prescribe
exceed twenty-five hundredths of one percent       and shall be subject to audit by the commis-
of the provider′s gross retail intrastate re-      sion. The commission may refund any over-
venue for each calendar year, but may not          payment of any such fee in the same manner
be less than $100. The percentage amount           as other claims and expenses of the commis-
shall be determined by order of the commis-        sion are payable as provided by law. [Amended
                                                   by 1987 c.447 §89; 1995 c.733 §66; 1997 c.826 §9; 1999 c.339
sion not less than 60 days prior to the cal-       §2]
endar year upon which the fee is based. The
fee shall be payable to the commission not              756.325 Distribution of information
later than April 1 of the year following that      filed with commission; fees; rules. (1) The
calendar year.                                     Public Utility Commission may by rule pre-
                                                   scribe for the free distribution for public in-
     (b) A telecommunications provider shall       formation or educational purposes or
collect the fee payable under subsection (1)       applicable charge for any blank forms, tran-
of this section by charging an apportioned         script, document, order, statistical data or
amount to each of the provider′s retail cus-       publication prepared by and on file in the
tomers. The amount of the charge shall be          office of the commission. In no event shall
described on the retail customer′s bill in a       the fee exceed the cost of preparing, re-
manner determined by the provider.                 producing and distributing such blank forms,

Title 57                                     Page 9                                           (2007 Edition)
756.350                                     UTILITY REGULATION

transcript, document, order, statistical data                        756.380 [Formerly 757.080; 1995 c.306 §42; renum-
or publication.                                                 bered 823.071 in 1995]
                                                                     756.385 [Formerly 757.085; 1995 c.733 §67a; renum-
     (2) In the ordinary course of distribution,                bered 823.073 in 1995]
no fee shall be charged or collected for                             756.390 [Formerly 757.090; 1983 c.78 §1; 1995 c.733
copies of published documents furnished to                      §67b; renumbered 823.075 in 1995]
public officers for use in their official capac-                     756.400 [1971 c.655 §31; repealed by 1983 c.540 §10]
ity, or for annual reports of the commission.
[1971 c.655 §28]                                                     756.410 [1971 c.655 §32; 1977 c.253 §1; repealed by
                                                                1983 c.540 §10]
     756.330 [Amended by 1965 c.288 §1; repealed by 1971
c.655 §250]                                                          756.420 [1971 c.655 §33; repealed by 1983 c.540 §10]
     756.340 [Repealed by 1971 c.655 §250]                           756.430 [1971 c.655 §34; repealed by 1983 c.540 §10]
                                                                     756.440 [1971 c.655 §35; repealed by 1983 c.540 §10]
    756.350 Penalty for failure to pay fees;
action to collect unpaid fees and penal-
ties. Every person who fails to pay any fees                             DECLARATORY RULINGS
provided for in ORS 756.310 or 756.320 after                         756.450 Declaratory rulings. On peti-
they are due and payable shall, in addition                     tion of any interested person, the Public
to such fees, pay a penalty of two percent of                   Utility Commission may issue a declaratory
such fees for each and every month or frac-                     ruling with respect to the applicability to
tion thereof that they remain unpaid. If, in                    any person, property, or state of facts of any
the judgment of the Public Utility Commis-                      rule or statute enforceable by the commis-
sion, action is necessary to collect any un-                    sion. A declaratory ruling is binding between
paid fees or penalties, the commission shall                    the commission and the petitioner on the
bring such action or take such proceedings                      state of facts alleged, unless it is modified,
as may be necessary thereon in the name of                      remanded or set aside by a court. However,
the State of Oregon in any court of compe-                      the commission may review the ruling and
tent jurisdiction, and be entitled to recover                   modify or set it aside if requested by the pe-
all costs and disbursements incurred therein.                   titioner or other party to the proceeding.
[Amended by 1971 c.655 §29]                                     Binding rulings provided by this section are
     756.360 Disposal and use of fees and                       subject to judicial review as orders in con-
penalties collected. All fees, fines, penalties                 tested cases in the manner provided by ORS
and other moneys collected by the Public                        756.610. [1971 c.655 §36; 2005 c.638 §2]
Utility Commission under ORS 756.310,
756.320, 756.350, 758.015, 758.400 to 758.475                      COMPLAINT AND INVESTIGATION
and ORS chapter 759 shall be paid by the                                         PROCEDURE
commission into the State Treasury within
30 days after the collection thereof, and shall                     756.500 Complaint; persons entitled to
be placed by the State Treasurer to the                         file; contents; amendments. (1) Any person
credit of the Public Utility Commission Ac-                     may file a complaint before the Public Utility
count and the fees, fines, penalties and other                  Commission, or the commission may, on the
moneys collected from:                                          commission′s own initiative, file such com-
                                                                plaint. The complaint shall be against any
     (1) Public utilities shall be used only for                person whose business or activities are regu-
the purpose of paying the expenses of the                       lated by some one or more of the statutes,
commission in performing the duties imposed                     jurisdiction for the enforcement or regu-
by law upon the commission in respect to                        lation of which is conferred upon the com-
utilities, and for the purpose of paying the                    mission. The person filing the complaint
expenses of the Office of the Governor for its                  shall be known as the complainant and the
responsibilities in administering energy con-                   person against whom the complaint is filed
servation and allocation programs.                              shall be known as the defendant.
     (2) Telecommunications providers shall                         (2) It is not necessary that a complainant
be used only for the purpose of paying the                      have a pecuniary interest in the matter in
expenses of the commission in performing                        controversy or in the matter complained of,
the duties imposed by law upon the commis-                      but the commission shall not grant any order
sion in respect to telecommunications pro-                      of reparation to any person not a party to
viders, and for the purpose of paying the                       the proceedings in which such reparation or-
expenses of the Office of the Governor for its                  der is made.
responsibilities in administering energy con-                       (3) The complaint shall state all grounds
servation and allocation programs. [Amended                     of complaint on which the complainant seeks
by 1957 c.459 §7; 1967 c.164 §3; 1971 c.655 §30; 1973 c.776     relief or the violation of any law claimed to
§28; 1974 c.59 §1; 1987 c.447 §90; 1995 c.733 §67; 1999 c.339   have been committed by the defendant, and
§3]
                                                                the prayer of the complaint shall pray for the
     756.370 [Formerly 757.065; repealed by 1983 c.40 §1]       relief to which the complainant claims the
     756.375 [Formerly 757.070; repealed by 1983 c.40 §1]       complainant is entitled.

Title 57                                                 Page 10                                       (2007 Edition)
                                     PUBLIC UTILITY COMMISSION                                          756.515

    (4) The complaint may, at any time be-            adequate, or is not afforded, or that an
fore the completion of taking of evidence, be         investigation of any matter relating to any
amended by order of the commission. How-              public utility or telecommunications utility
ever, if a charge not contained in the ori-           or other person should be made, or relating
ginal complaint or a prior amended                    to any person to determine if such person is
complaint is sought to be made by any such            subject to the commission′s regulatory juris-
amendment, the defendant shall be given a             diction, the commission may on motion sum-
reasonable time to investigate the new                marily investigate any such matter, with or
charge and answer the amended complaint.              without notice.
The final hearing shall, if necessary, be con-
tinued until some date after the defendant                (2) If after making such investigation the
has had a reasonable time to investigate and          commission is satisfied that sufficient
be prepared to meet the amended complaint.            grounds exist to warrant a hearing being or-
                                                      dered upon any such matter, the commission
    (5) Notwithstanding subsection (1) of this        shall furnish any public utility or telecom-
section, any public utility or telecommuni-           munications utility or other person inter-
cations utility may make complaint as to any          ested a statement notifying it of the matters
matter affecting its own rates or service with        under investigation, which statement shall
like effect as though made by any other per-          be accompanied by a notice fixing the time
son, by filing an application, petition or            and place for hearing upon such matters in
complaint with the commission. [Formerly              the manner provided in ORS 756.512 for no-
756.520; 1987 c.447 §91; 1995 c.733 §68]
                                                      tice of complaint.
     756.505 [Repealed by 1971 c.655 §250]
     756.510 [Amended by 1971 c.655 §40; renumbered
                                                          (3) Thereafter proceedings shall be had
756.518]                                              and conducted in reference to the matters
                                                      investigated in like manner as though com-
     756.512 Notice of complaint to defend-           plaint had been filed with the commission
ant; responsive pleadings; setting cause              relative thereto, and the same orders may be
for hearing. (1) The Public Utility Commis-           made in reference thereto as if such investi-
sion shall serve a copy of the complaint upon         gation had been made on complaint.
the defendant, and shall give the defendant
at least 10 days within which to respond to               (4) The commission may, after making an
the complaint. Within the time so fixed, or           investigation on the commission′s motion,
such further time as the commission shall             but without notice or hearing, make such
fix, the defendant shall file an answer to the        findings and orders as the commission deems
complaint, taking issue on such parts of the          justified or required by the results of such
complaint as the defendant desires and set-           investigation. Except as provided in subsec-
ting forth such additional matter as shall be         tions (5) and (6) of this section such findings
pertinent to the matter in controversy. Such          and orders have the same legal force and ef-
additional matter shall be deemed denied              fect as any other finding or order of the
without the filing of any other pleading by           commission.
the complainant. After the filing of the an-              (5) In addition to any other remedy pro-
swer the commission shall set the matter for          vided by law, any party aggrieved by an or-
hearing, giving the defendant at least 10             der entered pursuant to subsection (4) of this
days′ written notice of the time and place of         section may request the commission to hold
the hearing, unless the commission for good           a hearing to determine whether the order
reason stated in the notice, fixes a shorter          should continue in effect. Any such request
time. Amendment of any answer may be per-             for hearing shall be submitted to the com-
mitted by order of the commission.                    mission not later than 15 days after the date
     (2) If the defendant fails to file a respon-     of service of the order, and the commission
sive pleading or otherwise appear within the          shall hold the hearing not later than 60 days
time prescribed in subsection (1) of this sec-        after receipt of such a request for hearing.
tion, or if the responsive pleading filed raises          (6) If the commission receives a request
no issue of law or fact, the commission may           for hearing pursuant to subsection (5) of this
act on the complaint without a hearing.               section, the order is suspended pending the
[Formerly 756.530]
                                                      outcome of the hearing unless the commis-
    756.515 Investigations and hearings on            sion finds that the order is necessary for the
commission′s own motion; hearings for                 public health or safety or to prevent the dis-
aggrieved persons. (1) Whenever the Public            sipation of assets of a business or activity
Utility Commission believes that any rate             subject to the commission′s regulatory juris-
may be unreasonable or unjustly discrimi-             diction. [Formerly 757.515; 1973 c.776 §29; 1975 c.318
natory, or that any service is unsafe or in-          §1; 1983 c.703 §18; 1987 c.447 §92; 1995 c.733 §69]

Title 57                                       Page 11                                         (2007 Edition)
756.518                                    UTILITY REGULATION

          HEARING PROCEDURE                                   the applicant in the proceeding and shall
                                                              grant the application, subject to appropriate
    756.518 Procedures applicable to all                      conditions, if the commission determines that
matters before commission; oral hearing;                      such appearance and participation will not
rules. (1) Except as otherwise provided the                   unreasonably broaden the issues or burden
provisions of ORS 756.500 to 756.610 apply to                 the record, and otherwise may deny the ap-
and govern all hearings upon any matter or                    plication.
issue coming before the Public Utility Com-
mission under any statute administered by                          (3) This section does not apply to any
the commission, whether instituted on the                     person who might have been an original
application, petition or complaint of others                  party in a proceeding before the commission
or initiated by the commission, together with                 if that person is required by statute to file a
the orders of the commission therein and the                  pleading or other response in the proceeding
review thereof in the courts.                                 within a specified time. [1971 c.655 §42]
    (2) Upon request of any party in a major                       756.528 Segregation of issues. At any
proceeding before the commission, the com-                    time before the conclusion of the taking of
mission shall afford the parties an opportu-                  evidence in a proceeding, the Public Utility
nity for oral argument before a final order is                Commission may segregate the issues in-
issued. There must be a quorum of the                         volved and order separate hearings thereon
commission present at the time the oral ar-                   at such times and places as the commission
gument is made. The commission shall adopt                    may prescribe. [1971 c.655 §43; 2005 c.638 §4]
rules that establish criteria for determining                      756.530 [Amended by 1971 c.655 §38; renumbered
which proceedings give rise to a right to oral                756.512]
argument under this subsection. In addition,
the commission may adopt rules governing                          756.534 Place of hearings; continua-
participation in oral arguments, cross-                       tion. Except as provided in ORS 756.040 (4),
examination of witnesses, draft or proposed                   the hearing may be held at any place desig-
orders or such other matters as the commis-                   nated by the Public Utility Commission
sion deems appropriate. [Formerly 756.510; 2001               within this state, or different parts of the
c.558 §3]                                                     hearing may be held at different places in
     756.519 [1977 c.424 §2; 1985 c.59 §1; repealed by 1995
                                                              this state, as shall be designated by the
c.733 §74]                                                    commission. The hearing may be continued
                                                              from time to time and place to place as or-
     756.520 [Amended by 1971 c.655 §37; renumbered
756.500]                                                      dered and fixed by the commission. [Formerly
                                                              756.560]
    756.521 Public hearings; record re-                           756.538 Taking and use of depositions;
quired; furnishing transcripts. All hear-                     rules. (1) In any investigation, the Public
ings shall be open to the public and may be                   Utility Commission may take the testimony
had before the Public Utility Commission, an                  of any person by deposition upon oral exam-
examiner or any other person authorized to                    ination or written interrogatories for the
hold such hearing. A full record thereof shall                purpose of discovery or for use in the inves-
be kept. However, it shall not be necessary                   tigation.
to transcribe testimony unless requested. For
purposes of rehearing or reconsideration un-                      (2) In any proceeding requiring a hearing,
der ORS 756.561, a transcription shall be                     the commission or any party to the proceed-
made at the commission′s expense, and                         ing may take the testimony of any person by
copies of such transcription shall be supplied                deposition upon oral examination or written
to the parties, at cost. A copy of the tran-                  interrogatories for the purpose of discovery
script shall be supplied to a party without                   or for use as evidence in the proceeding, or
cost upon the filing with the commission of                   for both purposes.
a satisfactory affidavit of indigency. [1971 c.655                (3) Depositions may be taken within or
§41; 2005 c.638 §3]                                           without the State of Oregon by the commis-
     756.525 Parties to proceedings. (1) The                  sion, or any other person authorized to ad-
Public Utility Commission may permit any                      minister     oaths,      in accordance    with
person to become a party who might, on the                    procedures prescribed by the rules of the
institution of the proceeding, have been such                 commission.
a party, if application therefor is made before                   (4) The commission shall promulgate
the final taking of evidence in the proceed-                  rules concerning the manner of applying for
ing.                                                          and taking depositions and the use thereof.
     (2) At any time before the final taking of               Such rules shall provide reasonable pro-
evidence in a proceeding, any person may                      visions against abuse of such procedure and
apply to the commission for permission to                     for protection of the rights of all persons af-
appear and participate in the proceeding. The                 fected. [1971 c.655 §45]
commission shall determine the interest of                         756.540 [Repealed by 1971 c.655 §250]

Title 57                                               Page 12                                       (2007 Edition)
                                   PUBLIC UTILITY COMMISSION                                            756.558

    756.543 Issuance of subpoenas; failure                     756.550 [Amended by 1957 c.599 §1; 1971 c.655 §50;
to comply. (1) The Public Utility Commis-                  renumbered 756.558]
sion shall issue subpoenas to any party to a                   756.552 Self-incrimination of witnesses
proceeding before the commission upon re-                  in court proceedings. No person shall be
quest and proper showing of the general rel-               excused from testifying or from producing
evance and reasonable scope of the evidence                books and papers in any court proceeding
sought. Witnesses appearing pursuant to                    based upon or growing out of any violation
subpoena, other than the parties or their of-              of the provisions of ORS chapter 756, 757,
ficers or employees, or employees of the                   758, 759 or 825 or ORS 824.020 to 824.042,
commission, shall receive fees and mileage                 824.050 to 824.110, 824.200 to 824.256 or
as prescribed by law for witnesses in ORS                  824.300 to 824.310 on the ground or for the
44.415 (2). If the commission certifies that               reason that the testimony or evidence, docu-
the testimony of a witness was relevant and                mentary or otherwise, required of the person
material, any person who paid fees and mile-               may tend to incriminate the person or sub-
age to that witness shall be reimbursed by                 ject the person to penalty or forfeiture; but
the commission and from moneys referred to                 no person having so testified shall be prose-
in ORS 756.360, subject to the limitations                 cuted or subjected to any penalty or forfei-
provided in ORS 756.360.                                   ture for, or on account of, any transaction,
    (2) If any person fails to comply with any             matter or thing concerning which the person
subpoena so issued or any party or witness                 may have testified or produced any docu-
refuses to testify on any matters on which                 mentary evidence. However, no person shall
the person may be lawfully interrogated, the               be exempted from prosecution or punishment
judge of the circuit court of any county, on               for perjury while so testifying. The immunity
the application of the commission, or of the               conferred by this section shall extend only to
party requesting the issuance of the sub-                  a natural person who, in obedience to a sub-
poena, shall compel obedience by proceedings               poena, gives testimony under oath or
for contempt as in the case of disobedience                produces evidence, documentary or other-
of the requirements of a subpoena issued                   wise, under oath. [Formerly 757.590; 1989 c.827 §2]
from such court or a refusal to testify                        756.555 Powers of commission at
therein. [1971 c.655 §46; 1983 c.540 §2; 1987 c.980 §23;   hearings. The Public Utility Commission
1997 c.249 §221]
                                                           may administer oaths, certify to official acts,
    756.549 Self-incrimination of witnesses                issue notices in the name of the commission,
in commission proceedings. (1) No person                   issue subpoenas, compel the attendance of
shall be excused from testifying or from                   witnesses and the production of books, ac-
producing evidence in any proceeding held                  counts, papers, records, documents and testi-
by the Public Utility Commission on the                    mony, and take and receive testimony,
ground that the testimony or evidence re-                  conduct hearings and investigations, whether
quired of the person may tend to incriminate               upon complaint or upon the commission′s
the person or subject the person to prose-                 own motion. [Formerly 757.555]
cution, penalty or forfeiture if:                              756.558 Taking of evidence; findings;
    (a) The person has been directed by the                issuance of orders; providing copies of
commission to testify or produce evidence                  orders. (1) At the conclusion of the taking
under oath;                                                of evidence, the Public Utility Commission
    (b) The person claims, at the time the                 shall declare the taking of evidence con-
                                                           cluded. Thereafter no additional evidence
person is directed by the commission to tes-               shall be received except upon the order of
tify or produce evidence, that the testimony               the commission and a reasonable opportunity
or evidence required of the person may tend                of the parties to examine any witnesses with
to incriminate the person or subject the per-              reference to the additional evidence and oth-
son to prosecution, penalty or forfeiture; and             erwise rebut and meet such additional evi-
    (c) The commission specifically grants                 dence.
the person immunity from prosecution, pen-                     (2) After the completion of the taking of
alty or forfeiture regarding those matters                 evidence, and within a reasonable time, the
about which the person testifies or produces               commission shall prepare and enter findings
evidence as directed.                                      of fact and conclusions of law upon the evi-
    (2) Except for prosecution and punish-                 dence received in the matter and shall make
ment for perjury, no person who testifies or               and enter the order of the commission
produces evidence in accordance with sub-                  thereon. The findings of fact and conclusions
section (1) of this section shall be prosecuted            of law may be embodied in the same instru-
or subjected to any penalty or forfeiture                  ment with the order or may be embodied in
concerning any matter about which the per-                 a separate instrument. The findings of fact,
son so testified or produced evidence. [1971               conclusions of law and order thereon shall
c.655 §47]                                                 be signed by the commission. The order shall

Title 57                                            Page 13                                     (2007 Edition)
756.561                                    UTILITY REGULATION

state the date it becomes effective. A copy                 756.570 [Amended by 1971 c.655 §51; renumbered
of the findings of fact and conclusions of law         756.561]
and a copy of the order shall, forthwith upon               756.572 Effect of orders on successors
the entry of the same, be served upon each             in interest. (1) An order of the Public Util-
of the parties to the proceeding.                      ity Commission issued in accordance with
    (3) Upon application of any person, the            the provisions of ORS chapters 756, 757, 758
commission shall furnish certified copies,             and 759 is binding upon the successors in
under the seal of any order made by the                interest of each person affected thereby, un-
commission. [Formerly 756.550]                         til set aside, rescinded, suspended or modified
     756.560 [Amended by 1971 c.655 §44; renumbered    as provided by law.
756.534]                                                    (2) Any investigation, hearing or other
    756.561 Rehearing; reconsideration. (1)            proceeding involving the issuance of an order
After an order has been made by the Public             of the commission that has not been finally
Utility Commission in any proceeding, any              determined when a transfer of any interests
party thereto may apply for rehearing or re-           of a person is effected may be continued and
consideration thereof within 60 days from the          finally determined, notwithstanding any such
date of service of such order. The commis-             transfer of interest. Any order issued in such
sion may grant such a rehearing or recon-              investigation, hearing or other proceeding is
sideration if sufficient reason therefor is            binding upon the successors in interest. [1971
made to appear.                                        c.655 §54; 1973 c.776 §31; 1987 c.447 §93; 1995 c.733 §71]

    (2) No such application shall excuse any               756.575 Notice of acceptance of terms
party against whom an order has been made              of orders. The Public Utility Commission
by the commission from complying therewith,            may provide by rule that any public utility
nor operate in any manner to stay or post-             or telecommunications utility affected by any
pone the enforcement thereof without the               order shall within a time to be fixed by the
special order of the commission.                       commission, notify the commission whether
                                                       the terms of the order are accepted and will
    (3) If a rehearing is granted, the pro-            be obeyed. [1971 c.655 §55; 1973 c.776 §32; 1987 c.447
ceedings thereupon shall conform as nearly             §94; 1995 c.733 §72]
as possible to the proceedings in an original               756.580 [Amended by 1971 c.655 §56; repealed by
hearing, except as the commission otherwise            2005 c.638 §21]
may direct. If in the judgment of the com-                  756.585 [1971 c.655 §57; repealed by 2005 c.638 §21]
mission, after such rehearing and the con-
sideration of all facts, including those arising            756.590 [Amended by 1971 c.655 §58; 1995 c.781 §46;
                                                       repealed by 2005 c.638 §21]
since the former hearing, the original order
is in any respect unjust or unwarranted, the                756.594 [1971 c.655 §59; repealed by 2005 c.638 §21]
commission may reverse, change or modify                    756.598 [1971 c.655 §60; 1979 c.284 §197; repealed by
the same accordingly. Any order made after             2005 c.638 §21]
such rehearing, reversing, changing or modi-                756.600 [Amended by 1971 c.655 §61; 2003 c.576 §558;
fying the original determination is subject to         repealed by 2005 c.638 §21]
the same provisions as an original order.                  756.610 Judicial review. (1) Except as
[Formerly 756.570]
                                                       provided in subsection (2) of this section,
    756.565 Prima facie effect of commis-              final orders of the Public Utility Commission
sion actions. All rates, tariffs, classifica-          are subject to judicial review as orders in
tions, regulations, practices and service              contested cases under the provisions of ORS
fixed, approved or prescribed by the Public            183.480 to 183.497.
Utility Commission and any order made or
entered upon any matter within the jurisdic-               (2) ORS 183.482 (3) does not apply to ju-
tion of the commission shall be in force and           dicial review of an order of the Public Utility
shall be prima facie lawful and reasonable,            Commission. At any time after filing a peti-
until found otherwise in a proceeding                  tion for judicial review of a final order of the
brought for that purpose under ORS 756.610.            commission, the petitioner may apply to the
[Formerly 760.575; 2005 c.638 §5]                      Court of Appeals for a stay of the order until
     756.568 Rescission, suspension and                the final disposition of the appeal. The court
amendment of orders. The Public Utility                may grant a stay for cause shown. As a con-
Commission may at any time, upon notice to             dition of granting a stay, the court may re-
the public utility or telecommunications               quire a bond or other security, or impose
utility and after opportunity to be heard as           such other conditions as the court deems ap-
provided in ORS 756.500 to 756.610, rescind,           propriate. A stay may be granted only after
suspend or amend any order made by the                 notice to the commission and opportunity for
commission. Copies of the same shall be                hearing. Any bond required by the court
served and take effect as provided in ORS              must be executed in favor of the commission
756.558 for original orders. [Formerly 757.540;        for the benefit of interested persons, and may
1973 c.776 §30; 1987 c.447 §92a; 1995 c.733 §70]       be enforced by the commission or by any in-

Title 57                                           Page 14                                      (2007 Edition)
                                    PUBLIC UTILITY COMMISSION                                                  756.990

terested person.        [Amended by 1971 c.655 §62; 2003     direction, instruction or request of the public
c.576 §559; 2005 c.638 §6]                                   utility, telecommunications utility or any
     Note: Section 20 (2), chapter 638, Oregon Laws          general officer thereof.
2005, provides:
                                                                 (4) Violation of ORS 756.125 is punish-
     Sec. 20. (2) Notwithstanding the repeal of ORS          able, upon conviction, by a fine of not more
756.580, 756.585, 756.590, 756.594, 756.598 and 756.600 by   than $100 or imprisonment for not more than
section 21 of this 2005 Act and the amendments to ORS
756.610 by section 6 of this 2005 Act, any findings of       30 days, or both. Any public utility or tele-
fact, conclusions of law or order that becomes subject       communications utility that knowingly per-
to suit under ORS 756.580 (repealed by this 2005 Act)        mits the violation of ORS 756.125 shall
before the effective date of this 2005 Act [January 1,       forfeit, upon conviction, not more than $1,000
2006] shall be governed by ORS 756.580, 756.585, 756.590,
756.594, 756.598 and 756.600 as though those sections had    for each offense.
not been repealed by this 2005 Act and ORS 756.610 as            (5) Violation of ORS 756.543 (1) is pun-
though ORS 756.610 had not been amended by this 2005         ishable, upon conviction, by a fine of not less
Act. [2005 c.638 §20(2)]
                                                             than $100 nor more than $1,000, or by im-
                                                             prisonment in the county jail for not more
                 PENALTIES                                   than one year, or both.
    756.990 Penalties. (1) Any public utility                    (6) In construing and enforcing this sec-
or telecommunications utility that fails to                  tion, the act, omission or failure of any offi-
comply with an order or subpoena issued                      cer, agent or other person acting for or
pursuant to ORS 756.090 shall forfeit, for                   employed by any public utility, telecommuni-
each day it so fails, a sum of not less than                 cations utility or other person subject to the
$50 nor more than $500.                                      jurisdiction of the commission acting within
    (2) Except where a penalty is otherwise                  the scope of the person′s employment shall
provided by law, any public utility, telecom-                in every case be deemed to be the act, omis-
munications utility or other person subject                  sion or failure of such public utility, tele-
to the jurisdiction of the Public Utility                    communications utility or other person
Commission shall forfeit a sum of not less                   subject to the jurisdiction of the commission.
than $100 nor more than $10,000 for each                     With respect to any violation of any statute
time that the person:                                        administered by the commission, any penalty
                                                             provision applying to such a violation by a
    (a) Violates any statute administered by                 public utility or telecommunications utility
the commission;                                              shall apply to such a violation by any other
    (b) Does any act prohibited, or fails to                 person.
perform any duty enjoined upon the person;                       (7) Except when provided by law that a
    (c) Fails to obey any lawful requirement                 penalty, fine, forfeiture or other sum be paid
or order made by the commission; or                          to the aggrieved party, or as provided in ORS
    (d) Fails to obey any judgment made by                   757.994 (1), all penalties, fines or forfeitures
any court upon the application of the com-                   or other sums collected or paid under the
mission.                                                     provisions of any law administered by the
                                                             commission shall be paid into the General
    (3) Violation of ORS 756.115 is a Class A                Fund and credited to the Public Utility
violation. A penalty of not less than $500 nor               Commission Account. [1971 c.655 §63; 1973 c.232
more than $1,000 shall be recovered from the                 §4; 1973 c.776 §33; 1977 c.105 §1; 1979 c.415 §1; 1987 c.447
public utility or telecommunications utility                 §95; 1995 c.733 §73; 1999 c.1051 §223; 2003 c.202 §9; 2003
for each such offense when such officer,                     c.576 §560]
agent or employee acted in obedience to the




Title 57                                              Page 15                                         (2007 Edition)
           UTILITY REGULATION




Title 57         Page 16        (2007 Edition)
                                         Chapter 757
                                            2007 EDITION

                            Utility Regulation Generally

                GENERAL PROVISIONS                      757.225   Utilities required to collect for their ser-
757.005    Definitions                                            vices in accordance with schedules
757.007    Contract and rate schedule filing for cer-   757.227   Rate mitigation for certain electric com-
           tain furnishers of heat exempt from reg-               pany rate increases
           ulation; procedure                           757.230   Control of commission over classification
757.009    Procedure for reregulation of furnishers               of services and forms of schedules; rules
           of heat                                      757.240   Filing schedules in business office
757.015    “Affiliated interest” defined                757.245   Establishment of joint rates
757.020    Duty of utilities to furnish adequate and    757.247   Tariff schedules for renewable energy
           safe service at reasonable rates                       generation facilities and energy conserva-
757.035    Adoption of safety rules and regulations;              tion
           enforcement                                  757.250   Standards and appliances for measuring
757.039    Regulation of hazardous substance dis-                 service; rules
           tribution and storage operations; cooper-    757.255   Testing of measuring appliances; rules;
           ation with federal agencies; disclosure of             fees
           reports and information                      757.259   Amounts includable in rate schedule;
757.050    Authority of commission to order exten-                deferral; limit in effect on rates by
           sion of service to unserved areas                      amortization; rules
757.056    Information on energy conservation to be     757.262   Rates to encourage acquisition of cost-
           furnished by certain utilities; rules                  effective conservation resources; rules
757.061    Regulation of water utilities; rules         757.266   Rates may encourage tree planting pro-
757.063    Regulation of associations furnishing wa-              grams as offset to carbon dioxide emis-
           ter upon petition                                      sions
757.068    Use of fees to make emergency repairs to     757.267   Legislative findings relating to inclusion
           water service plants                                   of tax liabilities in rates
757.069    Notice of delinquency on water bill          757.268   Adjustments to rates by reason of taxes
                                                                  paid by public utility
757.072    Agreements for financial assistance to
           organizations representing customer in-                 ATTACHMENTS REGULATION
           terests; rules
                                                        757.270   Definitions for ORS 757.270 to 757.290
        BUDGET, ACCOUNTS AND REPORTS                    757.271   Authorization from pole owner required
                    OF UTILITIES                                  for attachment
757.105   Filing of budget; review by commission;       757.272   Pole owner may approve or reject attach-
          pensions as operating expenses                          ment
757.107   Supplemental budgets and orders               757.273   Attachments to public utility and tele-
757.110   Effect of budget orders                                 communications utility facilities regulated
757.120   Accounts required                             757.276   Attachments by licensees to consumer-
                                                                  owned utility facilities regulated
757.125   Duty of utility to keep records and ac-
          counts; duty of commission to furnish         757.279   Fixing rates or charges by commission;
          blanks                                                  cost of hearing
757.135   Closing accounts and filing balance sheet;    757.282   Criteria for just and reasonable rate for
          auditing accounts                                       attachments; rate reduction
                                                        757.285   Presumption of reasonableness of rates
757.140   Depreciation accounts; use of certain un-               set by private agreement
          depreciated investment in rates
                                                        757.287   Application to electrical utility attach-
          RATE SCHEDULES; MEASURING                               ments
                     EQUIPMENT                          757.290   Regulatory procedures
757.205   Filing schedules with commission; data
          filed with schedules                                      NET METERING FACILITIES
757.210   Hearing to establish new schedules; alter-    757.300   Net metering facility allowed to connect
          native regulation plan                                  to public utility; conditions for connecting
                                                                  and measuring energy; rules; application
757.212   Resource rate plans; customers who may                  to out-of-state utilities
          elect to be exempt; order approving plan;
          effect of approving plan
                                                                       ILLEGAL PRACTICES
757.215   Commission authorized to suspend new
          rates or order interim rates during hear-     757.310   Prohibition related to charges for service
          ings; revenues collected under unapproved     757.315   When free service or reduced rates al-
          rates to be refunded; order after hearing               lowed
757.220   Notice of schedule changes required; ex-      757.320   Reducing rates for persons furnishing part
          ception for alternative regulation                      of necessary facilities

Title 57                                          Page 1                                     (2007 Edition)
                                       UTILITY REGULATION

757.325    Undue preferences and prejudices             757.547   Oregon Utility Notification Center; board;
757.330    Soliciting or accepting special privileges             member qualifications; terms; meetings;
           from utilities                                         rules
757.355    Costs of property not presently providing    757.552   Duties of center; fees for services; rules;
           utility service excluded from rate base;               exemption from certain financial admin-
           exception                                              istration laws
                                                        757.557   Underground utility facility operators re-
              ISSUANCE OF SECURITIES                              quired to subscribe to center; liability for
                                                                  damage from excavation for nonsubscrib-
757.400    Definition of “stocks”                                 ers; exemption
757.405    Power to regulate issuance of utility se-    757.562   Report to Legislative Assembly of center
           curities                                               activities; contracts to carry out duties
757.410    When issuance of securities is void
                                                                  DIRECT ACCESS REGULATION
757.412    Exemption from securities regulation
                                                        757.600   Definitions for ORS 757.600 to 757.689
757.415    Purposes for which securities and notes
           may be issued; order required                757.601   Implementation dates for direct access
                                                                  and portfolio of rate options; exemption
757.417    Limitation on application of ORS 757.415               for certain small electric companies
757.419    Limitation on application of ORS 757.480     757.603   Electric company required to provide
757.420    Hearings and supplemental orders relating              cost-of-service rate option to all retail
           to issuance of securities; joint approval              electricity consumers; waiver; portfolio of
           of issuance by interstate utility                      rate options for residential consumers
757.425    State not obligated following approval of    757.607   Direct access conditions; cost recovery
           issuance                                     757.609   Date for announcing prices for electricity
757.430    Conditional approval of issuance author-               in subsequent calendar year; estimated
           ized                                                   prices
757.435    Disposal of proceeds from issuance of se-    757.612   Requirements for public purpose expendi-
           curities; rules                                        tures; electric bill payment assistance
                                                                  charge; rules
757.440    Approval required before utility may
           guarantee another′s indebtedness             757.617   Report to Legislative Assembly on public
                                                                  purpose expenditures; independent non-
757.445    Wrongful issues or use of proceeds by                  governmental entity to prepare report;
           utility                                                report on low-income bill assistance
757.450    Wrongful acts relating to issuance of se-    757.622   Commission to establish terms and condi-
           curities                                               tions for default electricity service to
757.455    Conservation program investment policy;                nonresidential consumers
           application for bondable investments;        757.627   Retail electricity consumers eligible for
           utility rates to include investment costs              direct access may aggregate electricity
757.460    Pledge of conservation investment assets               loads
           as bond collateral; perfection of security   757.629   Reciprocal sales to nonresidential elec-
           interest; foreclosure                                  tricity consumers
                                                        757.632   Electricity service supplier′s access to
     TRANSACTIONS INVOLVING UTILITIES                             electric company′s distribution facilities
757.480 Approval needed prior to disposal, mort-        757.637   Comparable access to transmission and
        gage or encumbrance of certain operative                  distribution facilities
        utility property or consolidation with an-
        other public utility; exceptions                757.642   Unbundling electricity assets; records
757.485 Purchase of property or stocks of one           757.646   Commission policies to eliminate barriers
        utility by another                                        to competitive retail market structures
                                                                  and rules to establish code of conduct for
757.490 Approval needed for certain contracts                     electric companies; rules
757.495 Contracts involving utilities and persons       757.649   Certification of electricity service suppli-
        with affiliated interests                                 ers; safety standards for distribution sys-
757.500 Contracts between certain public utilities                tems; billing requirements; rules
757.506 Findings and policy regarding exercise of       757.654   Commission authority to investigate alle-
        influence over utility by person not en-                  gations of undue market influence
        gaged in utility business                       757.656   Failure to comply with ORS 757.600 to
757.511 Application for authority to exercise in-                 757.667; cause of action
        fluence over utility; contents of applica-      757.659   Commission rules; contents
        tion; issuance of order; dissemination of
        information about acquisition                   757.660   Use of arbitration to resolve disputes re-
                                                                  lating to valuation of electric company
757.516 Contracts between natural gas utilities                   investments; rules
        and customers for commodity and ser-
        vices; determination by commission of           757.661   Commission authority to require filing
        reasonableness of contract and utility ac-      757.663   Commission authority to require electric
        tivities                                                  company to enter into contracts with
                                                                  Bonneville Power Administration
        OREGON UTILITY NOTIFICATION                     757.665   Limitation on installing, servicing electric
                     CENTER                                       meters
757.542  Definitions                                    757.667   City authority over rights of way

Title 57                                          Page 2                                     (2007 Edition)
                               UTILITY REGULATION GENERALLY

757.669    Policy regarding consumer-owned electric                 (Acquisition of Incumbent Utility)
           utilities                                      757.852    Acquisition of incumbent utility; use of
757.672    Application of ORS 757.603 to 757.667 to                  eminent domain
           consumer-owned electric utility; recipro-      757.855    Funding of preliminary activities and ne-
           cal electricity sales                                     gotiations
757.676    Consumer-owned utility authorized to of-       757.857    Oregon Community Power Utility Acqui-
           fer direct, portfolio or other forms of ac-               sition Fund
           cess to electricity services
                                                          757.862    Request to Public Utility Commission for
757.679    Net billing agreements                                    transfer of funds
757.683    Consumer-owned        utility′s distribution   757.864    Conduct of business after acquisition
           rights and control over distribution sys-
           tem                                            757.868    Oregon Community Power to be successor
                                                                     in interest to incumbent utility; rules
757.687    Consumer-owned utility offering direct
           access; public purpose charge; bill assist-    757.872    Equity and assets of incumbent utility
           ance program                                              held in trust; disclaimer of state interest
757.689    Recovery of costs of energy conservation                      (Duties and Powers of
           measures in rates of electric company                       Oregon Community Power)
757.691    Applicability                                  757.880   Board duties
          EMERGENCY CURTAILMENT OF                        757.883   Payments in lieu of property taxes
          ELECTRICITY OR NATURAL OR                       757.886   Powers of Oregon Community Power
               MANUFACTURED GAS                           757.890   Eminent domain
757.710   Emergency curtailment plan required;
          credits for weatherization or alternate                               (Rates)
          energy devices
                                                          757.895   Ratemaking
757.720   Factors to be considered in approving
          plan; authority to establish plan; consul-      757.897   Notice of ratemaking; ratemaking hear-
          tation with State Department of Energy                    ings
757.730   Liability when curtailment occurs                             (Participation by Citizens′
                                                                               Utility Board)
     HEALTH ENDANGERING TERMINATION
        OF RESIDENTIAL UTILITY SERVICE                    757.900   Intervention by Citizens′ Utility Board in
                                                                    proceedings
757.750   Legislative findings
757.755   Termination of residential electric or na-                             (Audits)
          tural gas service prohibited; rules of          757.902   Annual    audit of Oregon       Community
          commission                                                Power
757.760   Requirements for notice of termination of
          service; payment schedules; rules                                     (Bylaws)
                                                          757.905   Adoption of bylaws
            HIGH VOLTAGE POWER LINE
                     REGULATION                                              (Electricity From
757.800    Definitions for ORS 757.800 and 757.805                            Bonneville Power
757.805    Accident prevention required for work                               Administration)
           near high voltage lines; effect of failure     757.910   Policy
           to comply; applicability; other remedies
           unaffected                                                        (Direct Access)
                                                          757.915   Definitions for ORS 757.915 to 757.930
           OREGON COMMUNITY POWER
                                                          757.918   Oregon Community Power required to al-
                      (Definitions)                                 low direct access
757.812    Definitions for ORS 757.812 to 757.950         757.920   Rights of electricity service suppliers
           (Acquisition Review Committee)                 757.922   Transition credits and charges
757.814    Creation of acquisition review committee       757.924   Portfolio access to electricity service pro-
                                                                    viders
        (Oregon Community Power Created)
                                                                       (Consumer-Owned Utilities)
757.818   Oregon Community Power created
                                                          757.930   Distribution rights; service territories
757.822   Laws applicable to Oregon Community
          Power
                                                                         (Financing Agreements)
757.824   Regulatory authority of Public Utility
          Commission over Oregon Community                757.935   Definitions for ORS 757.935 to 757.945
          Power                                           757.937   Financing agreements authorized
                                                          757.940   Delegation of powers relating to financing
                 (Board of Directors)                               agreements
757.830    Nominating committee                           757.942   Powers of Oregon Community Power re-
757.834    Board of directors                                       lating to financing agreements
757.842    Board meetings and procedures                  757.945   Consultation with State Treasurer




Title 57                                            Page 3                                       (2007 Edition)
                                       UTILITY REGULATION

                  (Revenue Bonds)                                         PENALTIES
757.950    Authorization to issue and sell revenue   757.990   Penalties
           bonds                                     757.991   Civil penalty for noncompliance with gas
                                                               regulations
                                                     757.993   Penalty for violation of utility excavation
                (City Rights of Way)                           notification provisions
757.954    City′s authority to control and collect   757.994   Civil penalty for violation of statute, rule
           charges for use of rights of way                    or order related to water utilities




Title 57                                       Page 4                                     (2007 Edition)
                          UTILITY REGULATION GENERALLY                                                   757.007

           GENERAL PROVISIONS                      nishing steam or other thermal forms of heat
    757.005 Definitions. (1)(a) As used in         to its customers.
this chapter, except as provided in paragraph          (F) Notwithstanding subparagraph (E) of
(b) of this subsection, “public utility” means:    this paragraph, any corporation, company,
    (A) Any corporation, company, individ-         partnership, individual or association of indi-
ual, association of individuals, or its lessees,   viduals furnishing heat to a single thermal
trustees or receivers, that owns, operates,        end user from an electric generating facility,
manages or controls all or a part of any           plant or equipment that is physically inter-
plant or equipment in this state for the pro-      connected with the single thermal end user.
duction, transmission, delivery or furnishing          (G) Any corporation, company, partner-
of heat, light, water or power, directly or in-    ship, individual or association of individuals
directly to or for the public, whether or not      that furnishes natural gas, electricity,
such plant or equipment or part thereof is         ethanol, methanol, methane, biodiesel or
wholly within any town or city.                    other alternative fuel to any number of cus-
                                                   tomers for use in motor vehicles and does
    (B) Any corporation, company, individual       not furnish any utility service described in
or association of individuals, which is party      paragraph (a) of this subsection.
to an oral or written agreement for the pay-
ment by a public utility, for service, mana-           (H) An electricity service supplier, as
gerial construction, engineering or financing      defined in ORS 757.600.
fees, and having an affiliated interest with           (2) Nothing in subsection (1)(b)(C) of this
the public utility.                                section shall prohibit third party financing
    (b) As used in this chapter, “public util-     of acquisition or development by a utility
ity” does not include:                             customer of energy resources to meet the
                                                   heat, light or power requirements of that
    (A) Any plant owned or operated by a           customer. [Amended by 1953 c.583 §2; 1967 c.241 §1;
municipality.                                      1967   c.314   §1; 1971 c.655 §64a; 1973 c.726 §1; 1979 c.62 §1;
    (B) Any railroad, as defined in ORS            1981   c.360   §1; 1981 c.749 §21; 1983 c.118 §1; 1983 c.799 §7;
                                                   1985   c.550   §1; 1985 c.633 §7; 1985 c.779 §1; 1987 c.447 §96;
824.020, or any industrial concern by reason       1987   c.900   §3; 1989 c.5 §2; 1989 c.999 §§1,2; 1991 c.294 §1;
of the fact that it furnishes, without profit to   1995   c.267   §1; 1999 c.330 §2; 1999 c.491 §1; 1999 c.865 §21;
itself, heat, light, water or power to the in-     2001   c.104   §292; 2003 c.82 §4]
habitants of any locality where there is no            757.007 Contract and rate schedule fil-
municipal or public utility plant to furnish       ing for certain furnishers of heat exempt
the same.                                          from regulation; procedure. (1) Every per-
    (C) Any corporation, company, individual       son exempt from regulation under ORS
or association of individuals providing heat,      757.005 (1)(b)(E) shall file with the Public
light or power:                                    Utility Commission, not later than 30 days
    (i) From any energy resource to fewer          prior to their effective date, all contracts and
than 20 customers, if it began providing ser-      schedules establishing rates, terms and con-
vice to a customer prior to July 14, 1985;         ditions for the provision of heating services.
    (ii) From any energy resource to fewer             (2) Prior to the effective date, the com-
than 20 residential customers so long as the       mission may suspend the effective date of
corporation, company, individual or associ-        such contracts or schedules for an additional
ation of individuals serves only residential       period of not more than 120 days in order to
customers;                                         determine the reasonableness of such con-
                                                   tracts or schedules, taking into consideration
    (iii) From solar or wind resources to any      the services being provided, the costs and
number of customers; or                            risks of service, the availability and costs of
    (iv) From biogas, waste heat or geother-       alternative forms of service and other rea-
mal resources for nonelectric generation           sonable considerations, including the impact
purposes to any number of customers.               on existing customers of the utilities fur-
                                                   nishing electricity and natural gas and on
    (D) A qualifying facility on account of        the public generally.
sales made under the provisions of ORS
758.505 to 758.555.                                    (3) If the contract or schedule is not sus-
                                                   pended, or if the contract or schedule is de-
    (E) Any person furnishing heat, but not        termined reasonable by the commission after
delivering electricity or natural gas to its       suspension, the contract or schedule shall
customers, except:                                 not be subject to further commission review
    (i) As provided in ORS 757.007 and             during its term or such other period as the
757.009; or                                        commission may specify, except as provided
    (ii) With respect to heat furnished in         in ORS 757.009.
municipalities which on January 1, 1989, had           (4) In any proceeding before the commis-
a municipally owned system that was fur-           sion to determine the reasonableness of con-

Title 57                                     Page 5                                             (2007 Edition)
757.009                                  UTILITY REGULATION

tracts or schedules proposed under this                  (4) Every person who is an officer or di-
section, the burden shall be upon the propo-         rector of such public utility or of any corpo-
nent of the contract or schedule to establish        ration in any chain of successive ownership
its reasonableness. [1989 c.999 §§4a,4c; 2003 c.82   of five percent or more of voting securities
§5]                                                  of such public utility.
     757.009 Procedure for reregulation of               (5) Every corporation which has two or
furnishers of heat. (1) Except as provided           more officers or two or more directors in
in subsection (2) of this section, the Public        common with such public utility.
Utility Commission may, upon written com-                (6) Every corporation and person, five
plaint or upon the commission′s own motion,          percent or more of which is directly or indi-
regulate, under ORS 757.205 to 757.240, or           rectly owned by a public utility.
any part thereof, any person otherwise ex-
empt from regulation under ORS 757.005                   (7) Every corporation or person which
(1)(b)(E) as follows:                                the Public Utility Commission determines as
                                                     a matter of fact after investigation and hear-
     (a) With respect to any or all customers,       ing actually is exercising any substantial in-
if the commission finds that the activities of       fluence over the policies and actions of such
such person have an adverse effect upon the          public utility, even though such influence is
customers of public utilities furnishing elec-       not based upon stockholding, stockholders,
tricity or natural gas and the benefits of           directors or officers to the extent specified in
such regulation outweigh any adverse effect          this section.
on the public generally; or
                                                         (8) Every person or corporation who or
     (b) With respect to any customer receiv-        which the commission determines as a mat-
ing service not exceeding 500 million British        ter of fact, after investigation and hearing,
thermal units per year or any residential            actually is exercising such substantial influ-
customer, if the commission finds that such          ence over the policies and actions of such
person has engaged in unjust or unreason-            public utility in conjunction with one or
able practices with respect to the services or       more other corporations or persons with
rates available to the customer and the cus-         whom they are related by ownership or blood
tomer has no reasonable alternative to the           or by action in concert that together they
services provided.                                   are affiliated with such public utility within
     (2) The commission shall not regulate           the meaning of this section even though no
persons under subsection (1)(a) of this sec-         one of them alone is so affiliated. [Amended by
tion with respect to contracts that became           1971 c.655 §65; 1989 c.17 §1]
effective prior to the date of service of the            757.020 Duty of utilities to furnish ad-
complaint or with respect to heating systems         equate and safe service at reasonable
already in place on the date of service of the       rates. Every public utility is required to
complaint if the commission determines that          furnish adequate and safe service, equipment
continued expansion will increase the effi-          and facilities, and the charges made by any
ciency of those systems. [1989 c.999 §§4b,4d; 2003   public utility for any service rendered or to
c.82 §6]
                                                     be rendered in connection therewith shall be
     757.010 [Repealed by 1971 c.655 §250]           reasonable and just, and every unjust or un-
    757.015 “Affiliated interest” defined.           reasonable charge for such service is prohib-
As used in ORS 757.105 (1) and in ORS                ited. [Amended by 1971 c.655 §66]
757.495, “affiliated interest” with a public              757.025 [Amended by 1971 c.655 §14; renumbered
utility means:                                       756.062]
                                                          757.030 [Repealed by 1971 c.655 §250]
    (1) Every corporation and person owning
or holding directly or indirectly five percent           757.035 Adoption of safety rules and
or more of the voting securities of such pub-        regulations; enforcement. (1) The Public
lic utility.                                         Utility Commission has power, after a hear-
    (2) Every corporation and person in any          ing had upon the motion of the commission
chain of successive ownership of five percent        or upon complaint, to require by general or
or more of voting securities of such public          special orders embodying reasonable rules or
                                                     regulations, every person or municipality,
utility.                                             their agents, lessees or acting trustees or re-
    (3) Every corporation five percent or            ceivers, appointed by court, engaged in the
more of whose voting securities are owned            management, operation, ownership or control
by any person or corporation owning five             of telegraph, telephone, signal or power lines
percent or more of the voting securities of          within this state, upon the public streets or
such public utility or by any person or cor-         highways, and also upon all other premises
poration in any chain of successive owner-           used, whether leased, owned or controlled by
ship of five percent or more of voting               them, to construct, maintain and operate ev-
securities of such public utility.                   ery line, plant, system, equipment or appara-

Title 57                                       Page 6                                   (2007 Edition)
                                 UTILITY REGULATION GENERALLY                                      757.050

tus in such manner as to protect and                ardous substance or material to be transmit-
safeguard the health and safety of all em-          ted by pipeline or upon the public streets or
ployees, customers and the public, and to           highways in such manner as to protect and
this end to adopt and prescribe the installa-       safeguard the health and safety of all em-
tion, use, maintenance and operation of ap-         ployees, customers and the public, and to
propriate safety or other devices, or               this end to adopt and prescribe the installa-
appliances, to establish or adopt standards of      tion, use, maintenance and operation of ap-
construction or equipment, and to require           propriate safety or other devices, or
the performance of any other act which              appliances, to establish or adopt standards of
seems to the commission necessary or proper         construction or equipment, and to require
for the protection of the health or safety of       the performance of any other act which
all employees, customers or the public.             seems to the commission necessary or proper
    (2) When acting pursuant to subsection          for the protection of the health and safety of
(1) of this section, the Public Utility Com-        all employees, customers or the public.
mission shall adopt by rule as the standard             (3) The commission is authorized to co-
of such construction, operation and mainte-         operate with, make certifications to and en-
nance the 1973 edition of the American Na-          ter into agreements with the Secretary of
tional Standard, National Electrical Safety         Transportation of the United States of
Code, C2.                                           America and to assume responsibility for,
    (3) In lieu of subsection (2) of this sec-      and carry out on behalf of the Secretary of
tion, or in addition thereto, the commission        Transportation, safety jurisdiction relating to
may adopt by rule any revision or edition of        pipeline facilities and transportation of haz-
or amendment to the National Electrical             ardous substances and materials in Oregon
Safety Code approved by the American Na-            in any manner not otherwise subject to the
tional Standards Institute after July 14, 1977,     jurisdiction of any other agency of this state.
and in effect on the date of adoption by the            (4) Notwithstanding any other provisions
commission. [Amended by 1969 c.530 §1; 1971 c.655   to the contrary, the commission shall make
§68; 1975 c.658 §1; 1977 c.346 §1]                  public such reports as are required to be
     757.039 Regulation of hazardous sub-           made public under applicable federal law and
                                                    regulations and provide such information as
stance distribution and storage oper-               is required by the Secretary of Transporta-
ations; cooperation with federal agencies;          tion.
disclosure of reports and information. (1)
As used in this section, “hazardous substance           (5) The jurisdiction of the commission
or material” means:                                 over propane, butane or mixtures of these
                                                    gases shall be limited to systems transporting
     (a) Fuel gas, whether in a gaseous, liquid     such gases to 10 or more customers, or to
or semisolid state;                                 systems any portion of which is located in a
     (b) Petroleum or petroleum products; and       public place. [Formerly 757.095; 1983 c.540 §3; 2001
                                                    c.35 §1]
     (c) Any other substance or material                 757.040 [Amended by 1971 c.655 §101; renumbered
which may pose an unreasonable risk to life         758.035]
or property when transported by pipeline fa-             757.045 [Amended by 1967 c.394 §1; repealed by 1971
cilities.                                           c.781 §1]
     (2) The Public Utility Commission has              757.050 Authority of commission to
power, after a hearing had upon the commis-         order extension of service to unserved
sion′s own motion or upon complaint, to re-         areas. The Public Utility Commission has
quire by general or special orders embodying        power to require any public utility, after a
reasonable rules, every person or municipal-        public hearing of all parties interested, to
ity, their agents, lessees or acting trustees       extend its line, plant or system into, and to
or receivers, appointed by court, engaged in        render service to, a locality not already
the management, operation, ownership or             served when the existing public convenience
control of facilities for the transmission or       and necessity requires such extension and
distribution of a hazardous substance or ma-        service. However, no such extension of ser-
terial by pipeline; or of facilities for the        vice shall be required until the public utility
storage or treatment of a hazardous sub-            has been granted such reasonable franchises
stance or material to be transmitted or dis-        as may be necessary for the extension of
tributed by pipeline or upon the public             service, and unless the conditions are such
streets or highways; or of any other premises       as to reasonably justify the necessary invest-
used, whether leased, owned or controlled by        ment by the public utility in extending its
them, to construct, maintain and operate ev-        line, plant or system into such locality and
ery pipeline, plant, system, equipment or ap-       furnishing such service. [Amended by 1971 c.655
paratus      used    in   the    transmission,      §67]
distribution, storage or treatment of a haz-               757.055 [Repealed by 1971 c.655 §250]

Title 57                                      Page 7                                         (2007 Edition)
757.056                                 UTILITY REGULATION

    757.056 Information on energy conser-                  that the water utility be subject to financial
vation to be furnished by certain utilities;               regulation; or
rules. (1) As used in this section, “energy                     (b) The water utility charges a rate for
conservation services” means services pro-                 water service that exceeds a maximum rate
vided by public utilities to educate and in-               established by the commission under subsec-
form customers and the public about energy                 tion (7) of this section and 20 percent or
conservation. Such services include but are                more of the customers of the water utility
not limited to providing answers to questions              file a petition with the commission request-
concerning energy saving devices and pro-                  ing that the water utility be subject to fi-
viding inspections and making suggestions                  nancial regulation under this chapter.
concerning the construction and siting of
buildings and residences.                                       (7) The commission shall adopt rules es-
                                                           tablishing maximum rates for water utilities
    (2) All public utilities as defined in ORS             serving fewer than 500 customers for the
757.005, that produce, transmit, deliver or                purpose of determining whether a petition
furnish heat, light or power shall establish               may be filed under subsection (6)(b) of this
energy conservation services and shall pro-                section.
vide energy conservation information to cus-                    (8) Not less than 60 days before a water
tomers and to the public. The services shall               utility that serves fewer than 500 customers
be performed in accordance with such rules                 increases any rate to exceed any maximum
as the Public Utility Commission may pre-                  rate prescribed under subsection (7) of this
scribe. [1977 c.197 §2; 1977 c.887 §11]                    section, the water utility shall provide writ-
     757.060 [Amended by 1955 c.145 §1; repealed by 1961   ten notice to all of its customers advising the
c.691 §20]                                                 customers of their right to file a petition
     757.061 Regulation of water utilities;                under subsection (6)(b) of this section. The
rules. (1) For the purposes of this section,               commission shall adopt rules prescribing the
“financial regulation” means regulation un-                content of the written notice. [1989 c.403 §2; 1999
                                                           c.330 §1; 2003 c.82 §1]
der ORS 757.105 to 757.110, 757.135, 757.140,
757.205 to 757.220, 757.400 to 757.460 and                     757.063 Regulation of associations fur-
757.480 to 757.495.                                        nishing water upon petition. (1) Any asso-
                                                           ciation of individuals that furnishes water to
     (2) Except as provided in this section,               members of the association is subject to reg-
water utilities that serve fewer than 500                  ulation in the same manner as provided by
customers are not subject to regulation un-                this chapter for public utilities, and must pay
der this chapter or required to pay the fee                the fee provided for in ORS 756.310, if 20
provided for in ORS 756.310.                               percent or more of the members of the asso-
     (3) A water utility that serves fewer than            ciation file a petition with the Public Utility
500 customers and that provides wastewater                 Commission requesting that the association
services to the public inside the boundaries               be subject to such regulation.
of a city is subject to regulation under this                  (2) The provisions of this section apply to
chapter and must pay the fee provided for in               an association of individuals even if the as-
ORS 756.310.                                               sociation does not furnish water directly to
                                                           or for the public. The provisions of this sec-
     (4) A water utility that serves fewer than            tion do not apply to any cooperative formed
500 customers and that is found by the Pub-                under ORS chapter 62 or to any public body
lic Utility Commission to have provided in-                as defined by ORS 174.109. [2003 c.82 §3]
adequate or discriminatory service at any
                                                                757.065 [Renumbered 756.370]
time is thereafter subject to regulation under
this chapter and must pay the fee provided                     757.068 Use of fees to make emergency
for in ORS 756.310.                                        repairs to water service plants. (1) In each
                                                           biennium the Public Utility Commission may
     (5) A water utility that serves fewer than            use not more than $5,000 of the fees collected
500 customers and that at any time charges                 under ORS 756.310 to make emergency re-
an average annual residential rate of $18 per              pairs to the plants of public utilities provid-
month or more is thereafter subject to regu-               ing water service. The commission may
lation under this chapter, other than finan-               expend moneys under the provisions of this
cial regulation, and must pay the fee                      section only if the commission determines
provided for in ORS 756.310.                               that:
     (6) A water utility that serves fewer than                (a) Customers of the utility are without
500 customers is subject to financial regu-                service and are likely to remain without ser-
lation under this chapter, and must pay the                vice for an unreasonable period of time;
fee provided for in ORS 756.310, if:                           (b) The utility is unwilling or unable to
     (a) The Public Utility Commission grants              make emergency repairs, or cannot be found
a petition from a water utility requesting                 after reasonable effort; and

Title 57                                             Page 8                                    (2007 Edition)
                             UTILITY REGULATION GENERALLY                                                  757.105

     (c) Restoration of the service is necessary            (a) The amount of financial assistance
for the health and safety of the customers of          that may be provided to any organization;
the utility.                                                (b) The manner in which the financial
     (2) The commission shall attempt to re-           assistance will be distributed;
cover fees used under this section from the                 (c) The manner in which the financial
utility providing water service. The commis-           assistance will be recovered in the rates of
sion may also recover a penalty as provided            the public utility under subsection (4) of this
in ORS 756.350 from the time the fees are              section; and
expended. [2003 c.202 §8]
                                                            (d) Other matters necessary to administer
     757.069 Notice of delinquency on water            the agreement.
bill. (1) If a customer of a water utility fails            (4) The commission shall allow a public
to pay a water bill for more than 120 days             utility that provides financial assistance un-
after the bill becomes due, the water utility          der this section to recover the amounts so
shall mail notice of the delinquency to the            provided in rates. The commission shall al-
persons who are listed as the owners of the            low a public utility to defer inclusion of
property in the real property tax records for          those amounts in rates as provided in ORS
the county only if the utility asserts that the        757.259 if the public utility so elects. An
property owners are responsible for the bill.          agreement under this section may not pro-
The notice must be mailed to the addresses             vide for payment of any amounts to the
of the owners as reflected in the real prop-           commission. [2003 c.234 §2]
erty tax records.
                                                            757.075   [Repealed by 1971 c.655 §250]
     (2) The provisions of this section apply to            757.080   [1953 c.356 §1; 1961 c.354 §1; 1971 c.655 §30a;
water utilities operated by public utilities,          renumbered     756.380]
municipalities, cooperatives and unincor-                   757.085    [1953 c.356 §2; 1961 c.354 §2; renumbered
porated associations. [2005 c.168 §2; 2007 c.211 §1]   756.385]
    757.070 [Renumbered 756.375]                            757.090   [1953 c.356 §3; 1961 c.354 §3; renumbered
                                                       756.390]
    757.072 Agreements for financial as-
sistance to organizations representing                      757.095   [1969 c.372 §2; 1971 c.655 §69; renumbered
                                                       757.039]
customer interests; rules. (1) A public
utility providing electricity or natural gas
may enter into a written agreement with an                      BUDGET, ACCOUNTS AND
organization that represents broad customer                      REPORTS OF UTILITIES
interests in regulatory proceedings conducted               757.105 Filing of budget; review by
by the Public Utility Commission relating to           commission; pensions as operating ex-
public utilities that provide electricity or na-       penses. (1) The Public Utility Commission
tural gas. The agreement shall govern the              has the right and power of regulation, re-
manner in which financial assistance may be            striction and control over the budgets of ex-
provided to the organization. The agreement            penditures of public utilities, as to all items
may provide for financial assistance to other          covering:
organizations found by the commission to be
qualified under subsection (2) of this section.             (a) Proposed payment of salaries of exec-
More than one public utility or organization           utive officers;
may join in a single agreement. Any agree-                  (b) Donations;
ment entered into under this section must be                (c) Political contributions and political
approved by the commission before any fi-              advertising;
nancial assistance is provided under the
agreement.                                                  (d) Expenditures for pensions or for a
                                                       trust to provide pensions for employees and
    (2) Financial assistance under an agree-           officers;
ment entered into under this section may be
provided only to organizations that represent               (e) Other expenditures and major con-
broad customer interests in regulatory pro-            tracts for the sale or purchase of equipment;
ceedings before the commission relating to             and
public utilities that provide electricity or na-            (f) Any payment or contemplated pay-
tural gas. The commission by rule shall es-            ment to any person or corporation having an
tablish such qualifications as the commission          affiliated interest for service, advice, audit-
deems appropriate for determining which or-            ing, associating, sponsoring, engineering,
ganizations are eligible for financial assist-         managing, operating, financing, legal or
ance under an agreement entered into under             other services.
this section.                                               (2) On or before November 1 of each year
    (3) In administering an agreement en-              each public utility shall prepare a budget
tered into under this section, the commission          showing the amount of money which, in its
by rule or order may determine:                        judgment, shall be needed during the ensuing

Title 57                                         Page 9                                           (2007 Edition)
757.107                             UTILITY REGULATION

year for covering all such activities and ex-         757.115 [Amended by 1971 c.655 §20; renumbered
penditures, and file it with the commission.     756.105]

     (3) When any such budget has been filed         757.120 Accounts required. (1) Every
with the commission, the commission shall        public utility shall keep and render to the
examine into and investigate the same and        Public Utility Commission, in the manner
unless rejected within 60 days thereafter, the   and form prescribed by the commission, uni-
proposed budget is presumptively fair and        form accounts of all business transacted. All
reasonable and not contrary to public inter-     forms of accounts which may be prescribed
est.                                             by the commission shall conform as nearly
                                                 as practicable to similar forms prescribed by
     (4) Proposed expenditures for pensions or   federal authority.
for a trust to provide pensions for the em-
ployees and officers of such utility whether         (2) Every public utility engaged directly
for future service or past service or both,      or indirectly in any other business than that
shall be recognized as an operating expense      of a public utility shall, if required by the
if the trust fund is irrevocably committed to    commission, keep and render separately to
the payment of pensions or benefits to em-       the commission, in like manner and form, the
ployees and if such pensions are reasonable      accounts of all such other business, in which
and nondiscriminatory. The commission may        case all the provisions of this chapter shall
disallow as an operating expense any ex-         apply with like force and effect to the ac-
penditure for pension purposes in excess of      counts and records of such other business.
                                                 [Amended by 1971 c.655 §85]
the amount necessary and proper to maintain
an actuarially sound retirement plan for the          757.125 Duty of utility to keep records
employees of the utility in Oregon. [Amended     and accounts; duty of commission to
by 1957 c.593 §1; 1971 c.655 §82]                furnish blanks. (1) The Public Utility Com-
                                                 mission shall prescribe the accounts and re-
    757.107 Supplemental budgets and or-         cords required to be kept, and every public
ders. Adjustment and additions to such bud-      utility is required to keep and render its ac-
get expenditures may be made from time to        counts and records accurately and faithfully
time during the year by filing supplementary     in the manner prescribed by the commission
budgets with the Public Utility Commission.      and to comply with all directions of the
The provisions of ORS 757.105 (3) apply to       commission relating to such accounts and
adjustments and additions to budgets.            records.
[Amended by 1971 c.655 §83]
                                                      (2) No public utility shall keep any other
    757.110 Effect of budget orders. (1) Any     accounts or records of its public utility busi-
finding and order made and entered by the        ness transacted than those prescribed or ap-
Public Utility Commission under ORS              proved by the commission except such as
757.105 or 757.107 shall have the effect of      may be required by the laws of the United
prohibiting any unapproved or rejected ex-       States.
penditure from being recognized as an oper-
ating expense or capital expenditure in any           (3) The commission shall cause to be
rate valuation proceeding or in any proceed-     prepared suitable blanks for reports for car-
ing or hearing unless and until the propriety    rying out the purposes of this chapter, and
thereof has been established to the satisfac-    shall, when necessary, furnish such blanks
tion of the commission. Any such finding and     for reports to each public utility. [Amended by
                                                 1971 c.655 §86]
order shall remain in full force and effect,
unless and until it is modified or set aside         757.130 [Repealed by 1971 c.655 §250]
by the commission or is set aside, modified          757.135 Closing accounts and filing
or remanded in a proceeding for judicial re-     balance sheet; auditing accounts. (1) Ex-
view of an order in a contested case in the      cept as provided in subsection (2) of this
manner provided by ORS 756.610.                  section, the accounts required under ORS
    (2) Nothing in ORS 757.105 or 757.107        757.120 and 757.125 shall be closed annually
prevents the commission from at any time         on December 31 and a balance sheet of that
making and filing orders rejecting imprudent     date promptly taken therefrom. On or before
and unwise expenditures or payments. Such        April 1 following, such balance sheet, to-
orders when so made shall be in full force       gether with such other information as the
and effect, and the public utility shall not     Public Utility Commission shall prescribe,
have the right to make such expenditures or      verified by an officer of the public utility,
payments found to be imprudent or unwise         shall be filed with the commission.
until the order has been modified or set aside       (2) If a public utility maintains its ac-
by the commission or is set aside, modified      counts and records on a fiscal year basis, the
or remanded in a proceeding for judicial re-     accounts required by ORS 757.120 and
view of an order in a contested case in the      757.125 shall be closed annually on the last
manner provided by ORS 756.610. [Amended by      day of the fiscal year and a balance sheet
1971 c.655 §84; 2005 c.638 §7]                   shall be promptly taken from those accounts.

Title 57                                   Page 10                                     (2007 Edition)
                              UTILITY REGULATION GENERALLY                                         757.210

On or before the first day of the fourth                               RATE SCHEDULES;
month following the end of the public utili-                        MEASURING EQUIPMENT
ty′s fiscal year, the balance sheet together
with such information as the commission                        757.205 Filing schedules with commis-
shall prescribe must be verified by an officer            sion; data filed with schedules. (1) Every
of the public utility and filed with the com-             public utility shall file with the Public Util-
mission. The commission may require that a                ity Commission, within a time to be fixed by
public utility filing information at the time             the commission, schedules which shall be
specified in this subsection also file with the           open to public inspection, showing all rates,
commission on a calendar year basis such                  tolls and charges which it has established
additional information as may be prescribed               and which are in force at the time for any
by the commission.                                        service performed by it within the state, or
                                                          for any service in connection therewith or
    (3) The commission may examine and au-                performed by any public utility controlled or
dit any account. Items shall be allocated to              operated by it.
the accounts in the manner prescribed by the
commission. [Amended by 1983 c.540 §4; 2001 c.733              (2) Every public utility shall file with and
§1]                                                       as part of every such schedule all rules and
    757.140 Depreciation accounts; use of                 regulations that in any manner affect the
certain undepreciated investment in                       rates charged or to be charged for any ser-
rates. (1) Every public utility shall carry a             vice. Every public utility shall also file with
proper and adequate depreciation account.                 the commission copies of interstate rate
The Public Utility Commission shall ascer-                schedules and rules and regulations issued
tain and determine the proper and adequate                by it or to which it is a party.
rates of depreciation of the several classes                   (3) Where a schedule of joint rates or
of property of each public utility. The rates             charges is or may be in force between two
shall be such as will provide the amounts                 or more public utilities, such schedules shall
required over and above the expenses of                   in like manner be printed and filed with the
maintenance, to keep such property in a                   commission. [Amended by 1971 c.655 §70]
state of efficiency corresponding to the prog-
ress of the industry. Each public utility shall                757.210 Hearing to establish new
conform its depreciation accounts to the                  schedules; alternative regulation plan.
rates so ascertained and determined by the                (1)(a) Whenever any public utility files with
commission. The commission may make                       the Public Utility Commission any rate or
changes in such rates of depreciation from                schedule of rates stating or establishing a
time to time as the commission may find to                new rate or schedule of rates or increasing
be necessary.                                             an existing rate or schedule of rates, the
    (2) In the following cases the commission             commission may, either upon written com-
may allow in rates, directly or indirectly,               plaint or upon the commission′s own initi-
amounts on the utility′s books of account                 ative, after reasonable notice, conduct a
which the commission finds represent unde-                hearing to determine whether the rate or
preciated investment in a utility plant, in-              schedule is fair, just and reasonable. The
cluding that which has been retired from                  commission shall conduct the hearing upon
service:                                                  written complaint filed by the utility, its
    (a) When the retirement is due to ordi-               customer or customers, or any other proper
nary wear and tear, casualties, acts of God,              party within 60 days of the utility′s filing;
acts of governmental authority; or                        provided that no hearing need be held if the
                                                          particular rate change is the result of an
    (b) When the commission finds that the                automatic adjustment clause. At the hearing
retirement is in the public interest. [Amended            the utility shall bear the burden of showing
by 1971 c.655 §87; 1989 c.956 §2]
                                                          that the rate or schedule of rates proposed
     757.145 [Repealed by 1971 c.655 §250]
                                                          to be established or increased or changed is
     757.150 [Repealed by 1971 c.655 §250]                fair, just and reasonable. The commission
     757.155 [Amended by 1971 c.655 §90;     renumbered   may not authorize a rate or schedule of rates
757.480]                                                  that is not fair, just and reasonable.
     757.160 [Amended by 1971 c.655 §91;     renumbered
757.485]                                                       (b) As used in this subsection, “automatic
     757.165 [Amended by 1971 c.655 §92;     renumbered   adjustment clause” means a provision of a
757.490]                                                  rate schedule that provides for rate increases
     757.170 [Amended by 1971 c.655 §93;     renumbered   or decreases or both, without prior hearing,
757.495]                                                  reflecting increases or decreases or both in
     757.175 [Amended by 1971 c.655 §94;     renumbered   costs incurred, taxes paid to units of govern-
757.500]                                                  ment or revenues earned by a utility and
     757.180 [Amended by 1971 c.655 §21;     renumbered   that is subject to review by the commission
756.115]                                                  at least once every two years.

Title 57                                            Page 11                                 (2007 Edition)
757.212                            UTILITY REGULATION

     (2)(a) Subsection (1) of this section does    other interested parties on matters relevant
not apply to rate changes under an approved        to utility rates and charges. If a hearing is
alternative form of regulation plan, including     held with respect to a rate change, the com-
a resource rate plan under ORS 757.212.            mission′s decisions shall be based on the re-
     (b) Any alternative form of regulation        cord made at the hearing. [Amended by 1971 c.655
                                                   §70a; 1981 c.715 §1; 1985 c.550 §2; 1987 c.447 §97; 1987
plan shall include provisions to ensure that       c.613 §1; 1989 c.5 §§3,23; 1995 c.785 §1; 2001 c.913 §3; 2005
the plan operates in the interests of utility      c.845 §5]
customers and the public generally and re-
sults in rates that are just and reasonable            757.212 Resource rate plans; custom-
and may include provisions establishing a          ers who may elect to be exempt; order
reasonable range for rate of return on in-         approving plan; effect of approving plan.
vestment. In approving a plan, the commis-         (1) For purposes of this section:
sion shall, at a minimum, consider whether             (a) “Resource rate plan” means a plan by
the plan:                                          a public utility to construct a generating
     (A) Promotes increased efficiencies and       plant or to enter into a wholesale power
cost control;                                      purchase or sales agreement with a term
                                                   that is longer than one year.
     (B) Is consistent with least-cost resources
acquisition policies;                                  (b) “Site” means:
     (C) Yields rates that are consistent with         (A) Buildings or other related structures
those that would be obtained following ap-         that are interconnected by facilities owned
plication of ORS 757.268;                          by a single public utility customer and that
                                                   are served through a single electric meter;
     (D) Is consistent with maintenance of         or
safe, adequate and reliable service; and
                                                       (B) A single contiguous area of land con-
     (E) Is beneficial to utility customers gen-   taining buildings or other structures that are
erally, for example, by minimizing utility         separated by not more than 1,000 feet, such
rates.                                             that:
     (c) As used in this subsection, “alterna-         (i) Each building or structure included in
tive form of regulation plan” means a plan         the site is not more than 1,000 feet from at
adopted by the commission upon petition by         least one other building or structure in the
a public utility, after notice and an opportu-     site;
nity for a hearing, that sets rates and reven-
ues and a method for changes in rates and              (ii) Buildings and structures in the site,
revenues using alternatives to cost-of-service     and land containing and connecting buildings
rate regulation.                                   and structures in the site, are owned by a
                                                   public utility customer who is billed for
     (d) Prior to implementing a rate change       electricity use at the buildings and struc-
under an alternative form of regulation plan,      tures; and
the utility shall present a report that dem-
onstrates the calculation of any proposed              (iii) Land shall be considered to be con-
rate change at a public meeting of the com-        tiguous even if there is an intervening public
mission.                                           or railroad right of way, provided that
                                                   rights-of-way land on which municipal infra-
     (3) Except as provided in ORS 757.212,        structure facilities exist, such as street
the commission, at any time, may order a           lighting, sewerage transmission and roadway
utility to appear and establish that any, or       controls, shall not be considered contiguous.
all, of its rates in a plan authorized under
subsection (2) of this section are in conform-         (2) The Public Utility Commission may
ity with the plan and are just and reason-         approve a resource rate plan as an alterna-
able. Except as provided in ORS 757.212,           tive form of regulation plan under ORS
such rates, and the alternative form of regu-      757.210. A public utility must make a sepa-
lation plan under which the rates are set,         rate tariff filing for each proposed resource
also shall be subject to complaint under ORS       rate plan. If the commission approves a re-
756.500.                                           source rate plan by a public utility based on
                                                   the construction of a generating plant, the
     (4) Periodically, but not less often than     order approving the plan must state how the
every two years after the implementation of        commission will reflect the costs and reven-
a plan referred to in subsection (2) of this       ues of the generating plant in the utility′s
section, the commission shall submit a report      rates during all or a portion of the expected
to the Legislative Assembly that shows the         useful life of the generating plant. If the
impact of the plan on rates paid by utility        commission approves a resource rate plan
customers.                                         based on a wholesale power purchase or
     (5) The commission and staff may consult      sales agreement with a term longer than one
at any time with, and provide technical as-        year, the order approving the plan must state
sistance to, utilities, their customers, and       how the commission will reflect the costs

Title 57                                     Page 12                                         (2007 Edition)
                           UTILITY REGULATION GENERALLY                                           757.215

and revenues under the wholesale power              variations in the amount of power that is
purchase or sales agreement in the utility′s        actually available after the plan is in opera-
rates during all or a portion of the term of        tion compared with the amount of power that
the agreement.                                      was anticipated to be available at the time
    (3) A customer receiving electricity from       the plan was approved; and
a public utility may elect to be exempt from             (d) Any other issue the commission
the costs and benefits of a resource rate plan      chooses to consider.
for any single site at which the customer has            (8) If the commission approves a resource
had a peak load in excess of nine megawatts         rate plan, the commission may not thereafter
in any hour during the 12-month period im-          review the costs and rates specific to the re-
mediately preceding the date on which the           source rate plan or other obligations of the
public utility files a tariff under this section.   public utility under the plan, or consider any
A public utility filing a tariff under this sec-    complaint under ORS 756.500 seeking review
tion must give written notice of the pro-           of the costs and rates specific to the resource
visions of this subsection to all of its            rate plan or other obligations of the public
customers that are eligible to make an              utility under the plan, except for the purpose
election under this subsection. The notice          of determining whether the public utility is
must be given within three days after the           in compliance with the plan and has estab-
tariff is filed. An election under this subsec-     lished rates in accordance with the plan.
tion must be made by a customer within 30
days after the tariff is filed.                          (9) A resource rate plan and a public
                                                    utility′s rates under a resource rate plan are
    (4) A public utility customer that elects       not subject to ORS 757.355.
to be exempt under subsection (3) of this
section may also elect to be exempt from the             (10) The commission may not set aside or
costs and benefits of a resource rate plan for      modify an order approving a resource rate
any single site at which the customer has           plan unless the public utility operating under
had a peak load in excess of one megawatt           the plan approves the setting aside or mod-
in any hour during the 12-month period im-          ification. [2001 c.913 §2; 2005 c.638 §8]
mediately preceding the date on which the                Note: 757.212 was added to and made a part of
public utility files a tariff under this section.   757.205 to 757.220 by legislative action but was not
An election under this subsection must be           added to any smaller series therein. See Preface to Or-
                                                    egon Revised Statutes for further explanation.
made as part of the election under subsection
(3) of this section.                                     757.215 Commission authorized to
    (5) The commission shall ensure that            suspend new rates or order interim rates
customers making an election under subsec-          during hearings; revenues collected under
tion (3) or (4) of this section are charged the     unapproved rates to be refunded; order
market cost for all electricity that is re-         after hearing. (1) The Public Utility Com-
quired to replace the electricity that would        mission may, pending such investigation and
otherwise have been provided under the re-          determination, order the suspension of the
source rate plan, and that the election does        rate or schedule of rates, provided the initial
not result in increased costs or risks to the       period of suspension shall not extend more
public utility or to other customers of the         than six months beyond the time when such
public utility.                                     rate or schedule would otherwise go into ef-
                                                    fect. If the commission finds that the inves-
    (6) The commission, by rule, may allow          tigation will not be completed at the
customers of a public utility other than those      expiration of the initial suspension, the com-
customers described in subsection (3) of this       mission may enter an order further suspend-
section to elect to be exempt from the costs        ing such rate or schedule for not more than
and benefits of a resource rate plan.               three months beyond the last day of the ini-
    (7) If the commission approves a resource       tial suspension.
rate plan, the order of the commission must              (2) This section does not prevent the
also address:                                       commission and the utility from entering
    (a) The extent to which the public utility      into a written stipulation at any time ex-
will use power from the generating plant or         tending any period of suspension.
from the power purchase or sales agreement               (3) After full hearing, whether completed
to serve its retail customers in Oregon;            before or after such rate or schedule has
    (b) The allocation of power available           gone into effect, the commission may make
from the generating plant or power purchase         such order in reference thereto as would be
or sales agreement among different classes          proper in a proceeding initiated after such
of the public utility′s customers;                  rate or schedule has become effective.
    (c) The ratemaking consequences of the               (4) If the commission is required to or
generating plant or power purchase or sales         determines to conduct a hearing on a rate or
agreement, including the consequences of            schedule of rates filed pursuant to ORS

Title 57                                      Page 13                                     (2007 Edition)
757.220                           UTILITY REGULATION

757.210, but does not order a suspension          fying the changes to be made and the time
thereof, any increased revenue collected by       when they shall take effect. This section does
the utility as a result of such rate or rate      not apply to rate changes authorized under
schedule becoming effective shall be received     an alternative form of regulation plan under
subject to being refunded. If the rate or rate    ORS 757.210 (2). [Amended by 1995 c.785 §2]
schedule thereafter approved by the commis-
sion is for a lesser increase or for no in-           757.225 Utilities required to collect for
crease, the utility shall refund the amount       their services in accordance with sched-
of revenues received that exceeds the amount      ules. No public utility shall charge, demand,
approved as nearly as possible to the cus-        collect or receive a greater or less compen-
tomers from whom such excess revenues             sation for any service performed by it within
were collected, by a credit against future        the state, or for any service in connection
bills or otherwise, in such manner as the         therewith, than is specified in printed rate
commission orders.                                schedules as may at the time be in force, or
                                                  demand, collect or receive any rate not
     (5) The commission may in a suspension       specified in such schedule. The rates named
order authorize an interim rate or rate           therein are the lawful rates until they are
schedule under which the utility′s revenues       changed as provided in ORS 757.210 to
will be increased by an amount deemed rea-        757.220. [Amended by 1971 c.655 §71; 1985 c.550 §3;
sonable by the commission, not exceeding the      1991 c.67 §204]
amount requested by the utility. Any such              757.227 Rate mitigation for certain
interim increase for a public utility as de-      electric company rate increases. (1) As
fined in ORS 757.005 that produces, trans-        used in this section, “electric company” has
mits, delivers or furnishes heat, light or        the meaning given that term in ORS 757.600.
power shall be effected by rates designed to
increase the utility′s revenues without mate-          (2) The Public Utility Commission shall
rially changing the revenue relationships         require that an electric company mitigate a
among customer classes or between the re-         rate increase payable by a class of customers
venues derived from demand charges and            described in subsection (5) of this section if:
from energy charges. An interim rate or rate           (a) The increase results from a transition
schedule shall remain in effect until termi-      to an electric company′s generally applicable
nated by the commission. Upon completion          cost-based rate from the rates established
of the hearing and decision, the commission       under the contracts described in subsection
shall order the utility to refund that portion    (5) of this section; and
of the increase in the interim rate or sched-
ule that the commission finds is not justified.        (b) The increase in the cost of electricity
Any refund of an interim increase under this      to that class of customers by reason of the
subsection shall be based upon an analysis        transition will exceed 50 percent during the
of the utility′s earnings for a period reason-    first 12 calendar months after the transition
ably representative of the period during          occurs.
which the interim increase was in effect.              (3) The commission shall require an elec-
Refunds shall be made as nearly as possible       tric company to mitigate a rate increase un-
to the customers against whom the interim         der this section by means of a schedule of
rates were charged, by credits against future     rate credits for the class of customers de-
bills or in such other manner as the com-         scribed in subsection (5) of this section. The
mission orders.                                   rate credits provided by an electric company
     (6) Refunds ordered by the commission        under the schedule shall automatically de-
under subsection (4) or (5) of this section       crease each year to the lowest credit neces-
shall include interest on the amount deter-       sary to avoid a rate increase that is greater
mined to be subject to refund from the date       than 50 percent in any subsequent year. Rate
such interim rate or rate schedules took ef-      credits under this section may not be pro-
                                                  vided for more than seven years after the
fect. [Amended by 1981 c.715 §2; 1991 c.964 §1]   transition occurs.
    757.220 Notice of schedule changes re-             (4) For the purpose of determining the
quired; exception for alternative regu-           increase in the cost of electricity to a class
lation. No change shall be made in any            of customers by reason of a transition de-
schedule, including schedules of joint rates,     scribed in subsection (2)(a) of this section,
except upon 30 days′ notice to the Public         the commission shall:
Utility Commission. All changes shall be
plainly indicated upon existing schedules, or          (a) Include the total charges for electric-
by filing new schedules in lieu thereof 30        ity service, including all special charges and
days prior to the time they are to take effect.   credits other than the rate credit provided
However, the commission, for good cause           under this section; and
shown, may allow changes without requiring             (b) Exclude any local taxes or fees paid
the 30 days′ notice by filing an order speci-     by the class of customers.

Title 57                                    Page 14                                  (2007 Edition)
                          UTILITY REGULATION GENERALLY                                            757.245

     (5) This section applies only to customers    found to be expedient. The commission shall
of an electric company that purchase elec-         adopt rules which allow any person who re-
tricity at metering points that before the         quests notice of tariff filings described under
transition described in subsection (2)(a) of       subsection (1) of this section to receive such
this section were eligible for rates that were     notice. [Amended by 1971 c.655 §72; 1977 c.682 §1; 1987
set under contracts entered into before 1960       c.900 §1]
and remained unchanged throughout the pe-               757.235 [Amended by 1953 c.285 §2; repealed by 1981
riod of the contract.                              c.715 §3]
     (6) The full cost of providing rate credits        757.240 Filing schedules in business
under this section shall be spread equally         office. (1) A copy of so much of all sched-
among all other customers of the electric          ules, including schedules of joint rates and
company. [2005 c.594 §3]                           charges, as the Public Utility Commission
     757.230 Control of commission over            deems necessary for the use of the public
classification of services and forms of            shall be printed in plain type and kept on file
schedules; rules. (1) The Public Utility           in every business office of such public utility,
Commission shall provide for a comprehen-          open to the public, and in such form and
sive classification of service for each public     place as to be readily accessible to the public
utility, and such classification may take into     for convenient inspection.
account the quantity used, the time when                (2) Copies of all new schedules shall be
used, the purpose for which used, the exist-       filed in every business office of such public
ence of price competition or a service alter-      utility 30 days prior to the time the sched-
native, the services being provided, the           ules are to take effect, unless the commission
conditions of service and any other reason-        prescribes a shorter time. [Amended by 1971 c.655
able consideration. Based on such consider-        §73]
ations the commission may authorize                     757.245 Establishment of joint rates.
classifications or schedules of rates applica-     (1) A public utility may establish reasonable
ble to individual customers or groups of cus-      through service and joint rates and classi-
tomers. The service classifications and            fications with other public utilities. Public
schedule forms shall be designed consistently      utilities establishing joint rates shall estab-
with the requirements of ORS 469.010. Each         lish just and reasonable regulations and
public utility is required to conform its          practices in connection therewith and just,
schedules of rates to such classification. If      reasonable and equitable divisions thereof as
the commission determines that a tariff filing     between the public utilities participating
under ORS 757.205 results in a rate classi-        therein, which shall not unduly prefer or
fication primarily related to price competi-       prejudice any of such participating public
tion or a service alternative, the commission,     utilities, and every unjust and unreasonable
at a minimum, shall consider the following:        rate, classification, regulation, practice and
     (a) Whether the rate generates revenues       division is prohibited.
at least sufficient to cover relevant short and         (2) The Public Utility Commission may,
long run costs of the utility during the term      and shall, whenever deemed by the commis-
of the rates;                                      sion to be necessary or desirable in the pub-
     (b) Whether the rate generates revenues       lic interest, after full hearing upon
sufficient to insure that just and reasonable      complaint, or upon the commission′s own in-
rates are established for remaining custom-        itiative without complaint, establish through
ers of the utility;                                service, classifications and joint rates, the
     (c) For electric and natural gas utilities:   divisions of such rates and the terms and
     (A) Whether it is appropriate to incorpo-     conditions under which such through service
rate interruption of service in the utility′s      shall be rendered. If any tariff or schedule
rate agreement with the customer; and              canceling any through service or joint rate
                                                   or classification without the consent of all
     (B) Whether the rate agreement requires       the public utilities parties thereto or author-
the utility to acquire new resources to serve      ization by the commission is suspended by
the load; and                                      the commission for investigation, the burden
     (d) For electric utilities, for service to    of proof is upon the public utilities proposing
load not previously served, the effect of the      such cancellation to show that it is consist-
rate on the utility′s average system cost          ent with the public interest.
through the residential exchange provision              (3) Whenever, after full hearing upon
of the Pacific Northwest Electric Power            complaint or upon the commission′s own ini-
Planning and Conservation Act of 1980, Pub-        tiative without complaint, the commission is
lic Law 96-501, as amended.                        of the opinion that the divisions of joint
     (2) The commission may prescribe such         rates between the public utilities are or will
changes in the form in which the schedules         be unjust, unreasonable, inequitable or un-
are issued by any public utility as may be         duly preferential or prejudicial as between

Title 57                                     Page 15                                     (2007 Edition)
757.247                          UTILITY REGULATION

the public utilities parties thereto, whether    formed or with respect to which the pay-
agreed upon by such public utilities or oth-     ments were made.
erwise established, the commission shall, by         (3) A public utility shall record a notice
order, prescribe the just, reasonable and eq-    of any payment obligation required of a
uitable divisions thereof to be received by      property owner or customer under this sec-
the several public utilities. In cases where     tion in the records maintained by the county
the joint rate was established pursuant to       clerk under ORS 205.130. The commission
the finding or order of the commission and       may prescribe by rule other methods by
the divisions thereto are found by the com-      which the public utility shall notify property
mission to have been unjust, unreasonable or     owners or customers of any such payment
inequitable, or unduly preferential or preju-    obligation.
dicial, the commission may also by order de-
termine what, for the period subsequent to           (4) A public utility may use moneys ob-
the filing of the complaint or petition or the   tained through a rate established under ORS
making of the order of investigation, would      757.603 (2)(a) to provide renewable energy
have been the just, reasonable and equitable     generation facilities to property owners or
division thereof to be received by the several   customers under this section. A public utility
public utilities and require adjustment to be    may not charge interest to a property owner
made in accordance therewith.                    or customer for facilities acquired with mon-
                                                 eys obtained through a rate established un-
    (4) In so prescribing and determining the    der ORS 757.603 (2)(a). [1991 c.268 §2; 2007 c.885
divisions of joint rates, the commission shall   §3]
give due consideration, among other things,
to:                                                  757.250 Standards and appliances for
                                                 measuring service; rules. (1) The Public
    (a) The efficiency with which the public     Utility Commission shall ascertain and pre-
utilities concerned are operated;                scribe for each kind of public utility suitable
    (b) The amount of revenue to pay their       and convenient standard commercial units of
respective operating expenses, taxes and a       service. These shall be lawful units for the
fair return on their public utility property     purposes of this chapter.
held for and used in service;
                                                     (2) The commission shall ascertain and
    (c) The importance to the public of the      fix adequate and serviceable standards for
services of such public utilities;               the measurement of quality, pressure, initial
    (d) Whether any particular participating     voltage or other conditions pertaining to the
public utility is an originating, intermediate   supply of the service rendered by any public
or delivering utility; and                       utility and prescribe reasonable regulations
    (e) Any other fact or circumstance which     for examination and testing of such service
ordinarily would entitle one public utility to   and for the measurement thereof. It shall es-
a greater or less proportion of the joint rate   tablish reasonable rules, regulations, specifi-
than another. [Amended by 1971 c.655 §74]        cations and standards to secure the accuracy
                                                 of all meters and appliances for the meas-
    757.247 Tariff schedules for renewable       urements, and every public utility is required
energy generation facilities and energy          to carry into effect all orders issued by the
conservation. (1) The Public Utility Com-        commission relative thereto. [Amended by 1971
mission may authorize a public utility to file   c.655 §75]
and place into effect tariff schedules estab-         757.255 Testing of measuring appli-
lishing rates or charges for renewable energy    ances; rules; fees. (1) The Public Utility
generation facilities, or for energy conserva-   Commission may provide for the examination
tion measures, services or payments, pro-        and testing of any and all appliances used for
vided to individual property owners or           the measuring of any service of a public
customers. Application of the schedule shall     utility, and may provide by rule that no such
be subject to agreement between the public       appliance shall be installed and used for the
utility and the property owner or customer       measuring of any service of any public utility
receiving service at the time the renewable      until it has been examined and tested by the
energy generation facilities or conservation     commission and found to be accurate.
measures, services or payments are initially
provided.                                             (2) The commission shall declare and es-
                                                 tablish a reasonable fee governing the cost
    (2) A tariff schedule under this section     of such examination and test, which shall be
may include provisions for the payment of        paid to the commission by the public utility.
the rates or charges over a period of time
and for the application of the payment obli-          (3) The commission shall declare and es-
gation to successive property owners or cus-     tablish reasonable fees for the testing of such
tomers at the premises where the renewable       appliances on the application of the cus-
energy generation facilities or conservation     tomer, the fee to be paid by the customer at
measures or services were installed or per-      the time of the customer′s request, but to be

Title 57                                   Page 16                                 (2007 Edition)
                          UTILITY REGULATION GENERALLY                                       757.259

repaid to the customer by the commission           propriately the costs borne by and benefits
and to be paid by the public utility if the        received by ratepayers.
appliance is found defective or incorrect to            (3) Upon request of the public utility, the
the disadvantage of the customer or used be-       commission by order shall allow deferral of
yond such reasonable limit as may be pre-          amounts provided as financial assistance un-
scribed by the commission.                         der an agreement entered into under ORS
    (4) All fees collected under the provisions    757.072 for later incorporation in rates.
of this section shall be paid by the commis-            (4) The commission may authorize defer-
sion into the State Treasury.                      rals under subsection (2) of this section be-
    (5) The commission may purchase such           ginning with the date of application, together
materials, apparatus and standard measuring        with interest established by the commission.
instruments for the examination and tests as       A deferral may be authorized for a period not
the commission deems necessary. [Amended by        to exceed 12 months beginning on or after
1971 c.655 §76]                                    the date of application. However, amounts
     757.259 Amounts includable in rate            deferred under subsection (2)(c) and (d) or (3)
schedule; deferral; limit in effect on rates       of this section are not subject to subsection
by amortization; rules. (1) In addition to         (5), (6), (7), (8) or (10) of this section, but are
powers otherwise vested in the Public Utility      subject to such limitations and requirements
Commission, and subject to the limitations         that the commission may prescribe and that
contained in this section, under amortization      are consistent with the provisions of this
schedules set by the commission, a rate or         section.
rate schedule:                                          (5) Unless subject to an automatic ad-
     (a) May reflect:                              justment clause under ORS 757.210 (1),
                                                   amounts described in this section shall be
     (A) Amounts lawfully imposed retro-           allowed in rates only to the extent author-
actively by order of another governmental          ized by the commission in a proceeding under
agency; or                                         ORS 757.210 to change rates and upon review
     (B) Amounts deferred under subsection         of the utility′s earnings at the time of appli-
(2) of this section.                               cation to amortize the deferral. The commis-
                                                   sion may require that amortization of
     (b) Shall reflect amounts deferred under      deferred amounts be subject to refund. The
subsection (3) of this section if the public       commission′s final determination on the
utility so requests.                               amount of deferrals allowable in the rates of
     (2) Upon application of a utility or          the utility is subject to a finding by the
ratepayer or upon the commission′s own mo-         commission that the amount was prudently
tion and after public notice, opportunity for      incurred by the utility.
comment and a hearing if any party requests             (6) Except as provided in subsections (7),
a hearing, the commission by order may au-         (8) and (10) of this section, the overall aver-
thorize deferral of the following amounts for      age rate impact of the amortizations author-
later incorporation in rates:                      ized under this section in any one year may
     (a) Amounts incurred by a utility result-     not exceed three percent of the utility′s gross
ing from changes in the wholesale price of         revenues for the preceding calendar year.
natural gas or electricity approved by the              (7) The commission may allow an overall
Federal Energy Regulatory Commission;              average rate impact greater than that speci-
     (b) Balances resulting from the adminis-      fied in subsection (6) of this section for na-
tration of Section 5(c) of the Pacific North-      tural      gas     commodity       and     pipeline
west      Electric    Power      Planning   and    transportation costs incurred by a natural
Conservation Act of 1980;                          gas utility if the commission finds that al-
                                                   lowing a higher amortization rate is reason-
     (c) Direct or indirect costs arising from     able under the circumstances.
any purchase made by a public utility from
the Bonneville Power Administration pursu-              (8) The commission may authorize
ant to ORS 757.663, provided that such costs       amortizations for an electric utility under
shall be recovered only from residential and       this section with an overall average rate im-
small-farm retail electricity consumers;           pact not to exceed six percent of the electric
                                                   utility′s gross revenues for the preceding
     (d) Amounts accruing under a plan for         calendar year. If the commission allows an
the protection of short-term earnings under        overall average rate impact greater than that
ORS 757.262 (2); or                                specified in subsection (6) of this section, the
     (e) Identifiable utility expenses or reven-   commission shall estimate the electric utili-
ues, the recovery or refund of which the           ty′s cost of capital for the deferral period and
commission finds should be deferred in order       may also consider estimated changes in the
to minimize the frequency of rate changes or       electric utility′s costs and revenues during
the fluctuation of rate levels or to match ap-     the deferral period for the purpose of re-

Title 57                                     Page 17                                  (2007 Edition)
757.262                                   UTILITY REGULATION

viewing the earnings of the electric utility                 The adjustments may include, but are not
under the provisions of subsection (5) of this               limited to, adjustments based in whole or in
section.                                                     part upon the extent to which actual sales
    (9) The commission may impose require-                   deviate from a base level of sales the com-
ments similar to those described in subsec-                  mission considers appropriate. [1993 c.175 §3;
                                                             1999 c.944 §3]
tion (8) of this section for the amortization
                                                                 757.265 [Repealed by 1971 c.655 §250]
of other deferrals under this section, but may
not impose such requirements for deferrals                       757.266 Rates may encourage tree
under subsection (2)(c) or (d) or (3) of this                planting programs as offset to carbon
section.                                                     dioxide emissions. The Public Utility Com-
    (10) The commission may authorize                        mission of Oregon may allow a rate or rate
amortization of a deferred amount for an                     schedule of a public utility to reflect
electric utility under this section with an                  amounts for small scale programs that enable
overall average rate impact greater than that                the utility to gain experience with tree
allowed by subsections (6) and (8) of this                   planting on underproducing forestland, as
section if:                                                  defined by the State Forestry Department, as
                                                             an offset to carbon dioxide emissions. [1993
    (a) The deferral was directly related to                 c.286 §1]
extraordinary power supply expenses in-                           Note: 757.266 was enacted into law by the Legisla-
curred during 2001;                                          tive Assembly but was not added to or made a part of
                                                             ORS chapter 757 or any series therein by legislative
    (b) The amount to be deferred was                        action. See Preface to Oregon Revised Statutes for fur-
greater than 40 percent of the revenue re-                   ther explanation.
ceived by the electric utility in 2001 from
Oregon customers; and                                            757.267 Legislative findings relating to
                                                             inclusion of tax liabilities in rates. (1) The
    (c) The commission determines that the                   Legislative Assembly finds and declares that:
higher rate impact is reasonable under the
circumstances.                                                   (a) The alignment of taxes collected by
                                                             public utilities from utility customers with
    (11) If the commission authorizes amorti-                taxes paid to units of government by utilities,
zation of a deferred amount under subsection                 or affiliated groups that include utilities, is
(10) of this section, an electric utility cus-               of special interest to this state.
tomer that uses more than one average
megawatt of electricity at any site in the                       (b) Taxes are a unique utility cost be-
immediately preceding calendar year may                      cause the tax liability is affected by the op-
prepay the customer′s share of the deferred                  erations or tax attributes of the parent
amount. The commission shall adopt rules                     company or other affiliates of the utility.
governing the manner in which:                                   (c) The Public Utility Commission per-
    (a) The customer′s share of the deferred                 mits a utility to include costs for taxes that
amount is calculated; and                                    assume the utility is not part of an affiliated
                                                             group of corporations for tax purposes.
    (b) The customer′s rates are to be ad-                       (d) The parent company of a utility may
justed to reflect the prepayment of the de-                  employ accounting methods, debt, consol-
ferred amount.                                               idated tax return rules and other techniques
    (12) The provisions of this section do not               in a way that results in a difference between
apply to a telecommunications utility. [1987                 the tax liability paid to units of government
c.563 §2; 1989 c.18 §1; 1989 c.956 §1; 1993 c.175 §1; 1999   by the utility, or the affiliated group of cor-
c.865 §31; 2001 c.733 §3; 2003 c.132 §1; 2003 c.234 §3]
                                                             porations of which the utility is a member,
     757.260 [Amended by 1971 c.655 §18; renumbered          and the amount of taxes collected, directly
756.075]
                                                             or indirectly, from customers.
    757.262 Rates to encourage acquisition                       (e) Tax uncertainty in the ratemaking
of cost-effective conservation resources;                    process may result in collecting taxes from
rules. (1) The Public Utility Commission, by                 ratepayers that are not paid to units of gov-
rule, may adopt policies designed to encour-                 ernment.
age the acquisition of cost-effective conser-
vation      resources     and      small-scale,                  (f) Utility rates that include amounts for
renewable-fuel electric generating resources.                taxes should reflect the taxes that are paid
                                                             to units of government to be considered fair,
    (2) In furtherance of the policies adopted               just and reasonable.
pursuant to subsection (1) of this section,
and in such manner as the commission con-                        (g) Tax information of a business is com-
siders proper, the commission may authorize                  mercially sensitive. Public disclosure of tax
periodic rate adjustments for the purpose of                 information could provide a commercial ad-
providing some protection to a utility from                  vantage to other businesses.
reduction of short-term earnings that may                        (2) The definitions in ORS 757.268 apply
result from implementation of such policies.                 to this section. [2005 c.845 §2]

Title 57                                              Page 18                                      (2007 Edition)
                          UTILITY REGULATION GENERALLY                                    757.268

     757.268 Adjustments to rates by rea-         adjustment clause shall remain in effect for
son of taxes paid by public utility. (1) Ev-      each successive year after an adjustment is
ery public utility shall file a tax report with   made and until an order terminating the au-
the Public Utility Commission annually, on        tomatic adjustment clause is made under
or before October 15 following the year for       subsection (9) of this section.
which the report is being made. The tax re-            (6) The automatic adjustment clause shall
port shall contain the information required       account for all taxes paid to units of govern-
by the commission, including:                     ment by the public utility that are properly
     (a) The amount of taxes that was paid by     attributed to the regulated operations of the
the utility in the three preceding years, or      utility, or by the affiliated group that are
that was paid by the affiliated group and that    properly attributed to the regulated oper-
is properly attributed to the regulated oper-     ations of the utility, and all taxes that are
ations of the utility, determined without re-     authorized to be collected through rates, so
gard to the tax year for which the taxes were     that ratepayers are not charged for more tax
paid; and                                         than:
     (b) The amount of taxes authorized to be          (a) The utility pays to units of govern-
collected in rates for the three preceding        ment and that is properly attributed to the
years.                                            regulated operations of the utility; or
     (2) Every public utility shall be required        (b) In the case of an affiliated group, the
to obtain and provide to the commission any       affiliated group pays to units of government
other information that the commission re-         and that is properly attributed to the regu-
quires to review the tax report and to imple-     lated operations of the utility.
ment and administer this section and ORS
757.210.                                               (7) An automatic adjustment clause es-
                                                  tablished under this section may not be used
     (3) The commission may disclose, or any      to make adjustments to rates for taxes paid
intervenor may obtain and disclose, the           that are properly attributed to any unregu-
amount by which the amount of taxes that          lated affiliate of the public utility or to the
units of government received from the public      parent of the utility.
utility or from the affiliated group differs
from the amount of costs for taxes collected,          (8) Notwithstanding subsections (1) to (7)
directly or indirectly, as part of rates paid     of this section, the commission may author-
by customers, including whether the differ-       ize a public utility to include in rates:
ence is positive or negative.                          (a) Deferred taxes resulting from acceler-
     (4) The commission shall review the tax      ated depreciation or other tax treatment of
report and any other information the com-         utility investment; and
mission has obtained and make the determi-             (b) Tax requirements and benefits that
nations described in this section within 90       are required to be included in order to en-
days following the filing of the report, or       sure compliance with the normalization re-
within a further period of time that the          quirements of federal tax law.
commission may by rule establish for making
determinations under this section that does            (9) If the commission determines that es-
not exceed 180 days following the filing of       tablishing an automatic adjustment clause
the report. If the commission determines that     under this section would have a material ad-
the amount of taxes assumed in rates or           verse effect on customers of the public util-
otherwise collected from ratepayers for any       ity, the commission shall issue an order
of the three preceding years differed by          terminating the automatic adjustment clause.
$100,000 or more from the amount of taxes         The order shall set forth the reasons for the
paid to units of government by the public         commission′s determination under this sub-
utility, or by the affiliated group and prop-     section.
erly attributed to the regulated operations of         (10) The commission shall conduct a
the utility, the commission shall require the     hearing under ORS 757.210 prior to making
utility to establish an automatic adjustment      a determination under subsection (9) of this
clause, as defined in ORS 757.210, within 30      section that an automatic adjustment clause
days following the date of the commission′s       would have a material adverse effect on cus-
determinations under this section, or by a        tomers of the public utility.
later date that the commission may by rule             (11) The commission may not use the tax
prescribe for establishing an automatic ad-       information obtained by the commission un-
justment clause that does not exceed 60 days      der this section for any purpose other than
following the date of the commission′s deter-     those described in subsections (1) to (10) of
minations under this section.                     this section. An intervenor in a commission
     (5) If an adjustment to rates is made un-    proceeding to review the tax report or make
der an automatic adjustment clause estab-         rate adjustments described in this section
lished under this section, the automatic          may, upon signing a protective order pre-

Title 57                                    Page 19                                (2007 Edition)
757.270                           UTILITY REGULATION

pared by the commission, obtain and use the       is a member, whichever is applicable, ad-
information obtained by the commission that       justed as follows:
is not otherwise required to be made publicly         (A) Increased by the amount of tax
available under this section, according to the    savings realized as a result of charitable
terms of the protective order.                    contribution deductions allowed because of
     (12) For purposes of this section, taxes     charitable contributions made by the utility;
paid that are properly attributed to the reg-         (B) Increased by the amount of tax
ulated operations of the public utility may       savings realized as a result of tax credits as-
not exceed the lesser of:                         sociated with investment by the utility in the
     (a) That portion of the total taxes paid     regulated operations of the utility, to the ex-
that is incurred as a result of income gener-     tent the expenditures giving rise to the tax
ated by the regulated operations of the util-     credits and tax savings resulting from the
ity; or                                           tax credits have not been taken into account
     (b) The total amount of taxes paid to        by the commission in the utility′s last gen-
units of government by the utility or by the      eral ratemaking proceeding; and
affiliated group, whichever applies.                  (C) Adjusted by deferred taxes related to
     (13) As used in this section:                the regulated operations of the utility.
     (a) “Affiliated group” means an affiliated       (g) “Three preceding years” means the
group of corporations of which the public         three most recent consecutive fiscal years
utility is a member and that files a consol-      preceding the date the tax report is required
idated federal income tax return.                 to be filed. [2005 c.845 §3]
     (b) “Public utility” or “utility” means:
                                                        ATTACHMENTS REGULATION
     (A) A regulated investor-owned utility
that provided electric or natural gas service         757.270 Definitions for ORS 757.270 to
to an average of 50,000 or more customers in      757.290. As used in ORS 757.270 to 757.290,
Oregon in 2003; or                                unless the context requires otherwise:
     (B) A successor in interest to an entity         (1) “Attachment” means any wire or ca-
described in subparagraph (A) of this para-       ble for the transmission of intelligence by
graph that continues to be a regulated            telegraph, telephone or television (including
investor-owned utility.                           cable television), light waves, or other phe-
     (c) “Regulated operations of the utility”    nomena, or for the transmission of electricity
means those activities of a public utility that   for light, heat or power, and any related de-
are subject to rate regulation by the com-        vice, apparatus, or auxiliary equipment, in-
mission.                                          stalled upon any pole or in any telegraph,
                                                  telephone, electrical, cable television or
     (d) “Tax”:                                   communications right of way, duct, conduit,
     (A) Means a federal, state or local tax or   manhole or handhole or other similar facility
fee that is imposed on or measured by in-         or facilities owned or controlled, in whole or
come and that is paid to units of government.     in part, by one or more public utility, tele-
     (B) Does not include any amount that is      communications utility or consumer-owned
refunded by a unit of government as a tax         utility.
refund.                                               (2) “Consumer-owned utility” means a
     (C) Does not include franchise fees or       people′s utility district organized under ORS
privilege taxes.                                  chapter 261, a municipal utility organized
                                                  under ORS chapter 225 or an electric coop-
     (e) “Taxes authorized to be collected in     erative organized under ORS chapter 62.
rates” means the product determined by
multiplying the following three values:               (3) “Licensee” means any person, firm,
                                                  corporation, partnership, company, associ-
     (A) The revenues the utility collects from   ation, joint stock association or cooper-
ratepayers in Oregon, adjusted for any rate       atively    organized     association  that  is
adjustment imposed under this section;            authorized to construct attachments upon,
     (B) The ratio of the net revenues from       along, under or across the public ways.
regulated operations of the utility to gross          (4) “Public utility” has the meaning for
revenues from regulated operations of the         that term provided in ORS 757.005, and does
utility, as determined by the commission in       not include any entity cooperatively organ-
establishing rates; and                           ized or owned by federal, state or local gov-
     (C) The effective tax rate used by the       ernment, or a subdivision of state or local
commission in establishing rates.                 government.
     (f) “Taxes paid” means amounts received          (5) “Telecommunications utility” has the
by units of government from the utility or        meaning for that term provided in ORS
from the affiliated group of which the utility    759.005, and does not include any entity co-

Title 57                                    Page 20                               (2007 Edition)
                            UTILITY REGULATION GENERALLY                                             757.282

operatively organized or owned by federal,            and conditions made, demanded or received
state or local government or a subdivision of         by any consumer-owned utility for any at-
state or local government. [1979 c.356 §2; 1989 c.5   tachment by a licensee shall be just, fair and
§4; 1999 c.832 §4]                                    reasonable. [1979 c.356 §4; 1987 c.414 §164; 1999 c.832
     757.271 Authorization from pole owner            §5]
required for attachment. (1) Subject to ap-               757.279 Fixing rates or charges by
plicable regulations of the Public Utility            commission; cost of hearing. (1) Whenever
Commission, a person shall not establish an           the Public Utility Commission of Oregon
attachment to a pole or other facility of a           finds, after hearing had upon complaint by a
public utility, telecommunications utility or         licensee, a public utility, a telecommuni-
consumer-owned utility unless the person has          cations utility or a consumer-owned utility
executed a contract with and has authori-             that the rates, terms or conditions demanded,
zation from the utility allowing the attach-          exacted, charged or collected in connection
ment.                                                 with attachments or availability of surplus
     (2) A licensee shall report all pole at-         space for such attachments are unjust or
tachments to the pole owner. A pole owner             unreasonable, or that such rates or charges
may impose on a licensee a penalty charge             are insufficient to yield a reasonable com-
for failing to report an attachment. The pole         pensation for the attachment and the costs
owner also may charge the licensee for any            of administering the same, the commission
expenses incurred as a result of an unau-             shall determine the just and reasonable
thorized attachment or any attachment that            rates, terms and conditions thereafter to be
exceeds safety limits established by rule of          observed and in force and shall fix the same
the commission. [1999 c.832 §2]                       by order. In determining and fixing such
                                                      rates, terms and conditions, the commission
     757.272 Pole owner may approve or                shall consider the interest of the customers
reject attachment. (1) A licensee shall no-           of the licensee, as well as the interest of the
tify a public utility, telecommunications util-       customers of the public utility, telecommuni-
ity or consumer-owned utility of all                  cations utility or consumer-owned utility
attachments to the utility′s poles according          that owns the facility upon which the at-
to the terms of any agreement between the             tachment is made.
licensee and the utility.
     (2) Notwithstanding subsection (1) of this           (2) When the order applies to a consum-
section, the public utility, telecommuni-             er-owned utility, the order shall also provide
cations utility or consumer-owned utility             for payment by the parties of the cost of the
may approve or reject the attachment. If the          hearing. The payment shall be made in a
attachment is rejected, the licensee shall re-        manner which the commission considers eq-
move the attachment within three business             uitable. [1979 c.356 §5; 1983 c.251 §1; 1987 c.414 §165;
                                                      1989 c.5 §6; 1999 c.832 §6]
days of the date the attachment is rejected.
If the attachment is not removed within                   757.282 Criteria for just and reason-
three business days of the date the attach-           able rate for attachments; rate reduction.
ment is rejected, the utility may remove the          (1) A just and reasonable rate shall ensure
attachment and charge the licensee for all            the public utility, telecommunications utility
costs incurred by the utility in removing the         or consumer-owned utility the recovery from
attachment. [1999 c.832 §3]                           the licensee of not less than all the addi-
                                                      tional costs of providing and maintaining
     757.273 Attachments to public utility            pole attachment space for the licensee nor
and telecommunications utility facilities             more than the actual capital and operating
regulated. The Public Utility Commission of           expenses, including just compensation, of the
Oregon shall have the authority to regulate           public utility, telecommunications utility or
in the public interest the rates, terms and           consumer-owned utility attributable to that
conditions for attachments by licensees to            portion of the pole, duct or conduit used for
poles or other facilities of public utilities and     the pole attachment, including a share of the
telecommunications utilities. All rates, terms        required support and clearance space in pro-
and conditions made, demanded or received
by any public utility or telecommunications           portion to the space used for pole attachment
utility for any attachment by a licensee shall        above minimum attachment grade level, as
be just, fair and reasonable. [1979 c.356 §3; 1989    compared to all other uses made of the sub-
c.5 §5]                                               ject facilities, and uses that remain available
                                                      to the owner or owners of the subject facili-
    757.276 Attachments by licensees to               ties.
consumer-owned utility facilities regu-
lated. The Public Utility Commission of Or-               (2) A licensee shall receive a rental de-
egon shall have the authority to regulate the         duction if the licensee is in compliance with
rates, terms and conditions for attachments           rules adopted by the Public Utility Commis-
by licensees to poles or other facilities of          sion for certifying compliance with the laws
consumer-owned utilities. All rates, terms            regulating pole attachments. A licensee is

Title 57                                        Page 21                                     (2007 Edition)
757.285                                   UTILITY REGULATION

eligible for the rental reduction unless the                         NET METERING FACILITIES
commission or the utility authorizing the at-                     757.300 Net metering facility allowed
tachment notifies the licensee in writing that               to connect to public utility; conditions for
the licensee has failed to comply with either                connecting and measuring energy; rules;
the commission′s rules or the terms of a                     application to out-of-state utilities. (1) As
contract between the licensee and the utility                used in this section:
authorizing the attachment.
                                                                  (a) “Customer-generator” means a user
    (3) For purposes of determining the                      of a net metering facility.
rental rate for a pole attachment, the usable
space on the pole shall include 20 inches of                      (b) “Electric utility” means a public util-
safety clearance space between communica-                    ity, a people′s utility district operating under
tion circuits and electric circuits, provided                ORS chapter 261, a municipal utility operat-
the licensee is in compliance with rules and                 ing under ORS chapter 225 or an electric
agreements as described in subsection (2) of                 cooperative organized under ORS chapter 62.
this section. [1979 c.356 §6; 1989 c.5 §7; 1999 c.832             (c) “Net metering” means measuring the
§7]                                                          difference between the electricity supplied by
     757.285 Presumption of reasonableness                   an electric utility and the electricity gener-
                                                             ated by a customer-generator and fed back to
of rates set by private agreement. Agree-                    the electric utility over the applicable billing
ments regarding rates, terms and conditions                  period.
of attachments shall be deemed to be just,
fair and reasonable, unless the Public Utility                    (d) “Net metering facility” means a facil-
Commission finds upon complaint by a public                  ity for the production of electrical energy
utility, telecommunications utility, consum-                 that:
er-owned utility or licensee party to such                        (A) Generates electricity using solar
agreement and after hearing, that such rates,                power, wind power, fuel cells, hydroelectric
terms and conditions are adverse to the pub-                 power, landfill gas, digester gas, waste, dedi-
lic interest and fail to comply with the pro-                cated energy crops available on a renewable
visions hereof. [1979 c.356 §7; 1987 c.414 §166; 1989        basis or low-emission, nontoxic biomass
c.5 §8; 1999 c.832 §8]                                       based on solid organic fuels from wood, for-
    757.287 Application to electrical utility                est or field residues;
attachments. Nothing in ORS 757.270 to                            (B) Is located on the customer-
757.290 shall be deemed to apply to any at-                  generator′s premises;
tachment by one or more electrical utilities                      (C) Can operate in parallel with an elec-
on the facilities of one or more other elec-                 tric utility′s existing transmission and dis-
trical utilities. [1979 c.356 §8]                            tribution facilities; and
    757.290 Regulatory procedures. The                            (D) Is intended primarily to offset part or
procedures of the Public Utility Commission                  all of the customer-generator′s requirements
for petition, regulation and enforcement rel-                for electricity.
ative to attachments, including any rights of                     (2) An electric utility that offers residen-
appeal from any decision thereof, shall be the               tial and commercial electric service:
same as those otherwise generally applicable                      (a) Shall allow net metering facilities to
to the commission. [1979 c.356 §9; 1987 c.414 §167]          be interconnected using a standard meter
     Note: Section 9, chapter 832, Oregon Laws 1999,         that is capable of registering the flow of
provides:                                                    electricity in two directions.
      Sec. 9. (1) The Public Utility Commission shall
establish a task force consisting of utility pole owners          (b) May at its own expense install one or
and utility pole users to advise the commission on pol-      more additional meters to monitor the flow
icies and regulations for accommodating changes in the       of electricity in each direction.
utility industries while maintaining safe and efficient
utility poles, attachment installation practices and              (c) May not charge a customer-generator
rights of way.                                               a fee or charge that would increase the
     (2) In addition to the duties described in subsection
                                                             customer-generator′s        minimum      monthly
(1) of this section, the task force shall:                   charge to an amount greater than that of
                                                             other customers in the same rate class as the
     (a) Develop and submit to the commission proposed
rules for determining appropriate sanctions for unau-
                                                             customer-generator. However, the Public
thorized attachments; and                                    Utility Commission, for a public utility, or
                                                             the governing body, for a municipal electric
     (b) Develop and submit to the commission proposed
criteria for certifying compliance with laws regulating      utility, electric cooperative or people′s utility
pole attachments.                                            district, may authorize an electric utility to
     (3) The commission shall adopt rules for certifying
                                                             assess a greater fee or charge, of any type,
a licensee′s compliance with laws regulating pole at-        if the electric utility′s direct costs of inter-
tachments and establishing appropriate sanctions for         connection and administration of the net
unauthorized pole attachments. [1999 c.832 §9]               metering outweigh the distribution system,

Title 57                                              Page 22                                  (2007 Edition)
                           UTILITY REGULATION GENERALLY                                    757.300

environmental and public policy benefits of         dards established in the state building code.
allocating such costs among the electric            The standards shall be consistent with the
utility′s entire customer base. The commis-         applicable standards established by the Na-
sion may authorize a public utility to assess       tional Electrical Code, the Institute of Elec-
a greater fee or charge under this paragraph        trical and Electronics Engineers and
only following notice and opportunity for           Underwriters Laboratories or other similarly
public comment. The governing body of a             accredited laboratory.
municipal electric utility, electric cooper-             (b) Following notice and opportunity for
ative or people′s utility district may assess a     public comment, the commission, for a public
greater fee or charge under this paragraph          utility, or the governing body, for a munici-
only following notice and opportunity for           pal electric utility, electric cooperative or
comment from the customers of the utility,          people′s utility district, may adopt additional
cooperative or district.                            control and testing requirements for
     (3)(a) For a customer-generator, an elec-      customer-generators to protect public safety
tric utility shall measure the net electricity      or system reliability.
produced or consumed during the billing pe-              (c) An electric utility may not require a
riod in accordance with normal metering             customer-generator whose net metering fa-
practices.                                          cility meets the standards in paragraphs (a)
     (b) If an electric utility supplies a          and (b) of this subsection to comply with ad-
customer-generator more electricity than the        ditional safety or performance standards,
customer-generator feeds back to the electric       perform or pay for additional tests or pur-
utility during a billing period, the electric       chase additional liability insurance. How-
utility shall charge the customer-generator         ever, an electric utility shall not be liable
for the net electricity that the electric utility   directly or indirectly for permitting or con-
supplied.                                           tinuing to allow an attachment of a net me-
     (c) Except as provided in paragraph (d)        tering facility, or for the acts or omissions
of this subsection, if a customer-generator         of the customer-generator that cause loss or
feeds back to an electric utility more elec-        injury, including death, to any third party.
tricity than the electric utility supplies the           (5) Nothing in this section is intended to
customer-generator during a billing period,         prevent an electric utility from offering, or
the electric utility may charge the minimum         a customer-generator from accepting, pro-
monthly charge described in subsection (2)          ducts or services related to the customer-
of this section but must credit the customer-       generator′s net metering facility that are
generator for the excess kilowatt-hours gen-        different from the net metering services de-
erated during the billing period. An electric       scribed in this section.
utility may value the excess kilowatt-hours              (6) The commission, for a public utility,
at the avoided cost of the utility, as deter-       or the governing body, for a municipal elec-
mined by the commission or the appropriate          tric utility, electric cooperative or people′s
governing body. An electric utility that val-       utility district, may not limit the cumulative
ues the excess kilowatt-hours at the avoided        generating capacity of solar, wind, fuel cell
cost shall bear the cost of measuring the ex-       and microhydroelectric net metering systems
cess kilowatt-hours, issuing payments and           to less than one-half of one percent of a
billing for the excess hours. The electric          utility′s, cooperative′s or district′s historic
utility also shall bear the cost of providing       single-hour peak load. After a cumulative
and installing additional metering to measure       limit of one-half of one percent has been
the reverse flow of electricity.                    reached, the obligation of a public utility,
     (d) For the billing cycle ending in March      municipal electric utility, electric cooper-
of each year, or on such other date as agreed       ative or people′s utility district to offer net
to by the electric utility and the customer-        metering to a new customer-generator may
generator, any remaining unused kilowatt-           be limited by the commission or governing
hour credit accumulated during the previous         body in order to balance the interests of re-
year shall be granted to the electric utility       tail customers. When limiting net metering
for distribution to customers enrolled in the       obligations under this subsection, the com-
electric utility′s low-income assistance pro-       mission or the governing body shall consider
grams, credited to the customer-generator or        the environmental and other public policy
dedicated for other use as determined by the        benefits of net metering systems. The com-
commission, for a public utility, or the gov-       mission may limit net metering obligations
erning body, for a municipal electric utility,      under this subsection only following notice
electric cooperative or people′s utility dis-       and opportunity for public comment. The
trict, following notice and opportunity for         governing body of a municipal electric util-
public comment.                                     ity, electric cooperative or people′s utility
     (4)(a) A net metering facility shall meet      district may limit net metering obligations
all applicable safety and performance stan-         under this subsection only following notice

Title 57                                      Page 23                               (2007 Edition)
757.310                                   UTILITY REGULATION

and opportunity for comment from the cus-                  757.315 When free service or reduced
tomers of the utility, cooperative or district.       rates allowed. (1) ORS 757.310 does not
    (7) The commission or the governing               prevent any public utility from giving free
body may adopt rules or ordinances to ensure          service, or reduced rates therefor, to:
that the obligations and costs associated                  (a) Its officers, directors, employees and
with net metering apply to all power suppli-          members of their families;
ers within the service territory of a public               (b) Former employees of such public util-
utility, municipal electric utility, electric co-     ities or members of their families where such
operative or people′s utility district.               former employees have become disabled in
    (8) This section applies only to net me-          the service of such public utility or are una-
tering facilities that have a generating ca-          ble from physical disqualification, including
pacity of 25 kilowatts or less, except that the       retirement, to continue in the service; or
commission by rule may provide for a higher                (c) Members of families of deceased em-
limit for customers of a public utility.              ployees of such public utility.
    (9) Notwithstanding subsections (2) to (8)             (2) The Public Utility Commission may
of this section, an electric utility serving          require any public utility to file with the
fewer than 25,000 customers in Oregon that            commission a list, verified under oath, of all
has its headquarters located in another state         free or reduced rate privileges granted by a
and offers net metering services or a sub-            public utility under the provisions of this
stantial equivalent offset against retail sales       section.
in that state shall be deemed to be in com-                (3) The Public Utility Commission may
pliance with this section if the electric util-       authorize a natural gas public utility, upon
ity offers net metering services to its               application of the utility, to include in rates
customers in Oregon in accordance with                for residential customers of the utility
tariffs, schedules and other regulations pro-         amounts for the purpose of generating funds
mulgated by the appropriate authority in the          to be used for bill payment assistance to
state where the electric utility′s headquar-          low-income residential customers of the util-
ters are located. [1999 c.944 §2; 2005 c.145 §1]      ity. [Amended by 1971 c.655 §79; 2001 c.856 §1]
    757.305 [Amended by 1971 c.655 §77; repealed by
1979 c.190 §431]                                           757.320 Reducing rates for persons
                                                      furnishing part of necessary facilities. (1)
                                                      No public utility shall demand, charge, col-
           ILLEGAL PRACTICES                          lect or receive from any person less compen-
    757.310 Prohibition related to charges            sation for any service rendered or to be
for service. (1) A public utility may not             rendered by the public utility in consider-
charge a customer a rate or an amount for             ation of the furnishing by such person of any
a service that is different from the rate or          part of the facilities incident thereto.
amount prescribed in the schedules or tariffs              (2) This section does not prohibit any
for the public utility.                               public utility from renting any customer′s
    (2) A public utility may not charge a             facilities incident to providing its services
                                                      and for paying a reasonable rental therefor.
customer a rate or an amount for a service
that is different from the rate or amount the              (3) This section does not require a public
public utility charges any other customer for         utility to furnish any part of such appliances
a like and contemporaneous service under              which are situated in and upon the premises
substantially similar circumstances.                  of any customer, except meters and appli-
                                                      ances for measurements of any service, un-
    (3) A difference in rates or amounts              less otherwise ordered by the Public Utility
charged does not constitute a violation of            Commission. [Amended by 1971 c.655 §80]
subsection (2) of this section if the difference
is based on:                                               757.325 Undue preferences and preju-
                                                      dices. (1) No public utility shall make or
    (a) Service classification under ORS              give undue or unreasonable preference or
757.230;                                              advantage to any particular person or local-
    (b) Contracts for services under ORS              ity, or shall subject any particular person or
757.516; or                                           locality to any undue or unreasonable preju-
                                                      dice or disadvantage in any respect.
    (c) An optional schedule or tariff for the
provision of energy service that takes into                (2) Any public utility violating this sec-
account a customer′s past energy usage and            tion is guilty of unjust discrimination.
provides price incentives designed to encour-              757.330 Soliciting or accepting special
age changes in the customer′s energy usage            privileges from utilities. No person shall
that correspond to changes in the cost of             knowingly solicit, accept or receive any re-
providing energy. [Amended by 1971 c.655 §78; 1987    bate, concession or discrimination in respect
c.900 §2; 1993 c.485 §3; 2005 c.594 §1]               to any service whereby any such service

Title 57                                        Page 24                               (2007 Edition)
                            UTILITY REGULATION GENERALLY                                            757.415

shall, by any device, be rendered free or at          the terms or conditions of the order of au-
a lesser rate than that named in the pub-             thorization of the commission and no infor-
lished schedules and tariffs in force, or             mality or defect in the application or in the
whereby any service or advantage is received          proceedings in connection therewith or with
other than authorized in this chapter.                the issuance of such order shall render void
[Amended by 1971 c.655 §81]                           any stock or bond, note or other evidence of
     757.335 [Amended by 1971 c.655 §25; renumbered   indebtedness, or security issued pursuant to
756.185]                                              and in substantial conformity with an order
     757.340 [Amended by 1971 c.655 §22; renumbered   of the commission, except as to a person
756.125]                                              taking the same otherwise than in good faith
     757.345 [Repealed by 1971 c.655 §250]            and for value and without actual notice.
                                                      [Amended by 1997 c.261 §1]
     757.350 [Repealed by 1971 c.655 §250]
                                                          757.412 Exemption from securities
    757.355 Costs of property not pres-               regulation. Subject to such terms and con-
ently providing utility service excluded              ditions as the Public Utility Commission may
from rate base; exception. (1) Except as              prescribe, the commission, by rule or order,
provided in subsection (2) of this section, a         may exempt the following from any or all of
public utility may not, directly or indirectly,       the provisions of ORS 757.400 to 757.480, if
by any device, charge, demand, collect or re-         the commission finds that application of the
ceive from any customer rates that include            law is not required by the public interest:
the costs of construction, building, installa-
tion or real or personal property not pres-               (1) Any stocks and bonds, notes or other
ently used for providing utility service to the       evidences of indebtedness and any other se-
customer.                                             curity or guarantee or class of securities or
                                                      guarantees for which commission authori-
    (2) The Public Utility Commission may             zation would otherwise be required prior to
allow rates for a water utility that include          the issuance, incurrence or assumption
the costs of a specific capital improvement if        thereof.
the water utility is required to use the addi-
tional revenues solely for the purpose of                 (2) Any public utility or class of public
completing the capital improvement. [1979 c.3         utilities. [1997 c.261 §3]
§2; 2003 c.202 §2]                                        Note: 757.412 was added to and made a part of
                                                      ORS chapter 757 by legislative action but was not added
                                                      to any smaller series therein. See Preface to Oregon
        ISSUANCE OF SECURITIES                        Revised Statutes for further explanation.
    757.400 Definition of “stocks.” As used                757.415 Purposes for which securities
in ORS 757.400 to 757.460, “stocks” means             and notes may be issued; order required.
stocks, stock certificates or other evidence          (1) Except as otherwise permitted by subsec-
of interest or ownership.                             tion (4) of this section, a public utility may
    757.405 Power to regulate issuance of             issue stocks and bonds, notes and other evi-
utility securities. The power of public utili-        dences of indebtedness, certificates of benefi-
ties to issue stocks and bonds, notes and             cial interests in a trust and securities for the
other evidences of indebtedness and to create         following purposes and no others:
liens on their property situated within this               (a) The acquisition of property, or the
state is a special privilege, the right of            construction, completion, extension or im-
supervision, regulation, restriction and con-         provement of its facilities.
trol of which is and shall continue to be
vested in the state. Such power shall be ex-               (b) The improvement or maintenance of
ercised as provided by law and under such             its service.
rules and regulations as the Public Utility                (c) The discharge or lawful refunding of
Commission may prescribe.                             its obligations.
    757.410 When issuance of securities is                 (d) The reimbursement of money actually
void. All stocks and bonds, notes or other            expended from income or from any other
evidences of indebtedness, and any security           money in the treasury of the public utility
of a public utility shall be void when issued:        not secured by or obtained from the issue of
                                                      stocks or bonds, notes or other evidences of
    (1) Without an order of the Public Utility        indebtedness, or securities of such public
Commission authorizing the same then in ef-           utility, for any of the purposes listed in par-
fect except as provided in ORS 757.412 or             agraphs (a) to (c) of this subsection except
757.415 (3).                                          the maintenance of service and replacements,
    (2) With the authorization of the com-            in cases where the applicant has kept its ac-
mission, but not conforming in its provisions         counts and vouchers for such expenditures in
to the provisions, if any, which it is required       such manner as to enable the Public Utility
by the order of authorization of the commis-          Commission of Oregon to ascertain the
sion to contain; but no failure to comply with        amount of money so expended and the pur-

Title 57                                       Page 25                                      (2007 Edition)
757.417                            UTILITY REGULATION

poses for which such expenditures were             issued directly by a public utility or through
made.                                              a finance subsidiary. A “finance subsidiary”
     (e) The compliance with terms and con-        means any corporation, limited liability com-
ditions of options granted to its employees to     pany, company, association, trust or other
purchase its stock, if the commission first        entity that is:
finds that such terms and conditions are               (a) Beneficially owned, directly or indi-
reasonable and in the public interest.             rectly, by a public utility or, in the case of
     (f) The finance or refinance of bondable      a trust, for which a public utility or subsid-
conservation investment as described in ORS        iary thereof is the grantor; or
757.455. Bonds, notes, certificates of benefi-         (b) Unaffiliated with a public utility and
cial interests in a trust and other evidences      acquires bondable conservation investment
of indebtedness or ownership, issued for this      directly or indirectly from a public utility in
purpose are conservation bonds for the pur-        a transaction approved by the commission.
poses of ORS 757.460. Conservation bonds           [Amended by 1961 c.319 §1; 1995 c.539 §4; 2005 c.22 §504]
may rely partly or wholly for repayment on              757.417 Limitation on application of
conservation investment assets and revenues        ORS 757.415. ORS 757.415 does not apply to
arising with respect to conservation invest-       the issuance, renewal or assumption of li-
ment assets.                                       ability on any evidence of indebtedness when
     (2) Before issuing such securities a public   such issuance, renewal or assumption is for
utility, in addition to the other requirements     the purpose of acquiring specific real or per-
of law, shall secure from the commission           sonal property, if the aggregate principal
upon application an order authorizing such         amount thereof, together with all other then
issue, stating:                                    outstanding evidences of indebtedness issued,
     (a) The amount of the issue and the pur-      renewed or assumed under this section, does
poses to which the issue or the proceeds           not exceed whichever is the greater of the
thereof are to be applied;                         following amounts:
     (b) In the opinion of the commission, the          (1) The amount of $75,000.
money, property or labor to be procured or              (2) The amount of one-half of one percent
paid for by such issue reasonably is required      of the sum of:
for the purposes specified in the order and
compatible with the public interest, which is           (a) The total principal amount of all
necessary or appropriate for or consistent         bonds or other securities representing se-
with the proper performance by the applicant       cured indebtedness of the public utility is-
of service as a public utility, and will not       sued or assumed and then outstanding; and
impair its ability to perform that service; and         (b) The capital and surplus as then stated
     (c) Except as otherwise permitted in the      on the books of account of the public utility.
                                                   [1971 c.655 §88]
order in the case of bonds, notes or other
evidences of indebtedness, such purposes are           757.419 Limitation on application of
not, in whole or in part, reasonably chargea-      ORS 757.480. ORS 757.480 does not apply to
ble to operating expenses or to income.            any mortgage or other encumbrance upon
     (3) This section and ORS 757.410 apply to     any real or personal property given to secure
demand notes but do not apply to the issu-         payment of any evidence of indebtedness is-
ance or renewal of a note or evidence of in-       sued under ORS 757.415. [1971 c.655 §89]
debtedness maturing not more than one year             757.420 Hearings and supplemental
after date of such issue or renewal.               orders relating to issuance of securities;
     (4) Nothing in ORS 757.400 to 757.460         joint approval of issuance by interstate
shall prevent issuance of stock to stockhold-      utility. (1) To enable the Public Utility
ers as a stock dividend if there has been se-      Commission to determine whether the com-
cured from the commission an order:                mission will issue an order under ORS
     (a) Finding that the stock dividend is        757.415, the commission may hold a hearing
compatible with the public interest;               and may make such additional inquiry or in-
                                                   vestigation, examine such witnesses, books,
     (b) Authorizing such issue and a transfer     papers, documents and contracts and require
of surplus to capital in an amount equal to        the filing of such data as the commission
the par or stated value of the stock so au-        deems necessary. The application for such
thorized; and                                      order shall be given priority and shall be
     (c) Finding that a sum equal to the           disposed of by the commission within 30 days
amount to be so transferred was expended for       after the filing of such application, unless
the purposes enumerated in subsection (1) of       that period is extended with the consent of
this section.                                      the public utility.
     (5) Conservation bonds authorized pursu-          (2) The commission may, upon applica-
ant to subsection (1) of this section may be       tion of the public utility, after opportunity

Title 57                                     Page 26                                      (2007 Edition)
                          UTILITY REGULATION GENERALLY                                    757.450

for hearing and for good cause shown, make         less favorable than those specified in such
such supplemental orders in the premises as        order, or a modification thereof.
the commission finds necessary or appropri-            (2) The commission has power to require
ate, and may by any such supplemental order        public utilities to account for the disposition
modify the provisions of any previous order        of the proceeds of all sales of stocks and
as to the particular purposes, uses, extent to     bonds, notes and other evidences of indebt-
which, or the condition under which, any se-       edness, in such form and detail as the com-
curity theretofore authorized or its proceeds      mission deems advisable, and to establish
may be applied. Such supplemental orders           such rules and regulations as the commission
are subject to the requirements of ORS             deems reasonable and necessary to insure
757.415. The period of time permitted under        the disposition of such proceeds for the pur-
subsection (1) of this section for disposing of    pose or purposes specified in the order.
applications shall not apply to supplemental
orders.                                                757.440 Approval required before util-
    (3) If a commission or other agency is         ity may guarantee another′s indebted-
empowered by another state to regulate and         ness. No public utility shall assume any
control the amount and character of securi-        obligation or liability as guarantor, indorser,
ties to be issued by any public utility within     surety or otherwise in respect to the securi-
such other state, the commission of Oregon         ties of any other person, firm or corporation,
has power to agree with such commission or         when such securities are payable at periods
agency of such other state on the issue of         of more than 12 months after the date
stocks, bonds, notes, other evidences of in-       thereof, without first having secured from
debtedness or securities by a public utility       the Public Utility Commission an order au-
owning or operating a public utility both in       thorizing it so to do. Every assumption made
such state and in this state, and has power        other than in accordance with such an order
to approve such issue jointly with such com-       is void.
mission or agency and to issue a joint certif-         757.445 Wrongful issues or use of pro-
icate of such approval. However, no such           ceeds by utility. No public utility shall di-
joint approval is required in order to express     rectly or indirectly, issue or cause to be
the consent to and approval of such issue by       issued any stock or bond, note or other evi-
the State of Oregon if the issue is separately     dence of indebtedness, in nonconformity with
approved by the Oregon commission.                 the order of the Public Utility Commission
    757.425 State not obligated following          authorizing the same or contrary to the pro-
approval of issuance. No provision of ORS          visions of ORS 757.400 to 757.460, or of the
757.405 to 757.450, and no deed or act done        Constitution of this state, or apply the pro-
or performed under or in connection there-         ceeds from the sale thereof, or any part
with, shall be held or construed to obligate       thereof, to any purpose other than the pur-
the State of Oregon to pay or guarantee, in        poses specified in the commission′s order, or
any manner whatsoever, any stock or bond,          to any purpose specified in the commission′s
note or other evidence of indebtedness, au-        order in excess of the amount in the order
thorized, issued or executed under the pro-        authorized for such purpose.
visions of ORS 757.405 to 757.450.                     757.450 Wrongful acts relating to is-
    757.430 Conditional approval of issu-          suance of securities. No person shall:
ance authorized. The Public Utility Com-               (1) Knowingly authorize, direct, aid in,
mission may by order grant permission for          issue or execute, or cause to be issued or
the issue of stocks or bonds, notes or other       executed, any stock or bond, note or other
evidences of indebtedness in the amount ap-        evidence of indebtedness, in nonconformity
plied for, or in a lesser amount, or not at all,   with the order of the Public Utility Commis-
and may attach to the exercise of the per-         sion authorizing the same, or contrary to the
mission such condition or conditions as the        provisions of ORS 757.400 to 757.460 or of the
commission deems reasonable and necessary.         Constitution of this state.
     757.435 Disposal of proceeds from is-             (2) In any proceeding before the commis-
suance of securities; rules. (1) No public         sion, knowingly make any false statement or
utility shall, without the consent of the Pub-     representation or with knowledge of its fal-
lic Utility Commission, apply the issue of         sity file or cause to be filed with the com-
any stock or bond, note or other evidence of       mission any false statement or representation
indebtedness, or any part or proceeds              which may tend in any way to influence the
thereof, to any purpose not specified in the       commission to make an order authorizing the
commission′s order, or to any purpose speci-       issue of any stock or bond, note or other ev-
fied in the commission′s order in excess of        idence of indebtedness, or which results in
the amount authorized for such purpose, or         procuring from the commission the making
issue or dispose of the same on any terms          of any such order.

Title 57                                     Page 27                               (2007 Edition)
757.455                           UTILITY REGULATION

    (3) With knowledge that any false state-      recover bondable conservation investment
ment or representation was made to the            and associated equity and debt capital costs
commission in any proceeding tending in any       are unjust or unreasonable, impair or reduce
way to influence the commission to make           in any way the value of conservation invest-
such order, issue, execute or negotiate, or       ment assets, or impair the timing or the
cause to be issued, executed or negotiated,       amount of revenues arising with respect to
any stock or bond, note or other evidence of      conservation investment assets that have
indebtedness.                                     been used to secure financing or refinancing
    (4) Directly or indirectly, knowingly ap-     under ORS 757.415 (1)(f).
ply, or cause or assist to be applied, the pro-        (4) Subsections (2) and (3) of this section
ceeds, or any part thereof, from the sale of      shall apply to any amounts presently de-
any stock or bond, note or other evidence of      ferred by a utility regardless of whether ex-
indebtedness, to any purpose not specified in     pended prior to September 9, 1995.
the commission′s order, or to any purpose              (5) As used in this section, “conservation
specified in the commission′s order in excess     program expenditures” includes, without lim-
of the amount authorized for such purpose.        itation, loans and cash payments made to
    (5) With knowledge that any stock or          customers, the costs of conservation mea-
bond, note or other evidence of indebtedness,     sures installed at the expense of the public
has been issued or executed in violation of       utility, specific acquisition program develop-
ORS 757.400 to 757.460, negotiate, or cause       ment, promotion and labor costs and associ-
the same to be negotiated.                        ated general supervision, rents, leases and
    757.455 Conservation program invest-          overheads. [1995 c.539 §3]
ment policy; application for bondable in-              757.460 Pledge of conservation invest-
vestments; utility rates to include               ment assets as bond collateral; perfection
investment costs. (1) It is the policy of the     of security interest; foreclosure. (1) A
Public Utility Commission of Oregon to en-        public utility or finance subsidiary may
courage financing investments at the lowest       pledge conservation investment assets as
possible cost to utility customers, including     collateral for conservation bonds by provid-
but not limited to conservation program ex-       ing for a security interest in the conserva-
penditures.                                       tion investment assets. A security interest in
    (2) If the commission decides that a pub-     conservation investment assets is created
lic utility should defer and amortize certain     and perfected only upon entry of an order by
conservation program expenditures, the pub-       the Public Utility Commission of Oregon ap-
lic utility may apply to the commission for       proving a contract governing the granting of
an order designating all or part of the con-      the security interest, and the filing with the
servation program expenditures as bondable        Secretary of State of a Uniform Commercial
conservation investment, for the purpose of       Code Article I financing statement showing
financing or refinancing the designated ex-       such pledger as “debtor” and identifying the
penditures under ORS 757.415 (1)(f). After        conservation investment assets and the
notice and an opportunity for a hearing, the      bondable conservation investment pledged as
commission may approve the application if it      security. The security interest is enforceable
finds that the conservation program expendi-      against the debtor and all third parties, sub-
tures included in the application are used,       ject to the rights of any third parties holding
useful and prudent and that financing or re-      security interests in the conservation invest-
financing is likely to be more favorable to       ment assets perfected in the manner de-
customers than other reasonably available         scribed in this section if value has been
alternatives. Upon approval, the commission       given by the purchasers of the conservation
shall issue an order stating the amount of        bonds. An approved security interest in con-
the conservation program expenditures that        servation investment assets is a continuously
qualify as bondable conservation investment.      perfected security interest in all revenues
                                                  and proceeds arising with respect to the as-
    (3) The commission shall set rates to in-     sociated bondable conservation investment,
clude in revenue requirement recovery of a        whether or not those revenues have accrued.
public utility′s bondable conservation invest-    Upon approval by the commission, the prior-
ment, as well as the costs of equity and debt     ity of the security interest shall be as set
capital associated with it, including, without    forth in the contract governing the conser-
limitation, the payment of principal, pre-        vation bonds. Conservation investment as-
mium, if any, and interest on conservation        sets constitute property for the purposes of
bonds. Revenues collectible or collected un-      contracts securing the conservation bonds,
der this subsection shall be known as “con-
servation      investment      assets.”    The    whether or not the related revenues have
commission shall not revalue bondable con-        accrued.
servation investment for rate-making pur-              (2) The relative priority of a security in-
poses, determine that revenues required to        terest created under this section is not de-

Title 57                                    Page 28                                (2007 Edition)
                          UTILITY REGULATION GENERALLY                                     757.480

feated or adversely affected by the                an approved contract governing conservation
commingling of revenues arising with respect       bonds in the same manner and to the same
to conservation investment assets with other       extent as was required of the utility before
funds of the debtor. The holders of conserva-      the proceeding, including, without limitation,
tion bonds shall have a perfected security         collecting and paying to the holders of the
interest in all cash and deposit accounts of       conservation bonds or their representatives
the debtor in which revenues arising with          revenues arising with respect to the conser-
respect to conservation investment assets          vation investment assets pledged to secure
pledged to the holders of conservation bonds       the conservation bonds.
have been commingled with other funds, but             (6) As used in this section:
the perfected security interest is limited to
an amount not greater than the amount of               (a) “Conservation investment assets” has
the revenues received by the debtor within         the meaning given under ORS 757.455.
12 months before any default under the con-            (b) “Finance subsidiary” has the meaning
servation bonds held by the holders or the         given under ORS 757.415. [1995 c.539 §2]
institution of insolvency proceedings by or
against the debtor, less payments made from               TRANSACTIONS INVOLVING
the revenues to the holders during that                              UTILITIES
12-month period. If a default occurs under an
approved contract governing conservation               757.480 Approval needed prior to dis-
bonds, the holders of the conservation bonds       posal, mortgage or encumbrance of cer-
or their authorized representatives, as se-        tain operative utility property or
cured parties, may foreclose or otherwise          consolidation with another public utility;
enforce the perfected security interest in the     exceptions. (1) A public utility doing busi-
conservation investment assets securing the        ness in Oregon shall not, without first ob-
conservation bonds, subject to the rights of       taining the Public Utility Commission′s
any third parties holding prior security in-       approval of such transaction:
terests in the conservation investment assets          (a) Except as provided in subsection (5)
perfected in the manner provided in this           of this section, sell, lease, assign or other-
section. Upon application by the holders of        wise dispose of the whole of the property of
the conservation bonds or their represen-          such public utility necessary or useful in the
tatives, without limiting other remedies of        performance of its duties to the public or any
those holders or representatives, the com-         part thereof of a value in excess of $100,000,
mission shall order the sequestration and          or sell, lease, assign or otherwise dispose of
payment to the holders or their represen-          any franchise, permit or right to maintain
tatives of revenues arising with respect to        and operate such public utility or public
the debtor.                                        utility property, or perform any service as a
    (3) The granting, perfection and enforce-      public utility;
ment of security interests in conservation             (b) Mortgage or otherwise encumber the
investment assets to secure conservation           whole or any part of the property of such
bonds is governed by this section and not by       public utility necessary or useful in the per-
ORS chapter 79.                                    formance of its duties to the public, includ-
    (4) A transfer of conservation investment      ing any franchise, permit or right to
assets by a public utility to a finance subsid-    maintain and operate such public utility or
iary that the parties have expressly stated in     public utility property, or perform any ser-
the governing documentation to be a sale or        vice as a public utility; or
other absolute transfer, in a transaction ap-          (c) By any means whatsoever, directly or
proved in an order issued by the commission        indirectly, merge or consolidate any of its
and made in connection with the issuance by        lines, plant, system or other property what-
the finance subsidiary of conservation bonds,      soever, or franchise or permit to maintain or
shall be treated as a true sale and not as a       operate any public utility property, or per-
pledge or other financing of the conservation      form any service as a public utility, or any
investment assets. According the holders of        part thereof, with any other public utility.
conservation bonds a preferred right to re-            (2) A public utility that sells, leases, as-
venues of the public utility or the provision      signs or otherwise disposes of the whole of
by the utility of other credit enhancement         the property of such public utility necessary
with respect to conservation bonds does not        or useful in the performance of its duties to
impair or negate the characterization of any       the public or any part thereof of a value in
transfer as a true sale.                           excess of $25,000, but less than $100,000,
    (5) Any successor to a public utility pur-     shall notify the commission of the sale
suant to any bankruptcy, reorganization or         within 60 days following the date of the sale.
other insolvency proceeding shall perform              (3) Every sale, lease, assignment, mort-
and satisfy all obligations of the utility under   gage, disposition, encumbrance, merger or

Title 57                                     Page 29                                (2007 Edition)
757.485                            UTILITY REGULATION

consolidation subject to subsection (1) of this    be deemed to be executed on the date the
section made other than in accordance with         parties sign a written contract or on the date
the order of the commission authorizing the        the parties begin to transact business under
same is void.                                      the contract, whichever date is earlier. The
    (4) This section does not prohibit or in-      commission shall promptly investigate and
validate the sale, lease or other disposition      act upon the contract in accordance with
by any public utility of property which is not     ORS 757.495 (3) and (6).
necessary or useful in the performance of its          (3) In making such investigation the
duties to the public.                              commission and accountants, examiners and
    (5) A water utility doing business in Or-      agents, appointed by the commission for the
egon shall not, without first obtaining the        purpose, shall be given free access to all
Public Utility Commission′s approval of such       books, books of account, documents, data and
transaction, sell, lease, assign or otherwise      records of the public utility as well as of the
dispose of the whole of the property of such       corporation with which it is proposing to
water utility necessary or useful in the per-      contract, which the commission may deem
formance of its duties to the public or any        material to the investigation. The failure or
part thereof of a value in excess of $10,000,      refusal of either of the parties to the pro-
or sell, lease, assign or otherwise dispose of     posed contract to comply with this subsec-
any franchise, permit or right to maintain         tion is prima facie evidence that such
and operate such water utility or water util-      contract is unfair, unreasonable and contrary
ity property, or perform any service as a wa-      to public interest, and is sufficient to justify
ter utility. [Formerly 757.155; 1999 c.530 §1]     a determination and finding of the commis-
                                                   sion to that effect, which has the same force
     757.485 Purchase of property or stocks        and effect as any other determination or or-
of one utility by another. (1) No public           der of the commission. [Formerly 757.165; 1989
utility shall, directly or indirectly, purchase,   c.956 §6]
acquire or become the owner of any of the              757.495 Contracts involving utilities
stocks or bonds or property utilized for util-     and persons with affiliated interests. (1)
ity purposes and having a value in excess of       When any public utility doing business in
$10,000 of any other public utility unless au-     this state enters into any contract to make
thorized so to do by the Public Utility Com-       any payment, directly or indirectly, to any
mission.                                           person or corporation having an affiliated
     (2) Every contract by any public utility      interest, for service, advice, auditing, ac-
for the purchase, acquisition, assignment or       counting, sponsoring, engineering, managing,
transfer to it of any of the stock of any other    operating, financing, legal or other services,
public utility by or through any person,           or enter any charges therefor on its books,
partnership or corporation without the ap-         which shall be recognized as an operating
proval of the commission shall be void and         expense or capital expenditure in any rate
of no effect, and no such transfer or assign-      valuation or any other hearing or proceed-
ment of such stock upon the books of the           ing, the contract shall be filed with the Pub-
corporation pursuant to any such contract is       lic Utility Commission within 90 days of
effective for any purpose. [Formerly 757.160]      execution of the contract. The contract shall
                                                   be deemed to be executed on the date the
     757.490 Approval needed for certain           parties sign a written contract or on the date
contracts. (1) When any public utility doing       the parties begin to transact business under
business in this state enters into a contract      the contract, whichever date is earlier.
with another corporation with relation to the
construction, operation, maintenance or use            (2) When any public utility doing busi-
of the property of said public utility in Ore-     ness in this state enters into any contract,
gon, or the use of the property of the other       oral or written, with any person or corpo-
contracting party, or any part thereof, or for     ration having an affiliated interest relating
service, advice, engineering, financing,           to the construction, operation, maintenance,
rentals, leasing or for any construction or        leasing or use of the property of such public
management charges in respect of any such          utility in Oregon, or the purchase of prop-
property, or for the purchase of property,         erty, materials or supplies, which shall be
materials or supplies, the proposed contract       recognized as the basis of an operating ex-
shall be filed with the Public Utility Com-        pense or capital expenditure in any rate val-
mission for the investigation and approval         uation or any other hearing or proceeding,
when the public utility owns a majority of         the contract shall be filed with the commis-
or controls directly or indirectly the voting      sion within 90 days of execution of the con-
                                                   tract. The contract shall be deemed to be
stock of the other contracting corporations.       executed on the date the parties sign a writ-
     (2) Any such proposed contract shall be       ten contract or on the date the parties begin
filed with the commission within 90 days of        to transact business under the contract,
execution of the contract. The contract shall      whichever date is earlier.

Title 57                                     Page 30                                (2007 Edition)
                                 UTILITY REGULATION GENERALLY                                    757.511

     (3) When any such contract has been            light, water or power to or for the public by
submitted to the commission, the commission         reason of a contract or agreement, express
promptly shall examine and investigate the          or implied, between itself and another public
contract. If, after such investigation, the         utility which is directly engaged in such
commission determines that the contract is          business, the jurisdiction of the Public Util-
fair and reasonable and not contrary to the         ity Commission over such public utility ex-
public interest, the commission shall enter         tends only to the right to modify, control,
findings and an order to this effect and serve      rescind, alter or amend any such existing
a copy thereof upon the public utility,             contract or agreement where the interest of
whereupon any expenses and capital expend-          the customers of such public utility directly
itures incurred by the public utility under         engaged in such business demands. No such
the contract may be recognized in any rate          contract or agreement is valid or enforceable
valuation or other hearing or proceeding. If,       until it has been approved by the commission
after such investigation, the commission de-        as being in the public interest. [Formerly
termines that the contract is not fair and          757.175]
reasonable in all its terms and is contrary to           757.505 [Repealed by 1971 c.655 §250]
the public interest, the commission shall en-
ter findings and an order accordingly and               757.506 Findings and policy regarding
serve a copy thereof upon the public utility,       exercise of influence over utility by per-
and, except as provided in subsection (4) of        son not engaged in utility business. (1)
this section, it shall be unlawful to recognize     The Legislative Assembly finds and declares
the contract for the purposes specified in this     that:
section.                                                (a) The protection of customers of public
     (4) When any such contract has been            utilities which provide heat, light or power
filed with the commission within 90 days of         is a matter of fundamental statewide con-
execution and the commission has not en-            cern;
tered an order disapproving the contract un-            (b) Existing legislation requires the Pub-
der subsection (3) of this section, the             lic Utility Commission′s approval of one
commission may not base its refusal to rec-         public utility′s acquisition of another public
ognize any expenses or capital expenditures         utility′s stocks, bonds and certain property
incurred under the contract in any rate val-        used for utility purposes, but does not re-
uation or other hearing or proceeding solely        quire the commission′s approval of such ac-
on the basis that such contract has not been        quisitions by persons not engaged in the
approved under subsection (3) of this section.      public utility business in Oregon; and
     (5) No public utility shall issue notes or         (c) An attempt by a person not engaged
lend its funds or give credit on its books or       in the public utility business in Oregon to
otherwise to any person or corporation hav-         acquire the power to exercise any substantial
ing an affiliated interest, either directly or      influence over the policies and actions of an
indirectly, without the approval of the com-        Oregon public utility which provides heat,
mission.                                            light or power could result in harm to such
     (6) The action of the commission with          utility′s customers, including but not limited
respect to all the matters described in this        to the degradation of utility service, higher
section when submitted to the commission            rates, weakened financial structure and
shall be by findings and an order to be en-         diminution of utility assets.
tered within 90 days after the matter has               (2) It is, therefore, the policy of the State
been submitted to the commission for con-           of Oregon to regulate acquisitions by persons
sideration, and the findings and order of the       not engaged in the public utility business in
commission with respect to any of such mat-         Oregon of the power to exercise any sub-
ters shall be and remain in full force and ef-      stantial influence over the policies and ac-
fect, unless and until set aside, modified or       tions of an Oregon public utility which
remanded in a proceeding for judicial review        provides heat, light or power in the manner
of an order in a contested case in the man-         set forth in this section and ORS 757.511 in
ner provided by ORS 756.610. The public             order to prevent unnecessary and unwar-
utility, or any other person or corporation         ranted harm to such utilities′ customers.
affected by any such findings and order, may        [1985 c.632 §2]
seek judicial review in the manner provided              757.510 [Repealed by 1971 c.655 §250]
by ORS 756.610. [Formerly 757.170; 1989 c.956 §7;       757.511 Application for authority to
2005 c.22 §505; 2005 c.638 §9]
                                                    exercise influence over utility; contents
    757.500 Contracts between certain               of application; issuance of order; dissem-
public utilities. When any public utility is        ination of information about acquisition.
primarily engaged in another enterprise and         (1) No person, directly or indirectly, shall
is only indirectly engaged in the production,       acquire the power to exercise any substantial
transmission, delivery or furnishing of heat,       influence over the policies and actions of a

Title 57                                      Page 31                                      (2007 Edition)
757.516                            UTILITY REGULATION

public utility which provides heat, light or        issue an order denying the application. The
power without first securing from the Public        applicant shall bear the burden of showing
Utility Commission, upon application, an or-        that granting the application is in the public
der authorizing such acquisition if such per-       interest.
son is, or by such acquisition would become,            (5) The commission may postpone issu-
an affiliated interest with such public utility     ance of an order disposing of an application
as defined in ORS 757.015 (1), (2) or (3).          under this section if notice has been given
     (2) Notice must be given to the commis-        to cities and counties under ORS 757.814 (1).
sion of an application under this section at        In no event may the commission postpone
least 60 days before the application is filed       issuance of an order disposing of the appli-
with the commission. The notice must indi-          cation for more than 90 days under the pro-
cate whether the transaction is a transaction       visions of this subsection.
described in ORS 757.814 (1). If the transac-           (6) Nothing in this section shall prohibit
tion is a transaction as described in ORS           dissemination by any party of information
757.814 (1), the commission shall give notice       concerning the acquisition so long as such
to cities and counties as required by ORS           dissemination is not otherwise in conflict
757.814 (1).                                        with state or federal law. [1985 c.632 §3; 2007
     (3) The application required by subsec-        c.807 §2a]
tion (1) of this section shall set forth detailed        757.515 [Amended by 1971 c.655 §39; renumbered
information regarding:                              756.515]

     (a) The applicant′s identity and financial         757.516 Contracts between natural gas
ability;                                            utilities and customers for commodity
                                                    and services; determination by commis-
     (b) The background of the key personnel        sion of reasonableness of contract and
associated with the applicant;                      utility activities. (1) Following a Public
     (c) The source and amounts of funds or         Utility Commission determination that such
other consideration to be used in the acqui-        services are subject to competition, a natural
sition;                                             gas utility may enter into a contract with
     (d) The applicant′s compliance with fed-       any customer for the provision of natural gas
eral law in carrying out the acquisition;           commodity, rights to pipeline capacity and
                                                    natural gas transportation services when
     (e) Whether the applicant or the key           such services are provided in advance of the
personnel associated with the applicant have        point of interconnection between the facility
violated any state or federal statutes regu-        of the natural gas utility and the facility of
lating the activities of public utilities;          an interstate pipeline.
     (f) All documents relating to the transac-         (2) Contracts for services described under
tion giving rise to the application;                subsection (1) of this section are not sched-
     (g) The applicant′s experience in operat-      ules of rates, tolls or charges within the
ing public utilities providing heat, light or       meaning of ORS 757.205 and are not subject
power;                                              to the requirements of ORS 757.205, 757.230
     (h) The applicant′s plan for operating the     and 757.310.
public utility;                                         (3) A contract for services described un-
                                                    der subsection (1) of this section may include
     (i) How the acquisition will serve the         services provided after the point of intercon-
public utility′s customers in the public inter-     nection between a natural gas utility′s facil-
est; and                                            ity and the interstate pipeline′s facility.
     (j) Such other information as the com-         Services provided after the point of intercon-
mission may require by rule.                        nection are subject to the requirements of
     (4) The commission promptly shall exam-        ORS 757.205, 757.230 and 757.310 and shall
ine and investigate each application received       be separately priced in accordance with the
pursuant to this section. Except as provided        utility′s filed tariffs.
in subsection (5) of this section, the commis-          (4) A natural gas utility entering con-
sion shall issue an order disposing of the ap-      tracts for services described under subsection
plication within 19 business days of its            (1) of this section shall make available to the
receipt. If the commission determines that          commission any information necessary for
approval of the application will serve the          review of such contracts for ratemaking pur-
public utility′s customers in the public inter-     poses. Notwithstanding ORS 192.410 to
est, the commission shall issue an order            192.505, the commission shall not release the
granting the application. The commission            terms of any contract or portion of a con-
may condition an order authorizing the ac-          tract for services described in subsection (1)
quisition upon the applicant′s satisfactory         of this section without the consent of the
performance or adherence to specific re-            customer and the natural gas utility except
quirements. The commission otherwise shall          for contracts entered into between a natural

Title 57                                      Page 32                                  (2007 Edition)
                                  UTILITY REGULATION GENERALLY                                                 757.547

gas utility and an affiliated interest of that                  coating, housing or other protective device;
natural gas utility. Notwithstanding any                        and the denting of, penetration into or
other provision of this section, a contract for                 severance of underground facilities.
services described in subsection (1) of this                        (3) “Excavation” means any operation in
section between a natural gas utility and                       which earth, rock or other material on or
another public utility may be released by the                   below the ground is moved or otherwise dis-
commission pursuant to a hearing held under                     placed by any means, except sidewalk, road
ORS 757.210.                                                    and ditch maintenance less than 12 inches in
     (5) Nothing in this section shall restrict                 depth that does not lower the road grade or
the commission from subsequent investi-                         original ditch flow line. “Excavation” does
gation of the reasonableness of contracts en-                   not include the tilling of soil for agricultural
tered into under subsection (1) of this section                 purposes conducted on private property that
for ratemaking purposes. The commission′s                       is not within the boundaries of a recorded
review of such contracts for ratemaking pur-                    right of way or easement for underground
poses shall not in any way affect the obli-                     facilities.
gations or rights of the parties under the                          (4) “Excavator” means any person who
contracts.                                                      engages in excavation.
     (6) In accordance with ORS 756.515, the                        (5) “Operator” means any person, public
commission may investigate the activities of                    utility, municipal corporation, political sub-
a natural gas utility related to contracts de-                  division of the state or other person with
scribed under subsection (1) of this section.                   control over underground facilities.
Notwithstanding any other provision of this
section, if the commission finds that the ac-                       (6) “Underground facilities” means items
tivities of a natural gas utility have not gen-                 partially or entirely below the surface of the
erally been in the public interest, the                         ground for use in connection with the stor-
commission, by order, may require the na-                       age or conveyance of electrical energy, wa-
tural gas utility to file all future contracts                  ter, sewage, petroleum products, gas, gaseous
described under subsection (1) of this section                  vapors or hazardous liquids, or the trans-
as provided under ORS 757.205 or 757.240.                       mission of electronic, telephonic, telegraphic
Any such finding by the commission shall                        or cable communications. Such items in-
not affect the obligations or rights of the                     clude, but are not limited to, pipes, sewers,
parties under any existing contracts.                           conduits, cables, valves, lines, wires,
                                                                manholes, attachments and those parts of
     (7) Nothing in this section, nor any ac-                   poles or anchors that are underground.
tion taken by the commission pursuant to
this section, shall be deemed state action for                      (7) “Unlocatable underground facilities”
the purpose of exempting a natural gas util-                    means underground facilities that cannot be
ity from liability for anticompetitive conduct                  marked with reasonable accuracy, including
or other unlawful practices.                                    nonconductive sewers and            nonmetallic
                                                                underground facilities that have no trace
     (8) As used in this section, “natural gas                  wires. [1995 c.691 §1]
utility” means a public utility providing na-
tural gas service to customers. [1993 c.485 §2]                       Note: 757.542 to 757.562 were enacted into law by
                                                                the Legislative Assembly but were not added to or made
     757.520   [Repealed by 1971 c.655 §250]                    a part of ORS chapter 757 or any series therein by leg-
     757.525   [Repealed by 1971 c.655 §250]                    islative action. See Preface to Oregon Revised Statutes
                                                                for further explanation.
     757.530   [Repealed by 1971 c.655 §250]
                                                                      757.545 [Repealed by 1971 c.655 §250]
     757.535   [Repealed by 1971 c.655 §250]
                                                                      757.546 [1987 c.599 §2; repealed by 1995 c.691 §8]
     757.540    [Amended by 1971 c.655 §53; renumbered
756.568]                                                            757.547 Oregon Utility Notification
     757.541   [1987 c.599 §1; repealed by 1995 c.691 §8]       Center; board; member qualifications;
                                                                terms; meetings; rules. (1)(a) The Oregon
   OREGON UTILITY NOTIFICATION                                  Utility Notification Center is created as an
                   CENTER                                       independent not-for-profit public corporation.
                                                                The corporation shall be governed by a board
    757.542 Definitions. As used in ORS                         of directors consisting of one member ap-
757.542 to 757.562 and 757.993:                                 pointed to represent each of the following:
    (1) “Business day” means any 24-hour day                        (A) Cities with a population of 25,000 or
other than a Saturday, Sunday or federal or                     more;
state legal holiday.
                                                                    (B) Cities with a population under 25,000;
    (2) “Damage” means harm to or de-
struction of underground facilities including,                      (C) Counties;
but not limited to, the weakening of struc-                         (D) Natural gas utilities regulated by the
tural, lateral or subjacent support; the pene-                  Public Utility Commission under ORS chap-
tration, impairment or destruction of any                       ter 757;

Title 57                                                    Page 33                                   (2007 Edition)
757.552                            UTILITY REGULATION

     (E) Electric utilities regulated by the            (2) The term of office of a member is four
Public Utility Commission under ORS chap-           years. A member is eligible for reappoint-
ter 757;                                            ment. Before the expiration of the term of a
     (F) Water districts, special districts, san-   member, the board of directors shall solicit
itary districts or water and sanitary author-       a nomination as provided in subsection (1) of
ities;                                              this section and the Governor shall appoint
                                                    a successor. If there is a vacancy for any
     (G) Telecommunications utilities serving       cause, the board shall solicit a nomination
fewer than 50,000 access lines and regulated        as provided in subsection (1) of this section
by the Public Utility Commission under ORS          and the Governor shall make an appointment
chapter 759;                                        to become immediately effective for the un-
     (H) Telecommunications utilities serving       expired term. A member may continue to
50,000 access lines or more and regulated by        serve until a successor is appointed. Nothing
the Public Utility Commission under ORS             in this subsection or subsection (1) of this
chapter 759;                                        section shall restrict the authority of the
     (I) Telecommunications cooperatives;           Governor to appoint a person other than one
                                                    of the persons nominated according to this
     (J) Electric cooperatives;                     subsection or subsection (1) of this section.
     (K) People′s utility districts;                    (3) The board of directors shall select one
     (L) Contractors;                               of its members as chairperson and another
                                                    as vice chairperson, for such terms and with
     (M) Excavators;                                such duties and powers as the board consid-
     (N) Railroads;                                 ers necessary for the performance of the
     (O) Cable system operators; and                functions of those offices. A minimum of
                                                    seven of the members of the board consti-
     (P) Municipal electric utilities.              tutes a quorum for the transaction of busi-
     (b) To facilitate appointment of members       ness.
of the first board of directors, the Public             (4) The board of directors shall meet at
Utility Commission shall, by order, select          least once every three months at a time and
organizations that are most representative of       place determined by the board. The board
each of the groups set forth in paragraph (a)       shall meet at such other times and places
of this subsection. Each organization so se-        specified by the call of the chairperson or of
lected may nominate a member for the board          a majority of the members of the board. [1995
and may, within the time allowed by the             c.691 §2; 1999 c.451 §2]
commission′s order, submit the name of the               Note: See note under 757.542.
nominee to the Governor, who shall consider              757.550 [Repealed by 1971 c.655 §250]
the nominee before making any other ap-
pointment to the board.                                  757.551 [1987 c.599 §3; repealed by 1995 c.691 §8]

     (c) After appointment of the first board           757.552 Duties of center; fees for ser-
of directors, to facilitate appointment of new      vices; rules; exemption from certain fi-
members to the board, the board shall, by           nancial administration laws. (1) It is the
rule, select organizations that are most rep-       function of the board of directors to operate
resentative of each of the groups set forth in      the Oregon Utility Notification Center,
paragraph (a) of this subsection. Each organ-       through which a person shall notify opera-
ization so selected may nominate a member           tors of underground facilities of proposed ex-
for the board and may, within the time al-          cavations and request that the underground
lowed by rule, submit the name of the nomi-         facilities be marked.
nee to the Governor, who shall consider the             (2) The board of directors shall:
nominee before making any other appoint-
ment to the board.                                      (a) Utilize a competitive process to con-
                                                    tract with any qualified person to provide the
     (d) If the board of directors determines       notification required under subsection (1) of
that a group not listed in paragraph (a) of         this section.
this subsection should be represented on the
board, the board may select an organization             (b) Subject to subsection (3) of this sec-
that is most representative of the group and        tion, establish rates, on a per call basis, un-
may ask that organization to nominate a             der which subscribers shall pay to fund all
member. Upon receipt of the nomination, the         of the activities of the Oregon Utility Notifi-
board may request that the Governor appoint         cation Center.
the nominee.                                            (c) Adopt rules according to ORS chapter
     (e) The Governor shall also appoint to         183 that regulate the notification and mark-
the board of directors one employee of the          ing of underground facilities to prevent dam-
commission and one employee of the Depart-          age to underground facilities. The rules,
ment of Transportation.                             insofar as is practicable, shall be consistent

Title 57                                      Page 34                                       (2007 Edition)
                                UTILITY REGULATION GENERALLY                                                 757.600

with the Oregon Utilities Coordinating                       erator and proper notice was given to the
Council Standards Manual of March 31, 1995.                  Oregon Utility Notification Center.
     (3) The Oregon Utility Notification Cen-                    (4) The provisions of this section shall
ter shall have all of the powers of a state                  not apply to operators of underground facili-
agency. Except as provided in subsection (2)                 ties that are located entirely on private
of this section, the provisions of ORS 279.835               property and that provide services exclu-
to 279.855 and ORS chapters 240, 276, 279A,                  sively for the use of residents or owners of
279B, 279C, 282, 283, 291, 292 and 293 shall                 the property. [1995 c.691 §4; 2001 c.104 §294]
not apply to the Oregon Utility Notification                     Note: See note under 757.542.
Center.                                                          757.560 [Repealed by 1971 c.655 §250]
     (4) Notwithstanding subsection (2)(b) of                    757.561 [1987 c.599 §4; repealed by 1995 c.691 §8]
this section, the board of directors shall not                    757.562 Report to Legislative Assem-
establish rates or other charges that require                bly of center activities; contracts to carry
payments from any subscriber who receives                    out duties. (1) The board of directors shall
fewer than 50 telephone calls in the calendar                file with the Legislative Assembly and the
year or that result in annual payments of                    Governor, not later than April 15 of each
more than $500 for any of the following sub-                 year, a report covering the activities and op-
scribers:                                                    erations of the Oregon Utility Notification
     (a) Cities with a population under 15,000;              Center for the preceding calendar year ac-
     (b) Telecommunications utilities serving                cording to the provisions of ORS 192.230 to
fewer than 50,000 access lines and regulated                 192.250.
by the Public Utility Commission under ORS                        (2) In carrying out the duties, functions
chapter 759;                                                 and powers imposed by law on the Oregon
     (c) Cable system operators serving fewer                Utility Notification Center, the board of di-
than 15,000 customers;                                       rectors may contract with any state agency
                                                             or private party for the performance of such
     (d) Utilities, special districts, people′s              duties, functions and powers as the board
utility districts or authorities providing elec-             considers appropriate. [1995 c.691 §5]
tricity, water or sanitary sewer service to                       Note: See note under 757.542.
fewer than 15,000 residential customers; and
                                                                  757.565 [Repealed by 1971 c.655 §250]
     (e) Telecommunications cooperatives.                         757.566 [1987 c.599 §6; repealed by 1995 c.691 §8]
[1995 c.691 §3; 1999 c.451 §3; 2001 c.104 §293; 2003 c.794
§329]                                                             757.570 [Repealed by 1971 c.655 §250]
     Note: See note under 757.542.                                757.571 [1987 c.599 §§7,8; repealed by 1995 c.691 §8]
     757.555 [Amended by 1971 c.655 §49; renumbered               757.575 [Repealed by 1971 c.655 §250]
756.555]                                                          757.580 [Repealed by 1971 c.655 §250]
     757.556 [1987 c.599 §5; repealed by 1995 c.691 §8]           757.585 [Repealed by 1971 c.655 §250]
    757.557 Underground utility facility                          757.590 [Amended by 1971 c.655 §48; renumbered
operators required to subscribe to center;                   756.552]
liability for damage from excavation for                          757.595 [Repealed by 1971 c.655 §250]
nonsubscribers; exemption. (1) Every op-
erator of underground facilities shall sub-                        DIRECT ACCESS REGULATION
scribe to the Oregon Utility Notification                        757.600 Definitions for ORS 757.600 to
Center.                                                      757.689. As used in ORS 757.600 to 757.689,
    (2) Any person intending to excavate                     unless the context requires otherwise:
shall notify the Oregon Utility Notification                     (1) “Aggregate” means combining retail
Center at least two but not more than 10                     electricity consumers into a buying group for
business days before commencing an exca-                     the purchase of electricity and related ser-
vation. The board of directors shall, by rule,               vices.
provide an exception to the requirement of
advance notice for excavators in cases that                      (2) “Ancillary services” means services
involve an immediate danger to life or prop-                 necessary or incidental to the transmission
erty, or a customer service outage. The board                and delivery of electricity from generating
may adopt additional exceptions as the board,                facilities to retail electricity consumers, in-
in its discretion, determines necessary.                     cluding but not limited to scheduling, load
                                                             shaping, reactive power, voltage control and
    (3) Nonsubscribing operators of under-                   energy balancing services.
ground facilities shall be responsible to all
injured parties for all costs associated with                    (3) “Commission” means the Public Util-
damages to such facilities, loss of product or               ity Commission.
service or damages that occur as a result of                     (4) “Consumer-owned utility” means a
excavation where the facilities damaged are                  municipal electric utility, a people′s utility
under the control of the nonsubscribing op-                  district or an electric cooperative.

Title 57                                              Page 35                                        (2007 Edition)
757.600                           UTILITY REGULATION

    (5) “Default supplier” means an electric-          (15) “Electricity services” means elec-
ity service supplier or electric company that     tricity distribution, transmission, generation
has a legal obligation to provide electricity     or generation-related services.
services to a consumer, as determined by the           (16) “Electricity service supplier” means
commission.                                       a person or entity that offers to sell elec-
    (6) “Direct access” means the ability of      tricity services available pursuant to direct
a retail electricity consumer to purchase         access to more than one retail electricity
electricity and certain ancillary services, as    consumer.      “Electricity service supplier”
determined by the commission for an electric      does not include an electric utility selling
company or the governing body of a consum-        electricity to retail electricity consumers in
er-owned utility, directly from an entity         its own service territory.
other than the distribution utility.                   (17) “Governing body” means the board
    (7) “Direct service industrial consumer”      of directors or the commissioners of an elec-
means an end user of electricity that obtains     tric cooperative or people′s utility district,
electricity directly from the transmission        or the council or board of a city with respect
grid and not through a distribution utility.      to a municipal electric utility.
    (8) “Distribution” means the delivery of           (18) “Load” means the amount of elec-
electricity to retail electricity consumers       tricity delivered to or required by a retail
through a distribution system consisting of       electricity consumer at a specific point of
local area power poles, transformers, con-        delivery.
ductors, meters, substations and other equip-          (19) “Low-income weatherization” means
ment.                                             repairs, weatherization and installation of
    (9) “Distribution utility” means an elec-     energy efficient appliances and fixtures for
tric utility that owns and operates a distrib-    low-income residences for the purpose of en-
ution system connecting the transmission          hancing energy efficiency.
grid to the retail electricity consumer.               (20) “Municipal electric utility” means an
    (10) “Economic utility investment” means      electric distribution utility owned and oper-
all electric company investments, including       ated by or on behalf of a city.
plants and equipment and contractual or                (21) “New renewable energy resource”
other legal obligations, properly dedicated to    means a renewable energy resource project,
generation or conservation, that were pru-        or a new addition to an existing renewable
dent at the time the obligations were as-         energy resource project, or the electricity
sumed but the full benefits of which are no       produced by the project, that is not in oper-
longer available to consumers as a direct re-     ation on July 23, 1999. “New renewable en-
sult of ORS 757.600 to 757.667, absent transi-    ergy resource” does not include any portion
tion credits. “Economic utility investment”       of a renewable energy resource project under
does not include costs or expenses disallowed     contract to the Bonneville Power Adminis-
by the commission in a prudence review or         tration on or before July 23, 1999.
other proceeding, to the extent of such dis-           (22) “One average megawatt” means
allowance, and does not include fines or          8,760,000 kilowatt-hours of electricity per
penalties authorized and imposed under state      year.
or federal law.
                                                       (23) “People′s utility district” has the
    (11) “Electric company” means an entity       meaning given that term in ORS 261.010.
engaged in the business of distributing elec-
tricity to retail electricity consumers in this        (24) “Portfolio access” means the ability
state, but does not include a consumer-owned      of a retail electricity consumer to choose
utility.                                          from a set of product and pricing options for
                                                  electricity determined by the governing
    (12) “Electric cooperative” means an          board of a consumer-owned utility and may
electric cooperative corporation organized        include product and pricing options offered
under ORS chapter 62 or under the laws of         by the utility or by an electricity service
another state if the service territory of the     supplier.
electric cooperative includes a portion of this
state.                                                 (25) “Power generation company” means
                                                  a company engaged in the production and
    (13) “Electric utility” means an electric     sale of electricity to wholesale customers,
company or consumer-owned utility that is         including but not limited to independent
engaged in the business of distributing elec-     power producers, affiliated generation com-
tricity to retail electricity consumers in this   panies, municipal and state authorities, pro-
state.                                            vided the company is not regulated by the
    (14) “Electricity” means electric energy,     commission.
measured in kilowatt-hours, or electric ca-            (26) “Qualifying expenditures” means
pacity, measured in kilowatts, or both.           those expenditures for energy conservation

Title 57                                    Page 36                               (2007 Edition)
                           UTILITY REGULATION GENERALLY                                           757.603

measures that have a simple payback period              (34) “Undue market power” means the
of not less than one year and not more than         unfair or improper exercise of influence to
10 years, and expenditures for the above-           increase or decrease the availability or price
market costs of new renewable energy re-            of a service or product in a manner incon-
sources, provided that the State Department         sistent with competitive markets.
of Energy by rule may establish a limit on              (35) “Uneconomic utility investment”
the maximum          above-market      cost   for   means all electric company investments, in-
renewable energy that is allowed as a credit.       cluding plants and equipment and contrac-
     (27) “Renewable energy resources”              tual or other legal obligations, properly
means:                                              dedicated to generation, conservation and
     (a) Electricity generation facilities fueled   workforce commitments, that were prudent
by wind, waste, solar or geothermal power           at the time the obligations were assumed but
or by low-emission nontoxic biomass based           the full costs of which are no longer recov-
on solid organic fuels from wood, forest and        erable as a direct result of ORS 757.600 to
field residues.                                     757.667, absent transition charges. “Uneco-
                                                    nomic utility investment” does not include
     (b) Dedicated energy crops available on        costs or expenses disallowed by the commis-
a renewable basis.                                  sion in a prudence review or other proceed-
     (c) Landfill gas and digester gas.             ing, to the extent of such disallowance, and
     (d) Hydroelectric facilities located out-      does not include fines or penalties as au-
side protected areas as defined by federal law      thorized by state or federal law. [1999 c.865 §1;
                                                    2001 c.134 §8; 2003 c.186 §75]
in effect on July 23, 1999.
     (28) “Residential electricity consumer”             757.601 Implementation dates for di-
means an electricity consumer who resides           rect access and portfolio of rate options;
at a dwelling primarily used for residential        exemption for certain small electric com-
purposes. “Residential electricity consumer”        panies. (1) All retail electricity consumers
does not include retail electricity consumers       of an electric company, other than residen-
in a dwelling typically used for residency pe-      tial electricity consumers, shall be allowed
riods of less than 30 days, including hotels,       direct access beginning on March 1, 2002.
motels, camps, lodges and clubs. As used in         Retail electricity consumers shall not be al-
this subsection, “dwelling” includes but is         lowed direct access before that date.
not limited to single family dwellings, sepa-            (2) Residential electricity consumers
rately metered apartments, adult foster             shall be allowed to purchase electricity from
homes, manufactured dwellings, recreational         among a portfolio of rate options as de-
vehicles and floating homes.                        scribed in ORS 757.603 not later than March
     (29) “Retail electricity consumer” means       1, 2002.
the end user of electricity for specific pur-            (3) ORS 757.600 to 757.691 do not apply
poses such as heating, lighting or operating        to an electric company providing electricity
equipment, and includes all end users of            services to fewer than 25,000 consumers in
electricity served through the distribution         this state unless the electric company offers
system of an electric utility on or after July      direct access to any of its retail electricity
23, 1999, whether or not each end user pur-         consumers in this state or offers to sell elec-
chases the electricity from the electric util-      tricity services available under direct access
ity.                                                to more than one retail electricity consumer
     (30) “Site” means a single contiguous          of another electric utility. [1999 c.865 §2; 2001
                                                    c.819 §1; 2003 c.14 §454]
area of land containing buildings or other
structures that are separated by not more                Note: 757.601 was added to and made a part of
                                                    ORS chapter 757 by legislative action but was not added
than 1,000 feet, or buildings and related           to any smaller series therein. See Preface to Oregon
structures that are interconnected by facili-       Revised Statutes for further explanation.
ties owned by a single retail electricity con-
sumer and that are served through a single              757.603 Electric company required to
electric meter.                                     provide cost-of-service rate option to all
                                                    retail electricity consumers; waiver;
     (31) “Transition charge” means a charge        portfolio of rate options for residential
or fee that recovers all or a portion of an         consumers. (1)(a) Except as provided in this
uneconomic utility investment.                      subsection, on and after March 1, 2002, an
     (32) “Transition credit” means a credit        electric company shall provide all retail
that returns to consumers all or a portion of       electricity consumers that are connected to
the benefits from an economic utility invest-       the electric company′s distribution system
ment.                                               with a regulated, cost-of-service rate option.
     (33) “Transmission facility” means the             (b) The Public Utility Commission by or-
plant and equipment used to transmit elec-          der may waive the requirement of paragraph
tricity in interstate commerce.                     (a) of this subsection for any retail electric-

Title 57                                      Page 37                                     (2007 Edition)
757.607                                 UTILITY REGULATION

ity consumer other than residential electric-             retail electricity consumers of the electric
ity consumers and small commercial                        company. The commission may, in establish-
electricity consumers. A waiver under this                ing any rates and charges under ORS 757.600
paragraph may not take effect before July 1,              to 757.667, consider and mitigate the rate
2003. Before ordering a waiver under this                 impact on consumers from the reduction or
paragraph, the commission shall conduct                   elimination of subsidies in existing rate
such studies as the commission deems neces-               structures.
sary and provide notice and opportunity for                    (2) The direct access, portfolio of rate
public comment and hearings. The commis-                  options and cost-of-service rates may include
sion may order a waiver under this para-                  transition charges or transition credits that
graph if the commission finds, based on an                reasonably balance the interests of retail
evidentiary record developed through public               electricity consumers and utility investors.
comment and hearings, that a market exists                The commission may determine that full or
in which retail electricity consumers subject             partial recovery of the costs of uneconomic
to the waiver are able to:                                utility investments, or full or partial pass-
    (A) Purchase supplies of electricity ade-             through of the benefits of economic utility
quate to meet the needs of the retail elec-               investments to retail electricity consumers,
tricity consumers;                                        is in the public interest.
    (B) Obtain multiple offers for electricity                 (3) The commission shall allow recovery,
supplies within a reasonable period of time;              through a transition charge, of any otherwise
    (C) Obtain reliable supplies of electricity;          unrecoverable costs arising from or related
and                                                       to an electric company′s contractual or other
                                                          legal obligations to the Bonneville Power
    (D) Purchase electricity at prices that               Administration under ORS 757.663, or arising
are not unduly volatile and that are just and             from or related to a failure of the Bonneville
reasonable.                                               Power Administration to meet its contractual
    (2) Not later than March 1, 2002, each                or other legal obligations to the electric
electric company shall provide each residen-              company, from those classes of consumers for
tial electricity consumer that is connected to            which electric power was purchased from the
its distribution system a portfolio of rate               Bonneville Power Administration.
options. The portfolio shall include at least                  (4) Notwithstanding ORS 757.355, the
the following options:                                    commission may allow a return on the un-
    (a) A rate that reflects significant new              amortized balance of an uneconomic utility
                                                          investment or an economic utility investment
renewable energy resources; and                           that is included in rates. [1999 c.865 §8]
    (b) A market-based rate.
                                                               757.609 Date for announcing prices for
    (3)(a) The commission shall regulate the              electricity in subsequent calendar year;
cost-of-service rate option under subsection              estimated prices. (1) The Public Utility
(1) of this section and the portfolio of rate             Commission shall set a date on which all
options under subsection (2) of this section.             electric companies must announce prices
The commission shall reasonably ensure that               that will be charged for electricity by the
the costs and risks of serving each option are            companies in the subsequent calendar year.
reflected in the rates for each option.                   Retail electricity consumers who are eligible
    (b) The commission may prohibit or oth-               for direct access must be allowed at least
erwise limit the use of a cost-of-service rate            three business days after the date set by the
by retail electricity consumers who have                  commission to elect whether to use direct
been served through direct access, and may                access or to purchase electricity from an
limit switching among portfolio options and               electric company.
the cost-of-service rate by residential elec-                  (2) All electricity service suppliers and
tricity consumers. [1999 c.865 §4; 2001 c.819 §2]         electric companies must announce estimated
     757.605 [1961 c.691 §2; 1971 c.655 §97; renumbered   prices that will be charged for electricity by
758.400]                                                  the suppliers and companies in the subse-
    757.606 [Formerly 758.040; renumbered 165.475]        quent calendar year or contract period at
                                                          least five days before the date set by the
    757.607 Direct access conditions; cost                commission under subsection (1) of this sec-
recovery. The Public Utility Commission                   tion. [2003 c.478 §2]
shall ensure that direct access programs of-
                                                               Note: 757.609 was added to and made a part of
fered by electric companies meet the follow-              757.600 to 757.689 by legislative action but was not
ing conditions:                                           added to any smaller series therein. See Preface to Or-
                                                          egon Revised Statutes for further explanation.
    (1) The provision of direct access to some
retail electricity consumers must not cause                    757.610 [1961 c.691 §18; renumbered 758.405]
the unwarranted shifting of costs to other                     757.611 [Formerly 758.050; renumbered 165.480]

Title 57                                             Page 38                                      (2007 Edition)
                          UTILITY REGULATION GENERALLY                                   757.612

     757.612 Requirements for public pur-              (C) Thirteen percent for new low-income
pose expenditures; electric bill payment          weatherization.
assistance charge; rules. (1) There is es-             (D) Five percent shall be transferred to
tablished an annual public purpose expendi-       the Housing and Community Services De-
ture standard for electric companies and          partment Electricity Public Purpose Charge
Oregon Community Power to fund new cost-          Fund established by ORS 456.587 (1) and used
effective local energy conservation, new          for the purpose of providing grants as de-
market transformation efforts, the above-         scribed in ORS 458.625 (2).
market costs of new renewable energy re-
sources and new low-income weatherization.             (c) The costs of administering subsections
The public purpose expenditure standard           (1) to (6) of this section for an electric com-
shall be funded by the public purpose charge      pany or Oregon Community Power shall be
described in subsection (2) of this section.      paid out of the funds collected through pub-
                                                  lic purpose charges. The commission may
     (2)(a) Beginning on the date an electric     require that an electric company or Oregon
company or Oregon Community Power offers          Community Power direct funds collected
direct access to its retail electricity consum-   through public purpose charges to the state
ers, except residential electricity consumers,    agencies responsible for implementing sub-
the electric company or Oregon Community          sections (1) to (6) of this section in order to
Power shall collect a public purpose charge       pay the costs of administering such responsi-
from all of the retail electricity consumers      bilities.
located within its service area until January          (d) The commission shall direct the man-
1, 2026. Except as provided in paragraph (b)      ner in which public purpose charges are col-
of this subsection, the public purpose charge     lected and spent by an electric company or
shall be equal to three percent of the total      Oregon Community Power and may require
revenues collected by the electric company,       an electric company or Oregon Community
Oregon Community Power or the electricity         Power to expend funds through competitive
service supplier from its retail electricity      bids or other means designed to encourage
consumers for electricity services, distrib-      competition, except that funds dedicated for
ution, ancillary services, metering and bill-     low-income weatherization shall be directed
ing, transition charges and other types of        to the Housing and Community Services De-
costs included in electric rates on July 23,      partment as provided in subsection (7) of this
1999.                                             section. The commission may also direct that
     (b) For an aluminum plant that averages      funds collected by an electric company or
                                                  Oregon Community Power through public
more than 100 average megawatts of elec-          purpose charges be paid to a nongovern-
tricity use per year, beginning on March 1,       mental entity for investment in public pur-
2002, the electric company or Oregon Com-         poses described in subsection (1) of this
munity Power whose territory abuts the            section. Notwithstanding any other provision
greatest percentage of the site of the alumi-     of this subsection:
num plant shall collect from the aluminum
company a public purpose charge equal to               (A) At least 80 percent of the funds allo-
one percent of the total revenue from the         cated for conservation shall be spent within
sale of electricity services to the aluminum      the service area of the electric company that
plant from any source.                            collected the funds; or
                                                       (B) If Oregon Community Power col-
     (3)(a) The Public Utility Commission         lected the funds, at least 80 percent of the
shall establish rules implementing the pro-       funds allocated for conservation shall be
visions of this section relating to electric      spent within the service area of Oregon
companies and Oregon Community Power.             Community Power.
     (b) Subject to paragraph (e) of this sub-         (e)(A) The first 10 percent of the funds
section, funds collected by an electric com-      collected annually by an electric company or
pany or Oregon Community Power through            Oregon Community Power under subsection
public purpose charges shall be allocated as      (2) of this section shall be distributed to ed-
follows:                                          ucation service districts, as described in ORS
     (A) Sixty-three percent for new cost-        334.010, that are located in the service terri-
effective conservation and new market             tory of the electric company or Oregon
transformation.                                   Community Power. The funds shall be dis-
                                                  tributed to individual education service dis-
     (B) Nineteen percent for the above-          tricts according to the weighted average
market costs of constructing and operating        daily membership (ADMw) of the component
new renewable energy resources with a             school districts of the education service dis-
nominal electric generating capacity, as de-      trict for the prior fiscal year as calculated
fined in ORS 469.300, of 20 megawatts or          under ORS 327.013. The commission shall es-
less.                                             tablish by rule a methodology for distributing

Title 57                                    Page 39                               (2007 Edition)
757.612                            UTILITY REGULATION

a proportionate share of funds under this          to provide a commercial energy conservation
paragraph to education service districts that      services program; and
are only partially located in the service ter-          (B) Is not subject to ORS 469.631 to
ritory of the electric company or Oregon           469.645 and 469.860 to 469.900.
Community Power.
                                                        (5)(a) A retail electricity consumer that
     (B) An education service district that re-    uses more than one average megawatt of
ceives funds under this paragraph shall use        electricity at any site in the prior year shall
the funds first to pay for energy audits for       receive a credit against public purpose
school districts located within the education      charges billed by an electric company or Or-
service district. An education service district    egon Community Power for that site. The
may not expend additional funds received           amount of the credit shall be equal to the
under this paragraph on a school district fa-      total amount of qualifying expenditures for
cility until an energy audit has been com-         new energy conservation, not to exceed 68
pleted for that school district. To the extent     percent of the annual public purpose charges,
practicable, an education service district         and the above-market costs of purchases of
shall coordinate with the State Department         new renewable energy resources incurred by
of Energy and incorporate federal funding in       the retail electricity consumer, not to exceed
complying with this paragraph. Following           19 percent of the annual public purpose
completion of an energy audit for an individ-      charges, less administration costs incurred
ual school district, the education service dis-    under this subsection. The credit may not
trict may expend funds received under this         exceed, on an annual basis, the lesser of:
paragraph to implement the energy audit.
Once an energy audit has been conducted                 (A) The amount of the retail electricity
and completely implemented for each school         consumer′s qualifying expenditures; or
district within the education service district,         (B) The portion of the public purpose
the education service district may expend          charge billed to the retail electricity con-
funds received under this paragraph for any        sumer that is dedicated to new energy con-
of the following purposes:                         servation, new market transformation or the
     (i) Conducting energy audits. A school        above-market costs of new renewable energy
district shall conduct an energy audit prior       resources.
to expending funds on any other purpose au-             (b) To obtain a credit under this subsec-
thorized under this paragraph unless the           tion, a retail electricity consumer shall file
school district has performed an energy audit      with the State Department of Energy a de-
within the three years immediately prior to        scription of the proposed conservation proj-
receiving the funds.                               ect or new renewable energy resource and a
     (ii) Weatherization and upgrading the         declaration that the retail electricity con-
energy efficiency of school district facilities.   sumer plans to incur the qualifying expendi-
                                                   ture. The State Department of Energy shall
     (iii) Energy conservation education pro-      issue a notice of precertification within 30
grams.                                             days of receipt of the filing, if such filing is
     (iv) Purchasing electricity from environ-     consistent with this subsection. The credit
mentally focused sources and investing in          may be taken after a retail electricity con-
renewable energy resources.                        sumer provides a letter from a certified pub-
     (f) The commission may not establish a        lic accountant to the State Department of
different public purpose charge than the           Energy verifying that the precertified quali-
public purpose charge described in subsec-         fying expenditure has been made.
tion (2) of this section.                               (c) Credits earned by a retail electricity
     (4)(a) An electric company that satisfies     consumer as a result of qualifying expendi-
its obligations under this section shall have      tures that are not used in one year may be
no further obligation to invest in conserva-       carried forward for use in subsequent years.
tion, new market transformation or new                  (d)(A) A retail electricity consumer that
low-income weatherization or to provide a          uses more than one average megawatt of
commercial energy conservation services            electricity at any site in the prior year may
program and is not subject to ORS 469.631 to       request that the State Department of Energy
469.645 and 469.860 to 469.900.                    hire an independent auditor to assess the
     (b) Oregon Community Power, for any           potential for conservation investments at the
                                                   site. If the independent auditor determines
period during which Oregon Community               there is no available conservation measure
Power collects a public purpose charge under       at the site that would have a simple payback
subsection (2) of this section:                    of one to 10 years, the retail electricity con-
     (A) Shall have no other obligation to in-     sumer shall be relieved of 54 percent of its
vest in conservation, new market transfor-         payment obligation for public purpose
mation or new low-income weatherization or         charges related to the site. If the independ-

Title 57                                     Page 40                                (2007 Edition)
                           UTILITY REGULATION GENERALLY                                          757.612

ent auditor determines that there are poten-              (c) Funds collected by the low-income
tial conservation measures available at the          electric bill payment assistance charge shall
site, the retail electricity consumer shall be       be paid into the Housing and Community
entitled to a credit against public purpose          Services Department Low-Income Electric
charges related to the site equal to 54 per-         Bill Payment Assistance Fund established by
cent of the public purpose charges less the          ORS 456.587 (2). Moneys deposited in the
estimated cost of available conservation             fund under this paragraph shall be used by
measures.                                            the Housing and Community Services De-
     (B) A retail electricity consumer shall be      partment for the purpose of funding low-
entitled each year to the credit described in        income electric bill payment assistance. The
this subsection unless a subsequent inde-            department′s cost of administering this sub-
pendent audit determines that new conserva-          section shall be paid out of funds collected
tion investment opportunities are available.         by the low-income electric bill payment as-
The State Department of Energy may require           sistance charge. Moneys deposited in the
that a new independent audit be performed            fund under this paragraph shall be expended
on the site to determine whether new con-            solely for low-income electric bill payment
servation measures are available, provided           assistance. Funds collected from an electric
that the independent audits shall occur no           company or Oregon Community Power shall
more than once every two years.                      be expended in the service area of the elec-
                                                     tric company or Oregon Community Power
     (C) The retail electricity consumer shall       from which the funds are collected.
pay the cost of the independent audits de-
scribed in this subsection.                               (d) The Housing and Community Services
                                                     Department, in consultation with the federal
     (6) Electric utilities and retail electricity   Advisory Committee on Energy, shall deter-
consumers shall receive a fair and reasonable        mine the manner in which funds collected
credit for the public purpose expenditures of        under this subsection will be allocated by the
their energy suppliers. The State Department         department to energy assistance program
of Energy shall adopt rules to determine eli-        providers for the purpose of providing low-
gible expenditures and the methodology by            income bill payment and crisis assistance,
which such credits are accounted for and             including programs that effectively reduce
used. The rules also shall adopt methods to          service disconnections and related costs to
account for eligible public purpose expendi-         retail electricity consumers and electric util-
tures made through consortia or collabora-           ities. Priority assistance shall be directed to
tive projects.                                       low-income electricity consumers who are in
     (7)(a) In addition to the public purpose        danger of having their electricity service
charge provided under subsection (2) of this         disconnected.
section, an electric company or Oregon                    (e) Interest on moneys deposited in the
Community Power shall collect funds for              Housing and Community Services Depart-
low-income electric bill payment assistance          ment Low-Income Electric Bill Payment As-
in an amount determined under paragraph (b)          sistance Fund established by ORS 456.587 (2)
of this subsection.                                  may be used to provide heating bill payment
     (b) The commission shall establish the          and crisis assistance to electricity consumers
amount to be collected by each electric com-         whose primary source of heat is not electric-
                                                     ity.
pany in calendar year 2008 from retail elec-
tricity consumers served by the company,                  (f) Notwithstanding ORS 757.310, the
and the rates to be charged to retail elec-          commission may allow an electric company
tricity consumers served by the company, so          or Oregon Community Power to provide re-
that the total anticipated collection for low-       duced rates or other payment or crisis as-
income electric bill payment assistance by all       sistance or low-income program assistance to
electric companies in calendar year 2008 is          a low-income household eligible for assist-
$15 million. In calendar year 2009 and sub-          ance under the federal Low Income Home
sequent calendar years, the commission may           Energy Assistance Act of 1981, as amended
not change the rates established for retail          and in effect on July 23, 1999.
electricity consumers, but the total amount               (8) For purposes of this section, “retail
collected in a calendar year for low-income          electricity consumers” includes any direct
electric bill payment assistance may vary            service industrial consumer that purchases
based on electricity usage by retail electric-       electricity without purchasing distribution
ity consumers and changes in the number of           services from the electric utility.
retail electricity consumers in this state. In            (9) For purposes of this section, amounts
no event shall a retail electricity consumer         collected by Oregon Community Power
be required to pay more than $500 per month          through public purpose charges are not con-
per site for low-income electric bill payment        sidered moneys received from electric utility
assistance.                                          operations. [1999 c.865 §3; 2001 c.134 §9; 2001 c.819

Title 57                                       Page 41                                   (2007 Edition)
757.617                                     UTILITY REGULATION

§3; 2005 c.22 §506; 2007 c.217 §9; 2007 c.301 §27; 2007 c.807       757.627 Retail electricity consumers
§43a; 2007 c.837 §2a]                                           eligible for direct access may aggregate
    757.615 [1961 c.691 §§3,11; part renumbered 757.652;        electricity loads. (1) An electric company
1971 c.655 §98; renumbered 758.410]                             shall permit retail electricity consumers that
     757.616 [Formerly 758.060; renumbered 165.485]             are eligible for direct access to voluntarily
                                                                aggregate their electricity loads.
    757.617 Report to Legislative Assem-
bly on public purpose expenditures; inde-                           (2) A retail electricity consumer that is
pendent nongovernmental entity to                               eligible for direct access may voluntarily ag-
prepare report; report on low-income bill                       gregate its electricity load with the electric-
assistance. (1)(a) The Public Utility Com-                      ity load of any other retail electricity
mission and the State Department of Energy                      consumer that is eligible for direct access.
                                                                [1999 c.865 §9]
jointly shall select an independent nongov-
ernmental entity to prepare a biennial report                        757.629 Reciprocal sales to nonresi-
to the Legislative Assembly describing pro-                     dential electricity consumers. An electric
gram spending and results for public purpose                    utility that sells electricity, either directly
requirements undertaken pursuant to ORS                         or through a related party, to a nonresiden-
757.612. The first report shall be due on Jan-                  tial electricity consumer of another electric
uary 1, 2003.                                                   utility in this state shall permit any other
                                                                electricity service supplier to sell electricity
    (b) The commission and the department                       to nonresidential electricity consumers of the
jointly shall select an independent nongov-                     electric utility. [1999 c.865 §11]
ernmental entity to prepare a report to the                          757.630 [1961 c.691 §6; renumbered 758.425]
Legislative Assembly describing proposed                             757.631 [Formerly 758.090; renumbered 165.840]
modifications to public purpose requirements
undertaken pursuant to ORS 757.612. The                             757.632 Electricity service supplier′s
report shall be due on January 1, 2007.                         access to electric company′s distribution
                                                                facilities. Every electricity service supplier
    (c) The commission and the department                       is authorized to use the distribution facilities
jointly shall select an independent nongov-                     of an electric company on a nondiscrimi-
ernmental entity to prepare a report to the                     natory basis after the retail electricity con-
Legislative Assembly recommending whether                       sumers of the electricity service supplier are
the public purpose funding requirements un-                     afforded direct access pursuant to ORS
der ORS 757.612 should be renewed. The re-                      757.601. [1999 c.865 §7]
port shall be due on January 1, 2011.                                757.635 [1961 c.691 §7; renumbered 758.430]
    (2) The Housing and Community Services                           757.636 [Formerly 758.100; renumbered 165.845]
Department shall prepare a biennial report                          757.637 Comparable access to trans-
to the Legislative Assembly describing pro-                     mission and distribution facilities. To the
gram spending and needs for low-income bill                     extent permissible under federal law, the
assistance. The first report shall be due on                    Public Utility Commission shall ensure that
January 1, 2003. [1999 c.865 §3a]                               an electric company that offers direct access:
     757.620 [1961 c.691 §4; renumbered 758.415]
                                                                    (1) Provides electricity service suppliers
     757.621 [Formerly 758.070; renumbered 165.490]             and retail electricity consumers access to its
     757.622 Commission to establish terms                      transmission facilities and distribution sys-
and conditions for default electricity ser-                     tem comparable to that provided for its own
vice to nonresidential consumers. The                           use; and
Public Utility Commission shall establish the                       (2) Provides electricity service suppliers
terms and conditions for providing default                      and retail electricity consumers timely ac-
electricity service for nonresidential elec-                    cess to information about its transmission
tricity consumers in an emergency. The                          facilities and distribution system, metering
commission also shall establish reasonable                      and loads comparable to that provided to its
terms and conditions for providing default                      own nondistribution divisions, affiliates and
service to a nonresidential electricity con-                    related parties. [1999 c.865 §10]
sumer in circumstances when the consumer                             757.640 [1961 c.691 §8; renumbered 758.435]
is receiving electricity services through di-                        757.641 [Formerly 758.110; renumbered 165.850]
rect access and elects instead to receive such                      757.642 Unbundling electricity assets;
services through the default service. The                       records. (1) Not later than March 1, 2002,
terms and conditions for default service es-                    an electric company shall unbundle the costs
tablished by the commission shall provide for                   of electricity services into power generation,
viable competition among electricity service                    transmission, distribution and retail services.
suppliers. [1999 c.865 §4a]
                                                                    (2) Every electric company shall maintain
     757.625 [1961 c.691 §5; renumbered 758.420]                separate accounting records for each compo-
     757.626 [Formerly 758.080; renumbered 165.495]             nent of electricity service provided by the

Title 57                                                 Page 42                                       (2007 Edition)
                                UTILITY REGULATION GENERALLY                                   757.649

electric company to retail electricity con-                (c) Prohibit cross-subsidization between
sumers. Accounts shall be maintained ac-               competitive operations and regulated oper-
cording to regulations issued by the Federal           ations, including the use of electric company
Energy Regulatory Commission.                          personnel and other resources;
    (3) Unless required to provide a different             (d) Prohibit joint marketing activities
accounting under federal requirements, each            and exclusive referral arrangements between
electric company shall, to a reasonable level          an electric company and its affiliates;
of detail, separately identify and account for             (e) Provide the commission with all nec-
its costs of:                                          essary access to books and records;
    (a) Generation;                                        (f) Require electric companies to make
    (b) Transmission services;                         regular compliance filings; and
    (c) Distribution services;                             (g) Require fair treatment of all compet-
    (d) Ancillary services;                            itors by a distribution utility.
    (e) Consumer service charges levied on                 (3) An electric company shall provide the
retail electricity consumers, including but            commission access to all books and records
not limited to metering and billing;                   necessary for the commission to monitor the
                                                       electric company and its affiliate relation-
    (f) Investment in public purposes; and             ships. The commission shall require an elec-
    (g) State and local taxes paid by retail           tric company biannually to file a report
electricity consumers.                                 detailing compliance with this subsection.
                                                       [1999 c.865 §6; 2001 c.683 §18]
    (4) An electric company shall separately
identify and account for the costs of any ad-               757.649 Certification of electricity ser-
ditional components as the Public Utility              vice suppliers; safety standards for dis-
Commission may require. [1999 c.865 §5; 2001           tribution systems; billing requirements;
c.819 §4]                                              rules. (1)(a) A person or other entity shall
     757.645 [1961 c.691 §9; renumbered 758.440]       not act as an electricity service supplier un-
                                                       less the person or entity is certified by the
     757.646 Commission policies to elimi-             Public Utility Commission. The commission,
nate barriers to competitive retail mar-               by rule, shall establish standards for certi-
ket structures and rules to establish code             fication of persons or other entities as elec-
of conduct for electric companies; rules.              tricity service suppliers in this state. The
(1) The duties, functions and powers of the            rules shall, at a minimum, address:
Public Utility Commission shall include de-
veloping policies to eliminate barriers to the              (A) The ability of the person or entity to
development of a competitive retail market             meet the person′s or entity′s obligation to
structure. The policies shall be designed to           provide electricity services pursuant to di-
mitigate the vertical and horizontal market            rect access; and
power of incumbent electric companies, pro-                 (B) The ability of the person or entity to
hibit preferential treatment, or the appear-           comply with applicable consumer protection
ance of such treatment, of generation or               laws.
market affiliates and determine the electric-
ity services likely to be competitive. The                  (b) The commission may require an elec-
commission may require an electric company             tricity service supplier to provide a bond or
acting as an electricity service supplier do           other security.
so through an affiliate.                                    (c) The commission may establish a fee,
     (2) The commission shall establish by             not to exceed $500, for initial certification
rule a code of conduct for electric companies          and annual recertification of electricity ser-
and their affiliates to protect against market         vice suppliers.
abuses and anticompetitive practices. The                   (d) The commission, at any time, may re-
code shall, at a minimum:                              voke an electricity service supplier′s certi-
     (a) Require an electric company and any           fication for failure to comply with applicable
affiliate that shares the same name and logo           statutes and rules.
to disclose to all consumers the relationship               (e) The commission may require an elec-
between the company and affiliate and to               tricity service supplier to provide informa-
clarify that the affiliate is not the same as          tion necessary to ensure compliance with
the electric company and that in order to              ORS 757.612. The commission shall ensure
receive service from the company a con-                the privacy of all information and the pro-
sumer does not have to purchase the services           tection of any proprietary information pro-
of the affiliate;                                      vided.
     (b) Prohibit preferential access by an                 (2) Every electric utility shall maintain
electric company affiliate to confidential             the integrity of its transmission facilities and
consumer information;                                  distribution system and provide safe, reliable

Title 57                                           Page 43                               (2007 Edition)
757.654                            UTILITY REGULATION

service to all retail electricity consumers.           (c) Upon the request of a retail electric-
Nothing in ORS 757.600 to 757.667 or 757.669       ity consumer of an electric company, an
to 757.687 shall reduce or diminish the stat-      electricity service supplier shall consolidate
utory or contractual obligations of electric       the bills for all electricity services into a
utilities to maintain the safety and reliability   single statement, and electric utilities and
of their transmission facilities and distrib-      other electricity service suppliers shall pro-
ution system and other infrastructure and          vide to the billing electricity service supplier
equipment used to deliver electricity.             any information necessary to prepare a con-
     (3) The commission for electric com-          solidated statement.
panies, or the governing body for other elec-          (d) For retail electricity consumers of an
tric utilities, shall adopt rules, ordinances,     electric company, the commission shall adopt
policies and service quality standards de-         by rule provisions relating to the failure of
signed to maintain a reliable, safe and effi-      a consumer to make full payment on a con-
cient distribution system. The commission          solidated bill. The rules shall address col-
shall regulate electrical safety regarding         lection of payments, service disconnection
generation, transmission, substation and dis-      and reconnection, and the allocation of costs
tribution facilities for electric utilities and    associated with collection, disconnection and
other electrical system owners and operators       reconnection. A distribution utility shall be
as provided under ORS 757.035.                     solely responsible for actual disconnection
                                                   and reconnection. [1999 c.865 §14]
     (4) Every bill to a direct access retail
                                                      757.650 [1961 c.691 §10; renumbered 758.445]
electricity consumer from an electricity ser-
vice supplier shall contain at least:                 757.652 [Formerly part of 757.615; 1965 c.242 §1; re-
                                                   numbered 758.450]
     (a) The rate and amount due for each               757.654 Commission authority to in-
service or product that the retail electricity     vestigate allegations of undue market in-
consumer is purchasing and other price in-         fluence. Upon receiving a complaint, or on
formation necessary to facilitate direct ac-       its own motion, the Public Utility Commis-
cess, as determined by the commission;             sion is authorized to investigate, as provided
     (b) The rates and amounts of state and        under ORS 756.515, whether any electric
local taxes or fees, if any, imposed on the        company that is an electricity service sup-
retail electricity consumer;                       plier has exercised undue market power with
                                                   respect to the sale or distribution of elec-
     (c) The amount of any public purpose          tricity services. The commission may take
charge or credit;                                  such action as authorized by law to mitigate
     (d) The amount of any transition charge       an exercise of undue market power. [1999 c.865
or transition credit; and                          §12]
                                                          757.655 [1961 c.691 §13; renumbered 758.455]
     (e) Power source and environmental im-
pact information necessary to ensure that all           757.656 Failure to comply with ORS
consumers have useful, reliable and neces-         757.600 to 757.667; cause of action. Any
sary information to exercise informed choice,      claim that an electric company has failed to
as determined by the commission.                   comply with ORS 757.600 to 757.667 shall be
                                                   filed as a complaint with the Public Utility
     (5)(a) A retail electricity consumer of an    Commission pursuant to ORS 756.500. After
electric company shall receive, upon request,      reasonable notice to the electric company
a separate bill from every individual elec-        and exhausting all available remedies before
tricity service supplier that provides pro-        the commission, any person injured by an
ducts or services to the retail electricity        electric company′s failure to comply with
consumer. If a retail electricity consumer of      any provision of ORS 757.600 to 757.667 may
an electric company does not request sepa-         file an action in the circuit court for the
rate bills, or a consolidated bill from an         county where the electric company has its
electricity service supplier as provided in        principal business office in this state for an
paragraph (c) of this subsection, the electric     order requiring compliance with ORS 757.600
company shall consolidate the bills for all        to 757.667. [1999 c.865 §13]
electricity services into a single statement,           757.659 Commission rules; contents.
and electricity service suppliers shall provide    According to the applicable provisions of
to the electric company the information nec-       ORS 756.060 and ORS chapter 183, the Public
essary to prepare a consolidated statement.        Utility Commission shall adopt such rules as
     (b) The requirement for bill consolidation    are necessary to implement ORS 757.600 to
by an electric company shall continue              757.667. Rules adopted by the commission
through December 31, 2001, after which time        shall address at least the following:
the commission may waive the requirement                (1) Requirements and methodologies for
if the waiver results in effective billing pro-    each electric company to provide unbundled
cedures for retail electricity consumers.          rates and services pursuant to ORS 757.642.

Title 57                                     Page 44                                         (2007 Edition)
                          UTILITY REGULATION GENERALLY                                       757.660

    (2) Requirements for each electric com-            (3)(a) An arbitrator selected under rules
pany allowing aggregation of electricity loads    adopted pursuant to subsection (2) of this
pursuant to ORS 757.627, which may include        section must be experienced in valuing gen-
aggregation of demand for other services          erating resources and may not have any ma-
available under direct access.                    terial conflict of interest in the result of the
    (3) Requirements for consumer pro-            arbitration.
tection. Consumer protection rules adopted             (b) Any party to the arbitration may
by the commission that relate to electricity      challenge the selection of an arbitrator by
service suppliers shall be applicable through-    direct petition to the commission. The com-
out this state and shall, at a minimum, con-      mission′s review of the selection shall be
tain provisions for the disclosure of price,      limited to allegations of bias and lack of
power source and environmental impact in          qualifications. The commission shall hold a
contract offers and marketing information.        hearing within 10 days after the filing of a
    (4) Market valuation methodologies for        petition, and the commission shall issue a
determining the amount and recovery of the        final decision within 10 days after the hear-
costs of uneconomic utility investment and        ing. The commission may require selection
the amount of and credit for economic utility     of a different arbitrator.
investment.                                            (4) The arbitrator shall control the time,
    (5) Requirements for each electric com-       manner and place of the arbitration, subject
pany to offer a portfolio of rate options under   to any limitations established by commission
ORS 757.603.                                      rule.
    (6) The method of determining a default            (5) An arbitrator acts on behalf of the
supplier for those consumers who are not el-      commission in performing duties and powers
igible to participate in a portfolio program      under this section and under rules adopted
under ORS 757.603 in a manner that provides       by the commission pursuant to this section.
for viable competition among electricity ser-     Nothing in this section shall be construed to
vice suppliers and among power generation         grant any rights or privileges to an
companies. The commission may condition           arbitrator that are otherwise afforded to per-
the use of a default service option by requir-    sons employed by the state.
ing reasonable notice and commitment from              (6) The commission shall enforce an ar-
a consumer who intends to use the default         bitration decision made pursuant to this sec-
service option in nonemergency situations.        tion, unless any party to the arbitration files
    (7) Requirements for market structure         written exceptions with the commission for
described in ORS 757.646.                         any of the following causes:
    (8) Requirements for public purpose                (a) The decision was procured by cor-
charges and credits under ORS 757.612.            ruption, fraud or undue means;
    (9) Requirements for meters, metering              (b) There was evident partiality or cor-
services, billing and collection services, and    ruption on the part of the arbitrator;
customer response functions. [1999 c.865 §15;          (c)    The    arbitrator   exceeded        the
2001 c.683 §19]                                   arbitrator′s powers, or so imperfectly exe-
    757.660 Use of arbitration to resolve         cuted the arbitrator′s powers that the rights
disputes relating to valuation of electric        of the party were substantially prejudiced;
company investments; rules. (1) In adopt-              (d) There was an evident material mis-
ing market valuation methodologies under          calculation of figures or an evident material
ORS 757.659 (4), the Public Utility Commis-       mistake in the description of any thing or
sion may provide for use of arbitration to        property referred to in the decision; or
resolve disputes relating to valuation of              (e) The decision was based on an errone-
electric company investments.                     ous interpretation of a statute, rule or other
    (2) The commission shall adopt rules for      law.
the following purposes:                                (7) If, after a hearing on the exceptions
    (a) Establishing the process for selecting    filed as provided in subsection (6) of this
an arbitrator under this section.                 section, it appears to the commission that
    (b) Establishing the type, scope and sub-     the decision should be set aside or modified,
ject matter of arbitrations under this section,   the commission may by order refer the deci-
and the procedure for conducting those arbi-      sion back to the arbitrator with proper in-
trations.                                         structions for correction or rehearing.
    (c) Establishing standards for the deci-           (8) A commission order or decision under
sion of an arbitrator under this section.         this section may not be appealed until after
                                                  the commission issues a final order adopting
    (d) Governing who may be a party to an        the arbitration decision. [2001 c.134 §1a; 2005 c.22
arbitration under this section.                   §507; 2005 c.638 §10]

Title 57                                    Page 45                                   (2007 Edition)
757.661                                 UTILITY REGULATION

     Note: 757.660 was added to and made a part of            (3) Preserve and enhance the ability of
757.600 to 757.689 by legislative action but was not      consumer-owned utilities and their elected
added to any smaller series therein. See Preface to Or-
egon Revised Statutes for further explanation.            governing bodies to respond to their con-
                                                          sumers′ needs and desires;
    757.661 Commission authority to re-
quire filing. The Public Utility Commission                   (4) Retain local control over consumer-
may require an electric company to make                   owned utilities that provide or distribute
any filings under this chapter that the com-              electricity to retail electricity consumers;
mission determines necessary to implement                     (5) Preserve, clarify and, as provided
ORS 757.600 to 757.667. [1999 c.865 §20]                  herein, enhance the rights and authorities of
    757.663 Commission authority to re-                   consumer-owned utilities and their governing
quire electric company to enter into con-                 bodies; and
tracts       with      Bonneville        Power                (6) Preserve the existing exclusive dis-
Administration. In order to preserve the                  tribution rights of electric utilities as and to
benefits of federal low-cost power for resi-              the extent such rights exist under current
dential and small-farm consumers of electric              law. [1999 c.865 §22]
utilities, the Public Utility Commission may                  757.670 [1961 c.691 §14; renumbered 758.460]
require an electric company to enter into
contracts with the Bonneville Power Admin-                    757.672 Application of ORS 757.603 to
istration for the purpose of securing such                757.667 to consumer-owned electric util-
benefits. The contracts shall be subject to               ity; reciprocal electricity sales. (1) Nothing
approval by the commission. In reviewing a                in ORS 757.603 to 757.667 is intended to limit
contract, the commission, at a minimum,                   or restrict the rights and authority of a con-
shall consider:                                           sumer-owned utility, or to subject a consum-
                                                          er-owned utility to the regulatory authority
    (1) The short-term expected cost of elec-             of the Public Utility Commission not other-
tric power from the Bonneville Power Ad-                  wise provided by law. ORS 757.603 to 757.667
ministration compared to market-priced                    shall not apply to a consumer-owned utility.
alternatives;
                                                              (2) Notwithstanding subsection (1) of this
    (2) The long-term benefit of retaining the            section, a consumer-owned utility that sells
rights to purchase electric power from the                electricity, either directly or through a re-
Bonneville Power Administration at cost,                  lated party, to a nonresidential electricity
compared to market-priced alternatives; and               consumer of another electric utility in this
    (3) Other factors deemed relevant by the              state, shall permit any other electricity ser-
commission. [1999 c.865 §19]                              vice supplier to sell electricity to the con-
                                                          sumer-owned         utility′s   nonresidential
    757.665 Limitation on installing, ser-                electricity consumers whose electricity use,
vicing electric meters. Electric meter in-                measured in average megawatts per year, is
stallation, testing and maintenance shall be              equal to or greater than the use of the non-
performed only by a distribution utility. [1999           residential electricity consumer of the other
c.865 §15a]
                                                          electric utility. Such consumer-owned utility
    757.667 City authority over rights of                 shall be subject to ORS 757.649 (1) to (4) and
way. Nothing in ORS 757.600 to 757.667 shall              rules adopted thereunder. [1999 c.865 §23]
diminish, or authorize regulations that di-                    757.675 [1961 c.691 §12; 1971 c.655 §99; renumbered
minish, a city′s authority to control the use             758.465]
of its rights of way and to collect license
fees, privilege taxes, rent or other charges                   757.676 Consumer-owned utility au-
for the use of the city′s rights of way. [1999            thorized to offer direct, portfolio or other
c.865 §17]                                                forms of access to electricity services.
                                                          The governing body of a consumer-owned
    757.669 Policy regarding consumer-                    utility is authorized to determine whether
owned electric utilities. The Legislative                 and under what terms and conditions it will
Assembly declares that it is the policy of the            offer its retail electricity consumers direct
State of Oregon regarding consumer-owned                  access, portfolio access or other forms of ac-
utilities to:                                             cess to electric service suppliers. In making
    (1) Preserve and enhance the ability of               such determination, the governing body of a
community-based, consumer-owned utilities                 consumer-owned utility shall consider such
to provide reliable electric power to their               factors as it deems appropriate. A consum-
consumers;                                                er-owned utility shall have sole authority to
    (2) Recognize that communities served by              determine:
consumer-owned utilities located in various                    (1) The quality and nature of electric
parts of the State of Oregon may differ in                service, including but not limited to different
their needs and desires concerning the pro-               product and pricing options, which shall be
vision of electricity and related products and            made available to its retail electricity con-
services;                                                 sumers.

Title 57                                           Page 46                                       (2007 Edition)
                          UTILITY REGULATION GENERALLY                                           757.679

     (2) The extent to which products and             (9) Access to or use of the utility′s
services will be unbundled and the rates,         transmission facilities or distribution system
tariffs, terms and conditions on which they       by retail electricity consumers or electric
may be offered.                                   service suppliers.
     (3) Whether one or more pilot programs           (10) The utility′s qualification standards
for direct access, portfolio access or other      for energy service suppliers in addition to
forms of access to alternative suppliers will     any certification standards established by the
be offered.                                       Public Utility Commission, provided that the
     (4) Notwithstanding ORS 757.600 (10) and     qualification standards are uniformly applied
(35), what constitutes an economic or uneco-      to electricity service providers in a nondis-
nomic utility investment, the value of such       criminatory manner. [1999 c.865 §24; 2003 c.186 §80]
investments and, in the case of uneconomic             757.679 Net billing agreements. (1)
utility investments, the manner and means         Nothing in ORS 757.669 to 757.687 is in-
of mitigating such investments.                   tended to impair the rights or obligations of
     (5) Whether and on what basis a transi-      any party to net billing agreements. Not-
tion charge will be adopted, assessed and         withstanding any other provision of ORS
collected from a retail electricity consumer      757.600 to 757.667, 757.676 and 757.687, and
located within the utility′s service territory,   in the event a participating utility is re-
including but not limited to a nonbypassable      quired to make payments pursuant to a net
distribution charge, the amount and period        billing agreement, the governing body of a
of recovery for the charges, the allocation of    participating utility may levy a rate, fee or
the charges among retail electricity consum-      charge, including a nonbypassable distrib-
ers located within the utility′s service terri-   ution system access charge against retail
tory and the method of collecting such            electricity consumers located within the
charges including but not limited to whether      utility′s service territory, to meet its obli-
to impose a nonbypassable distribution            gations.
charge.                                                (2) As used in this section:
     (6) The manner of collecting stranded             (a) “EWEB” means the City of Eugene,
distribution charges, systems benefit charges,    Oregon, acting by and through the Eugene
franchise fees, taxes and payments made in        Water and Electric Board.
lieu of taxes from retail electricity consum-
ers located within the utility′s service terri-        (b) “Net billing agreements” means those
tory for electric power transactions using        certain agreements that provide for the pay-
transmission facilities, whether or not such      ment, through net billing of costs of certain
transactions use distribution facilities. The     nuclear power projects, including the pay-
governing body may assign charges on the          ment of bonds, notes or other evidences of
basis of usage, demand or any combination         indebtedness issued by EWEB and by the
or method it finds appropriate. Charges need      supply system, respectively, to pay such
not be assigned to specific facilities.           project costs entered into prior to July 23,
                                                  1999:
     (7) The collection from retail electricity
consumers located within the utility′s service         (A) Between the administrator of the
territory through rates, fees or charges, in-     Bonneville Power Administration and EWEB;
cluding the imposition of a nonbypassable              (B) Among a participating utility, the ad-
distribution charge, in amounts sufficient to     ministrator of the Bonneville Power Admin-
recover 100 percent of stranded costs im-         istration and EWEB; or
posed by, or incurred pursuant to the pur-             (C) Among a participating utility, the ad-
chase of cost-based electric power from, the      ministrator of the Bonneville Power Admin-
Bonneville Power Administration. Such             istration and the supply system.
stranded cost charges may include the dif-
ference in cost associated with purchasing             (c) “Participating utility” means a con-
electric power from the Bonneville Power          sumer-owned utility established by, or organ-
Administration and the cost of purchasing a       ized and existing under, the Oregon
like and similar amount of electric power at      Constitution and laws of the State of Oregon,
market prices.                                    and that is a party to a net billing agree-
                                                  ment.
     (8) The establishment of technical capa-
bility requirements, financial responsibility          (d) “Supply system” means the Washing-
requirements and other protections for retail     ton Public Power Supply System, a municipal
electricity consumers located within the          corporation or joint power agency organized
utility′s service territory and the consumer-     and existing under and pursuant to the laws
owned utility in dealings with electric ser-      of the State of Washington. [1999 c.865 §25]
vice suppliers.                                       757.680 [1961 c.691 §15; renumbered 758.470]

Title 57                                    Page 47                                      (2007 Edition)
757.683                                    UTILITY REGULATION

    757.683 Consumer-owned utility′s dis-                          (a) The manner for collecting public pur-
tribution rights and control over distrib-                     pose charges;
ution     system.      Notwithstanding      the                    (b) Public purpose programs upon which
provisions of ORS 757.600 to 757.667, a con-                   revenue from the charges may be expended;
sumer-owned utility shall have exclusive dis-                  and
tribution rights, to the extent such rights are
provided by law, and exclusive responsibility                      (c) The allocation of expenditures for
for the performance and oversight of its dis-                  each program.
tribution system including the acquisition,                        (3) Beginning on the same date two years
construction, financing, operation and main-                   after July 23, 1999, a consumer-owned utility
tenance of distribution facilities and meter-                  shall report annually to the State Depart-
ing, billing, collection and consumer                          ment of Energy created under ORS 469.030
response functions relating to the distrib-                    on the public purpose charges paid to the
ution of electricity to retail electricity con-                utility by its retail electric consumers and
sumers located within the utility′s service                    the public purposes on which the revenue
territory. Nothing in this section shall di-                   was expended.
minish or enlarge the rights of any person                         (4) A consumer-owned utility may comply
under ORS 758.400 to 758.475. [1999 c.865 §26]                 with the public purpose requirements of this
    757.685 [1961 c.691 §16; 1965 c.242 §2; 1971 c.655 §99a;   section by participating in collaborative ef-
renumbered 758.475]                                            forts with other consumer-owned utilities lo-
                                                               cated in this state.
     757.687 Consumer-owned utility offer-
ing direct access; public purpose charge;                          (5) Funds assessed and paid by, and cred-
bill assistance program. (1) Beginning on                      its or other financial assistance issued or
the date a consumer-owned utility provides                     extended to, retail electric consumers for
direct access to any class of retail electric                  purposes of this section may, in the discre-
consumers, the consumer-owned utility shall                    tion of the governing body of the consumer-
collect from that consumer class a                             owned utility, be expended to fund programs
nonbypassable public purpose charge until                      for energy conservation, renewable resources
January 1, 2026. Except as provided in sub-                    or low-income energy services otherwise re-
section (8) of this section, the amount of the                 quired by the laws of this state, adopted by
public purpose charge shall be sufficient to                   the governing body pursuant to the National
                                                               Energy Conservation Policy Act (Public Law
produce revenue of not less than three per-                    95-619, as amended November 10, 1981), or
cent of the total revenue collected by the                     conducted by the utility pursuant to agree-
consumer-owned utility from its retail elec-                   ment with the Bonneville Power Administra-
tricity consumers for electricity services,                    tion under the Pacific Northwest Electric
distribution, ancillary services, metering and                 Power Planning and Conservation Act (Pub-
billing, transition charges and any other                      lic Law 96-501). All such funds expended,
costs included in rates as of July 23, 1999,                   credits issued and incremental costs incurred
except that the consumer-owned utility may                     in connection with the performance of a
exclude from the calculation of such costs                     consumer-owned utility′s obligations under
any cost related to the public purposes de-                    this section shall be credited toward the
scribed in subsection (5) of this section. If a                utility′s public purpose funding obligation
consumer-owned utility has fewer than 17                       under this section.
consumers per mile of distribution line, the
                                                                   (6) A consumer-owned utility also may
amount of the public purpose charge shall be                   credit toward its funding obligations under
sufficient to produce revenue not less than                    this section any incremental costs incurred
three percent of the total revenue from the                    by the utility for capital expenditures made
sale of electricity services in the utility′s                  to reduce its distribution system energy
service area to the consumer class that is                     losses, existing biomass gas and waste to en-
provided direct access, or the utility′s con-                  ergy systems, existing hydroelectric gener-
sumer class percentage share of state total                    ation projects using fish attraction water, for
electricity sales multiplied by three percent                  new energy conservation and renewable re-
of total statewide retail electric revenue,                    source funding costs included in its whole-
whichever is less.                                             sale power supplier′s charges and for electric
     (2) Except as provided in subsection (9)                  power generated by renewable or cogenera-
of this section, the governing body of a con-                  tion resources pursuant to requirements of
sumer-owned utility shall determine the                        the Public Utilities Regulatory Policy Act of
manner of collecting and expending funds for                   1978 (Public Law 95-617), to the extent that
public purposes required by law to be as-                      such costs exceed the average cost of the
sessed against and paid by the retail electric                 utility′s other electric power resources.
consumers of the utility. A determination by                       (7) A consumer-owned utility also may
the governing body shall include:                              credit toward its public purpose funding ob-

Title 57                                                Page 48                                (2007 Edition)
                          UTILITY REGULATION GENERALLY                                            757.689

ligations under this section any costs in-         pendent auditor to assess the potential for
curred in complying with ORS 469.649 to            conservation measures at the site. If the in-
469.659.                                           dependent auditor determines there is no
     (8) Beginning on March 1, 2002, a con-        available conservation measure at the site
sumer-owned utility whose territory abuts          that would have a simple payback of one to
the greatest percentage of the site of an alu-     10 years, the retail electricity consumer shall
minum plant that averages more than 100            be relieved of 54 percent of its payment obli-
megawatts of electricity use per year shall        gation for public purpose charges related to
collect from the aluminum company a public         the site. If the auditor determines that there
purpose charge equal to one percent of the         are potential conservation measures avail-
total revenue from the sale of electricity         able at the site, the retail electricity con-
services to the aluminum plant from any            sumer shall be entitled to a credit against
source.                                            public purpose charges related to the site
                                                   equal to 54 percent of the public purpose
     (9)(a) A retail electricity consumer that     charges less the estimated cost of available
uses more than one average megawatt of             conservation measures.
electricity at any site in the prior year shall
receive a credit against public purpose                (B) A retail electricity consumer shall be
charges billed by a consumer-owned utility         entitled each year to the credit described in
for that site. The amount of the credit shall      this paragraph unless a subsequent audit de-
be equal to the total amount of qualifying         termines that new conservation investment
expenditures for new energy conservation,          opportunities are available. The department
not to exceed 68 percent of the annual public      may require that a new audit be performed
purpose charges, and the above-market costs        on the site to determine whether new con-
of purchases of new renewable energy re-           servation measures are available, provided
sources incurred by the retail electricity         that the audits occur no more than once ev-
consumer, less administration costs incurred       ery two years.
under this subsection. The credit shall not            (C) The retail electricity consumer shall
exceed, on an annual basis, the lesser of:         pay the cost of the audits described in this
     (A) The amount of the retail electricity      subsection.
consumer′s qualifying expenditures; or                 (10) A retail electricity consumer with a
     (B) The portion of the public purpose         load greater than one average megawatt
charge billed to the retail electricity con-       shall not be required to pay a public purpose
sumer that is dedicated to new energy con-         charge in excess of three percent of the con-
servation, new market transformation or the        sumer′s total cost of electricity services un-
above-market costs of new renewable re-            less the charge is established in an
sources.                                           agreement between the consumer and the
                                                   consumer-owned utility.
     (b) To obtain a credit under this subsec-
tion, a retail electricity consumer shall file         (11) Beginning on March 1, 2002, a con-
with the department a description of the           sumer-owned utility shall have in operation
proposed conservation project, new market          a bill assistance program for households that
transformation or new renewable energy re-         qualify for federal low-income energy assist-
source and a declaration that the retail elec-     ance in the consumer-owned utility′s service
tricity consumer plans to incur the                area. A consumer-owned utility shall report
qualifying expenditure. The department shall       annually to the Housing and Community
issue a notice of precertification within 30       Services Department detailing the utility′s
days of receipt of the filing, if such filing is   program and program expenditures.
consistent with this subsection. Notice shall          (12) A consumer-owned utility may re-
be issued to the retail electricity consumer       quire an electricity service supplier to pro-
and the appropriate consumer-owned utility.        vide information necessary to ensure
The credit may be taken after a retail elec-       compliance with this section. The consum-
tricity consumer provides a letter from a          er-owned utility shall ensure the privacy and
certified public accountant to the department      protection of any proprietary information
verifying that the precertified qualifying ex-     provided. [1999 c.865 §27; 2001 c.819 §5; 2007 c.301 §29]
penditure has been made.
                                                       757.689 Recovery of costs of energy
     (c) Credits earned by a retail electricity    conservation measures in rates of elec-
consumer as a result of qualifying expendi-        tric company. (1) In addition to the public
tures that are not used in one year may be         purpose charge established by ORS 757.612,
carried forward for use in subsequent years.       the Public Utility Commission may authorize
     (d)(A) A retail electricity consumer that     an electric company to include in its rates
uses more than one average megawatt of             the costs of funding or implementing cost-
electricity at any site in the prior year may      effective energy conservation measures im-
request that the department hire an inde-          plemented on or after June 6, 2007. The costs

Title 57                                     Page 49                                      (2007 Edition)
757.691                                 UTILITY REGULATION

may include amounts for weatherization pro-              757.720 for the amount of reduced demand.
grams that conserve energy.                              [1973 c.309 §2; 1975 c.606 §10; 1979 c.355 §1]
    (2) The commission shall ensure that a                    757.720 Factors to be considered in
retail electricity consumer with a load                  approving plan; authority to establish
greater than one average megawatt:                       plan; consultation with State Department
                                                         of Energy. (1) Approval of utility plans for
    (a) Is not required to pay an amount that            the curtailment of load shall be based on the
is more than three percent of the consumer′s             following factors:
total cost of electricity service for the public
purpose charge under ORS 757.612 and any                      (a) The consistency of the plan with the
amounts included in rates under this section;            public health, safety and welfare;
and                                                           (b) The technical feasibility of implemen-
    (b) Does not receive any direct benefit              tation of the plan;
from energy conservation measures if the                      (c) The effectiveness with which the plan
costs of the measures are included in rates              minimizes the impact of any curtailment; and
under this section. [2007 c.301 §46]                          (d) Consistency with Oregon energy poli-
   757.690 [1961 c.691 §17; repealed by 1967 c.164 §4]   cies formulated under ORS 469.010 to
    757.691 Applicability. Nothing in ORS                469.225, 469.300 to 469.563 and 757.710 and
757.669 to 757.687 is intended to affect ad-             this section.
ministration and enforcement of ORS 758.400                   (2) In the event of an emergency threat-
to 758.475 or to diminish or enlarge the                 ening the health, safety and welfare of the
rights of any person under ORS 758.400 to                general public, the Public Utility Commis-
758.475. [1999 c.865 §28]                                sion may on the commission′s own motion
                                                         and without hearing establish a plan for the
                                                         curtailment of load by any person referred to
    EMERGENCY CURTAILMENT OF                             in ORS 757.710. If an emergency is not pres-
     ELECTRICITY OR NATURAL OR                           ent, the commission shall prior to approval
           MANUFACTURED GAS                              hold public hearings with respect to any
     757.710 Emergency curtailment plan                  proposed plan and give reasonable notice of
required; credits for weatherization or                  such hearings.
alternate energy devices. (1) Any person,                     (3) The commission shall consult with the
as defined in ORS 758.400, engaged in the                Director of the State Department of Energy
sale or resale of electricity or natural or              before approving a plan. [1973 c.309 §3; 1975 c.606
synthetic gas in this state shall present for            §11; 2005 c.22 §508]
approval by the Public Utility Commission a
plan for curtailment of electrical or gas load               757.730 Liability when curtailment oc-
in the event of any predictable circumstance             curs. A utility shall not be liable for dam-
that may jeopardize prolonged continuity of              ages to persons or property resulting from a
service. Utility plans shall be submitted in             curtailment of service in accordance with a
such form and within such time limits as the             plan approved by the Public Utility Commis-
commission shall specify.                                sion. [1973 c.309 §4]
     (2) Utility plans may provide for a credit                  HEALTH ENDANGERING
against future curtailment for a customer                    TERMINATION OF RESIDENTIAL
who has already accomplished a reduction in                          UTILITY SERVICE
demand for the utility′s service by installing
an alternative energy device or by weatheri-                 757.750 Legislative findings. The Legis-
zation or other installed conservation mea-              lative Assembly finds that the termination of
sures equivalent to the proposed level of                residential electric and natural gas utility
curtailment. Where the level of curtailment              service can lead to the serious impairment
exceeds the demand reduction produced, by                of human health and possibly to loss of life;
the conservation measures or installed alter-            therefore, the Legislative Assembly has en-
native energy device of the customer, the                acted ORS 757.750 to 757.760. [1979 c.868 §2; 1983
utility plan may provide for credit against              c.326 §1]
the level of curtailment ordered to the extent               757.755 Termination of residential
of the demand reduction produced by the                  electric or natural gas service prohibited;
conservation measure or alternate energy                 rules of commission. (1) The Public Utility
device.                                                  Commission of Oregon shall establish rules
     (3) The commission shall approve the                to prohibit the termination of residential
feature of any plan concerning such credit               electric or natural gas service when such
against curtailment to the extent of the de-             termination would significantly endanger the
mand reduction produced and shall not pe-                physical health of the residential consumer.
nalize either the utility or the customer, in                (2) The commission shall provide by rule
the event of a curtailment order, under ORS              a method for determining when the termi-

Title 57                                             Page 50                                      (2007 Edition)
                                 UTILITY REGULATION GENERALLY                                757.805

nation of residential electric or natural gas         cifically authorized by the owners of the
service would significantly endanger the              poles to make cable television or commu-
physical health of the residential consumer.          nication services attachments.
[1979 c.868 §3; 1983 c.326 §2]
                                                           (e) An employee or agent of state, county
    757.760 Requirements for notice of                or municipal agencies which have or whose
termination of service; payment sched-                work relates to overhead electric lines or
ules; rules. The Public Utility Commission            circuit construction or conductors on poles
shall establish rules to require each electric        or structures of any type.
and natural gas utility to:                                (f) An employee of a transmission com-
    (1) Give written or personal notice of a          pany as defined in ORS 758.015.
proposed termination of residential service in             (2) “High voltage” means voltage in ex-
a manner reasonably calculated to reach the           cess of 600 volts measured between conduc-
residential consumer within a reasonable pe-          tors or between a conductor and the ground.
riod of time before the proposed date of ter-
mination;                                                  (3) “Overhead line” means all bare or in-
                                                      sulated electric conductors installed above
    (2) Accept reasonable partial payment on          ground.
the outstanding account and to establish a
reasonable payment schedule for any indebt-                (4) “Person” or “business entity” means
edness, including a deposit, that the utility         those parties who contract to perform any
claims the residential consumer owes for              function or activity upon any land, building,
service at any residential address in lieu of         highway or other premises.
termination of or refusal to provide service,              (5) “Utility” means any electric or com-
and to inform the residential consumer of the         munication utility described by ORS 757.005,
provisions of this subsection;                        any plant owned or operated by a municipal-
    (3) Inform those residential consumers            ity, any person furnishing community an-
who cannot afford to pay their bills or de-           tenna television service to the public and
posits of the names and telephone numbers             any cooperative corporation or people′s util-
of the appropriate unit within the Depart-            ity district engaged in furnishing electric or
ment of Human Services or other appropriate           communication service to customers.
social service agencies that can help the                  (6) “Proximity” means within 10 feet or
consumer investigate what federal, state or           such greater distance as may be prescribed
private aid might be available to that con-           by rule adopted pursuant to ORS chapter
sumer; and                                            654. [1989 c.672 §2; 2001 c.913 §5]
    (4) Provide that a transfer of service from            757.805 Accident prevention required
one premises to another within the utility′s          for work near high voltage lines; effect
service area shall not be considered a dis-           of failure to comply; applicability; other
continuation of service. [1979 c.868 §4; 1983 c.326   remedies unaffected. (1) Any person or
§3]                                                   business entity responsible for performing
                                                      any function, activity, work or operation in
      HIGH VOLTAGE POWER LINE                         proximity to a high voltage overhead line
               REGULATION                             shall guard effectively against accidents in-
                                                      volving such high voltage overhead line, as
    757.800 Definitions for ORS 757.800               required by rules adopted pursuant to ORS
and 757.805. As used in this section and ORS          chapter 654.
757.805, unless the context requires other-
wise:                                                      (2) If any violation of subsection (1) of
                                                      this section or rules adopted pursuant to
    (1) “Authorized person” means:                    ORS chapter 654 results in, or is a contrib-
    (a) An employee of a utility which                uting cause of, a physical or electrical acci-
produces, transmits or delivers electricity.          dent involving any high voltage overhead
    (b) An employee of a utility which pro-           line, the person or business entity violating
vides and whose work relates to communica-            subsection (1) of this section or rules adopted
tion services or state, county or municipal           pursuant to ORS chapter 654 is liable to the
agencies which have authorized circuit con-           utility operating the high voltage overhead
struction on or near the poles or structures          lines for all damages to its facilities and all
of a utility.                                         costs and expenses, including damages to any
                                                      third persons, incurred by the utility as a
    (c) An employee or agent of an industrial         result of the accident. However, any person
plant whose work relates to the electric sys-         or business entity that has given advance
tem of the industrial plant.                          notice of the function, activity or work to
    (d) An employee of a cable television or          the utility operating the high voltage over-
communication services company or an em-              head line, and has otherwise substantially
ployee of a contractor of a cable television          complied with rules adopted pursuant to ORS
or communication services company if spe-             chapter 654, shall only be liable for such

Title 57                                       Page 51                                (2007 Edition)
757.812                                   UTILITY REGULATION

damages in proportion to that person or                    Commission is required under ORS chapter
business entity′s comparative fault in caus-               757; and
ing or contributing to the accident.                            (B) Involving the sale of 50 percent or
     (3) This section and ORS 757.800 do not               more of the voting shares of the utility to a
apply to:                                                  person that is not an affiliated interest with
     (a) Construction, reconstruction, opera-              the utility as defined in ORS 757.015.
tion or maintenance by an authorized person                     (b) Notice under subsection (1) of this
of overhead electric or communication cir-                 section shall be given to a city or county if
cuits or conductors and their supporting                   the investor-owned utility that is the subject
structures or electric generation, trans-                  of the proposed transaction has service ter-
mission or distribution systems or commu-                  ritory within the boundaries of the city or
nication systems.                                          county.
     (b) Fire, police or other emergency ser-                   (2) Upon receiving notice under subsec-
vice workers acting under authority of a                   tion (1) of this section, each city or county
state agency or other public body while en-                may appoint a member to an acquisition re-
gaged in emergency operations.                             view committee formed to represent the af-
     (4) The provisions of this section and                fected cities and counties. An acquisition
ORS 757.800 are not intended to displace any               review committee must be formed not more
other remedies which may be available to the               than 60 days after notice is given by the
utility by statute or common law. [1989 c.672              commission under subsection (1) of this sec-
§§3,4,5,6]                                                 tion. If an acquisition review committee is
     757.810 [1985 c.550 §5; renumbered 759.015 in 1989]   not formed within 60 days after notice is
                                                           given by the commission under subsection (1)
                                                           of this section, the commission shall proceed
     OREGON COMMUNITY POWER                                with any application made under ORS
                 (Definitions)                             757.511 for approval of the transaction.
    757.812 Definitions for ORS 757.812 to                      (3) An acquisition review committee
757.950. As used in ORS 757.812 to 757.950:                formed under this section shall consider a
    (1) “Board” means the board of directors               proposed transaction described in subsection
of Oregon Community Power.                                 (1) of this section for the purpose of deter-
                                                           mining whether:
    (2) “Incumbent utility” means an
investor-owned utility that is the subject of                   (a) Acquisition of the investor-owned
a transaction described in ORS 757.814.                    utility by Oregon Community Power would
                                                           be in the best interests of the customers
    (3) “Investor-owned utility” means a util-             served by the investor-owned utility; and
ity that sells electricity and that is operated
by a corporation with shareholders.                             (b) Acquisition of the utility can be ac-
                                                           complished in a manner that is consistent
    (4) “Rate” has the meaning given that                  with the policy described in ORS 757.910.
term in ORS 756.010.
                                                                (4) An acquisition review committee cre-
    (5) “Service” has the meaning given that               ated under this section may decide to enter
term in ORS 756.010.                                       into negotiations for the acquisition of an
    (6) “Service territory” means the ge-                  investor-owned utility that is the subject of
ographic area within which a utility provides              a proposed transaction described in subsec-
electricity to customers. [2007 c.807 §1]                  tion (1) of this section only by the affirmative
      Note: 757.812 to 757.954 were enacted into law by    vote of members of the committee represent-
the Legislative Assembly but were not added to or made     ing counties in which reside not less than
a part of ORS chapter 757 or any series therein by leg-    two-thirds of the customers with billing ac-
islative action. See Preface to Oregon Revised Statutes    counts that are served by the incumbent
for further explanation.
                                                           utility, and the affirmative vote of members
                                                           of the committee representing cities in which
      (Acquisition Review Committee)                       reside not less than two-thirds of the cus-
     757.814 Creation of acquisition review                tomers with billing accounts that are served
committee. (1)(a) Except as provided in                    by the incumbent utility. If an acquisition
subsection (9) of this section, the Public                 review committee determines that negoti-
Utility Commission shall give notice to the                ations should commence, the committee
cities and counties specified in paragraph (b)             shall:
of this subsection whenever the commission                      (a) Enter into negotiations with the in-
receives notice of a proposed transaction un-              cumbent utility or persons that have author-
der ORS 757.511 (2):                                       ity to negotiate the disposition of the
     (A) Relating to an investor-owned utility             incumbent utility or the electric utility as-
for which approval of the Public Utility                   sets of the incumbent utility; and

Title 57                                              Page 52                               (2007 Edition)
                          UTILITY REGULATION GENERALLY                                           757.818

     (b) If the negotiations result in an agree-   with billing accounts that are served by the
ment between the committee and the incum-          incumbent utility and on behalf of cities in
bent utility or persons described in               which reside not less than two-thirds of the
paragraph (a) of this subsection, the commit-      customers with billing accounts that are
tee shall immediately give notice to the           served by the incumbent utility.
commission and file an application with the             (10) An acquisition review committee
commission under ORS 757.511 for approval          may enter into an agreement for the acquisi-
of the transaction.                                tion of an incumbent utility or the electric
     (5) An acquisition review committee cre-      utility assets of the incumbent utility only if
ated under this section may decide to acquire      the committee obtains approval for the ac-
an investor-owned utility under subsection         quisition from the appropriate state agencies
(4) of this section only by the affirmative        in all states in which the incumbent utility
vote of members of the committee represent-        serves retail electricity consumers.
ing counties in which reside not less than              (11) Notwithstanding any other provision
two-thirds of the customers with billing ac-       of law, Oregon Community Power is respon-
counts that are served by the incumbent            sible for and shall pay all costs relating to
utility, and the affirmative vote of members       the acquisition of an incumbent utility, in-
of the committee representing cities in which      cluding but not limited to:
reside not less than two-thirds of the cus-
tomers with billing accounts that are served            (a) The costs of acquiring the electric
by the incumbent utility. An acquisition re-       utility assets of the incumbent utility;
view committee may vote to acquire an in-               (b) The costs of acquiring any necessary
cumbent utility under this subsection only         generating capacity and transmission capac-
after public notice and consultation with          ity dedicated to serving the customers in the
groups representing customers of the incum-        service area that will be acquired, including
bent utility.                                      but not limited to electricity generating as-
     (6) An acquisition review committee must      sets and alternate energy generating assets
complete negotiations and vote to enter into       under construction but not yet in service;
an agreement not more than 150 days after               (c) Depreciation;
notice is given to cities and counties under            (d) Loss of revenue to the incumbent
subsection (1) of this section. If the incum-      utility; and
bent utility agrees in writing, the committee
may request that the time limitation imposed            (e) All electric utility assets necessary to
by this section be extended by 90 days.            reintegrate the system of the incumbent
                                                   utility after detaching the portion of the
     (7) If the commission approves acquisi-       utility acquired by Oregon Community
tion of the incumbent utility by Oregon            Power. [2007 c.807 §2]
Community Power, the commission shall in-               Note: See note under 757.812.
form the Governor and the Governor shall
                                                        757.815 [1985 c.550 §6; 1987 c.447 §72; renumbered
activate Oregon Community Power by con-            759.020 in 1989]
vening an initial Oregon Community Power
Board Nominating Committee under section
7, chapter 807, Oregon Laws 2007. As soon             (Oregon Community Power Created)
as the first board of directors of Oregon               757.818 Oregon Community Power
Community Power is appointed under ORS             created. (1) Oregon Community Power is
757.834, the board shall implement the             created as a public corporation. Oregon
agreement and acquire the incumbent utility        Community Power shall exercise and carry
or the electric utility assets of the incumbent    out all powers, rights and privileges that are
utility in the name of Oregon Community            conferred upon Oregon Community Power
Power.                                             under ORS 757.812 to 757.950.
     (8) An acquisition review committee shall          (2) Oregon Community Power is created
give notice to the commission immediately if       as a public corporation in order to carry out
the committee proposes to dissolve or decides      public services in sectors of the economy in
not to enter into negotiations under subsec-       which activities or services are also provided
tion (4) of this section or if negotiations do     by private enterprise. Oregon Community
not result in an agreement.                        Power is granted all needed operating flexi-
     (9) The commission may not give notice        bility under ORS 757.812 to 757.950 in order
to cities and counties under subsection (1) of     to ensure the success of Oregon Community
this section if a person providing notice of a     Power while retaining principles of public
proposed transaction under ORS 757.511 (2)         accountability and oversight.
also provides to the commission written con-            (3) The primary mission of Oregon Com-
sent forms signed by persons with authority        munity Power is to provide reliable, low-cost
to act on behalf of counties in which reside       electricity to electricity consumers in the
not less than two-thirds of the customers          service territory in which Oregon Commu-

Title 57                                     Page 53                                     (2007 Edition)
757.822                                    UTILITY REGULATION

nity Power undertakes to provide electricity                  of this section, the commission has the au-
service. [2007 c.807 §3]                                      thority to:
     Note: See note under 757.812.                                (a) Regulate electricity service suppliers
     757.820 [1985 c.550 §6a; 1987 c.302 §1; renumbered       that conduct business with or use the facili-
759.025 in 1989]                                              ties of Oregon Community Power;
    757.822 Laws applicable to Oregon                             (b) Determine a claim by an electricity
Community Power. (1) Except as provided                       service supplier that Oregon Community
in subsection (2) of this section, the pro-                   Power has acted in an anticompetitive man-
visions of ORS chapters 35 (other than ORS                    ner; and
35.550 to 35.575), 180, 190, 192 and 244 and                      (c) Take action against Oregon Commu-
ORS 30.260 to 30.460, 200.005 to 200.025,                     nity Power to enforce consumer protection
200.045 to 200.090, 221.450, 236.605 to 236.640,              rules adopted under ORS 757.659 (3) and ap-
243.650 to 243.782 (other than ORS 243.696),                  plicable to direct access consumers.
297.040, 307.090 and 307.112 apply to Oregon
Community Power under the same terms as                           (3) Oregon Community Power may not be
they apply to any other subdivision of state                  required to obtain the approval of the Public
government.                                                   Utility Commission to make an acquisition
                                                              described in ORS 757.812 to 757.950.
    (2) Except as otherwise provided by law,
the provisions of ORS chapters 182, 183, 238,                     (4) As used in this section, “direct
238A, 240, 270, 273, 276, 279A, 279B, 279C,                   access” and “electricity service supplier”
283, 286A, 291, 292, 293, 294, 295 and 297 and                have the meanings given those terms in ORS
ORS 35.550 to 35.575, 183.710 to 183.725,                     757.915. [2007 c.807 §5]
183.745, 183.750, 184.305 to 184.345, 190.430,                     Note: See note under 757.812.
190.480, 190.490, 192.105, 200.035, 236.380,                       757.825 [1985 c.550 §7; 1987 c.447 §73; 1987 c.613 §2;
243.105 to 243.585, 243.696, 278.011 to 278.120,              1989 c.5 §§9,23; 1989 c.378 §1; 1989 c.543 §1; renumbered
                                                              759.030 in 1989]
278.315 to 278.415, 279.835 to 279.855, 282.010
to 282.150, 287.006, 287A.472, 288.150 to
288.165, 288.600, 288.815 and 656.017 (2) do                               (Board of Directors)
not apply to Oregon Community Power.                              757.830 Nominating committee. (1)
    (3) Oregon Community Power is not a                       There is established the Oregon Community
participating public employer in the Public                   Power Board Nominating Committee. The
Employees Retirement System.                                  purpose of the nominating committee is to
    (4) Any funds held by or under the con-                   assist the Governor in appointing members
trol of Oregon Community Power are not                        to the board of directors of Oregon Commu-
public funds, as defined in ORS 295.001. [2007                nity Power under ORS 757.834.
c.807 §4]                                                         (2) The nominating committee shall con-
     Note: See note under 757.812.                            sist of five members, as follows:
     Note: 236.380 is repealed by section 32, chapter 100,        (a) One member shall be a delegate from
Oregon Laws 2007. However, chapter 100, Oregon Laws           the Citizens′ Utility Board and shall repre-
2007, is the subject of a referendum petition (see note
under 236.380). The text of 757.822 was not amended by        sent the interests of residential electricity
enactment of the Legislative Assembly to reflect the          consumers.
potential repeal. Editorial adjustment of 757.822 for the         (b) One member shall be a delegate from
potential repeal of 236.380 has not been made.
                                                              a qualified organization that represents the
     Note: 287.006, 288.150 to 288.165, 288.600 and 288.815   interests of primarily commercial electricity
were repealed by section 234, chapter 783, Oregon Laws
2007. The text of 757.822 was not amended by enactment        consumers.
of the Legislative Assembly to reflect the repeal. Edito-         (c) One member shall be a delegate from
rial adjustment of 757.822 for the repeal of 287.006,
288.150 to 288.165, 288.600 and 288.815 has not been          a qualified organization that represents the
made.                                                         interests of primarily industrial electricity
                                                              consumers.
    757.824 Regulatory authority of Public
Utility Commission over Oregon Commu-                             (d) One member shall be a delegate from
nity Power. (1) Solely for purposes of deter-                 the League of Oregon Cities and shall repre-
mining the authority of the Public Utility                    sent the interests of municipalities and their
Commission to regulate Oregon Community                       residents.
Power and the activities and operations of                        (e) One member shall be a delegate from
Oregon Community Power, Oregon Commu-                         the Association of Oregon Counties and shall
nity Power shall be considered a consumer-                    represent the interests of counties and their
owned utility, as defined in ORS 757.270, and                 residents.
the commission shall regulate Oregon Com-                         (3) Of the members described in subsec-
munity Power as a consumer-owned utility.                     tion (2)(d) and (e) of this section, one shall
    (2) In addition to having the authority                   be from a local government that is within
granted the commission under subsection (1)                   the service territory of Oregon Community

Title 57                                               Page 54                                        (2007 Edition)
                         UTILITY REGULATION GENERALLY                                           757.834

Power and one shall be from a local govern-      diversity of Oregon Community Power′s ser-
ment that is outside of the service territory    vice territory; and
of Oregon Community Power.                            (c) Have the ability and experience to
    (4)(a) In order for the nominating com-      fulfill the principal duties of the board under
mittee to convene, the board of directors of     ORS 757.880.
Oregon Community Power shall prepare a                (9) As used in this section, “qualified or-
proposed direction to convene as soon as is      ganization” means a nonprofit organization
practicable following the earlier of the date    that represents a broad class of commercial
that a vacancy occurs on the board or the        or industrial customers and that has a sub-
date that it becomes known that a vacancy        stantial record of representing the class be-
on the board will occur within six months.       fore state agencies or the Legislative
    (b) The proposed direction to convene        Assembly in matters related to public utility
shall state the qualified organizations that     rates, terms and conditions and energy policy
are to provide the delegates described in        issues affecting the class. [2007 c.807 §6]
subsection (2)(b) and (c) of this section. The         Note: See note under 757.812.
board shall send copies of the proposed di-            Note: Section 7, chapter 807, Oregon Laws 2007,
rection to the Public Utility Commission and     provides:
to each organization that served as a quali-           Sec. 7. (1) Notwithstanding section 6 of this 2007
fied organization at a prior convening of the    Act [757.830], the Governor shall convene the initial
nominating committee.                            Oregon Community Power Board Nominating Commit-
                                                 tee for the first board of directors of Oregon Community
    (c) Within 15 days after receipt of the      Power on the date the Governor activates Oregon Com-
proposed direction to convene, the commis-       munity Power under section 2 of this 2007 Act [757.814].
sion shall review the proposed direction. The          (2) The nominating committee shall forward the
commission shall afford the opportunity for      first slate of nominees to the Governor for consideration
a hearing if requested by any party. If the      under section 8 of this 2007 Act [757.834] within 30 days
proposed direction lists organizations that      following the convening of the committee by the Gov-
meet the qualifications of subsection (2)(b)     ernor.
and (c) of this section, the commission shall          (3) If necessary, the nominating committee shall
approve the direction. If the proposed direc-    forward a second slate of nominees to the Governor for
                                                 consideration within 10 days after the Governor′s re-
tion does not list organizations that are        quest for a second slate of nominees under section 8 (2)
qualified organizations under subsection         of this 2007 Act.
(2)(b) and (c) of this section, the commission         (4) For purposes of section 6 (3) of this 2007 Act,
may modify the direction prior to approval.      the service territory of the incumbent utility is consid-
A determination by the commission may be         ered to be the service territory of Oregon Community
appealed as a contested case under ORS           Power. [2007 c.807 §7]
chapter 183.                                         757.834 Board of directors. (1) Oregon
    (5) The nominating committee shall con-      Community Power shall be governed by a
vene as soon as is practicable after receiving   board of seven directors appointed by the
an approved direction to convene under sub-      Governor using the procedure set forth in
section (4) of this section, and shall forward   this section.
the first slate of nominees to the Governor          (2)(a) Prior to making any appointment
for consideration under ORS 757.834 no later     to the board, the Governor shall consider the
than 90 days after the date an approved di-      nominations of the Oregon Community
rection to convene is issued.                    Power Board Nominating Committee.
    (6) The nominating committee shall nom-          (b) If the Governor reviews an initial
inate three individuals for each position on     slate of nominees made by the nominating
the board to be filled.                          committee and determines not to appoint a
    (7) A nominating committee that has          nominee, the Governor shall request that the
been convened shall remain convened until        nominating committee forward a second slate
each vacant position on the board is filled.     of nominees. If the Governor determines not
The nominating committee shall forward a         to appoint a nominee from the second slate
second slate of nominees to the Governor if      of nominees, the Governor may appoint any
requested by the Governor under ORS              individual the Governor determines meets
757.834 (2).                                     the qualifications of subsection (6) of this
                                                 section.
    (8) In forwarding nominees to the Gover-
nor, the nominating committee shall strive           (3) Notwithstanding the requirement that
to select individuals who:                       the Governor consider the nominations of
                                                 the nominating committee prior to making
    (a) Meet the qualifications described in     an appointment, the Governor shall appoint
ORS 757.834 (6);                                 an individual to be a board member within
    (b) If appointed, would result in a board    120 days following the vacancy of a position
of directors that represents the geographic      on the board.

Title 57                                   Page 55                                      (2007 Edition)
757.842                                 UTILITY REGULATION

    (4) Each appointment shall be subject to                   (5) A member of the board shall be com-
confirmation by the Senate in the manner                   pensated as provided in ORS 757.886 (12).
prescribed in ORS 171.562 and 171.565.                         (6) The board, not later than April 15 of
    (5) The term of office for each board                  each year, shall file a report with the Gov-
member shall be four years. A board member                 ernor and the Legislative Assembly. The re-
may be nominated and appointed to succes-                  port shall explain the activities and
sive terms, but within 150 days prior to the               operations of Oregon Community Power for
expiration of the term of the member, the                  the preceding calendar year, including a
board shall issue a proposed direction to                  summary of the audit described in ORS
convene the nominating committee under                     757.902. [2007 c.807 §10]
ORS 757.830 for the purpose of nominating                      Note: See note under 757.812.
individuals to fill the board position.                        757.850 [1987 c.613 §4; 1989 c.5 §11; 1989 c.378 §2;
    (6) A member of the board shall have                   1989 c.543 §2; renumbered 759.195 in 1989]
significant experience or expertise in one or
more of the following areas:                                    (Acquisition of Incumbent Utility)
    (a) Business operations;                                   757.852 Acquisition of incumbent util-
    (b) Utility management;                                ity; use of eminent domain. (1) As soon as
    (c) Legal or financial affairs;                        practicable after being appointed, the board
                                                           of directors of Oregon Community Power
    (d) Regional energy issues; or                         shall implement the agreement entered into
    (e) Developing public policy.                          by an acquisition review committee under
    (7) The Governor may remove any mem-                   ORS 757.814 (4)(b).
ber of the board for cause, after notice and                   (2) Notwithstanding ORS 757.890 (1), Or-
public hearing. [2007 c.807 §8]                            egon Community Power may not use the
     Note: See note under 757.812.                         power of eminent domain to accomplish all
     Note: Section 9, chapter 807, Oregon Laws 2007,       or a part of an acquisition described in sub-
provides:                                                  section (1) of this section unless the incum-
     Sec. 9. (1) Notwithstanding section 8 (5) of this     bent utility or the persons that have the
2007 Act [757.834 (5)], the term of office for the first   authority to negotiate the disposition of the
board of directors of Oregon Community Power shall         incumbent utility or the electric utility as-
be as follows:                                             sets of the incumbent utility consent to the
     (a) Two members shall be appointed for a term that    use of eminent domain for acquisition pur-
ends one year following the date the Governor convenes
the board;                                                 poses. [2007 c.807 §11]
     (b) Two members shall be appointed for a term that        Note: See note under 757.812.
ends two years following the date the Governor con-            757.855 Funding of preliminary activ-
venes the board;
                                                           ities and negotiations. (1) Following a re-
     (c) Two members shall be appointed for a term that    quest by an acquisition review committee
ends three years following the date the Governor con-
venes the board; and                                       under ORS 757.862, the Public Utility Com-
     (d) One member shall be appointed for a term that
                                                           mission shall transfer from the Public Utility
ends four years following the date the Governor con-       Commission Account to the Oregon Commu-
venes the board.                                           nity Power Utility Acquisition Fund estab-
     (2) Consistent with subsection (1) of this section,   lished under ORS 757.857 all amounts
the Governor shall designate the duration of the term      necessary to fund any preliminary activities
of office of each member of the first board of directors   needed to determine:
at the time the Governor convenes the board. [2007 c.807
§9]                                                            (a) The appropriateness or desirability of
     757.835 [1985 c.389 §3; 1987 c.447 §74; renumbered    an acquisition described in ORS 757.812 to
759.230 in 1989]                                           757.950;
     757.840 [1987 c.1 §§1,2,3; 1989 c.5 §10; renumbered       (b) The requirements and terms of the
759.235 in 1989]                                           acquisition; and
    757.842 Board meetings and proce-                          (c) Any due diligence activities related to
dures. (1) The board of directors of Oregon                the acquisition and the negotiations for the
Community Power shall meet at least once                   acquisition.
each month to conduct the business of the
board.                                                         (2) Notwithstanding any other provision
                                                           of law, the commission may increase the
    (2) A majority of board members shall                  rates of an incumbent utility in order to re-
constitute a quorum.                                       cover the costs incurred in negotiating an
    (3) The board shall select one of its                  acquisition by an acquisition review commit-
members as chairperson.                                    tee under ORS 757.814 (4).
    (4) The board shall adopt bylaws estab-                    (3) Notwithstanding any other provision
lishing rules of procedure for board meetings              of law, the commission may assess a fee on
and decisions.                                             an incumbent utility in order to fund the

Title 57                                            Page 56                                      (2007 Edition)
                             UTILITY REGULATION GENERALLY                                              757.872

transfer described in subsection (1) of this            of the date of the acquisition for all pur-
section. [2007 c.807 §12]                               poses, including but not limited to:
    Note: See note under 757.812.                            (a) Allocation of territory and contracts
     757.857 Oregon Community Power                     allocating territory;
Utility Acquisition Fund. (1) The Oregon                     (b) City franchise fee agreements; and
Community Power Utility Acquisition Fund                     (c) Contracts or obligations of any na-
is established in the State Treasury, separate          ture, to the extent the contracts or obli-
and distinct from the General Fund. Interest            gations apply to a successor in interest to
earned by the Oregon Community Power                    the incumbent utility.
Utility Acquisition Fund shall be credited to
the Oregon Community Power Utility Acqui-                    (2) Until the board of directors of Oregon
sition Fund.                                            Community Power establishes bylaws gov-
     (2) Moneys in the Oregon Community                 erning the procedures for conducting a
Power Utility Acquisition Fund are contin-              ratemaking hearing and establishing rates
uously appropriated to the Public Utility               under ORS 757.812 to 757.950 and under
Commission for the purpose of transferring              those procedures establishes one or more
moneys to an acquisition review committee               new rates or tariffs or establishes one or
as described in ORS 757.855. [2007 c.807 §13]           more changes in rates or tariffs, Oregon
                                                        Community Power shall:
     Note: See note under 757.812.
     757.860 [1987 c.302 §3; 1989 c.5 §12; renumbered        (a) Adopt all existing rate schedules in
759.225 in 1989]                                        effect for the incumbent utility on the date
                                                        of acquisition;
    757.862 Request to Public Utility
Commission for transfer of funds. (1) An                     (b) Adopt the general rules and regu-
acquisition review committee created under              lations of the incumbent utility′s tariffs; and
ORS 757.814 may request that the Public                      (c) Maintain Oregon Community Power
Utility Commission transfer moneys appro-               books and records in accordance with gener-
priated under ORS 757.857 in order to fund              ally accepted accounting principles and with
any preliminary activities the committee                the uniform system of accounts established
undertakes to determine:                                by the Federal Energy Regulatory Commis-
    (a) The appropriateness or desirability of          sion.
an acquisition described in ORS 757.812 to                   (3) If Oregon Community Power acquires
757.950;                                                an incumbent utility under ORS 757.812 to
    (b) The requirements and terms of the               757.950, Oregon Community Power is subject
acquisition; and                                        to all privilege taxes imposed by municipal-
                                                        ities that the incumbent utility was required
    (c) Any due diligence activities related to         to pay to municipalities immediately before
the acquisition and the negotiations for the            the acquisition. [2007 c.807 §16]
acquisition.
                                                            Note: See note under 757.812.
    (2) An acquisition review committee shall               757.870 [1987 c.388 §2; 1989 c.5 §13; 1989 c.574 §6;
submit a budget and plan of operations with             renumbered 759.040 in 1989]
a request under subsection (1) of this section.
The commission may approve the transfer                     757.872 Equity and assets of incum-
only after notice and public hearing on the             bent utility held in trust; disclaimer of
request. [2007 c.807 §14]                               state interest. (1) Any equity of the incum-
    Note: See note under 757.812.                       bent utility, any electric utility assets of the
                                                        incumbent utility or any combination of eq-
    757.864 Conduct of business after ac-               uity and assets of the incumbent utility that
quisition. If Oregon Community Power ac-                Oregon Community Power acquires under
quires an incumbent utility under ORS                   ORS 757.812 to 757.950 shall be held in trust
757.812 to 757.950, all electric utility oper-          by Oregon Community Power, acting as a
ations undertaken by Oregon Community                   trustee, for the exclusive purpose of carrying
Power after the acquisition shall be con-               out the powers, rights and privileges of Ore-
ducted under the name of Oregon Commu-                  gon Community Power under ORS 757.812 to
nity Power. [2007 c.807 §15]                            757.950 for the benefit of the retail electricity
    Note: See note under 757.812.                       consumers of Oregon Community Power.
    757.868 Oregon Community Power to                   Notwithstanding any other provision of law,
be successor in interest to incumbent                   retail electricity consumers of Oregon Com-
utility; rules. (1) If Oregon Community                 munity Power may not pursue any judicial
Power acquires an incumbent utility under               remedy in any court of this state for any ac-
ORS 757.812 to 757.950, unless otherwise re-            tion of Oregon Community Power, except as
quired by the Oregon Constitution, Oregon               provided in ORS 757.812 to 757.950.
Community Power shall constitute the suc-                   (2) The State of Oregon declares that it
cessor in interest to the incumbent utility as          has no proprietary interest in Oregon Com-

Title 57                                         Page 57                                      (2007 Edition)
757.880                            UTILITY REGULATION

munity Power or in any tangible or intangi-      which property of Oregon Community Power
ble property of any form owned or acquired       is located an amount equal to the ad valorem
by Oregon Community Power. The state dis-        property taxes that would have been charged
claims any right to reclaim any contributions    by the county if Oregon Community Power
made to Oregon Community Power under             property had been assessed to a taxable
ORS 757.812 to 757.950.                          owner as of January 1 of the assessment year
    (3) Except as provided in ORS 757.812 to     for which payment is being made.
757.950, Oregon Community Power may not               (2) The Department of Revenue shall de-
receive any moneys from the State of Oregon      termine the assessed value of Oregon Com-
other than:                                      munity Power property as if the property
    (a) Electric utility operational revenues;   were subject to assessment under ORS
                                                 308.505 to 308.665, and shall transmit the
    (b) Public purpose charge revenues under     value information as provided in ORS 308.505
ORS 757.612;                                     to 308.665 to the appropriate county assessor.
    (c) Nonrecourse bond proceeds or pro-        Oregon Community Power shall comply with
ceeds from any other nonrecourse borrowing;      property reporting requirements under ORS
or                                               308.505 to 308.665 as if the property were
    (d) Loans, grants, payments or other as-     subject to assessment under ORS 308.505 to
sistance that any local government as de-        308.665.
fined in ORS 174.116 would be eligible to             (3) The amount of the in lieu payment to
receive. [2007 c.807 §17]                        be made to each county under this section
   Note: See note under 757.812.                 shall be determined and certified annually by
                                                 the county assessor of the county. A notice
       (Duties and Powers of Oregon              of the determination and certification shall
             Community Power)                    be mailed to Oregon Community Power not
                                                 later than October 15. The notice shall con-
    757.880 Board duties. The principal du-      tain a statement of the value of the property
ties of the board of directors of Oregon         and a complete explanation of the method
Community Power are to:                          used in computing the amount of the in lieu
    (1) Establish policy and develop consist-    payment due under this section. Not later
ent positions on core utility issues that pro-   than November 15, Oregon Community
mote and implement the primary mission of        Power shall pay the amount due to each
Oregon Community Power under ORS                 county under this section, less a discount
757.818;                                         equivalent to that which is provided in ORS
    (2) Oversee the investments and oper-        311.505. Payment shall be made to the county
ations of Oregon Community Power;                treasurer. The county treasurer shall distrib-
                                                 ute the payment to the taxing districts of the
    (3) Take all actions to ensure that re-      county in accordance with the schedule of
venues and income from electric utility op-      percentages computed under ORS 311.390.
erations are sufficient to satisfy all costs,    [2007 c.807 §19]
including principal and interest payments on          Note: See note under 757.812.
all outstanding bonds and other debt obli-
gations issued by Oregon Community Power,            757.886 Powers of Oregon Community
and to maintain financial integrity in the       Power. The board of directors of Oregon
operation of Oregon Community Power;             Community Power shall establish the policies
    (4) Make decisions that are in the best      of Oregon Community Power to be used in
interests of the consumers and communities       the exercise of the powers enumerated for
within the service territory of Oregon Com-      Oregon Community Power or the board, and
munity Power and that are consistent with        may thereafter modify those policies. The
the primary mission of Oregon Community          board may delegate the exercise of powers
Power; and                                       enumerated for Oregon Community Power to
                                                 a president, chief executive officer or general
    (5) Consider the social, economic and en-    manager of Oregon Community Power. De-
vironmental impacts of electricity gener-        legated powers shall be exercised by the
ation, transmission and distribution in board    delegatee in a manner that is consistent with
decision-making. [2007 c.807 §18]                the policies established by the board. The
   Note: See note under 757.812.                 powers of Oregon Community Power, as
    757.883 Payments in lieu of property         exercisable by the board of directors or by a
taxes. (1) Oregon Community Power shall          president, chief executive officer or general
make payments in lieu of property taxes on       manager under policies adopted by the board,
all property that would otherwise be subject     are as follows:
to assessment under ORS 308.505 to 308.665           (1) To acquire and hold, including by
if owned by a taxable owner. Oregon Com-         lease-purchase agreement, real and other
munity Power shall pay to each county in         property necessary or incident to the busi-

Title 57                                   Page 58                                    (2007 Edition)
                         UTILITY REGULATION GENERALLY                                   757.886

ness of Oregon Community Power, within or            (13) To enter into contracts with the
outside of, or partly within or partly outside   United States Government, with any other
of, the service territory of Oregon Commu-       state, municipality or utility district or with
nity Power, and to sell or dispose of that       any other person, for carrying out any pro-
property.                                        visions of ORS 757.812 to 757.950.
    (2) To execute contracts to purchase, sell       (14) To fix, maintain and collect electric
or lease assets, power, services or property.    energy rates as prescribed in ORS 757.812 to
    (3) To execute contracts for the manage-     757.950 and to establish and collect charges
ment or operation of any Oregon Community        for any other commodity or service fur-
Power facilities.                                nished, developed or sold by Oregon Commu-
                                                 nity Power.
    (4) To issue bonds, notes or otherwise
borrow moneys, incur indebtedness or issue,          (15) To construct works across or along
sell or assume evidence of indebtedness to       any street or public highway or over any
the extent allowed under the Oregon Consti-      lands that are the property of this state, or
tution.                                          of any city or other subdivision of this state,
                                                 subject to any franchise agreement, privilege
    (5) To sue and be sued.                      tax or municipal regulation that would apply
    (6) To refund and retire any indebtedness    to the works, and to construct works across
that may exist against or be assumed by Or-      or along any stream of water or watercourse.
egon Community Power or that may exist           Any works across or along any state high-
against the revenues of Oregon Community         way shall be constructed only with the per-
Power.                                           mission of the Department of Transportation.
    (7) To build, acquire, own, operate and      Any works across or along any county high-
maintain generation, transmission and dis-       way shall be constructed only with the per-
tribution resources that are sufficient to       mission of the county governing body. Any
maintain an adequate supply of electricity to    works across or along any city street shall
the service territory.                           be constructed only with the permission of
                                                 the city governing body and upon compliance
    (8) To enter into agreements with local      with applicable city regulations and payment
governments or other state agencies or sub-      of any fees called for under applicable fran-
divisions of state government.                   chise agreements, intergovernmental agree-
    (9) To periodically develop least-cost       ments under ORS chapter 190 or contracts
plans at regular intervals. A least-cost plan    providing for payment of these fees. Oregon
may be developed only with public partic-        Community Power shall restore any street or
ipation. A least-cost plan shall take into       highway to its former state as near as may
consideration economic and environmental         be practicable, and may not use the street or
risks of providing adequate and reliable en-     highway in a manner that impairs its useful-
ergy for consumers, energy efficiency,           ness unnecessarily.
renewable resources and cogeneration, in or-         (16) To enter into franchise agreements
der to achieve adequate resources at the         with cities and pay fees under negotiated
least overall cost.                              franchise    agreements,    intergovernmental
    (10) To oversee all aspects of Oregon        agreements under ORS chapter 190 and con-
Community Power operations.                      tracts providing for the payment of such fees,
    (11) To hire and fire employees of Oregon    and to pay privilege taxes imposed under
Community Power.                                 ORS 221.450 or other applicable privilege
                                                 taxes.
    (12) To make contracts, to set wages, to
set salaries and provide compensation for            (17) To exercise the power of eminent
services rendered by employees and by board      domain, as prescribed in ORS 757.852 or
members, to provide for life insurance, hos-     757.890.
pitalization, disability, health and welfare         (18) To adopt bylaws as prescribed in
and retirement plans for employees and to do     ORS 757.905.
all things necessary and convenient for full         (19) To make payments in lieu of prop-
exercise of the powers granted in this sub-      erty taxes as prescribed in ORS 757.883.
section. The provision of life insurance, hos-
pitalization, disability, health and welfare         (20) To acquire property, execute con-
and retirement plans for employees is in ad-     tracts or otherwise conduct business with or
dition to any other right or power of Oregon     within the territory of any state or local
Community Power to participate in those          government that is outside Oregon, any In-
plans and does not repeal or modify any          dian tribe wherever located or Canada or any
statutes except those that may be in conflict    province of Canada.
with the provision of life insurance, hospi-         (21) To execute any contract necessary to
talization, disability, health and welfare and   acquire, hedge or sell fuel or energy in any
retirement plans.                                form, to manage electric utility operations,

Title 57                                   Page 59                               (2007 Edition)
757.890                            UTILITY REGULATION

to construct, maintain or repair any energy            (c) To reflect the income tax exempt sta-
generation or transmission facilities or           tus of Oregon Community Power so that the
equipment, to increase capacity for energy         savings from tax exemption accrue to the
generation or transmission, to transfer any        benefit of the customers of Oregon Commu-
asset owned by Oregon Community Power or           nity Power;
to acquire any asset for use in electric utility       (d) To pay all franchise fees, in lieu pay-
operations conducted by Oregon Community           ments, privilege taxes and other charges and
Power.                                             assessments that are properly imposed on
    (22) To establish any funds or accounts        Oregon Community Power or the property or
at depository banks or other financial insti-      facilities of Oregon Community Power;
tutions that are determined to be necessary,           (e) To pay principal and interest on all
useful or convenient for the conduct of busi-      bonds, warrants or other obligations of any
ness by Oregon Community Power.                    character in accordance with the terms and
    (23) To take any other actions necessary       provisions of the obligations, including but
or convenient for the proper exercise of the       not limited to bonds issued by Oregon Com-
powers granted to Oregon Community Power           munity Power for an acquisition described in
by ORS 757.812 to 757.950. [2007 c.807 §20]        ORS 757.812 to 757.950;
   Note: See note under 757.812.                       (f) To pay any other indebtedness or ob-
                                                   ligation for which Oregon Community Power
     757.890 Eminent domain. (1) Oregon            may be obligated to pay;
Community Power may exercise the power
of eminent domain for the purpose of acquir-           (g) To pay any debt administration costs
ing any property, within or outside the ser-       associated with bonds, warrants, obligations
vice territory of Oregon Community Power,          or other indebtedness described in para-
necessary for carrying out the electric utility    graphs (e) and (f) of this subsection;
operations of Oregon Community Power. Or-              (h) To fund operating reserves in suffi-
egon Community Power may use the power             cient amounts to ensure the continued effi-
of eminent domain to acquire an incumbent          cient operation of Oregon Community Power;
utility pursuant to an agreement under ORS         and
757.814 only as provided by ORS 747.852.               (i) To establish and maintain any special
     (2) Notwithstanding subsection (1) of this    funds that Oregon Community Power is obli-
section, eminent domain may not be used:           gated to create for the purpose of paying
     (a) To acquire service territory of an-       bond issues or other obligations. [2007 c.807 §22]
other electric utility; or                             Note: See note under 757.812.
     (b) To acquire any property for a purpose          757.897     Notice     of   ratemaking;
that is unrelated to electric utility oper-        ratemaking hearings. (1) Whenever the
ations. [2007 c.807 §21]                           board of directors of Oregon Community
   Note: See note under 757.812.                   Power determines to seek a modification in
                                                   any rate imposed by the board for electricity
                                                   service, the board shall give notice of a
                    (Rates)                        ratemaking hearing, at least 30 days in ad-
     757.895 Ratemaking. (1) The board of          vance, as follows:
directors of Oregon Community Power shall               (a) In newspapers of general circulation
establish rates for the provision of electricity   that are published in the service territory;
within the service territory of Oregon Com-             (b) As a separate insert accompanying
munity Power using the procedure set forth         billing statements sent to customers;
under ORS 757.897.
                                                        (c) To persons that have requested notice
     (2) The board shall establish a rate          of ratemaking action by the board; and
structure under which rates that apply to a
specific class of customers are designed to             (d) By publication on the Oregon Com-
recover the costs of providing electricity and     munity Power website.
related services to that class of customers.            (2) The notice shall state:
     (3) The rates adopted by the board shall           (a) The date, time and location of the
be sufficient to accomplish the following          ratemaking hearing of the board;
purposes:                                               (b) The new rates or modifications to ex-
     (a) To properly maintain and operate all      isting rates being proposed by the board; and
Oregon Community Power property and fa-                 (c) Any other information deemed rele-
cilities;                                          vant by the board.
     (b) To recover the overall costs of the            (3) At the time that the board issues a
electric utility operations of Oregon Commu-       notice of a ratemaking hearing, the board
nity Power;                                        shall publish on the Oregon Community

Title 57                                     Page 60                                   (2007 Edition)
                              UTILITY REGULATION GENERALLY                                      757.910

Power website or otherwise make available                 Note: See note under 757.812.
to the public the underlying utility informa-
tion upon which the proposed rates are                               (Bylaws)
based. The board shall provide the specific            757.905 Adoption of bylaws. The board
information required by bylaws adopted un-         of directors of Oregon Community Power
der ORS 757.905 (1).                               may adopt bylaws necessary to administer
    (4)(a) Pursuant to ORS 183.625, the board      ORS 757.812 to 757.950, including but not
shall request, and the Office of Administra-       limited to:
tive Hearings shall assign, an administrative          (1) Bylaws establishing the information
law judge to conduct the ratemaking hear-          the board must make available to the public
ing. The ratemaking hearing shall be con-          prior to conducting a ratemaking hearing.
ducted under ratemaking hearing procedures
established by bylaws adopted under ORS                (2) Bylaws establishing procedures for
757.905 (2). The hearing shall be conducted        conducting a ratemaking hearing that pro-
in a manner that allows interested parties to      vide for substantially the same procedures as
present information and argument and to es-        set forth in ORS 183.415, 183.425, 183.440 and
tablish a record upon which the board may          183.450.
establish or modify rates pursuant to ORS              (3) Bylaws to facilitate the implementa-
757.895.                                           tion of the primary mission of Oregon Com-
    (b) The administrative law judge shall         munity Power under ORS 757.818. [2007 c.807
                                                   §26]
ensure that the rates established at the
                                                          Note: See note under 757.812.
ratemaking hearing are sufficient to accom-
plish all of the purposes described in ORS
757.895 (3).                                               (Electricity From Bonneville
                                                               Power Administration)
    (5) Notwithstanding ORS 757.822, a deci-
sion by the board to establish or modify rates         757.910 Policy. (1) The Legislative As-
may be appealed as a contested case under          sembly declares that it is the policy of the
ORS chapter 183. [2007 c.807 §23]                  State of Oregon to:
    Note: See note under 757.812.                      (a) Ensure that the formation and opera-
                                                   tion of Oregon Community Power does not
 (Participation by Citizens′ Utility Board)        directly or indirectly diminish the amount of
                                                   federal electric power available for purchase
    757.900 Intervention by Citizens′ Util-        by consumer-owned utilities to serve their
ity Board in proceedings. (1) Whenever the         retail electricity consumers;
Citizens′ Utility Board of Governors deter-            (b) Ensure that the formation and opera-
mines that an Oregon Community Power               tion of Oregon Community Power does not,
proceeding may affect the interests of utility     directly or indirectly, increase the lowest
consumers, the Citizens′ Utility Board may         cost-based rates charged by the Bonneville
intervene as of right as an interested party       Power Administration to consumer-owned
or otherwise participate in the proceeding.        utilities for the purchase of federal electric
    (2) The Citizens′ Utility Board shall have     power above the level that would most likely
standing to obtain judicial or administrative      have been charged absent the formation and
review of any action of Oregon Community           operation of Oregon Community Power;
Power, and may intervene as of right as an             (c) Preserve the existing exclusive dis-
interested party or otherwise participate in       tribution rights of consumer-owned utilities;
any proceeding that involves the review or
enforcement of any action by Oregon Com-               (d) Ensure the preservation of contract
munity Power, if the Citizens′ Utility Board       rights currently existing between consumer-
of Governors determines that the action may        owned utilities and an incumbent utility;
affect the interests of utility consumers. [2007       (e) Preserve the authority of cities to
c.807 §24]                                         impose franchise fees and privilege taxes and
     Note: See note under 757.812.                 to execute contracts with Oregon Community
                                                   Power; and
                  (Audits)                             (f) Ensure that Oregon Community Power
   757.902 Annual audit of Oregon Com-             has access to benefits from the Bonneville
munity Power. The board of directors of            Power Administration, as mandated by the
Oregon Community Power shall cause an in-          federal Pacific Northwest Electric Power
dependent audit to be performed at least an-       Planning and Conservation Act, that are
nually. The audit shall review and report on       equivalent to the benefits received by the in-
the financial affairs of Oregon Community          cumbent utility at the time the utility is ac-
Power and on any other aspects of Oregon           quired by Oregon Community Power.
Community Power as the board may direct.               (2) As used in this section, “federal elec-
[2007 c.807 §25]                                   tric power” means electricity generated, dis-

Title 57                                     Page 61                                      (2007 Edition)
757.915                            UTILITY REGULATION

tributed or sold by the Bonneville Power              (2) Unless the board of directors of Ore-
Administration. [2007 c.807 §27]                  gon Community Power determines otherwise,
   Note: See note under 757.812.                  Oregon Community Power shall provide all
                                                  retail electricity consumers of Oregon Com-
                (Direct Access)                   munity Power with a regulated, cost-of-
                                                  service rate option.
     757.915 Definitions for ORS 757.915 to           (3)(a) Oregon Community Power shall
757.930. As used in ORS 757.915 to 757.930:       supply default electricity service to a non-
     (1) “Ancillary services” has the meaning     residential electricity consumer in an emer-
given that term in ORS 757.600.                   gency.
     (2) “Direct access” means the ability of         (b) The board shall establish reasonable
a retail electricity consumer to purchase         terms and conditions for providing default
electricity and ancillary services, as deter-     service to a nonresidential electricity con-
mined by the board of directors of Oregon         sumer in circumstances in which the con-
Community Power, directly from an entity          sumer is receiving electricity services
other than Oregon Community Power.                through direct access and elects instead to
     (3) “Economic utility investment” means      receive electricity services through the de-
all investments, including plants and equip-      fault service.
ment and contractual or other legal obli-             (4)(a) Oregon Community Power shall
gations, made by Oregon Community Power           permit retail electricity consumers that are
and properly dedicated to generation or con-      eligible for direct access to voluntarily ag-
servation, the full benefits of which are no      gregate their electricity loads.
longer available to consumers as a result of          (b) A retail electricity consumer that is
electing direct access, absent transition         eligible for direct access may voluntarily ag-
credits.                                          gregate its electricity load with the electric-
     (4) “Electricity,” “electricity services”    ity load of any other retail electricity
and “electricity service supplier” have the       consumer that is eligible for direct access.
meanings given those terms in ORS 757.600.        [2007 c.807 §29]
                                                       Note: See note under 757.812.
     (5) “Nonresidential electricity consumer”
means a retail electricity consumer that is            757.920 Rights of electricity service
not a residential electricity consumer.           suppliers. (1) Every electricity service sup-
     (6) “Portfolio access” means the ability     plier is authorized to use the distribution fa-
of a retail electricity consumer to choose        cilities of Oregon Community Power on a
from a set of product and pricing options for     nondiscriminatory basis.
electricity determined by the board and may            (2) Oregon Community Power shall pro-
include product and pricing options offered       vide:
by Oregon Community Power or by an elec-               (a) Electricity service suppliers and retail
tricity service supplier.                         electricity consumers access to the Oregon
     (7) “Retail electricity consumer” means      Community Power transmission facilities and
the end user of electricity for specific pur-     distribution system that is comparable to
poses that is served through the distribution     that provided for Oregon Community Power′s
system of Oregon Community Power,                 own use; and
whether or not the end user purchases the              (b) Electricity service suppliers and retail
electricity from Oregon Community Power.          electricity consumers timely access to infor-
     (8) “Transition charge” and “transition      mation about the Oregon Community Power
credit” have the meanings given those terms       transmission facilities and distribution sys-
in ORS 757.600.                                   tem, metering and loads comparable to that
     (9) “Uneconomic utility investment”          provided to Oregon Community Power′s own
means all investments, including plants and       nondistribution divisions, affiliates and re-
equipment and contractual or other legal ob-      lated parties.
ligations, made by Oregon Community Power              (3) Oregon Community Power shall allow
and properly dedicated to generation, con-        any electricity service supplier that has been
servation and workforce commitments, the          certified by the Public Utility Commission to
full costs of which are no longer recoverable     provide direct access to nonresidential elec-
as a result of direct access, absent transition   tricity consumers. [2007 c.807 §30]
charges. [2007 c.807 §28]                             Note: See note under 757.812.
   Note: See note under 757.812.
                                                      757.922    Transition     credits     and
    757.918 Oregon Community Power re-            charges. (1) Each retail electricity consumer
quired to allow direct access. (1) Oregon         of Oregon Community Power shall receive a
Community Power shall allow nonresidential        transition credit or pay a transition charge
electricity consumers direct access.              as determined under this section.

Title 57                                    Page 62                                    (2007 Edition)
                                UTILITY REGULATION GENERALLY                                757.935

    (2) The total of all transition credits or       (7) Oregon Community Power′s qualifica-
transition charges shall equal the net value     tion standards for electricity service suppli-
of all economic utility investments and all      ers in addition to any certification standards
uneconomic utility investments of Oregon         established by the Public Utility Commission,
Community Power.                                 provided that the qualification standards are
    (3) The board of directors of Oregon         uniformly applied to electricity service sup-
Community Power shall adopt one of the fol-      pliers in a nondiscriminatory manner. [2007
                                                 c.807 §32]
lowing methods to establish the net value
described under subsection (2) of this section        Note: See note under 757.812.
and all procedures connected with the
adopted method:                                           (Consumer-Owned Utilities)
    (a) Auction;                                      757.930 Distribution rights; service
    (b) Administrative valuation; or             territories. (1) Notwithstanding any other
                                                 provision of law, a consumer-owned utility
    (c) Ongoing valuation.                       has exclusive distribution rights, to the ex-
    (4) The transition credit or transition      tent the distribution rights are provided by
charge that applies to a retail electricity      law other than ORS 757.812 to 757.950, and
consumer under this section may change to        exclusive responsibility for the performance
reflect the duration of the service option       and oversight of:
chosen by the consumer, but may not be                (a) The utility′s distribution system, in-
changed because of the electricity service       cluding the acquisition, construction, financ-
supplier chosen by the consumer. [2007 c.807     ing,     operation    and     maintenance     of
§31]
                                                 distribution facilities; and
       Note: See note under 757.812.
                                                      (b) Metering, billing, collection and con-
     757.924 Portfolio access to electricity     sumer response functions related to the dis-
service providers. The board of directors of     tribution of electricity to retail electricity
Oregon Community Power shall determine           consumers located within the utility′s service
whether and under what conditions Oregon         territory.
Community Power will offer retail electricity
consumers portfolio access to electricity ser-        (2) ORS 757.812 to 757.950 do not:
vice suppliers. The board shall have sole au-         (a) Diminish or enlarge the rights of any
thority to determine:                            person under ORS 758.400 to 758.475; or
     (1) The quality and nature of electricity        (b) Affect the administration or enforce-
services, including but not limited to differ-   ment of ORS 758.400 to 758.475. [2007 c.807 §33]
ent product and pricing options, that will be        Note: See note under 757.812.
made available to its retail electricity con-
sumers.
                                                            (Financing Agreements)
     (2) The extent to which products and
services will be unbundled and the rates,             757.935 Definitions for ORS 757.935 to
tariffs, terms and conditions on which they      757.945. As used in ORS 757.935 to 757.945:
may be offered.                                       (1) “Credit enhancement agreement”
     (3) Whether one or more pilot programs      means any agreement or contractual re-
for direct access, portfolio access or other     lationship between Oregon Community
forms of access to alternative suppliers will    Power and any bank, trust company, insur-
be offered.                                      ance company, surety bonding company, pen-
                                                 sion fund or other financial institution
     (4) The degree to which provision of        providing additional credit on or security for
portfolio access necessitates modification of    a financing agreement or certificates of par-
transition credits, transition charges and the   ticipation authorized by ORS 757.935 to
net value described in ORS 757.922 (2) on        757.945.
which transition credits or transition
charges are based.                                    (2) “Financing agreement” means a bond,
                                                 installment sale agreement, loan agreement,
     (5) The establishment of technical capa-    note, note agreement, short-term promissory
bility requirements, financial responsibility    note, commercial paper, line of credit or
requirements and other protections for retail    similar obligation or any other agreement to
electricity consumers located within the Or-     finance real or personal property, tangible or
egon Community Power service territory in        intangible, that is or will be owned and op-
dealings with electricity service suppliers.     erated by Oregon Community Power, to oth-
     (6) Access to or use of the Oregon Com-     erwise borrow money, or to refinance
munity Power transmission facilities or dis-     previously executed financing agreements.
tribution system by retail electricity           [2007 c.807 §34]
consumers or electricity service suppliers.           Note: See note under 757.812.

Title 57                                   Page 63                                    (2007 Edition)
757.937                                    UTILITY REGULATION

    757.937 Financing agreements author-                           757.942 Powers of Oregon Community
ized. (1) Oregon Community Power may en-                      Power relating to financing agreements.
ter into financing agreements in accordance                   Oregon Community Power may:
with ORS 757.935 to 757.945 upon such terms
as the board of directors of Oregon Commu-                         (1) Enter into agreements with third par-
nity Power determines to be necessary or                      ties to hold financing agreement proceeds,
desirable. Amounts payable by Oregon Com-                     payments and reserves as security for lend-
munity Power under a financing agreement                      ers, and to issue certificates of participation
shall be limited to funds specifically pledged,               in the right to receive payments due from
budgeted for or otherwise made available by                   Oregon Community Power under a financing
Oregon Community Power. If there are in-                      agreement. Amounts so held shall be in-
sufficient available funds to pay amounts due                 vested at the direction of the board of direc-
under a financing agreement, the lender may                   tors of Oregon Community Power. Interest
exercise any property rights that Oregon
Community Power has granted to the lender                     earned on any investments held as security
in the financing agreement against the prop-                  for a financing agreement may, at the option
erty that was purchased with the proceeds                     of the board, be credited to the accounts held
of the financing agreement, and may apply                     by the third party and applied in payment of
the amounts so received toward payments                       sums due under a financing agreement.
scheduled to be made by Oregon Community                           (2) Enter into credit enhancement agree-
Power under the financing agreement.
                                                              ments for financing agreements or certif-
    (2) Oregon Community Power may enter                      icates of participation, provided that any
into a financing agreement only following                     credit enhancement agreements shall be pay-
adoption by the board of directors of a reso-
lution authorizing the execution of the fi-                   able solely from funds specifically pledged,
nancing agreement or a series of similar                      budgeted for or otherwise made available by
financing agreements.                                         Oregon Community Power and amounts re-
                                                              ceived from the exercise of property rights
    (3) Any obligation of any kind incurred                   granted under the financing agreements.
by Oregon Community Power shall state on
its face that it is solely an obligation of Or-                    (3) Use financing agreements to finance
egon Community Power. [2007 c.807 §35]                        the costs of acquiring or refinancing real or
    Note: See note under 757.812.                             personal property, either tangible or intangi-
    757.940 Delegation of powers relating                     ble, plus the costs of reserves and credit en-
to financing agreements. The board of di-                     hancements and the costs associated with
rectors of Oregon Community Power may                         obtaining the financing.
delegate to any board member, or to the                            (4) Grant security interests in property
chief executive officer, president, general                   to trustees or lenders.
manager or chief financial officer of Oregon
Community Power, the authority to deter-                           (5) Make pledges for the benefit of trus-
mine maturity dates, principal amounts, re-                   tees and lenders.
demption provisions, interest rates or                             (6) Purchase fire and extended coverage
methods for determining variable or adjusta-                  or other casualty insurance for property that
ble interest rates, denominations, methods of                 is acquired or refinanced with proceeds of a
sale, agreements for the exchange of interest
rates as an issuer under ORS 287.025 and                      financing agreement, assign the proceeds
other terms and conditions of a financing                     thereof to a lender or trustee to the extent
agreement that are not appropriately deter-                   of their interest, and covenant to maintain
mined at the time of enactment or adoption                    any insurance while the financing agreement
of a resolution authorizing the execution of                  is unpaid, as long as available funds are suf-
the financing agreement. The board may also                   ficient to purchase the insurance. [2007 c.807
delegate entering into a financing agreement                  §37]
or any other instrument authorized by law.                           Note: See note under 757.812.
This delegated authority shall be exercised
subject to applicable requirements of law and                     757.945   Consultation     with    State
any limitations and criteria as may be set                    Treasurer. Oregon Community Power may
forth in the resolution authorizing the exe-                  consult with and obtain advice from the
cution of a financing agreement or in Oregon                  State Treasurer on proposed or executed fi-
Community Power bylaws. [2007 c.807 §36]                      nancing agreements. The State Treasurer
     Note: See note under 757.812.                            may recover from Oregon Community Power
     Note: 287.025 was repealed by section 234, chapter       any costs incurred by the State Treasurer in
783, Oregon Laws 2007. The text of 757.940 was not            providing consultation and advice. [2007 c.807
amended by enactment of the Legislative Assembly to           §38]
reflect the repeal. Editorial adjustment of 757.940 for the
repeal of 287.025 has not been made.                                 Note: See note under 757.812.




Title 57                                               Page 64                                       (2007 Edition)
                                UTILITY REGULATION GENERALLY                                               757.993

               (Revenue Bonds)                               utility is punishable, upon conviction, by a
    757.950 Authorization to issue and sell                  fine of not less than $50 nor more than $100
revenue bonds. (1) Oregon Community                          for each offense.
Power may issue and sell revenue bonds in                         (3) Any person violating ORS 757.325
accordance with the provisions of the Uni-                   shall, upon conviction, forfeit and pay to the
form Revenue Bond Act under ORS 288.805                      State Treasurer not less than $100 and not
to 288.945. However, ORS 288.815 does not                    more than $10,000 for each offense. Violation
apply to revenue bonds issued by Oregon                      of ORS 757.325 by any agent or officer of any
Community Power. Revenue bonds issued by                     public utility or person is punishable, upon
Oregon Community Power may not be a                          conviction, by a fine of not less than $100
general obligation of Oregon Community                       and not more than $1,000 for each offense.
Power and may not be a charge upon any                            (4) Violation of ORS 757.330 is a Class A
revenues or property of Oregon Community                     violation.
Power that is not specifically pledged
thereto. Any obligation of any kind incurred                      (5) Violation of ORS 757.445 is punish-
by Oregon Community Power under ORS                          able, upon conviction, by a fine of not less
288.805 to 288.945 is not, and may not be                    than $500 nor more than $20,000 for each of-
considered, an indebtedness of the State of                  fense.
Oregon.                                                           (6) Violation of ORS 757.450 is a felony
    (2) Revenue bonds or other financing                     and is punishable, upon conviction, by a fine
agreements issued by Oregon Community                        of not less than $1,000 nor more than
Power pursuant to ORS 288.805 to 288.945                     $20,000, or by imprisonment in the custody
shall be considered to be bonds or obligations               of the Department of Corrections for not less
of a political subdivision of the State of Ore-              than one nor more than five years, or both.
gon for the purposes of all laws of this state.              [Amended by 1971 c.655 §95; 1979 c.990 §428; 1987 c.320
[2007 c.807 §39]                                             §245; 1999 c.1051 §224]
     Note: See note under 757.812.                               757.991 Civil penalty for noncompli-
     Note: 288.805 to 288.945 (the Uniform Revenue           ance with gas regulations. Any person or
Bond Act) and 288.815 were repealed by section 234,          municipality, or their agents, lessees, trus-
chapter 783, Oregon Laws 2007. The text of 757.950 was       tees or receivers, engaged in the manage-
not amended by enactment of the Legislative Assembly         ment, operation, ownership or control of
to reflect the repeal. Editorial adjustment of 757.950 for
the repeal of 288.805 to 288.945 and 288.815 has not been    facilities for the transmission or distribution
made.                                                        of gas by pipeline, or facilities for the storage
                                                             or treatment of gas to be transmitted or dis-
            (City Rights of Way)                             tributed by pipeline, who fails to do any act
                                                             required by ORS 757.039, or fails to comply
    757.954 City′s authority to control,                     with any orders, rules or regulations of the
and collect charges for, use of rights of                    Public     Utility     Commission      made    in
way. ORS 757.812 to 757.950 do not diminish,                 pursuance of ORS 757.039, shall forfeit and
or authorize the adoption of rules that di-                  pay into the State Treasury a civil penalty
minish, the authority of a city to control the               not to exceed $10,000 for each such failure
use of the city′s rights of way or to collect                for each day such failure persists, except
license fees, privilege taxes, rent or other                 that the maximum civil penalty shall not ex-
charges for the use of the rights of way of                  ceed $500,000 for any related series of fail-
the city. [2007 c.807 §42]                                   ures. [1969 c.372 §4; 1991 c.199 §1]
    Note: See note under 757.812.                                757.992 [Formerly 758.990; renumbered 165.990]
                                                                  757.993 Penalty for violation of utility
                PENALTIES                                    excavation notification provisions. (1) Ex-
     757.990 Penalties. (1) Any person or mu-                cept as provided in subsection (2) of this
nicipality, or their agents, lessees, trustees               section and in addition to all other penalties
or receivers, who omits, fails or refuses to                 provided by law, every person who violates
do any act required by ORS 757.035, or fails                 or who procures, aids or abets in the vio-
to comply with any orders, rules or regu-                    lation of any rule of the Oregon Utility No-
lations of the Public Utility Commission                     tification Center shall incur a penalty of not
made in pursuance of ORS 757.035, shall for-                 more than $1,000 for the first violation and
feit and pay into the State Treasury a sum                   not more than $5,000 for each subsequent vi-
of not less than $100, nor more than $10,000                 olation.
for each such offense.                                            (2) In addition to all other penalties pro-
     (2) Any public utility violating ORS                    vided by law, every person who intentionally
757.310 commits a Class A violation and                      violates or who intentionally procures, aids
upon conviction the court shall impose a fine                or abets in the violation of any rule of the
of not less than $100. Violation of ORS                      Oregon Utility Notification Center shall
757.310 by an officer or agent of a public                   incur a penalty of not more than $5,000 for

Title 57                                              Page 65                                      (2007 Edition)
757.994                           UTILITY REGULATION

the first violation and not more than $10,000         (7) Notwithstanding any other provision
for each subsequent violation.                    of law, the commission shall pay penalties
     (3) Each violation of any rule of the Or-    recovered under this section to the Oregon
egon Utility Notification Center shall be a       Utility Notification Center.
separate offense. In the case of a continuing         (8) The commission shall not seek penal-
violation, each day that the violation contin-    ties under this section except in response to
ues shall constitute a separate violation.        a complaint alleging a violation of a rule or
     (4) Penalties under this section shall not   rules adopted by the Oregon Utility Notifi-
be imposed except by order following com-         cation Center. The commission may investi-
plaint as provided in ORS 756.500 to 756.610.     gate any such complaint, and the commission
A complaint must be filed within two years        shall have sole discretion to seek penalties
following the date of the violation.              under this section. [1995 c.691 §7]
     (5) The Public Utility Commission may            757.994 Civil penalty for violation of
reduce any penalty provided in this section       statute, rule or order related to water
on such terms as the commission considers         utilities. (1) In addition to all other penalties
proper if:                                        provided by law, a person who violates any
     (a) The defendant admits to the violation    statute, rule or order of the Public Utility
or violations alleged in the complaint and        Commission related to water utilities is sub-
makes a timely request for reduction of the       ject to a civil penalty of not more than $500
penalty; or                                       for each violation. The commission may re-
                                                  quire that penalties imposed under this sec-
     (b) The defendant submits to the com-        tion be used for the benefit of the customers
mission a written request for reduction of        of water utilities affected by the violation.
the penalty within 15 days from the date of
the penalty order.                                    (2) Notwithstanding ORS 183.745 (7)(d),
                                                  183.315 (6) and 756.500 to 756.610, civil pen-
     (6) If the amount of the penalty is not      alties under this section must be imposed by
paid to the commission, the Attorney Gen-         the commission as provided in ORS 183.745.
eral, at the request of the commission, shall     [2003 c.202 §3]
bring an action in the name of the State of            Note: 757.994 was enacted into law by the Legisla-
Oregon in the Circuit Court for Marion            tive Assembly but was not added to or made a part of
County to recover the penalty. The action         ORS chapter 757 or any series therein by legislative
shall not be commenced until after the time       action. See Preface to Oregon Revised Statutes for fur-
                                                  ther explanation.
has expired for an appeal from the findings,
conclusions and order of the commission.




Title 57                                    Page 66                                     (2007 Edition)
                                          Chapter 758
                                             2007 EDITION

           Utility Rights of Way and Territory Allocation;
                             Cogeneration

                    RIGHTS OF WAY                         758.315   Water utility service provided by persons
758.010    Authority to construct lines and facilities;             not designated by commission; remedy
           requirements and conditions                    758.320   Application of ORS 758.300 to 758.320 to
758.015    Certificate of public convenience and ne-                cities; effect on certain voluntary associ-
           cessity                                                  ations; existing franchise; exception
758.020    Joint occupancy of poles                                 ELECTRIC AND GAS UTILITIES;
758.035    Commission′s power to enforce joint use                  ALLOCATION OF TERRITORIES
           of facilities                                                    AND CUSTOMERS
                                                          758.400   Definitions for ORS 758.015 and 758.400 to
          UNDERGROUND ELECTRIC AND                                  758.475
          COMMUNICATIONS FACILITIES                       758.405   Purpose of ORS 758.400 to 758.475
758.210   Policy                                          758.410   Contracts for allocation of territories and
758.215   Definitions for ORS 758.210 to 758.270                    customers; transfer of facilities
758.220   Authority for conversion to underground         758.415   Enforceability of contract approved by
          facilities; formation of assessment district              commission; conditions for approval
758.225   Petition, ordinance or resolution for con-      758.420   Filing of contract; hearing on contract;
          version; contents; filing                                 notice
758.230   Assessment procedure; objections to con-        758.425   Order of commission on contract
          version                                         758.430   Amendment of contract; approval of
758.235   Applicability of local improvement laws;                  commission
          issuance of bonds                               758.435   Application for allocation of territory;
758.240   Contract with utility for conversion                      hearing; notice
758.245   Payment of costs for conversion; removal        758.440   Order of commission on application
          of overhead facilities                          758.445   Judicial review of order on application
758.250   Conversion of facilities on private lands;      758.450   Contract required for allocation of terri-
          procedure; payment of costs                               tory; prohibited activities; exceptions;
                                                                    third party financing
758.255   Discontinuance of utility service for non-
          compliance with conversion provisions           758.455   Investigation by commission respecting
                                                                    contracts or applications; hearing proce-
758.260   Competitive bidding for utility conversion                dure
758.265   Overhead facilities in assessment district      758.460   Assignment or transfer of rights acquired
          after conversion                                          by allocation; approval of commission
758.270   Effect of ORS 758.210 to 758.270 on existing    758.465   Enforcement procedure
          laws and rights
                                                          758.470   Application to cities, municipalities and
                                                                    cooperatives of ORS 758.400 to 758.475
      LIABILITY OF ELECTRIC UTILITY FOR
           PRUNING AND REMOVING                           758.475   Fees
                   VEGETATION
                                                                      TROJAN NUCLEAR PLANT
758.280  Definitions for ORS 758.280 to 758.286
                                                          758.480   Assumption of obligations arising out of
758.282  Immunity of electric utility for pruning                   Trojan Nuclear Plant
         or removing vegetation in certain cases
758.284  Immunity of electric utility for pruning               COGENERATION AND SMALL POWER
         or removing vegetation in other cases;                       PRODUCTION FACILITIES
         notice to property owner                         758.505 Definitions for ORS 758.505 to 758.555
758.286  Immunity not applicable to liability for         758.515 Legislative findings
         cost of abating fires
                                                          758.525 Avoided cost schedules; filing; require-
                  WATER UTILITIES                                 ment to purchase energy from qualifying
                                                                  facilities
758.300    Definitions for ORS 758.300 to 758.320         758.535 Criteria for qualifying facility; terms and
758.302    Application for exclusive service territory            conditions of energy sale
758.305    Exclusive service territories                  758.545 Electric utility required to make good
758.310    Assignment or transfer of rights in exclu-             faith effort to transmit energy; remedy
           sive service territory; approval of com-       758.555 Effect of energy sales on qualifying facil-
           mission                                                ity




Title 57                                            Page 1                                     (2007 Edition)
           UTILITY REGULATION




Title 57         Page 2         (2007 Edition)
                    RIGHTS OF WAY; ALLOCATION; COGENERATION                                        758.020

              RIGHTS OF WAY                              same areas, and such other information in
                                                         such form as the commission may reasonably
     758.010 Authority to construct lines                require in determining the public conven-
and facilities; requirements and condi-                  ience and necessity.
tions. (1) Except within cities, any person or
corporation has a right and privilege to con-                 (2) The commission shall give notice and
struct, maintain and operate its water, gas,             hold a public hearing on such petition. The
electric or communication service lines, fix-            commission, in addition to considering facts
tures and other facilities along the public              presented at such hearing, shall make the
roads in this state, as defined in ORS 368.001           commission′s own investigation to determine
or across rivers or over any lands belonging             the necessity, safety, practicability and justi-
to the state, free of charge, and over lands             fication in the public interest for the pro-
of private individuals, as provided in ORS               posed transmission line and shall enter an
772.210. Such lines, fixtures and facilities             order accordingly. The order shall be subject
shall not be constructed so as to obstruct               to review as in other cases. In any proceed-
any public road or navigable stream.                     ing for condemnation, a certified copy of
                                                         such order shall be conclusive evidence that
     (2) A county governing body and the De-             the transmission line for which the land is
partment of Transportation have authority to             required is a public use and necessary for
designate the location upon roads under                  public convenience.
their respective jurisdiction, outside of cities,
where lines, fixtures and facilities described                (3) This section shall not apply to con-
in this section may be located, and may order            struction of transmission lines in connection
the location of any such line, fixture or fa-            with a project for which a permit or license
cility to be changed when such governing                 is otherwise obtained pursuant to state or
body or department deems it expedient. Any               federal law.
line, fixture or facility erected or remaining                (4) As used in this section and ORS
in a different location upon such road than              758.020, “transmission company” means a
that designated in any order of the governing            person or entity that owns or operates high
body or department is a public nuisance and              voltage transmission lines and is subject to
may be abated accordingly.                               the jurisdiction of the Federal Energy Regu-
     (3) The state officer, agency, board or             latory Commission. “Transmission company”
commission having jurisdiction over any land             does not include a cooperative organized un-
belonging to the state with respect to which             der ORS chapter 62. [1961 c.691 §19; 2001 c.913 §6]
the right and privilege granted under sub-                    758.020 Joint occupancy of poles. (1)
section (1) of this section is exercised may             The county court, board of county commis-
impose reasonable requirements for the lo-               sioners or the Department of Transportation,
cation, construction, operation and mainte-              when designating the location where poles
nance of the lines, fixtures and facilities on           or other aboveground facilities described in
such land. The person or corporation exer-               ORS 758.010 may be placed on a road or
cising such right and privilege over any land            highway which fronts on the ocean or on a
belonging to the state shall pay the current             river or other body of water and the water
market value for the existing forest products            frontage of the highway is being developed
that are damaged or destroyed in exercising              or maintained for its scenic or recreational
such right and privilege. Such right and                 value, may require all lines to occupy the
privilege of any person or corporation is                opposite side of the right of way, if such joint
conditioned upon compliance with the re-                 occupancy can be maintained without undue
quirements imposed by this subsection.                   impairment of service or damage to public
[Amended by 1955 c.123 §1; 1971 c.655 §100; 1981 c.153   life and property.
§76; 2001 c.664 §§3,6]
                                                              (2) If the owners of such lines are unable
     758.015 Certificate of public conven-               to agree on the terms and conditions of joint
ience and necessity. (1) When any person,                occupancy, such department, court or board
as defined in ORS 758.400, providing electric            shall request the Public Utility Commission
utility service, as defined in ORS 758.400, or           to determine the practicability of such joint
any transmission company, proposes to con-               occupancy and the effect thereof upon ade-
struct an overhead transmission line which               quate and safe service by the prospective
will necessitate a condemnation of land or               joint occupants, the location of the lines,
an interest therein, it shall petition the Pub-          and, if found to be practicable, to fix and
lic Utility Commission for a certificate of              prescribe the terms and conditions pursuant
public convenience and necessity setting                 to which joint occupancy shall be accom-
forth a detailed description and the purpose             plished. Before making or entering an order,
of the proposed transmission line, the esti-             such commission shall hold a hearing and
mated cost, the route to be followed, the                make findings in accordance with ORS
availability of alternate routes, a description          756.500 to 756.610. The order of the commis-
of other transmission lines connecting the               sion is subject to judicial review as an order

Title 57                                           Page 3                                   (2007 Edition)
758.035                                 UTILITY REGULATION

in a contested case in the manner provided                The order may be modified by the commis-
by ORS 756.610. In fixing terms and condi-                sion upon application of any interested party
tions pursuant to which joint occupancy                   or upon the commission′s own motion. All
shall be accomplished, the Public Utility                 public utilities and telecommunications utili-
Commission shall require the installation by              ties shall afford all reasonable facilities and
each occupant of standards, devices and                   make all necessary regulations for the inter-
equipment reasonably necessary to protect                 change of business, or traffic carried or their
the equipment of the other occupants from                 product between them, when ordered by the
damage and the public from injury arising                 commission so to do. [Formerly 757.040; 1987 c.447
from such joint occupancy.                                §99; 2005 c.638 §12]
                                                               758.040 [Renumbered 757.606]
    (3) The right of any public utility, tele-
communications utility or transmission com-                    758.050 [Renumbered 757.611]
pany to construct, maintain and operate on                     758.060 [Amended by 1971 c.743 §426; renumbered
a public highway poles or fixtures is contin-             757.616]
gent on compliance with reasonable require-                    758.070 [Renumbered 757.621]
ments established by the Department of                         758.080 [Renumbered 757.626]
Transportation, county courts, boards of                       758.090 [Renumbered 757.631]
county commissioners or the Public Utility                     758.100 [Renumbered 757.636]
Commission under authority of this section                     758.110 [Renumbered 757.641]
and ORS 758.010. Such rights are likewise
contingent and conditioned on all facilities,
equipment and installations being con-                        UNDERGROUND ELECTRIC AND
structed and maintained in strict conform-                     COMMUNICATIONS FACILITIES
ance with modern and approved standards.                       758.210 Policy. The legislature finds that
[Amended by 1971 c.655 §102; 1987 c.447 §98; 2001 c.913   in many areas of this state landowners, util-
§7; 2005 c.638 §11]                                       ities and public authorities desire to convert
     758.030 [Renumbered 271.440]                         existing overhead electric and communica-
    758.035 Commission′s power to en-                     tion facilities to underground facilities by
force joint use of facilities. (1) Every pub-             means of special assessment proceedings. The
lic    utility,  telecommunications    utility,           legislature declares that a public purpose
person, association or corporation having                 will be served and that the public welfare
conduits, subways, street railway tracks,                 will be promoted by providing a procedure to
poles or other equipment on, over or under                accomplish such conversion by special as-
any street or highway shall for a reasonable              sessment proceedings and that it is in the
compensation permit the use of the same by                public interest for such conversion to be ac-
any public utility or telecommunications                  complished as provided in ORS 758.210 to
utility whenever public convenience or ne-                758.270. [1969 c.385 §1]
cessity requires such use and such use will                    758.215 Definitions for ORS 758.210 to
not result in irreparable injury to the owner             758.270. As used in ORS 758.210 to 758.270,
or other users of such equipment nor in any               unless the context requires otherwise:
substantial detriment to the service to be                     (1) “Convert,” “converting” or “conver-
rendered by such owners or other users.                   sion” means the removal of overhead electric
    (2) In case of failure to agree upon such             or communication facilities and the replace-
use or the conditions or compensation for                 ment thereof with underground electric or
such use, any public utility, telecommuni-                communication facilities at the same or dif-
cations utility, person, association or corpo-            ferent locations.
ration interested may apply to the Public                      (2)    “Electric     or     communication
Utility Commission, and if after investigation            facilities” means any works or improvements
the commission ascertains that public con-                used or useful in providing electric or com-
venience or necessity requires such use and               munication service, including but not limited
that it would not result in irreparable injury            to poles, supports, tunnels, manholes, vaults,
to the owner or other users of such equip-                conduits, pipes, wires, conductors, guys,
ment, the commission shall by order direct                stubs, platforms, crossarms, braces, transfor-
that such use be permitted and prescribe                  mers, insulators, cutouts, switches, capaci-
reasonable conditions and compensation for                tors,    meters,      communication    circuits,
such joint use.                                           appliances, attachments and appurtenances,
    (3) The use so ordered shall be permitted             and all related facilities required for the ac-
and the prescribed conditions and compensa-               ceptance of electric or communication ser-
tion shall be the lawful conditions and com-              vices; however:
pensation to be observed, followed and paid.                   (a) “Electric facilities” does not include
The order of the commission is subject to                 any facilities used or intended to be used for
judicial review as an order in a contested                the transmission of electric energy at nomi-
case in the manner provided by ORS 756.610.               nal voltages in excess of 35,000 volts.

Title 57                                            Page 4                                    (2007 Edition)
                     RIGHTS OF WAY; ALLOCATION; COGENERATION                                      758.230

    (b) “Communication facilities” does not                   (2) An underground assessment district
include facilities used or intended to be used            shall include an area having a frontage of
for the transmission of intelligence by                   not less than 400 feet upon a public street,
microwave or radio, apparatus cabinets or                 road or highway along which overhead elec-
outdoor public telephones.                                tric or communication facilities are located.
    (c)      “Electric     or       communication             (3) An underground assessment district:
facilities” does not include any electric or                  (a) Created by a city, may include area
communication facilities owned or used by                 along city streets, county roads and state
or provided for a railroad or pipeline and lo-            highways or any part thereof located within
cated upon or above the right of way of the               the district.
railroad or pipeline.
                                                              (b) Created by a county, may include
    (3) “Landowner” or “owner” means the                  areas along county roads, state highways or
owner of the title to real property or the                any part thereof located within the district.
contract purchaser of real property of record             [1969 c.385 §3]
as shown on the last available complete as-
sessment roll in the office of the county as-                  758.225 Petition, ordinance or resolu-
sessor.                                                   tion for conversion; contents; filing. (1) A
                                                          proceeding for conversion may be initiated:
    (4) “Overhead electric or communication
facilities” means electric or communication                    (a) By a petition signed by not less than
facilities located above the surface of the               60 percent of the landowners within the pro-
ground.                                                   posed assessment district who own not less
    (5) “Public authority” means a city or                than 60 percent of the land area within the
county.                                                   district; or
    (6) “Public lands and right of way” in-                    (b) By an ordinance or resolution of a
cludes rights of way for streets, roads and               public authority declaring its intention to
highways and all land or interests in land                order a conversion.
owned by a public authority.                                   (2) A petition shall:
    (7) “Underground assessment district” or                   (a) Describe the proposed boundaries of
“district” means an assessment district cre-              the assessment district;
ated as provided by ORS 758.210 to 758.270.                    (b) Generally describe the proposed con-
    (8) “Underground electric or communica-               version; and
tion facilities” means electric or communica-                  (c) Request that a proceeding for such
tion facilities located below the surface of              conversion be taken pursuant to ORS 758.210
the ground exclusive of those facilities such             to 758.270.
as substations, transformers, pull boxes, ser-
vice terminals, pedestal terminals, splice clo-                (3) The petition shall be filed with the
sures, apparatus cabinets and similar                     city recorder, county clerk or other person
facilities which normally are above the sur-              designated by the public authority to receive
face in areas where utility facilities are                the petition and to verify the signatures. If
underground in accordance with standard                   the petition is signed by the requisite num-
underground practices.                                    ber of qualified signers, the official so desig-
    (9) “Utility” means any electric or com-              nated shall execute a certificate of
munication utility described by ORS 757.005               sufficiency and present the petition and cer-
or any telecommunications utility described               tificate to the governing body of the city or
by ORS 759.005, any plant owned or operated               to the county court or board of county com-
by a municipality, any person furnishing                  missioners, as the case may be. [1969 c.385 §4]
community antenna television service to the                    758.230 Assessment procedure; ob-
public and any cooperative corporation or                 jections to conversion. (1) Upon presenta-
people′s utility district engaged in furnishing           tion of the petition and certificate of
electric or communication service to con-                 sufficiency, or upon adoption of an ordinance
sumers. [1969 c.385 §2; 1971 c.360 §1; 1987 c.447 §100]   or resolution, the public authority shall pro-
    758.220 Authority for conversion to                   ceed in the manner provided by ORS 223.389.
underground facilities; formation of as-                       (2) Unless the charter of a county pro-
sessment district. (1) A public authority                 vides otherwise, a county shall declare a
shall have the power to require the conver-               proposed conversion abandoned if, after no-
sion of overhead electric or communication                tice as provided by ORS 223.389, objections
facilities to underground facilities; to provide          to the conversion are received by a county
and receive funds to pay for such conversion;             court or board of county commissioners
and to assess the whole or any part of the                signed by more than 50 percent of the land-
cost thereof against the real property in-                owners within the proposed assessment dis-
cluded in the underground assessment dis-                 trict who own more than 50 percent of land
trict specially benefited by such conversion.             within the district. If a proposed conversion

Title 57                                            Page 5                                 (2007 Edition)
758.235                            UTILITY REGULATION

is abandoned because of objections, no new              (2) Upon approval and execution of the
proceeding for the conversion shall be             conversion contracts by the utilities and
undertaken within a period of one year             public authority, the public authority shall
thereafter. [1969 c.385 §5]                        direct the utilities owning overhead electric
                                                   or communication facilities within the dis-
    758.235 Applicability of local improve-        trict to convert such facilities as required by
ment laws; issuance of bonds. Unless oth-          the contract. [1969 c.385 §7]
erwise provided by ORS 758.210 to 758.270,
the provisions relating to the procedure for            758.245 Payment of costs for conver-
local improvements in cities, as set forth in      sion; removal of overhead facilities. Upon
ORS 223.205, 223.210 to 223.295, 223.387 to        completion of the conversion of the overhead
223.399, 223.401, 223.405 to 223.485, 223.505 to   electric or communication facilities on public
223.595, 223.610, 223.615 to 223.650 and           lands and right of way to underground, the
223.770, apply to proceedings for a conver-        affected utility shall file a verified statement
sion by a city or county under ORS 758.210         of the costs of such conversion with the
to 758.270. In a proceeding conducted by a         public authority. The public authority shall
county, where the statutes referred to in this     adopt an ordinance assessing the whole or
section refer to officials of cities, the corre-   any part of the cost of the conversion against
sponding officials of the county shall perform     the real property in the underground assess-
the required functions, unless otherwise pro-      ment district specifically benefited and shall
vided by order of the county court or board        promptly thereafter mail to each landowner
of county commissioners. Cities and counties       a statement of the amount of such costs as-
may, as provided by ORS 223.205 and 223.210        sessed to the property of the landowner.
to 223.295, issue improvement bonds in the         With the statement the public authority shall
total amount of the valid applications re-         mail to each landowner a notice stating that:
ceived to pay assessments in installments.              (1) Service from the underground facili-
[1969 c.385 §6; 1995 c.333 §20]                    ties is available;
     758.240 Contract with utility for con-             (2) The landowner has 90 days after the
version. (1) When a public authority in ac-        date of the mailing of such notice to convert
cordance with ORS 758.230 determines that          all overhead electric or communication facil-
a conversion shall be made, it may contract        ities providing service to any structure or
with the utilities supplying electric or com-      improvement located on the lot or parcel to
munication service within the underground          underground service facilities; and
assessment district to perform the conver-              (3) After the 90-day period following the
sion. A contract shall provide:                    date of the mailing of the notice, the public
     (a) A description of the electric and         authority will order the utilities to discon-
communication facilities to be converted;          nect and remove all overhead electric and
     (b) That plans and specifications for such    communication facilities providing service to
conversion shall be supplied or approved by        any structure or improvement within the
                                                   area. [1969 c.385 §8]
the affected utility;
     (c) The time and manner in which                  758.250 Conversion of facilities on pri-
underground electric and communication fa-         vate lands; procedure; payment of costs.
cilities will be installed and overhead elec-      (1) Any conversion of electric or commu-
                                                   nication service facilities, including service
tric and communication facilities will be          connections, located on a privately owned lot
removed;                                           or parcel shall be made at the expense of the
     (d) The estimated cost of converting          landowner by the utility owning the facility.
overhead facilities located on public lands        The conversion shall be made in accordance
and right of way to underground facilities;        with applicable safety rules, codes, regu-
     (e) The estimated cost of converting re-      lations, tariffs or ordinances. The utility
lated utility service facilities located on pri-   shall not be required to convert service lines
                                                   on property, other than public lands and
vately owned lots and parcels;                     right of way, until the landowner furnishes
     (f) The time and manner of making pay-        to the utility a permit or easement authoriz-
ments and the source of funds for such pay-        ing the utility and its employees, agents and
ments; and                                         contractors to enter upon real property of
     (g) That upon completion of the work of       the landowner for the purpose of performing
conversion, the utility performing the con-        conversion work thereon.
version shall have legal title to the electric         (2) Upon completion of the conversion of
or communication facilities, which shall           overhead electric or communication service
thereafter constitute a part of a system of        facilities on privately owned lots and parcels
the utility and be used, operated, maintained      within a district, the utility shall file with
and managed by it as part of its system.           the public authority a verified statement of

Title 57                                     Page 6                                 (2007 Edition)
                  RIGHTS OF WAY; ALLOCATION; COGENERATION                                         758.284

the costs of the conversion of such service         of manufacturing, transforming, transmitting,
facilities of each landowner in the district.       distributing, selling or furnishing electricity.
Promptly thereafter the public authority                (2) “Electric utility” has the meaning
shall mail to each landowner a copy of such         given that term in ORS 758.505.
verified statement. [1969 c.385 §9]
                                                        (3) “Vegetation” means trees, shrubs,
    758.255 Discontinuance of utility ser-          vines and all other plants. [2001 c.420 §1]
vice for noncompliance with conversion                    Note: 758.280 to 758.286 were enacted into law by
provisions. If the owner of any structure or        the Legislative Assembly but were not added to or made
improvement served from the overhead elec-          a part of ORS chapter 758 or any series therein by leg-
tric or communication service facilities            islative action. See Preface to Oregon Revised Statutes
within an underground assessment district           for further explanation.
does not grant the utility a permit or ease-             758.282 Immunity of electric utility for
ment referred to in ORS 758.250 or if such          pruning or removing vegetation in cer-
an owner fails to convert to underground            tain cases. (1) An electric utility is immune
service facilities within 90 days after the         from any civil liability for pruning or remov-
mailing to the owner of the notice provided         ing vegetation that is growing on property
by ORS 758.245, the public authority shall          on which electric facilities are located, or
order the utility to complete the conversion        growing on property that is adjacent to
and to disconnect and remove all overhead           property on which electric facilities are lo-
facilities, including service facilities, provid-   cated, if the pruning or removal is consistent
ing service to such structure or improve-           with policies of the Public Utility Commis-
ment. [1969 c.385 §10]                              sion relating to the pruning or removal of
    758.260 Competitive bidding for utility         vegetation, or is consistent with a local or-
conversion. To the extent that the contract         dinance or resolution applicable to the prop-
between the utility and the public authority        erty that relates to the pruning or removal
provides that all or any part of the conver-        of vegetation, and:
sion work shall be performed by the utility,             (a) The vegetation has come in contact
any statute or charter provision requiring          with or caused damage to electric facilities;
competitive bidding and the award of a con-         or
tract to the lowest responsible bidder does              (b) Pruning or removing the vegetation
not apply. [1969 c.385 §11]                         is necessary to protect life or property or to
    758.265 Overhead facilities in assess-          restore electric service.
ment district after conversion. Once con-                (2) ORS 105.810 and 105.815 do not apply
verted,      no     overhead        electric   or   to any claim against an electric utility based
communication facilities shall be installed,        on the pruning or removal of vegetation
maintained or operated in any underground           growing on property on which electric facili-
assessment district except as authorized by         ties are located, or growing on property that
ORS 758.210 to 758.270. [1969 c.385 §12]            is adjacent to property on which electric fa-
    758.270 Effect of ORS 758.210 to 758.270        cilities are located. [2001 c.420 §2]
on existing laws and rights. ORS 758.210                Note: See note under 758.280.
to 758.270 are supplemental and cumulative
of existing rights, laws, charters, ordinances          758.284 Immunity of electric utility for
and franchises and shall not abrogate or            pruning or removing vegetation in other
modify any franchise granted to a utility by        cases; notice to property owner. (1) An
any local government or abrogate or modify          electric utility is immune from any civil li-
in any way existing rights, laws, charters or       ability for pruning or removing vegetation
ordinances of any local government. [1969 c.385     that is growing on property on which electric
§13]                                                facilities are located, or growing on property
                                                    that is adjacent to property on which electric
                                                    facilities are located, if the pruning or re-
LIABILITY OF ELECTRIC UTILITY FOR                   moval is consistent with policies of the Pub-
       PRUNING AND REMOVING                         lic Utility Commission relating to the
               VEGETATION                           pruning or removal of vegetation, or is con-
    758.280 Definitions for ORS 758.280 to          sistent with a local ordinance or resolution
758.286. For the purposes of ORS 758.280 to         applicable to the property that relates to the
758.286:                                            pruning or removal of vegetation, and any of
    (1) “Electric facilities” means lines,          the following apply:
conduits, ducts, poles, wires, pipes, conduc-           (a) The vegetation to be pruned or re-
tors, cables, crossarms, receivers, transmit-       moved is hanging over electric facilities or
ters, transformers, instruments, machines,          growing in such close proximity to overhead
appliances and all other devices and                electric facilities that the vegetation consti-
apparatuses used, operated, owned or con-           tutes an electrical hazard under any elec-
trolled by an electric utility for the purposes     trical safety code adopted by the Public

Title 57                                      Page 7                                      (2007 Edition)
758.286                            UTILITY REGULATION

Utility Commission or constitutes a danger                     WATER UTILITIES
under state or federal health and safety              758.300 Definitions for ORS 758.300 to
codes to a person working on the facilities       758.320. As used in ORS 758.300 to 758.320:
or with access to the facilities.
                                                      (1) “Commission” means the Public Util-
    (b) The vegetation to be removed is dis-      ity Commission.
eased, dead or dying or is close enough to            (2) “Community water supply system”
electric facilities that pruning or removal of    means a water source and distribution sys-
the vegetation is necessary to avoid contact      tem, whether publicly or privately owned,
between the vegetation and electric facilities.   that serves more than three residences or
A determination under this paragraph must         other users to whom water is provided for
be made by a qualified forester or arborist if    public consumption, including but not limited
a local ordinance or resolution requires that     to schools, farm labor camps, industrial es-
such determinations be made by a qualified        tablishments, recreational facilities, restau-
forester or arborist.                             rants, motels, mobile home parks or group
                                                  care homes.
    (c) The vegetation is of such size, condi-
tion and proximity to electric facilities that        (3) “Water utility” means any corpo-
the vegetation can reasonably be expected to      ration, company, individual or association of
cause damage to electric facilities in the fu-    individuals, or its lessees, trustees or receiv-
ture. A determination under this paragraph        ers, that owns, operates, manages or controls
must be made by a qualified forester or           all or a part of any plant or equipment in
                                                  this state for the production, transmission,
arborist if a local ordinance or resolution       delivery or furnishing of water, directly or
requires that such determinations be made         indirectly to or for the public, whether or
by a qualified forester or arborist.              not such plant or equipment or part thereof
    (2) The limitation on liability provided by   is wholly within any town or city. “Water
this section does not apply unless the elec-      utility” does not include a municipal corpo-
tric utility has provided notice to owners of     ration. [1999 c.695 §1]
the property where the vegetation is located.           Note: 758.300 to 758.320 were enacted into law by
Notice may be provided by posting a flyer in      the Legislative Assembly but were not added to or made
                                                  a part of ORS chapter 758 or any series therein by leg-
a conspicuous location on the property where      islative action. See Preface to Oregon Revised Statutes
the vegetation is located. The flyer must:        for further explanation.
    (a) Indicate that the electric utility in-         758.302 Application for exclusive ser-
tends to prune or remove vegetation on the        vice territory. (1) A water utility may apply
property;                                         to the Public Utility Commission for an or-
                                                  der designating an exclusive service territory
    (b) Include a brief statement of the na-      for the water utility. The commission may
ture of the work to be performed and the          designate as an exclusive service territory
reason the work is needed;                        any area that on the date of application is
    (c) Include an estimate of the time period    being served in an adequate manner by the
during which the work will occur; and             applicant and is not being served by any
                                                  other water provider.
    (d) Provide information on how the elec-
tric utility can be contacted.                         (2) In addition to the area described in
                                                  subsection (1) of this section, a private water
    (3) The limitation on liability provided by   utility may apply for inclusion in an exclu-
this section does not apply unless the prun-      sive service territory designated for the pri-
ing or removal complies with rules adopted        vate water utility any area adjacent to the
by the Public Utility Commission relating to      area described in subsection (1) of this sec-
pruning or removal. In adopting rules, the        tion if:
commission shall give consideration to the             (a) The applicant plans to extend service
American National Standard for Tree Care          to the adjacent area in the six months im-
Operations adopted by the American Na-            mediately following the date of the applica-
tional Standards Institute. [2001 c.420 §3]       tion;
   Note: See note under 758.280.                       (b) The adjacent area is not being served
                                                  by any other water provider; and
     758.286 Immunity not applicable to li-
ability for cost of abating fires. The im-             (c) The applicant demonstrates that it is
munities provided by ORS 758.280 to 758.284       more economical and feasible to provide ser-
                                                  vices to the adjacent area by an extension
do not affect any liability that an electric      of the applicant′s existing facilities than by
utility may have for the costs of abating fires   an extension of the facilities of another wa-
under ORS 477.064 to 477.120. [2001 c.420 §4]     ter provider or community water supply sys-
   Note: See note under 758.280.                  tem.

Title 57                                    Page 8                                      (2007 Edition)
                    RIGHTS OF WAY; ALLOCATION; COGENERATION                                   758.310

    (3) An application under this section               758.305 Exclusive service territories.
shall be made on forms provided by the com-        (1) Designated service territories of a water
mission and shall contain all information re-      utility approved by the Public Utility Com-
quired by commission rule.                         mission shall be exclusive. A water utility or
    (4) Within 30 days after the filing of an      community water supply system shall not
application under this section, the commis-        provide water utility service within the des-
sion shall give notice of the filing:              ignated exclusive service territory of another
                                                   water utility without the express approval of
    (a) By publication at least once weekly        the commission.
for two consecutive weeks in a newspaper or
newspapers of general circulation in the area           (2) A water utility shall serve only cus-
described in the application; and                  tomers within its designated exclusive ser-
                                                   vice territory and shall serve all applicants
    (b) By written notice of the application       for service within its designated territory.
to all other water providers in the areas ad-      The water utility may refuse service only as
jacent to the area described in the applica-
tion.                                              provided by commission rule.
    (5) The commission may, on its own mo-              (3) Upon petition by the water utility for
tion, hold a hearing on the application. The       an order, or by the commission on its own
commission shall hold a hearing on the ap-         motion, a designated service territory may be
plication if a customer of the water utility       expanded to include unserved areas. In re-
requests a hearing on the application within       viewing a petition, the commission shall
30 days after the final publication of notice      consider at least the current ability of the
in the manner required by subsection (4) of        water utility to serve the expanded area, the
this section. If a hearing is scheduled, the       demand for service in the expanded area, the
commission shall give notice of the time and       impact on existing customers and the avail-
place of the hearing in the manner provided        ability of alternative service. The commission
by subsection (4) of this section for notice of    may take other factors into consideration as
the filing of an application. If the hearing is    prescribed by commission rule. Notice and
held by reason of a customer′s request, the        hearing of the proposed expansion shall be
commission shall give notice of the hearing        given as provided in ORS 758.302.
within 30 days after the request is received            (4) Upon petition by the water utility or
by the commission. The hearing shall be held       a customer of the utility for an order, or by
at a place within or conveniently accessible       the commission on its own motion, a desig-
to the area described in the application.          nated exclusive service territory may be de-
    (6) The commission may make such in-           creased upon a showing that the water
vestigations relating to an application under      utility is not providing adequate service to
this section as the commission deems proper,       its customers or does not have the capacity
including physical examination and evalu-          to serve the designated area. Notice of the
ation of the facilities and systems of the ap-     proposed decrease of service territory shall
plicant, estimates of their operating costs        be given as provided in ORS 758.302. [1999
and revenues, and studies of such other in-        c.695 §6]
formation as the commission deems relevant.             Note: See note under 758.300.
    (7) The commission shall enter an order            758.310 Assignment or transfer of
granting or denying an application for an          rights in exclusive service territory; ap-
exclusive service territory under this section.    proval of commission. (1) The rights ac-
The order must contain findings of fact sup-       quired by the designation of an exclusive
porting the order. The commission may grant        service territory may be assigned or trans-
an application subject to such conditions and      ferred only with the approval of the Public
limitations as the commission deems appro-         Utility Commission after a finding that the
priate.                                            assignment or transfer is in the public inter-
    (8) ORS 756.500 to 756.610 govern the          est. However, a hearing is not required if at
conduct of hearings under this section and         least 75 percent of the affected customers
any appeal of the commission′s order.              agree to the proposed assignment or transfer.
    (9) If the commission considers competing          (2) An order designating an exclusive
applications under subsection (2) of this sec-     service territory shall not be construed to
tion to extend exclusive service to the same       confer any property right. However, upon the
area, there is a disputable presumption that       death of an applicant under an approved
applicants have an equal ability to extend,        designation, the executor or administrator
improve, enlarge, build, operate and maintain      shall continue operating the water utility for
existing or proposed facilities. [1999 c.695 §2;   the purpose of transferring such rights for a
2003 c.202 §4]                                     period not to exceed two years from the date
    Note: See note under 758.300.                  of death.

Title 57                                     Page 9                                     (2007 Edition)
758.315                            UTILITY REGULATION

    (3) The territory served by a water utility       (4) A district, as defined in ORS 198.010,
under an order of the commission designat-        that provides water utility service shall be
ing exclusive service territory shall not be      exempt from the requirements of ORS
altered solely as the result of a change in       758.302. However, upon request of the com-
ownership or form of ownership. [1999 c.695 §5]   mission, the district shall provide to the
   Note: See note under 758.300.                  commission a map of its service territory and
                                                  shall in all other respects comply with the
     758.315 Water utility service provided       requirements of ORS 758.300 to 758.320. [1999
by persons not designated by commis-              c.695 §8; 2003 c.202 §6]
sion; remedy. In the event a designated ex-            Note: See note under 758.300.
clusive service territory is served by a
person not authorized by the Public Utility           ELECTRIC AND GAS UTILITIES;
Commission, the commission or the water                ALLOCATION OF TERRITORIES
utility designated by the commission to serve                   AND CUSTOMERS
the area may file an action for injunctive
relief in the circuit court for any county            758.400 Definitions for ORS 758.015
where some or all of the designated service       and 758.400 to 758.475. As used in ORS
territory is located. The action shall proceed    758.015 and 758.400 to 758.475 unless the
as in an action not triable by right to a jury.   context requires otherwise:
Any party to the action may appeal to the             (1) “Allocated territory” means an area
Court of Appeals from the trial court′s order.    with boundaries established by a contract
An injunction ordered under this section          between persons furnishing a similar utility
shall be in addition to any other remedy          service and approved by the Public Utility
provided by law. [1999 c.695 §7]                  Commission or established by an order of the
   Note: See note under 758.300.                  commission approving an application for the
                                                  allocation of territory.
     758.320 Application of ORS 758.300 to
758.320 to cities; effect on certain volun-           (2) “Person” includes individuals, firms,
tary associations; existing franchise; ex-        partnerships, corporations, associations, co-
ception. (1) The provisions of ORS 758.300        operatives and municipalities, or their agent,
to 758.320 shall not be construed to restrict     lessee, trustee or referee.
the powers granted to cities to issue fran-           (3) “Utility service” means service pro-
chises or to restrict the powers of condem-       vided by any equipment, plant or facility for
nation of a municipality.                         the distribution of electricity to users or the
     (2) The provisions of ORS 758.300 to         distribution of natural or manufactured gas
758.320 shall not be construed to restrict the    to consumers through a connected and inter-
formation of homeowners associations pursu-       related distribution system. “Utility service”
ant to ORS chapter 94, cooperatives pursuant      does not include service provided through or
to ORS chapter 62 or districts pursuant to        by the use of any equipment, plant or facili-
ORS chapter 198 within the designated ex-         ties for the production or transmission of
clusive service territory of a water utility. A   electricity or gas which pass through or over
homeowners association, cooperative or dis-       but are not used to provide service in or do
trict may petition the Public Utility Com-        not terminate in an area allocated to another
mission for an order excluding the                person providing a similar utility service.
                                                  [Formerly 757.605; 1979 c.62 §2; 1985 c.550 §8; 1987 c.447
association, cooperative or district from the     §101; 1999 c.59 §232]
exclusive service territory of a water utility.
                                                      758.405 Purpose of ORS 758.400 to
Upon a showing by the association, cooper-        758.475. The elimination and future pre-
ative or district that exclusion is not detri-    vention of duplication of utility facilities is
mental to the public interest, the commission     a matter of statewide concern; and in order
may issue an order excluding the association,     to promote the efficient and economic use
cooperative or district from the exclusive        and development and the safety of operation
service territory of a water utility.             of utility services while providing adequate
     (3) The commission shall recognize the       and reasonable service to all territories and
service territories of a water utility that has   customers affected thereby, it is necessary to
an existing franchise on October 23, 1999,        regulate in the manner provided in ORS
with a municipality as exclusive service ter-     758.400 to 758.475 all persons and entities
ritories. Upon application as provided in ORS     providing utility services. [Formerly 757.610]
758.302, any such water utility may request           758.410 Contracts for allocation of
an order from the commission to designate         territories and customers; transfer of fa-
exclusive service territories in addition to      cilities. (1) Any person providing a utility
those identified in the franchise agreement       service may contract with any other person
if the water utility is providing adequate and    providing a similar utility service for the
exclusive service to areas outside the areas      purpose of allocating territories and custom-
identified in the franchise agreement.            ers between the parties and designating

Title 57                                    Page 10                                       (2007 Edition)
                      RIGHTS OF WAY; ALLOCATION; COGENERATION                                   758.430

which territories and customers are to be          tories       and   customers    affected    thereby.
served by which of said contracting parties;       [Formerly 757.620]
and the territories and customers so allo-              758.420 Filing of contract; hearing on
cated and designated may include all or any        contract; notice. (1) A contract entered into
portion of the territories and customers           pursuant to ORS 758.410 shall be promptly
which are being served by either or both of        filed with the Public Utility Commission, and
the parties at the time the contract is en-        the commission shall, within 30 days after
tered into, or which could be economically         such filing, give notice of such filing. If the
served by the then existing facilities of either   commission chooses or if any customer or
party, or by reasonable and economic exten-        customers request a hearing on the matter
sions thereto.                                     within 30 days of the notice, the commission
    (2) Any such contracting parties may also      shall hold a hearing by telephone or in per-
contract in writing for the sale, exchange,        son. The commission shall give notice of
transfer, or lease of equipment or facilities      such hearing within 30 days of the custom-
located within territory which is the subject      er′s request which notice shall set the date
of the allocation agreed upon pursuant to          and place of hearing on the question as to
subsection (1) of this section. Any sale, ex-      whether or not such contract will be ap-
change, transfer or lease of equipment, plant      proved. The hearing shall be held at a place
or facilities made pursuant to this subsection     within or conveniently accessible to the ter-
by any person which is a “public utility” as       ritories affected by the contract.
defined in ORS 757.005 is also subject to the           (2) The commission shall publish notice
approval of the Public Utility Commission to       of the filing in a newspaper or newspapers
the extent required by ORS chapter 757.            of general circulation in each of the territo-
    (3) The commission may approve a con-          ries affected by the contract. Each such no-
tract entered into under this section that         tice shall be published at least once weekly
authorizes Coos County to construct a na-          for two successive weeks. [Formerly 757.625; 1985
tural gas pipeline into allocated territory in     c.633 §3]
Coos County and that contains terms for the            758.425 Order of commission on con-
allocation of industrial customers in Coos         tract. (1) On the basis of the applicant′s fil-
County between the county and the other            ing or, if there is a hearing, on the record
party to the contract. The contract need not       made at the hearing held pursuant to ORS
specify the territory in which industrial cus-     758.420, the Public Utility Commission shall
tomers subject to the allocation are located.      enter an order either approving or disap-
The commission may approve the provisions          proving the contract as filed, together with
of a contract under this subsection that gov-      any appropriate findings of the facts sup-
ern allocation of industrial customers only if     porting such order.
the commission determines that the pro-
visions promote the purposes specified in              (2) An order of the commission under
ORS 758.405. The commission shall actively         this section is subject to judicial review as
supervise the implementation of any contract       an order in a contested case in the manner
entered into pursuant to this subsection to        provided by ORS 756.610.
ensure that the contract continues to pro-             (3) If the commission approves a contract
mote the purposes specified in ORS 758.405.        and a petition for judicial review is not filed,
A contract entered into under this subsec-         the contract shall be deemed to be valid and
tion is not subject to ORS 758.420 (2).            enforceable for all purposes from the date on
[Formerly 757.615; 2003 c.32 §1]                   which the right to file a petition for judicial
    758.415 Enforceability of contract ap-         review expires. [Formerly 757.630; 1985 c.633 §4; 2005
proved by commission; conditions for ap-           c.638 §13]
proval.      Notwithstanding     any    other          758.430 Amendment of contract; ap-
provisions of law, a contract entered into         proval of commission. Any contract that
pursuant to ORS 758.410, when approved by          has been approved as provided in ORS
the Public Utility Commission as provided in       758.400 to 758.475 may be subsequently
ORS 758.420 to 758.475, shall be valid and         amended by the parties thereto, but any such
enforceable; provided, that the commission         amendatory agreement shall be filed with the
shall approve such a contract only if the          Public Utility Commission and shall thereaf-
commission finds, after a hearing as provided      ter be approved or disapproved by the com-
in ORS 758.420 to 758.475, that the contract       mission in the manner provided in ORS
will eliminate or avoid unnecessary duplicat-      758.420 and 758.425. However, no hearing is
ing facilities, and will promote the efficient     required if all affected customers approve the
and economic use and development and the           amendatory agreement. An amendatory
safety of operation of the utility systems of      agreement may be enforced in the manner
the parties to the contract, while providing       provided in ORS 758.465. [Formerly 757.635; 1983
adequate and reasonable service to all terri-      c.540 §5]

Title 57                                     Page 11                                    (2007 Edition)
758.435                            UTILITY REGULATION

     758.435 Application for allocation of         If a petition for judicial review is not filed
territory; hearing; notice. (1) Any person         within the specified time, the order shall
providing a utility service in a territory that    thereafter be valid and enforceable for the
is not served by another person providing a        purposes herein specified from the date on
similar utility service may make application       which the right to file a petition for judicial
to the Public Utility Commission for an or-        review expires. [Formerly 757.650; 2005 c.638 §14]
der allocating such territory to it. The appli-        758.450 Contract required for allo-
cation may include any adjacent area that it       cation of territory; prohibited activities;
is more economical and feasible to serve by        exceptions; third party financing. (1) Ter-
an extension of the applicant′s existing facil-    ritory served by more than one person pro-
ities than by an extension of the facilities of    viding similar utility service may only
another person.                                    become an allocated territory by a contract
     (2) The commission shall within 30 days       approved by the Public Utility Commission.
after the filing of such application give no-          (2) Except as provided in subsection (4)
tice of the filing. If the commission chooses,     of this section, no other person shall offer,
or if a customer requests a hearing on the         construct or extend utility service in or into
matter within 30 days of the notice, the           an allocated territory.
commission shall hold a hearing by telephone
or in person. The commission shall give no-            (3) Except as provided in subsection (4)
tice of the hearing within 30 days of the re-      of this section, during the pendency of an
quest which notice shall set the date and          application for an allocation of exclusively
place of hearing. The hearing shall be held        served territory, no person other than appli-
at a place within or conveniently accessible       cant shall offer, construct or extend utility
to the territory covered by the application.       service in or into the territory applied for;
Notice of the filing shall be by publication in    nor shall any person, without the express
a newspaper or newspapers of general circu-        consent of the commission, offer, construct
lation in the territory covered by the appli-      or extend utility service in or into any un-
cation and shall be published at least once        served territory which is the subject of a fil-
weekly for two successive weeks. Written           ing pending before the commission under
notice of the filing shall be given to provid-     ORS 758.420 or 758.435.
ers of similar utility service in adjacent ter-        (4) The provisions of ORS 758.400 to
ritory.                                            758.475 do not apply to any corporation,
     (3) Territory within the limits of a city,    company, individual or association of indi-
as fixed on May 31, 1961, shall not be deemed      viduals providing heat, light or power:
to be served exclusively by any person, if             (a) From any energy resource to fewer
such city is, on such date, served by more         than 20 customers, if it began providing ser-
than one person having necessary municipal         vice to a customer prior to July 14, 1985;
or franchise authority to serve within the
entire city. [Formerly 757.640; 1985 c.633 §1]         (b) From any energy resource to fewer
                                                   than 20 residential customers so long as the
     758.440 Order of commission on appli-         corporation, company, individual or associ-
cation. (1) On the basis of the application,       ation of individuals serves only residential
or, if there is a hearing, on the record made      customers;
at the hearing held pursuant to ORS 758.435,           (c) From solar or wind resources to any
the Public Utility Commission shall enter an       number of customers; or
order either approving or disapproving the
application as filed, or as amended, together          (d) From biogas, waste heat or geother-
with findings of the facts supporting such         mal resources for nonelectric generation
order.                                             purposes to any number of customers.
     (2) The commission, before approving an           (5) Nothing in subsection (4) of this sec-
application for the allocation of territory,       tion shall prohibit third party financing of
shall find that the applicant is exclusively       acquisition or development by a utility cus-
serving the territory covered by the applica-      tomer of energy resources to meet the heat,
tion and in the case of an adjacent unserved       light or power requirements of that cus-
area that it is more economical and feasible       tomer. [Formerly 757.652; 1981 c.360 §2; 1985 c.779 §2]
to serve by an extension of the applicant′s            758.455 Investigation by commission
existing facilities than by an extension of the    respecting contracts or applications;
facilities of another person. [Formerly 757.645;   hearing procedure. (1) The Public Utility
1985 c.633 §2]
                                                   Commission may make such investigations
    758.445 Judicial review of order on            respecting a contract or an application for
application. An order of the Public Utility        the allocation of territory as the commission
Commission under ORS 758.440 is subject to         deems proper including the physical exam-
judicial review as an order in a contested         inations and evaluations of the facilities and
case in the manner provided by ORS 756.610.        systems of the parties to the contract, esti-

Title 57                                     Page 12                                     (2007 Edition)
                       RIGHTS OF WAY; ALLOCATION; COGENERATION                              758.480

mates of their operating costs and revenues       franchises, or to restrict the exercise of the
and studies of such other information as the      power of condemnation by a municipality;
commission deems pertinent.                       and when a municipality has condemned or
    (2) Insofar as applicable and consistent      otherwise acquired another person′s equip-
herewith, the provisions of ORS 756.500 to        ment, plant or facilities for rendering utility
756.610 shall govern the conduct of hearings.     service, it shall acquire all of the rights of
                                                  the person whose property is condemned to
    (3) In considering competing applications     serve the territory served by the acquired
to serve the same territory, there shall be a     properties.
disputable presumption that applicants have
an equal ability to extend, improve, enlarge,         (2) ORS 758.015 and 758.400 to 758.475
build, operate and maintain existing or pro-      shall not be construed to restrict the right
posed facilities. [Formerly 757.655]              of a municipality to provide utility service
                                                  for street lights, fire alarm systems, airports,
    758.460 Assignment or transfer of             buildings and other municipal installations
rights acquired by allocation; approval of        regardless of their location.
commission. (1) The rights acquired by an             (3) ORS 758.015 and 758.400 to 758.475
allocation of territory may only be assigned      shall not be construed to confer upon the
or transferred with the approval of the Pub-      Public Utility Commission any regulatory
lic Utility Commission after a finding that       authority over rates, service or financing of
such assignment or transfer is not contrary       cooperatives or municipalities.        [Formerly
to the public interest. However, no hearing       757.680]
is required if all affected customers agree to
the proposed assignment or transfer.                  758.475 Fees. Except in cases under ORS
                                                  758.430 and 758.460 where no hearing is re-
    (2) No approved contract or order ap-         quired, to cover the costs of administering
proving an allocation of territory shall be       ORS 758.015 and 758.400 to 758.475 the Pub-
construed to confer any property right; pro-      lic Utility Commission is required to receive
viding, however, upon the death of an indi-       fees before filing any contract, application,
vidual who is a party to an approved              petition, complaint, protest, appearance, mo-
contract or the applicant under an approved       tion, answer or other pleading and for hold-
order, the executor or administrator shall        ing any hearing. All fees shall be collected
continue the operation thereunder for the         in accordance with the following schedule:
purpose of transferring such rights for a pe-
riod of not to exceed two years from the date         (1) Filing application for allocated terri-
of death.                                         tory under ORS 758.435 by a person having
                                                  annual gross revenue derived from within
    (3) In the event the property of a person     the state for the calendar year 1960:
serving an allocated territory is condemned,
no value shall be claimed or awarded by               (a) In excess of $5 million or more, a fee
reason of the contract or order making such       of two-tenths of one mill of such revenue but
allocation. [Formerly 757.670; 1983 c.540 §6]     in no event shall such fee exceed, $10,000.
    758.465 Enforcement procedure. In the             (b) In excess of $100,000 but less than $5
event a contract approved by the Public           million, $100.
Utility Commission is breached or in the              (c) Less than $100,000, $50.
event an allocated territory is served by a           (2) Filing a contract or application under
person not authorized by such contract, or        ORS 758.015 or 758.420, $100.
order of the commission, the aggrieved per-
son or the commission may file an action in           (3) Filing petition or complaint, $25.
the circuit court for any county in which is          (4) Filing protest, appearance, motion,
located some or all of the allocated territory    answer or other pleading, $10.
allegedly involved in said breach or invasion,        (5) Filing an application for allocated
for an injunction against said alleged breach     territory under ORS 758.435 subsequent to
or invasion. The trial of such action shall       an original allocation and payment of fee
proceed as in an action not triable by right      under subsection (1) of this section, $100.
to a jury. Any party may appeal to the Court      [Formerly 757.685; 1983 c.540 §7]
of Appeals from the court′s judgment, as in
other equity cases. The remedy provided in               TROJAN NUCLEAR PLANT
this section shall be in addition to any other
remedy provided by law. [Formerly 757.675; 1979       758.480 Assumption of obligations
c.284 §198; 2003 c.576 §561]                      arising out of Trojan Nuclear Plant. (1)
    758.470 Application to cities, munic-         As used in this section:
ipalities and cooperatives of ORS 758.400             (a) “Agreement” means the agreement
to 758.475. (1) ORS 758.015 and 758.400 to        dated October 5, 1970, and titled “Agreement
758.475 shall not be construed or applied to      for Construction, Ownership and Operation
restrict the powers granted to cities to issue    of the Trojan Nuclear Plant,” as amended.

Title 57                                    Page 13                                   (2007 Edition)
758.505                           UTILITY REGULATION

    (b) “Allocated territory” has the meaning         (b) The acquisition comprises less than
given that term in ORS 758.400.                   one percent of the total allocated territory
    (c) “Person” means:                           of the Portland General Electric Company or
                                                  less than one-tenth of one percent of the
    (A) A person as defined in ORS 174.100;       total retail customer load of the Portland
    (B) A person as defined in ORS 758.400;       General Electric Company at the time of ac-
    (C) A public body as defined in ORS           quisition, whichever is greater. [2005 c.630 §1]
174.109; or                                            Note: 758.480 was enacted into law by the Legisla-
                                                  tive Assembly but was not added to or made a part of
    (D) Any combination of entities described     ORS chapter 758 or any series therein by legislative
in subparagraphs (A), (B) and (C) of this         action. See Preface to Oregon Revised Statutes for fur-
paragraph.                                        ther explanation.
    (d) “Trojan obligations” means all of the          758.500 [1979 c.730 §2; 1981 c.714 §1; repealed by 1981
obligations and liabilities of the Portland       c.714 §5 and by 1983 c.799 §9]
General Electric Company to pay amounts
that are due or that may become due under          COGENERATION AND SMALL POWER
the agreement or that are due or that may                  PRODUCTION FACILITIES
become due as a result of a requirement im-
posed by a federal, state or local govern-             758.505 Definitions for ORS 758.505 to
mental body, agency or instrumentality.           758.555. As used in ORS 758.505 to 758.555:
    (e) “Utility service” has the meaning              (1) “Avoided cost” means the incremental
given that term in ORS 758.400.                   cost to an electric utility of electric energy
                                                  or energy and capacity that the utility would
    (2) Any person acquiring all or a portion     generate itself or purchase from another
of any allocated territory of the Portland        source but for the purchase from a qualifying
General Electric Company, or acquiring the        facility.
right to provide utility service within the al-
located territory of the Portland General              (2) “Cogeneration facility” means a facil-
Electric Company, shall assume a share of         ity that:
Trojan obligations that is proportionate to            (a) Produces, through the sequential use
the total amount of allocated territory or the    of energy, electric energy and useful thermal
percentage of retail customer load for which      energy including but not limited to heat or
the person has acquired the right to provide      steam, used for industrial, commercial, heat-
utility service, whichever is greater.            ing or cooling purposes; and
    (3) The assumption of Trojan obligations           (b) Is more than 50 percent owned by a
described in this section shall occur without     person who is not an electric utility, an
regard to whether the acquisition described       electric holding company, an affiliated inter-
in subsection (2) of this section occurs          est or any combination thereof.
through market transactions or condemna-
tion proceedings or by any other means.                (3) “Commission” means the Public Util-
                                                  ity Commission.
    (4) Any person assuming a share of
Trojan obligations shall pay all required or           (4) “Electric utility” means a nonregu-
necessary amounts, when due, into any de-         lated utility or a public utility.
commissioning or other fund established, re-           (5) “Index rate” means the lowest avoided
quired or approved by any federal, state or       cost approved by the commission for a gen-
local governmental body, agency or instru-        erating utility for the purchase of energy or
mentality for the purpose of meeting Trojan       energy and capacity of similar character-
obligations. A person making payments into        istics including online date, duration of obli-
a fund described in this subsection may use       gation and quality and degree of reliability.
the person′s share of the fund for the pur-
pose of meeting the person′s Trojan obli-              (6) “Nonregulated utility” means an en-
gations, subject to any limitation imposed by     tity providing retail electric utility service to
a federal, state or local governmental body,      Oregon consumers that is a people′s utility
agency or instrumentality.                        district organized under ORS chapter 261, a
                                                  municipal utility operating under ORS chap-
    (5) The obligations imposed by subsection     ter 225 or an electric cooperative organized
(2) of this section do not apply to any person    under ORS chapter 62.
acquiring allocated territory or customers of
the Portland General Electric Company                  (7) “Public utility” means a utility regu-
when:                                             lated by the commission under ORS chapter
                                                  757, that provides electric power to consum-
    (a) The acquisition occurs pursuant to
the terms of a contract allocating territory      ers.
that has been approved by the Public Utility           (8) “Qualifying facility” means a cogen-
Commission under ORS 758.400 to 758.475           eration facility or a small power production
and that is in effect on July 22, 2005; or        facility.

Title 57                                    Page 14                                        (2007 Edition)
                       RIGHTS OF WAY; ALLOCATION; COGENERATION                                                   758.545

    (9) “Small power production facility”                      avoided costs. At the option of the qualifying
means a facility that:                                         facility, exercised before beginning delivery
    (a) Produces energy primarily by the use                   of the energy or energy and capacity, such
of biomass, waste, solar energy, wind power,                   prices may be based on:
water power, geothermal energy or any com-                         (a) The avoided costs calculated at the
bination thereof;                                              time of delivery; or
    (b) Is more than 50 percent owned by a                         (b) The projected avoided costs calculated
person who is not an electric utility, an                      at the time the legal obligation to purchase
electric utility holding company, an affiliated                the energy or energy and capacity is in-
interest or any combination thereof; and                       curred.
    (c) Has a power production capacity that,                      (3) Nothing contained in ORS 543.610,
together with any other small power produc-                    757.005 and 758.505 to 758.555 shall be con-
tion facility located at the same site and                     strued to require an electric utility to pay
owned by the same person, is not greater                       full avoided-cost prices for a purchase from
than 80 megawatts. [1983 c.799 §1]                             a qualifying facility on which construction
     758.510 [1979 c.730 §3; 1981 c.714 §2; repealed by 1981   began before November 8, 1978, but the price
c.714 §7 and by 1983 c.799 §9]                                 for a purchase from such a facility shall be
                                                               sufficient to encourage production of energy
    758.515 Legislative findings. The Legis-                   or energy and capacity.
lative Assembly finds and declares that:
                                                                   (4) The rates of an electric utility for the
    (1) The State of Oregon has abundant                       sale of electricity shall not discriminate
renewable resources.                                           against qualifying facilities. [1983 c.799 §3]
    (2) It is the goal of Oregon to:                                758.530 [1979 c.730 §5; 1981 c.714 §4; repealed by 1981
    (a) Promote the development of a diverse                   c.714 §11 and by 1983 c.799 §9]
array of permanently sustainable energy re-                        758.535 Criteria for qualifying facility;
sources using the public and private sectors                   terms and conditions of energy sale. (1)
to the highest degree possible; and                            The Public Utility Commission shall estab-
    (b) Insure that rates for purchases by an                  lish minimum criteria that a cogeneration
electric utility from, and rates for sales to, a               facility or small power production facility
qualifying facility shall over the term of a                   must meet to qualify as a qualifying facility
contract be just and reasonable to the elec-                   under ORS 543.610, 757.005 and 758.505 to
tric consumers of the electric utility, the                    758.555.
qualifying facility and in the public interest.                    (2) The terms and conditions for the pur-
    (3) It is, therefore, the policy of the State              chase of energy or energy and capacity from
of Oregon to:                                                  a qualifying facility shall:
    (a) Increase the marketability of electric                     (a) Be established by rule by the com-
energy produced by qualifying facilities lo-                   mission if the purchase is by a public utility;
cated throughout the state for the benefit of                      (b) Be adopted by an electric cooperative
Oregon′s citizens; and                                         or people′s utility district according to the
    (b) Create a settled and uniform institu-                  applicable provision of ORS chapter 62 or
tional climate for the qualifying facilities in                261; and
Oregon. [1983 c.799 §2]                                            (c) Be established by a municipal utility
     758.520 [1979 c.730 §4; 1981 c.714 §3; repealed by 1981   according to the requirements of the munic-
c.714 §9 and by 1983 c.799 §9]                                 ipality′s charter and ordinance.
    758.525 Avoided cost schedules; filing;                        (3) The rules or policies adopted under
requirement to purchase energy from                            subsection (2) of this section also shall:
qualifying facilities. (1) At least once every                     (a) Establish safety and operating re-
two years each electric utility shall prepare,                 quirements necessary to adequately protect
publish and file with the Public Utility Com-                  all systems, facilities and equipment of the
mission a schedule of avoided costs equaling                   electric utility and qualifying facility;
the utility′s forecasted incremental cost of                       (b) Be consistent with applicable stan-
electric resources over at least the next 20                   dards required by the Public Utility Regula-
years. Prices contained in the schedules filed                 tory Policies Act of 1978 (P.L. 95-617); and
by public utilities shall be reviewed and ap-
proved by the commission.                                          (c) Be made available to the public at the
                                                               commission′s office. [1983 c.799 §4]
    (2) An electric utility shall offer to pur-
                                                                   758.540 [1979 c.730 §6; repealed by 1981 c.714 §13]
chase energy or energy and capacity whether
delivered directly or indirectly from a quali-                     758.545 Electric utility required to
fying facility. Except as provided in subsec-                  make good faith effort to transmit en-
tion (3) of this section, the price for such a                 ergy; remedy. (1) If an electric utility fails
purchase shall not be less than the utility′s                  to make a good faith effort to comply with a

Title 57                                                Page 15                                         (2007 Edition)
758.555                            UTILITY REGULATION

request from a qualifying facility to transmit     allow a qualifying facility to use the electric
energy or energy and capacity produced by          utility′s transmission facilities on a cost-
the qualifying facility to another electric        related basis. [1983 c.799 §5]
utility or to the Bonneville Power Adminis-            758.550 [1979 c.730 §7; repealed by 1983 c.799 §9]
tration, the electric utility shall purchase the
qualifying facility′s energy or energy and ca-         758.555 Effect of energy sales on qual-
pacity at a price which is the higher of:          ifying facility. A qualifying facility shall not
    (a) The electric utility′s avoided cost; or    become a public utility within the meaning
                                                   of ORS 757.005 on account of sales made un-
    (b) The index rate.                            der ORS 543.610, 757.005 and 758.505 to
    (2) As used in this section, “good faith       758.555. [1983 c.799 §6]
effort” shall be demonstrated by the electric          758.990 [Renumbered 757.992]
utility′s publication of a generally applicable,
reasonable policy of the electric utility to




Title 57                                     Page 16                                      (2007 Edition)
                                           Chapter 759
                                              2007 EDITION

                    Telecommunications Utility Regulation

                GENERAL PROVISIONS                         759.180   Hearing on reasonableness of rates; pro-
759.005     Definitions                                              cedures; exceptions
759.015     Legislative findings on universal telecom-     759.182   Rate schedules for service promotions;
            munications service                                      rules
759.016     Legislative findings on broadband services     759.185   Suspension of rates pending hearing; time
                                                                     limitation; refund of revenue collected;
759.020     Certificate of authority; application; pro-              interim rates
            cedure; criteria; intrastate toll service
            level                                          759.190   Notice of schedule change
759.025     Certificates of authority for persons,         759.195   Price listing of services; conditions; maxi-
            companies and corporations providing                     mum rates; essential services; justifica-
            services on January 1, 1986                              tion by utility of rates for price-listed
                                                                     services
759.027     Shared telecommunications service pro-
            vider; alternative access to local exchange    759.200   Inclusion of amortizations in rates; defer-
            telecommunications services                              ral of certain expenses or revenues; limi-
                                                                     tation on amounts; prohibited uses
759.035     Duty to furnish adequate and safe service
            at reasonable rates                            759.205   Conformance of rates charged with
                                                                     schedule
                     REGULATION OF                         759.210   Classification of service and rates; con-
          TELECOMMUNICATIONS SERVICES                                siderations
759.036     Commission authority                           759.215   Public access to schedules
759.040     Exemptions for certain unaffiliated utili-     759.217   Effect of tax credit under ORS 315.511
            ties with fewer than 50,000 access lines
                                                           759.218   Revenues and expenses of unregulated
759.045     Special rules for utilities exempted from                activities
            regulation under ORS 759.040
                                                           759.219   Certain taxes as operating expense;
759.050     Competitive zone service regulation                      charge pro rata to users; condition
759.052     Commission authority to exempt telecom-        759.220   Joint rates and classifications; procedure;
            munications services from regulation                     considerations
759.054     Price listing for product or service offered   759.225   Application of ORS 759.220 to unincor-
            as part of local exchange telecommuni-                   porated associations and cooperative cor-
            cations services                                         porations
759.056     Price listing for product or service offered   759.230   Measured service rate for business cus-
            as part of interexchange telecommuni-                    tomers; restriction
            cations services
                                                           759.235   Mandatory measured service rate; prohi-
759.058     Commission action on petition under ORS                  bition
            759.052, 759.054 or 759.056
                                                           759.240   Measuring quality of service; standards;
759.060     Information submitted by local exchange                  rules
            telecommunications utilities; rules ex-
            empting disclosure                             759.245   Examination and testing of measuring
                                                                     appliances
                   RIGHTS OF WAY                           759.250   Contracts for special services; procedure
759.075     Authority to construct lines and facilities;             for filing and approval; subsequent review
            condemnation power; procedure                            and investigation
759.080     Use of property outside limits of munici-      759.255   Setting prices without regard to return
            pal corporation; agreement; condemnation                 on utility investment; petition; findings;
            upon failure to agree                                    conditions; application of statutes to ap-
                                                                     proved plan
              ACCOUNTS AND RECORDS                         759.257   Extended area service: Portland to Scap-
759.120     Form and manner of accounts prescribed                   poose
            by commission                                  759.259   Extended area service: Portland to Mo-
759.125     Records and accounts prescribed by com-                  lalla
            mission; prohibition on other records or
            accounts; exception; blanks for reports                        ILLEGAL PRACTICES
759.130     Closing date of accounts; filing balance       759.260   Unjust discrimination in rates
            sheet; audit
                                                           759.265   Practices not constituting unjust discrim-
759.135     Depreciation accounts; undepreciated in-                 ination
            vestment allowed in rates; conditions
                                                           759.267   Service promotion activities
     RATE REGULATION AND PROCEDURES;                       759.270   Reducing rates for persons furnishing part
           MEASURING EQUIPMENT                                       of facilities; rental of customer facilities;
759.175 Filing rate schedules and data with com-                     furnishing meters and appliances
        mission                                            759.275   Undue preferences and prejudices

Title 57                                             Page 1                                      (2007 Edition)
                                       UTILITY REGULATION

759.280    Soliciting or accepting rebates or special                   (Public Purpose Funding)
           advantage                                     759.430    Approval of projects funded by carrier′s
759.285    Charging rates based on cost of property                 Telecommunications Infrastructure Ac-
           not presently providing service                          count; Connecting Oregon Communities
                                                                    Advisory Board
             ISSUANCE OF SECURITIES                      759.435    Assessment of telecommunications infra-
759.300    “Stocks” defined                                         structure and community needs; contents;
759.305    Power to regulate issuance of telecom-                   report
           munications stocks                            759.440    Additional funding for evaluating project
759.310    When issuance of securities void                         plans
759.315    Purposes for which securities may be is-      759.445    Connecting Oregon Communities Fund;
           sued; order required; exceptions                         School Technology Account; Public Ac-
                                                                    cess Account
759.320    Application of ORS 759.315
759.325    Application of ORS 759.375                              SERVICE QUALITY STANDARDS
759.330    Hearings and supplemental orders for se-                     AND PROHIBITED ACTS
           curities issuance; joint approval for issu-   759.450   Minimum service quality standards; rules;
           ance by utility operating in another state              customer impact indices; factors; whole-
759.335    Obligation of state as consequence of ap-               sale services; improvement plan; penal-
           proval of issuance                                      ties; exceptions
759.340    Conditional approval of issuance              759.455   Prohibited acts; commission action on
                                                                   allegation of violation; penalties; judicial
759.345    Use of proceeds from issuance; accounting               review
759.350    Limitation on authority of utility to
           guarantee debt of another                                ALLOCATION OF TERRITORIES
759.355    Issuance or use of proceeds contrary to                              (Generally)
           commission order                              759.500    Definitions for ORS 759.500 to 759.570
759.360    Prohibited acts regarding issuance of se-     759.506    Purpose of allocated territory laws
           curities
                                                         759.535    Application to serve unserved territory;
           TRANSACTIONS OF UTILITIES                                hearing; notice
759.375    Approval prior to sale, mortgage or dis-      759.560    Assignment or transfer of allocated terri-
           posal of operative utility property                      tory
759.380    Purchase of stock or property of another      759.565    Injunction against unauthorized provision
           utility                                                  of service
759.385    Contracts regarding use of utility prop-      759.570    Application of law to local government
           erty; filing with commission; investigation
                                                                           (Unserved Territory)
759.390    Contracts with affiliated interests; proce-
           dure; use in rate proceedings                 759.580    Power of commission to require service to
                                                                    unserved territory
759.393    Applicability of ORS 759.385 and 759.390
                                                         759.585    Definitions for ORS 759.585 to 759.595
               PRICE CAP REGULATION                      759.590    Application for service by unserved per-
                       (Generally)                                  son; rules
759.400    Definitions                                   759.595    Criteria for granting application for ser-
                                                                    vice; effect on other territorial allocation
759.405    Election of regulation under ORS 759.405
           and 759.410; conditions; Telecommuni-                     ATTACHMENT REGULATION
           cations Infrastructure Account; remedy
           for failure of utility to comply with con-    759.650    Definitions for ORS 759.650 to 759.675
           ditions                                       759.655    Authority of commission to regulate at-
759.410    Intent of ORS 759.410; establishing maxi-                tachments
           mum and minimum price for telecommu-          759.660    Fixing charges or rates; criteria; costs of
           nications services; packaging services;                  hearing
           notice of price change, new service; en-      759.665    Considerations in determining just and
           forcement                                                reasonable rate
759.415    Order in rate proceeding filed prior to       759.670    Presumption of reasonableness of rates
           January 1, 1999, to establish maximum                    set by agreement
           rate for affected telecommunications ser-
           vices; dismissal of rate proceeding filed     759.675    Regulatory procedure
           after January 1, 1999
759.420    Application of ORS 759.400 to 759.455 to                OPERATOR SERVICE PROVIDERS
           wholesale transactions regulated under        759.690    Operator service provider duties to service
           federal law                                              users; rules

               (Universal Service Fund)                        RESIDENTIAL SERVICE PROTECTION
759.425    Universal service fund; commission to es-             (Temporary provisions relating to resi-
           tablish price for basic telephone service;            dential telecommunication service pro-
           universal service surcharge; application              tection are compiled as notes following
           to cellular services                                  ORS 759.690)




Title 57                                           Page 2                                      (2007 Edition)
                     TELECOMMUNICATIONS UTILITY REGULATION

       ASSISTIVE TELECOMMUNICATION                                 UNAUTHORIZED CHANGES IN
            DEVICES FOR PERSONS                                  TELECOMMUNICATIONS CARRIERS
              WITH DISABILITIES                          759.730  Unauthorized changes in telecommuni-
        (Temporary provisions relating to tele-                   cations carriers (“slamming”); rules
        communication devices for hearing and
        speech impaired individuals are compiled
        as notes following ORS 759.690)                                          DAMAGES
                                                         759.900    Liability of utility; effect on other reme-
       INFORMATION SERVICE PROVIDERS                                dies; liability for personal injury or prop-
759.700   Definitions for ORS 759.700 to 759.720                    erty damage
759.705   Program message preamble; information
          to be included                                           OREGON TELECOMMUNICATIONS
                                                                       COORDINATING COUNCIL
759.710   Pay-per-call information; disclosure
759.715   Information service blocking; suspension                  (Temporary provisions relating to Oregon
          or termination of telephone service for                   Telecommunications Coordinating Council
          nonpayment      of   information     service              are compiled as notes following ORS
          charges                                                   759.900)
759.720   Action against information provider for
          failure to comply with law; remedies;                                 PENALTIES
          customer liability for charges                 759.990    Penalties




Title 57                                           Page 3                                      (2007 Edition)
           UTILITY REGULATION




Title 57         Page 4         (2007 Edition)
                  TELECOMMUNICATIONS UTILITY REGULATION                                            759.015

          GENERAL PROVISIONS                          (b) One-way transmission of television
                                                  signals.
    759.005 Definitions. As used in this
chapter:                                              (c) Private telecommunications networks.
    (1) “Competitive telecommunications pro-          (d) Communications of the customer that
vider” means a telecommunications services        take place on the customer side of on-
provider that has been classified as a com-       premises equipment.
petitive telecommunications provider by the           (9)(a)    “Telecommunications             utility”
Public Utility Commission pursuant to ORS         means:
759.020.                                              (A) Any corporation, company, individual
    (2) “Intrastate telecommunications ser-       or association of individuals, or its lessees,
vice” means any telecommunications service        trustees or receivers, that owns, operates,
in which the information transmitted origi-       manages or controls all or a part of any
nates and terminates within the boundaries        plant or equipment in this state for the pro-
of the State of Oregon.                           vision of telecommunications service, di-
    (3) “Local exchange telecommunications        rectly or indirectly to or for the public,
service” means telecommunications service         whether or not the plant or equipment, or
provided within the boundaries of exchange        any portion of the plant or equipment, is
maps filed with and approved by the com-          wholly within any town or city.
mission.                                              (B) Any corporation, company, individual
                                                  or association of individuals that is party to
    (4)      “Private       telecommunications    an oral or written agreement for the pay-
network” means a system for the provision         ment by a telecommunications utility, for
of telecommunications service or any portion      service, managerial construction, engineering
of telecommunications service, including the      or financing fees, and has an affiliated inter-
construction, maintenance or operation of         est with the telecommunications utility.
the system, by a person for the exclusive use
of that person and not for resale, directly or        (b) “Telecommunications utility” does not
indirectly.                                       include:
    (5) “Radio common carrier” means any              (A) Any plant owned or operated by a
corporation, company, association, joint          municipality.
stock association, partnership and person,            (B) Any corporation not providing intra-
their lessees, trustees or receivers and any      state telecommunications service to the pub-
town making available facilities to provide       lic in this state, whether or not the
radio communications service, radio paging        corporation has an office in this state or has
or cellular communications service for hire.      an affiliated interest with a telecommuni-
    (6) “Shared telecommunications service”       cations utility as defined in this chapter.
means the provision of telecommunications             (C) Any person acting only as a compet-
and information management services and           itive telecommunications provider.
equipment to a user group located in discrete         (D) Any corporation, company, individual
premises in building complexes, campuses or       or association of individuals providing only
high-rise buildings, by a commercial shared       telephone customer premises equipment to
services provider or by a users′ association,     the public.
through privately owned customer premises             (10) “Toll” means switched telecommuni-
equipment and associated data processing          cations between exchanges carried on the
and information management services and           public switched network. “Toll” does not in-
includes the provision of connections to local    clude services that are an option to flat rate
exchange telecommunications service.              local or extended area service, even though
    (7) “Telecommunications” means the            the options may include charges on a per-
transmission of information chosen by a per-      unit basis. [1987 c.447 §1; 1989 c.5 §15; 1991 c.326 §2;
son, between or among points specified by         2005 c.232 §1; 2007 c.825 §1]
the person, without change in the form or              759.010 [1987 c.447 §2; 1989 c.17 §2; repealed by 2005
content of the information sent or received.      c.232 §2]

    (8) “Telecommunications service” means             759.015 Legislative findings on uni-
telecommunications that are offered for a fee     versal telecommunications service. The
to the public, or to such class of users as to    Legislative Assembly finds and declares that
be effectively available to the public, without   it is the goal of the State of Oregon to secure
regard to the facilities used to provide the      and maintain high-quality universal telecom-
                                                  munications service at just and reasonable
telecommunications.       “Telecommunications     rates for all classes of customers and to en-
service” does not include:                        courage innovation within the industry by a
    (a) Services provided by radio common         balanced program of regulation and competi-
carrier.                                          tion. The Public Utility Commission shall

Title 57                                    Page 5                                         (2007 Edition)
759.016                                 UTILITY REGULATION

administer the statutes with respect to tele-             telecommunications service area of a tele-
communications rates and services in accor-               communications utility unless such utility
dance with this policy. [Formerly 757.810]                consents, is unable to provide the service, or
    759.016 Legislative findings on broad-                fails to protest an application. This subsec-
band services. The Legislative Assembly                   tion shall not apply to any application for a
finds and declares:                                       certificate by a provider of shared telecom-
                                                          munications services.
    (1) That it is the goal of this state to
promote access to broadband services for all                   (4) After notice, a hearing need not be
Oregonians in order to improve the economy                held prior to issuance of a certificate of au-
in Oregon, improve the quality of life in Or-             thority except upon the commission′s own
egon communities and reduce the economic                  motion or unless the application is to au-
gap between Oregon communities that have                  thorize a person to provide local exchange
access to broadband digital applications and              telecommunications service in the local ex-
services and those that do not, for both                  change telecommunications service area of a
present and future generations; and                       telecommunications utility and such utility
                                                          protests. After hearing, the commission shall
    (2) That the goal set forth in subsection             issue the certificate only upon a showing
(1) of this section may be achieved by:                   that the proposed service is required by the
    (a) Expanding broadband and other tele-               public interest.
communications services;                                       (5) The commission may classify a suc-
    (b) Creating incentives to establish and              cessful applicant for a certificate as a tele-
expand broadband and other telecommuni-                   communications utility or as a competitive
cations services;                                         telecommunications services provider. If the
    (c)    Undertaking    telecommunications              commission finds that a successful applicant
planning at the local, regional and state lev-            for a certificate has demonstrated that ser-
els that includes participants from both the              vices it offers are subject to competition or
public and the private sectors;                           that its customers or those proposed to be-
                                                          come customers have reasonably available
    (d) Removing barriers to the full deploy-             alternatives, the commission shall classify
ment of broadband digital applications and                the applicant as a competitive telecommuni-
services and providing incentives for the re-             cations services provider. The commission
moval of those barriers; and                              shall conduct the initial classification and
    (e) Removing barriers to public-private               any subsequent review of the classification
partnerships in areas where the private sec-              in accordance with such procedures as the
tor cannot justify investments. [2003 c.775 §1]           commission may establish by rule, after
     Note: 759.016 was enacted into law by the Legisla-
                                                          hearings. The commission may attach rea-
tive Assembly but was not added to or made a part of      sonable conditions to such classification and
ORS chapter 759 or any series therein by legislative      may amend or revoke any such order as pro-
action. See Preface to Oregon Revised Statutes for fur-   vided in ORS 756.568. For purposes of this
ther explanation.                                         section, in determining whether telecommu-
    759.020 Certificate of authority; appli-              nications services are subject to competition
cation; procedure; criteria; intrastate toll              or whether there are reasonably available
service level. (1) No person, corporation,                alternatives, the commission shall consider:
company, association of individuals or their                   (a) The extent to which services are
lessees, trustees, or receivers shall provide             available from alternative providers in the
intrastate telecommunications service on a                relevant market.
for-hire basis without a certificate of author-
ity issued by the Public Utility Commission                    (b) The extent to which the services of
under this section.                                       alternative providers are functionally equiv-
                                                          alent or substitutable at comparable rates,
    (2) Applications for certificates of au-              terms and conditions.
thority shall be in a form prescribed by the
commission and shall describe the telecom-                     (c) Existing economic or regulatory bar-
munications services the applicant proposes               riers to entry.
to provide. Notice of all applications shall,                  (d) Any other factors deemed relevant by
within 30 days of filing, be served by the                the commission.
commission upon all persons holding author-                    (6) Any provider of intrastate toll service
ity to provide telecommunications service is-             must inform customers of the service level
sued under this section or providing local                furnished by that provider, according to rules
exchange telecommunications service.                      of the commission. The commission, by rule,
    (3) Except as provided in ORS 759.050, no             shall determine the level of intrastate toll
certificate shall authorize any person to pro-            service that is standard. Any provider of
vide local exchange telecommunications ser-               intrastate toll service must identify the ser-
vice     within     the     local     exchange            vice level the provider plans to furnish in an

Title 57                                            Page 6                                 (2007 Edition)
                       TELECOMMUNICATIONS UTILITY REGULATION                                       759.040

annual report to the commission. The com-                        759.040 Exemptions for certain unaf-
mission shall revoke the certification of any               filiated utilities with fewer than 50,000
provider that does not consistently furnish                 access lines. (1) Subject to subsection (6) of
the service level identified in the provider′s              this section, ORS 759.180 to 759.190 do not
annual report. [Formerly 757.815; 1991 c.326 §1; 1993       apply to new or revised tariff schedules filed
c.423 §1]                                                   with the Public Utility Commission by tele-
    759.025 Certificates of authority for                   communications utilities or affiliated groups
persons, companies and corporations                         of telecommunications utilities serving fewer
providing services on January 1, 1986. (1)                  than 50,000 access lines in Oregon and not
Notwithstanding ORS 759.020, the Public                     affiliated or under common control with any
Utility Commission shall issue to any person,               other kind of public utility providing service
company or corporation providing intrastate                 in Oregon.
telecommunications services that are subject                     (2) Subject to subsection (6) of this sec-
to regulation by the commission on January                  tion, ORS 759.375 to 759.393 do not apply to
1, 1986, a certificate of authority to continue             telecommunications utilities or affiliated
to provide those services on and after Janu-                groups of telecommunications utilities serv-
ary 1, 1986.                                                ing fewer than 50,000 access lines in Oregon
    (2) Notwithstanding any other provision                 and not affiliated or under common control
of law, the commission shall issue                          with any other kind of public utility provid-
to any cooperative corporation, or unincor-                 ing service in Oregon.
porated association providing intrastate tele-                   (3) Subject to subsection (6) of this sec-
communications service on January 1, 1986,                  tion, ORS 759.300 to 759.360 do not apply to
a certificate of authority to continue to pro-              telecommunications utilities or affiliated
vide those services on and after January 1,                 groups of telecommunications utilities serv-
1986. Such actions shall not subject such co-               ing fewer than 50,000 access lines in Oregon
operative corporations or association to the                and not affiliated or under common control
commission′s general powers of regulation.                  with any other kind of public utility provid-
[Formerly 757.820]                                          ing service in Oregon.
    759.027 Shared telecommunications                            (4) Upon petition by any telecommuni-
service provider; alternative access to lo-                 cations utility serving fewer than 50,000 ac-
cal exchange telecommunications ser-                        cess lines in Oregon and affiliated or under
vices. If the Public Utility Commission finds               common control with another public utility
upon notice and investigation that customers                providing service in Oregon, and a finding
of shared telecommunications services have                  that such action is consistent with the public
no alternative access to local exchange tele-               interest, the commission by order may ex-
communications services, the commission                     empt such telecommunications utility from:
may require the shared telecommunications                        (a) ORS 759.180 to 759.190.
service provider to make alternative facilities
or conduit space available on reasonable                         (b) ORS 759.375 to 759.393.
terms and conditions and at reasonable                           (c) ORS 759.300 to 759.360.
prices. [2005 c.232 §5]
                                                                 (5) Upon petition by any telecommuni-
    759.030 [Formerly 757.825; 1991 c.301 §1; repealed by   cations utility serving fewer than 50,000 ac-
2005 c.232 §6]
                                                            cess lines in Oregon, and finding that such
    759.035 Duty to furnish adequate and                    action is consistent with the public interest,
safe service at reasonable rates. Every                     the commission by order may exempt such
telecommunications utility is required to                   telecommunications utility from ORS 759.175
furnish adequate and safe service, equipment                and 759.205 to 759.215.
and facilities, and the charges made by any                      (6) Upon petition by the telecommuni-
public utility for any service rendered or to               cations utility or upon petition by 10 percent
be rendered in connection therewith shall be                of the then current access line subscribers,
reasonable and just, and every unjust or un-                or 500 subscribers, whichever is the lesser,
reasonable charge for such service is prohib-               of any telecommunications utility:
ited. [1987 c.447 §3]
                                                                 (a) Filed with the commission not less
                                                            than 10 days prior to the proposed effective
         REGULATION OF                                      date of new or revised tariff schedules, the
  TELECOMMUNICATIONS SERVICES                               commission may impose all or part of the
    759.036 Commission authority. Except                    procedures of ORS 759.180 to 759.190 to any
as otherwise provided by law, the Public                    of the schedules of a telecommunications
Utility Commission shall have authority to                  utility exempted from ORS 759.180 to 759.190
determine the manner and extent of the reg-                 pursuant to this section.
ulation of telecommunications services                           (b) After notice and hearing and a finding
within the State of Oregon. [2005 c.232 §7]                 that the action is required by the public in-

Title 57                                              Page 7                                (2007 Edition)
759.045                            UTILITY REGULATION

terest, the commission may revoke any ex-           provider” includes both telecommunications
emption granted pursuant to this section or         utilities and competitive providers.
impose reasonable conditions upon the con-               (2)(a) Notwithstanding the provisions of
tinued exercise of the exemption.                   ORS 759.020 (3), the commission may certify
     (7) Any telecommunications utility for         one or more persons, including another tele-
which an exemption from the application of          communications utility, to provide local ex-
ORS 759.180 to 759.190 is provided pursuant         change telecommunications service within
to this section shall notify its affected cus-      the local exchange telecommunications ser-
tomers of any price increase for intrastate         vice area of a certificated telecommuni-
telecommunications services at least 45 days        cations utility if the commission determines
prior to the proposed effective date of the         that the authorization would be in the public
increase.                                           interest. For the purpose of determining
     (8) Any telecommunications utility for         whether the authorization would be in the
which an exemption from the application of          public interest, the commission shall con-
any statute is provided pursuant to this sec-       sider:
tion shall file with the commission an annual            (A) The effect on rates for local exchange
report that includes copies of the income           telecommunications service customers both
statement and balance sheet the telecommu-          within and outside the competitive zone.
nications utility files with the Federal Com-            (B) The effect on competition in the local
munications           Commission.         Each      exchange telecommunications service area.
telecommunications utility described in this
subsection shall notify customers that the               (C) The effect on access by customers to
income statement and balance sheet are on           high quality, innovative telecommunications
file with the commission. [Formerly 757.870; 1999   service in the local exchange telecommuni-
c.451 §1; 2005 c.232 §12]                           cations service area.
    759.045 Special rules for utilities ex-              (D) Any other facts the commission con-
empted from regulation under ORS                    siders relevant.
759.040. The Public Utility Commission shall             (b) Upon certification of a telecommuni-
adopt specific rules to apply to telecommuni-       cations provider under paragraph (a) of this
cations utilities which are exempted from           subsection, the commission shall establish a
certain regulation under ORS 759.040. An            competitive zone defined by the services to
objective of these rules shall be to minimize       be provided by the telecommunications pro-
the regulatory burden on these utilities to         vider and the geographic area to be served
the extent this objective is feasible and con-      by the telecommunications provider. Price
sistent with the public interest. These rules       and service competition within the meaning
shall not pertain to the statutes from which        of ORS 759.052 may not be deemed to exist
these utilities are exempted under ORS              by virtue of the establishment of a compet-
759.040. [1991 c.658 §2]                            itive zone.
    759.050 Competitive zone service regu-               (c) At the time of certification of a tele-
lation. (1) As used in this section:                communications provider, or thereafter, the
    (a) “Competitive zone” means a telecom-         commission may impose reasonable condi-
munications service area within all or part         tions upon the authority of the telecommu-
of a local exchange, described both by ser-         nications provider to provide competitive
vice and territory, that has been designated        zone service within the competitive zone.
a competitive zone by the Public Utility            Reasonable conditions include, but are not
Commission under subsection (2) or (4) of           limited to, conditions:
this section.                                            (A) Designed to promote fair competition,
    (b) “Competitive zone service” means a          such as interconnection; and
local exchange telecommunications service                (B) Requiring contributions of the type
that the commission has authorized to be            required of a telecommunications utility on
provided within a competitive zone.                 account of the provision of local exchange
    (c) “Essential function” means a func-          service, including those to the Residential
tional component of a competitive zone ser-         Service Protection Fund or the Telecommu-
vice necessary to the provision of the service      nication Devices Access Program.
by a telecommunications provider for which               (3) Upon demand, a competitive provider
there is no adequate alternative in terms of        of competitive zone services shall make
quality, quantity and price to the incumbent        available to the commission any information
telecommunications utility.                         relating to competitive zone services that the
    (d) “Telecommunications utility” and            commission requests. Information provided to
“competitive provider” mean those entities          the commission by a competitive provider
that are classified as such by the commission       under this subsection shall be confidential
under ORS 759.020. “Telecommunications              and may not be disclosed by the commission,

Title 57                                      Page 8                                 (2007 Edition)
                  TELECOMMUNICATIONS UTILITY REGULATION                                   759.052

except for regulatory purposes in the context    competitor to provide service within the lo-
of a proceeding before the commission.           cal exchange service area of a telecommuni-
    (4) Upon application by a telecommuni-       cations utility or to otherwise designate a
cations utility and a showing of competition     competitive zone shall be subject to judicial
within its local exchange, whether or not        review, but may not be stayed other than by
from certificated providers, the commission      order of the commission, except upon a
may designate all or part of the local ex-       showing by clear and convincing evidence
change a competitive zone.                       that failure to stay the decision will result
                                                 in irreparable harm to the aggrieved party.
    (5)(a) Except with respect to telecommu-
nications utilities that are exempt from the         (7) The exclusive remedy of a telecom-
provisions of ORS 759.180 to 759.190, unless     munications provider aggrieved by the prices,
the commission determines that it is not in      terms of service or practices of another pro-
the public interest at the time a competitive    vider with respect to competitive zone ser-
zone is created, upon designation of a com-      vices within a competitive zone is to file a
petitive zone, price changes, service vari-      complaint with the commission under ORS
ations and modifications of competitive zone     756.500. The commission, either upon com-
services offered by a telecommunications         plaint or its own motion, may permanently
utility in the zone are not subject to ORS       suspend a filing made by a provider with re-
759.180 to 759.190 and, at the telecommu-        spect to a competitive zone service or take
nication utility′s discretion, may be made ef-   such other action as the commission deems
fective upon filing with the commission.         appropriate, except an award for damages. A
                                                 claim for damages arising from a commission
    (b) The price and terms of service offered   decision in favor of the provider on a matter
by a telecommunications utility for a com-       alleged in the complaint shall be brought as
petitive zone service within a competitive       a separate action at law.
zone may differ from that outside of the zone.
However, the price for a competitive zone            (8) Nothing in this section shall serve to
service within the zone may not be lower         shield any telecommunications provider of
than the total service long run incremental      local exchange telecommunications service
cost, for nonessential functions, of providing   from state or federal antitrust laws.
the service within the zone and the charges          (9) The commission shall report annually
for essential functions used in providing the    to the Legislative Assembly:
service, but the commission may establish            (a) The number of competitive zones cre-
rates for residential local exchange telecom-    ated under ORS 759.020 and 759.050;
munications service at any level necessary to
achieve the commission′s universal service           (b) The number of competitive providers
objectives. Within the zone, the price of a      authorized under ORS 759.020 and 759.050;
competitive zone service, or any essential           (c) The number and types of competitive
function used in providing the competitive       services made available to consumers; and
zone service, may not be higher than those
prices in effect when the competitive zone           (d) Consumer comments on competitive
was established, unless authorized by the        telecommunications services. [1993 c.423 §3; 2005
                                                 c.232 §13]
commission.
    (c) The commission may revoke the ex-            759.052 Commission authority to ex-
emption of a telecommunications utility from     empt telecommunications services from
ORS 759.180 to 759.190 if the commission         regulation. (1)(a) Upon petition by any in-
finds that the utility has violated statutes,    terested party and following notice and in-
rules or conditions of the commission appli-     vestigation, the Public Utility Commission
                                                 may exempt in whole or in part from regu-
cable to competitive zone services or that       lation those telecommunications services for
there has been a substantial change in the       which the commission finds that:
circumstances that prevailed at the time the
competitive zone was first established.              (A) Price or service competition exists;
    (d) On the motion of a telecommuni-              (B) Telecommunications services can be
cations provider or on its own motion, the       demonstrated by the petitioner or the com-
commission may order a telecommunications        mission to be subject to competition; or
utility to disaggregate and offer essential          (C) The public interest no longer requires
functions of the telecommunications utility′s    full regulation of the telecommunications
local exchange network.                          services.
    (6) A decision of the commission, with           (b) The commission may attach reason-
respect to the terms and conditions under        able conditions to an exemption made under
which competitive zone services may be of-       paragraph (a) of this subsection and may
fered within a competitive zone by a tele-       amend or revoke any order as provided in
communications utility, to authorize a           ORS 756.568.

Title 57                                   Page 9                                  (2007 Edition)
759.054                           UTILITY REGULATION

     (2) Upon petition by a telecommuni-               (d) Any other factors deemed relevant by
cations utility, and after notice and hearing,    the commission. [2005 c.232 §9]
the commission shall exempt a telecommuni-             759.056 Price listing for product or
cations service from regulation if the com-       service offered as part of interexchange
mission finds that price and service              telecommunications services. (1) If the
competition exists.                               Public Utility Commission determines that a
     (3) Prior to making the findings required    product or service offered by a telecommuni-
by subsection (1) or (2) of this section, the     cations utility as part of interexchange tele-
commission shall consider:                        communications         services    can      be
     (a) The extent to which services are         demonstrated by the utility to be subject to
available from alternative providers in the       competition, the commission, under condi-
relevant market.                                  tions that the commission determines are
     (b) The extent to which the services of      reasonable, may authorize the utility to file
alternative providers are functionally equiv-     a price list with the commission.
alent or substitutable at comparable rates             (2) The price list shall contain the de-
and under comparable terms and conditions.        scription, terms, conditions and prices of the
     (c) Existing economic or regulatory bar-     service or product described in subsection (1)
riers to entry.                                   of this section. No other schedule for price
                                                  listed services need be filed with the com-
     (d) Any other factors deemed relevant by     mission. The price list or any revision of the
the commission.                                   price list is not subject to the provisions of
     (4) A service that is deregulated under      ORS 759.180 to 759.190 and shall become ef-
subsection (2) of this section may be reregu-     fective immediately on filing with the com-
lated, after notice and hearing, if the com-      mission unless a later date is specified.
mission determines an essential finding on             (3) In determining whether a product or
which the deregulation was based no longer        service is subject to competition, the com-
prevails, and reregulation is necessary to        mission shall consider:
protect the public interest. [2005 c.232 §8]
                                                       (a) The extent to which services are
     759.054 Price listing for product or         available from alternative providers in the
service offered as part of local exchange         relevant market.
telecommunications services. (1) If the
Public Utility Commission determines that a            (b) The extent to which services of alter-
product or service offered by a telecommuni-      native providers are functionally equivalent
cations utility as part of local exchange tele-   or substitutable at comparable rates or under
communications        services       can     be   comparable terms and conditions.
demonstrated by the utility to be subject to           (c) Existing economic or regulatory bar-
competition, or that a product or service is      riers to entry.
not an essential product or service, the com-
mission may authorize the utility to file a            (d) Any other factors deemed relevant by
price list with the commission.                   the commission. [2005 c.232 §10]
     (2) The price list shall contain the de-         759.058 Commission action on petition
scription, terms, conditions and prices of the    under ORS 759.052, 759.054 or 759.056.
service or product described in subsection (1)    Within 60 days of a filing under ORS 759.052,
of this section. No other schedule for price      759.054 or 759.056, the Public Utility Com-
listed services need be filed with the com-       mission shall either determine the appropri-
mission. The price list or any revision of the    ateness of the filing or determine that
price list is not subject to the provisions of    further investigation is necessary. If the
ORS 759.180 to 759.190 and shall become ef-       commission determines that further investi-
fective immediately upon filing with the          gation is necessary, the commission may
commission unless a later date is specified.      suspend operation of the filing for a period
                                                  not longer than five months from the end of
     (3) In determining whether a product or      the initial 60-day period. Upon a showing of
service is subject to competition, the com-       good cause, any party may request extension
mission shall consider:                           of the suspension period for an additional
     (a) The extent to which services are         three months. [2005 c.232 §11]
available from alternative providers in the
relevant market.                                      759.060 Information submitted by local
                                                  exchange telecommunications utilities;
     (b) The extent to which services of alter-   rules exempting disclosure. (1) The Public
native providers are functionally equivalent      Utility Commission, by rule, shall specify in-
or substitutable at comparable rates or under     formation submitted to the commission by
comparable terms and conditions.                  local exchange telecommunications utilities
     (c) Existing economic or regulatory bar-     or cooperatives that is exempt from disclo-
riers to entry.                                   sure under ORS 192.410 to 192.505 as pro-

Title 57                                    Page 10                               (2007 Edition)
                  TELECOMMUNICATIONS UTILITY REGULATION                                                     759.125

vided in this section. In adopting rules, the     in value to remaining timber caused by in-
commission shall consider, among other mat-       creased harvesting costs. [1987 c.447 §69]
ters:                                                 759.080 Use of property outside limits
    (a) Whether the information is of a type      of municipal corporation; agreement;
that could potentially be used to the compet-     condemnation upon failure to agree.
itive disadvantage of a local exchange tele-      When it is necessary or convenient, in the
communications utility or cooperative.            location of any poles or lines mentioned in
    (b) Whether the information concerns          ORS 759.075, to appropriate any part of any
matters of a nature personal to an employee       public road, street, alley or public grounds
or stockholder of a local exchange telecom-       not within the corporate limits of any mu-
munications utility or an employee or mem-        nicipal corporation, the county court or
ber of a cooperative.                             board of county commissioners of the county
                                                  within which such road, street, alley or pub-
    (c) Whether the information is otherwise      lic grounds is located, may agree with the
publicly available.                               telecommunications utility upon the extent,
    (2) Information specified under subsec-       terms and conditions upon which the same
tion (1) of this section is exempt from disclo-   may be appropriated or used and occupied by
sure unless the public interest requires          such corporation. If such parties are unable
disclosure in the particular instance.            to agree, the telecommunications utility may
    (3) Nothing in subsection (1) of this sec-    condemn so much thereof as is necessary and
tion limits the exemptions granted to a local     convenient in the location and construction
exchange telecommunications utility or co-        of the poles or lines. The provisions of ORS
operative under ORS 192.410 to 192.505. [1995     chapter 35 are applicable to condemnations
c.538 §2]                                         under this section. [1987 c.447 §70]

             RIGHTS OF WAY                                ACCOUNTS AND RECORDS
                                                      759.100   [1987   c.447   §5;   repealed by   2005 c.232   §14]
    759.075 Authority to construct lines
and facilities; condemnation power; pro-              759.105   [1989   c.484   §7;   renumbered    759.219 in   2005]
cedure. (1) Any telecommunications utility            759.110   [1987   c.447   §6;   repealed by   2005 c.232   §14]
may:                                                  759.115   [1987   c.447   §7;   repealed by   2005 c.232   §14]
    (a) Enter upon lands within this state for         759.120 Form and manner of accounts
the purpose of examining, locating and sur-       prescribed by commission. (1) Every tele-
veying the line thereof and also other lands      communications utility shall keep and render
necessary and convenient for the purpose of       to the Public Utility Commission, in the
construction of service facilities, doing no      manner and form prescribed by the commis-
unnecessary damage thereby.                       sion, uniform accounts of all business trans-
    (b) Condemn such lands not exceeding          acted. All forms of accounts which may be
100 feet in width for its lines (including        prescribed by the commission shall conform
poles, towers, wires, supports and necessary      as nearly as practicable to similar forms
equipment therefor) and in addition thereto,      prescribed by federal authority.
other lands necessary and convenient for the           (2) Every telecommunications utility en-
purpose of construction of service facilities.    gaged directly or indirectly in any other
    (2) Notwithstanding subsection (1) of this    business than that of a telecommunications
section, any telecommunications utility may,      utility shall, if required by the commission,
when necessary or convenient for trans-           keep and render separately to the commis-
mission lines (including poles, towers, wires,    sion, in like manner and form, the accounts
supports and necessary equipment therefor)        of all such other business, in which case all
designed for voltages in excess of 330,000        the provisions of this chapter shall apply
volts, condemn land not to exceed 300 feet in     with like force and effect to the accounts and
width. In addition, if the lands are covered      records of such other business. [1987 c.447 §8]
by trees which are liable to fall and consti-          759.125 Records and accounts pre-
tute a hazard to its wire or line, such tele-     scribed by commission; prohibition on
communications utility may condemn such           other records or accounts; exception;
trees for a width not exceeding 100 feet on       blanks for reports. (1) The Public Utility
either side of the condemned land, as may be      Commission shall prescribe the accounts and
necessary or convenient for such purpose.         records required to be kept and every tele-
    (3) The proceedings for the condemnation      communications utility is required to keep
of such lands shall be the same as that pro-      and render its accounts and records accu-
vided in ORS chapter 35, provided that any        rately and faithfully in the manner pre-
award shall include, but shall not be limited     scribed by the commission and to comply
to, damages for destruction of forest growth,     with all directions of the commission relating
premature cutting of timber and diminution        to such accounts and records.

Title 57                                    Page 11                                                 (2007 Edition)
759.130                            UTILITY REGULATION

    (2) No telecommunications utility shall                  RATE REGULATION AND
keep any other accounts or records of its                   PROCEDURES; MEASURING
telecommunications utility business trans-                           EQUIPMENT
acted than those prescribed or approved by               759.175 Filing rate schedules and data
the commission except such as may be re-            with commission. (1) Every telecommuni-
quired by the laws of the United States.            cations utility shall file with the Public
    (3) The commission shall cause to be            Utility Commission, within a time to be fixed
prepared suitable blanks for reports for car-       by the commission, schedules showing all
rying out the purposes of this chapter, and         rates, tolls and charges that the utility has
shall, when necessary, furnish such blanks          established and that are in force at the time
for reports to each telecommunications util-        for any service performed by the utility
ity. [1987 c.447 §9]                                within the state, or for any service in con-
                                                    nection with or performed by any utility
    759.130 Closing date of accounts; filing        controlled or operated by the utility. Sched-
balance sheet; audit. (1) The accounts shall        ules filed with the commission shall be open
be closed annually on December 31 and a             to public inspection.
balance sheet of that date promptly taken                (2) Every telecommunications utility
therefrom. On or before April 1 following,          shall file, with and as part of every schedule
such balance sheet, together with such other        filed under subsection (1) of this section, all
information as the Public Utility Commission        rules and regulations that in any manner af-
shall prescribe, verified by an officer of the      fect the rates charged or to be charged for
telecommunications utility, shall be filed          any service.
with the commission.                                     (3) Where a schedule of joint rates or
    (2) The commission may examine and au-          charges is or may be in force between two
dit any account. Items shall be allocated to        or more telecommunications utilities, the
the accounts in the manner prescribed by the        schedule shall in like manner be printed and
commission. [1987 c.447 §10]                        filed with the commission. [1987 c.447 §12; 2005
                                                    c.232 §15]
    759.135 Depreciation accounts; unde-
preciated investment allowed in rates;                  759.180 Hearing on reasonableness of
                                                    rates; procedures; exceptions. (1)(a) Except
conditions. (1) Every telecommunications            as provided in ORS 759.195 and 759.410 and
utility shall carry a proper and adequate de-       ORS 759.052, 759.054 or 759.056, whenever
preciation account. The Public Utility Com-         any telecommunications utility files with the
mission shall ascertain and determine the           Public Utility Commission any rate or
proper and adequate rates of depreciation of        schedule of rates stating or establishing a
the several classes of property of each tele-       new rate or schedule of rates or increasing
communications utility. The rates shall be          an existing rate or schedule of rates, the
such as will provide the amounts required           commission may, either upon written com-
over and above the expenses of maintenance,         plaint or upon the commission′s own initi-
to keep such property in a state of efficiency      ative, after reasonable notice, conduct a
corresponding to the progress of the indus-         hearing to determine the propriety and rea-
try. Each telecommunications utility shall          sonableness of the rate or schedule. The
conform its depreciation accounts to the            commission shall conduct the hearing upon
rates so ascertained and determined by the          written complaint filed by the telecommuni-
commission. The commission may make                 cations utility, its customer or customers, or
changes in such rates of depreciation from          any other proper party within 60 days of the
                                                    telecommunications utility′s filing. A hearing
time to time as the commission may find to          need not be held if the particular rate
be necessary.                                       change is the result of an automatic adjust-
    (2) In the following cases the commission       ment clause. At the hearing the telecommu-
may allow in rates, directly or indirectly,         nications utility shall bear the burden of
amounts on the utility′s books of account           showing that the rate or schedule of rates
which the commission finds represent unde-          proposed to be established or increased or
preciated investment in a utility plant, in-        changed is just and reasonable.
cluding that which has been retired from                (b) As used in this subsection, “automatic
service:                                            adjustment clause” means a provision of a
    (a) When the retirement is due to ordi-         rate schedule, authorized pursuant to ORS
                                                    759.195 (6), that provides for rate increases,
nary wear and tear, casualties, acts of God,        decreases or both, without prior hearing, re-
acts of governmental authority; or                  flecting increases, decreases or both in costs
    (b) When the commission finds that the          incurred by a telecommunications utility and
retirement is in the public interest. [1987 c.447   that is subject to review by the commission
§11; 1989 c.956 §3]                                 at least once every two years.

Title 57                                      Page 12                                (2007 Edition)
                      TELECOMMUNICATIONS UTILITY REGULATION                                       759.195

     (2) The commission and staff may consult                  (2) This section does not prevent the
at any time with, and provide technical as-               commission and the telecommunications util-
sistance to, telecommunications utilities,                ity from entering into a written stipulation
their customers, and other interested parties             at any time extending any period of suspen-
on matters relevant to utility rates and                  sion.
charges. If a hearing is held with respect to                  (3) After full hearing, whether completed
a rate change, the decisions of the commis-               before or after such rate or schedule has
sion shall be based on the record made at the             gone into effect, the commission may make
hearing. [1987 c.447 §13; 1989 c.5 §16; 2005 c.232 §16]   such order in reference thereto as would be
     759.182 Rate schedules for service                   proper in a proceeding initiated after such
promotions; rules. (1) A telecommuni-                     rate or schedule has become effective.
cations utility may file rate schedules for                    (4) If the commission is required to or
service promotions that are offered by the                determines to conduct a hearing on a rate or
utility for the purpose of:                               schedule of rates filed pursuant to ORS
     (a) Increasing the use of the utility′s ser-         759.180, but does not order a suspension
vices by present or future customers;                     thereof, any increased revenue collected by
     (b) Preventing a decrease in the use of              the telecommunications utility as a result of
the utility′s services by present or future               such rate or rate schedule becoming effective
customers; or                                             shall be received subject to being refunded.
                                                          If the rate or rate schedule thereafter ap-
     (c) Inducing any person to use the utili-            proved by the commission is for a lesser in-
ty′s services instead of a competing provid-              crease      or     for    no      increase, the
er′s services.                                            telecommunications utility shall refund the
     (2) The rates charged under a service                amount of revenues received that exceeds the
promotion by a telecommunications utility                 amount approved as nearly as possible to the
must be adequate to ensure that:                          customers from whom such excess revenues
     (a) The utility will recover an amount               were collected, by a credit against future
equal to the sum of the total service long run            bills or otherwise, in such manner as the
incremental cost of providing the nonessen-               commission orders.
tial functions of the service and the price                    (5) The commission may, in a suspension
that is charged to other telecommunications               order, authorize an interim rate or rate
carriers for the essential functions; and                 schedule under which the telecommuni-
     (b) The utility will recover the amount              cations utility′s revenues will be increased
under paragraph (a) of this subsection during             by an amount deemed reasonable by the
the average time that customers use the ser-              commission, not exceeding the amount re-
vice.                                                     quested by the telecommunications utility.
     (3) Notwithstanding ORS 759.190, service             An interim rate or rate schedule shall re-
promotion rate schedules become effective                 main in effect until terminated by the com-
upon filing with the Public Utility Commis-               mission. [1987 c.447 §14]
sion.                                                          759.190 Notice of schedule change. No
     (4) The commission shall adopt rules                 change shall be made in any schedule, in-
governing service promotion rate schedules                cluding schedules of joint rates, except upon
filed under this section. [2001 c.309 §2]                 30 days′ notice to the Public Utility Com-
     Note: 759.182 was added to and made a part of        mission. All changes shall be plainly indi-
759.180 to 759.190 by legislative action but was not      cated upon existing schedules, or by filing
added to any other series. See Preface to Oregon Re-      new schedules in lieu thereof 30 days prior
vised Statutes for further explanation.
                                                          to the time they are to take effect. However,
    759.185 Suspension of rates pending                   the commission, for good cause shown, may
hearing; time limitation; refund of re-                   allow changes without requiring the 30 days′
venue collected; interim rates. (1) The                   notice by filing an order specifying the
Public Utility Commission may, pending such               changes to be made and the time when they
investigation and determination, order the                shall take effect. [1987 c.447 §15]
suspension of the rate or schedule of rates,
provided the initial period of suspension shall               759.195 Price listing of services; con-
not extend more than six months beyond the                ditions; maximum rates; essential ser-
time when such rate or schedule would oth-                vices; justification by utility of rates for
erwise go into effect. If the commission finds            price-listed services. (1) Except as provided
that the investigation will not be completed              in subsection (6) of this section, upon peti-
at the expiration of the initial suspension,              tion of a telecommunications utility that
the commission may enter an order further                 provides local exchange service directly, or
suspending such rate or schedule for not                  is affiliated with a utility that provides local
more than three months beyond the last day                exchange service, and after notice and hear-
of the initial suspension.                                ing, the Public Utility Commission may au-

Title 57                                           Page 13                                 (2007 Edition)
759.200                            UTILITY REGULATION

thorize the utility to set rates for toll and      authorization to price list issued by the
other telecommunications services by filing        commission. Price listed rates shall also be
a price list containing the price and terms        subject to complaint under ORS 756.500.
for the service. The price list or any revision    [Formerly 757.850; 2005 c.232 §13a]
of the price list is not subject to the pro-            759.200 Inclusion of amortizations in
visions of ORS 759.180 to 759.190 and shall        rates; deferral of certain expenses or re-
become effective as determined by the com-         venues; limitation on amounts; prohib-
mission. The commission may prescribe con-         ited uses. (1) In addition to powers
ditions on an authorization to establish rates     otherwise vested in the Public Utility Com-
by price list, including conditions relating to    mission, and subject to the limitations con-
the sharing of revenues received by the util-      tained in subsection (5) of this section, under
ity that are in excess of allowances provided      amortization schedules set by the commis-
for in the order of authorization.                 sion, a rate or rate schedule may reflect the
    (2) Telecommunications utilities that          following:
provide telecommunications services only be-            (a) Amounts lawfully imposed retro-
tween exchanges and are not affiliated with        actively by order of another governmental
a utility that provides local exchange service     agency; or
may establish rates by price list without
special authorization from the commission.              (b) Amounts deferred under subsection
                                                   (2) of this section.
    (3) Prior to granting a petition to set
rates by price list under this section, the             (2) Upon application of a telecommuni-
commission shall find that pricing flexibility:    cations utility or ratepayer or upon the com-
                                                   mission′s own motion and after public notice
    (a) Is reasonably necessary to enable the      and opportunity for comment, the commis-
utility to respond to current and future com-      sion by order may authorize deferral, for
petitive conditions for any or all telecommu-      later incorporation in rates, telecommuni-
nications services;                                cations utility expenses or revenues, the re-
    (b) Will maintain the appropriate balance      covery or refund of which the commission
between the need for price flexibility and the     finds should be deferred in order to minimize
protection of consumers;                           the frequency of rate changes or the fluctu-
    (c) Is likely to benefit the consumers of      ation of rate levels or to match appropriately
fixed rate services; and                           the costs borne by and benefits received by
                                                   ratepayers. The authority under this subsec-
    (d) Is unlikely to cause any undue harm        tion is limited to the following accounts:
to any customer class.
                                                        (a) Increases or decreases in amounts in-
    (4) A rate set for a service by a utility      curred by a telecommunications utility re-
may not be lower than the long run incre-          sulting from changes in jurisdictional
mental cost of providing the service.              separations approved by the Federal Commu-
    (5) Upon its own motion the commission         nications Commission;
may fix maximum rate levels and terms of                (b) Increases or decreases in amounts in-
service for price listed services and for toll     curred by a telecommunications utility re-
services on noncompetitive routes. Upon re-        sulting from changes in depreciation rates or
quest of any affected person, the commission       amortization schedules approved by the com-
shall fix maximum rate levels and terms of         mission;
service for price listed services not subject
to competition and for toll services on non-            (c) Increases or decreases in amounts in-
competitive routes.                                curred by a telecommunications utility re-
                                                   sulting from changes in income, excise,
    (6) By rule, the commission shall desig-       franchise or ad valorem taxes by the federal,
nate local exchange services that it deems         state or local governments;
essential, and rates for such services shall
be prescribed under ORS 759.180 to 759.190.             (d) Increases or decreases in amounts in-
The commission also may authorize auto-            curred by a telecommunications utility re-
matic adjustment clauses which reflect in-         sulting         from       restoration       of
creases, decreases, or both, in particular         telecommunications services interrupted by
costs incurred by the utility. For the pur-        floods, fires, earthquakes, storms or other
poses of this subsection, “essential services”     acts of nature;
need not be essential for all classes of cus-           (e) Increases or decreases in amounts in-
tomers.                                            curred by a telecommunications utility for
    (7) The commission may, at any time, or-       research, development, planning and advance
der a telecommunications utility to appear         advertising for products and services not yet
and establish that any of its price listed rates   in service;
are just and reasonable and in conformity               (f) Increases or decreases in amounts in-
with the requirements of this section and the      curred by a telecommunications utility for

Title 57                                     Page 14                                     (2007 Edition)
                  TELECOMMUNICATIONS UTILITY REGULATION                                   759.217

telephone plant transfers and property sales     ule. The rates named therein are the lawful
approved by the commission;                      rates until they are changed as provided in
     (g) Increases or decreases in amounts in-   this chapter. [1987 c.447 §16]
curred by a telecommunications utility from          759.210 Classification of service and
affiliated interest contracts and transactions   rates; considerations. (1) The Public Utility
approved by the commission;                      Commission shall provide for a comprehen-
     (h) Increases or decreases in amounts in-   sive classification of service for each tele-
curred by a telecommunications utility from      communications utility. The classification
attorney′s fees, court settlements and court     may take into account the quantity used, the
awards;                                          time when used, the purpose for which used,
                                                 the existence of price competition or a ser-
     (i) Increases or decreases in amounts in-   vice alternative, the services being provided,
curred by a telecommunications utility re-       the conditions of service and any other rea-
sulting from changes in accounting methods       sonable consideration. Based on these con-
approved by the commission; and                  siderations the commission may authorize
     (j) Increases or decreases in amounts in-   classifications or schedules of rates applica-
curred by a telecommunications utility from      ble to individual customers or groups of cus-
customer service contracts, intercompany         tomers. Each telecommunications utility is
service contracts and joint and through ser-     required to conform its schedules of rates to
vice arrangements.                               such classification. If the commission deter-
                                                 mines that a tariff filing under ORS 759.175
     (3) The commission may authorize defer-     results in a rate classification primarily re-
rals under subsection (2) of this section be-    lated to price competition or a service alter-
ginning with the date of application, together   native, the commission, at a minimum, shall
with interest established by the commission.     consider the following:
A deferral may be authorized for a period not
to exceed 12 months beginning on or after            (a) Whether the rate generates revenues
the date of application.                         at least sufficient to cover relevant short and
                                                 long run costs of the utility during the term
     (4) Unless subject to an automatic ad-      of the rates; and
justment clause under ORS 759.180, amounts
described in this section shall be allowed in        (b) Whether the rate generates revenues
rates only to the extent authorized by the       sufficient to insure that just and reasonable
commission in a proceeding to change rates       rates are established for remaining custom-
and upon review of the utility′s earnings at     ers of the telecommunications utility.
the time of application to amortize the              (2) The commission may prescribe any
deferral.                                        changes in the form in which the schedules
     (5) In any one year, the overall average    are issued by any telecommunications utility
rate impact of the amortizations authorized      as the commission finds to be expedient. The
under this section shall not exceed three        commission shall adopt rules that allow any
percent of the telecommunications utility′s      person who requests notice of tariff filings
gross revenues for the preceding calendar        described under subsection (1) of this section
year.                                            to receive such notice. [1987 c.447 §17; 1989 c.5
                                                 §17; 2005 c.232 §18]
     (6) The provisions of this section may be
used as a means of deferring the effect of           759.215 Public access to schedules. (1)
readily identifiable and readily measurable      A copy of so much of all schedules, including
changes in particular costs or revenues of a     schedules of joint rates and charges, as the
telecommunications utility, but shall not be     Public Utility Commission deems necessary
used to implement a claim for an increase or     for the use of the public, shall be made
decrease in the overall revenue requirement      available to the public.
of a telecommunications utility when the             (2) Except as provided in ORS 759.410 (8),
amount of the change or changes would not        copies of all new schedules shall be made
be known until the completion of a rate case.    readily accessible to the public as required
[1989 c.929 §2]                                  by the commission 30 days prior to the time
    759.205 Conformance of rates charged         the schedules are to take effect, unless the
with schedule. No telecommunications util-       commission prescribes a shorter time. [1987
                                                 c.447 §18; 2005 c.232 §19]
ity shall charge, demand, collect or receive
a greater or less compensation for any ser-          759.217 Effect of tax credit under ORS
vice performed by it within the state, or for    315.511. The Public Utility Commission may
any service in connection therewith, than is     not require a reduction in a rate or a sched-
specified in printed rate schedules as may at    ule of rates as a result of a tax credit under
the time be in force, or demand, collect or      ORS 315.511 being allowed to a telecommu-
receive any rate not specified in such sched-    nications utility. [2001 c.957 §17]

Title 57                                   Page 15                                 (2007 Edition)
759.218                          UTILITY REGULATION

     759.218 Revenues and expenses of un-        service, classifications and joint rates, the
regulated activities. (1) A telecommuni-         divisions of such rates and the terms and
cations utility may not use revenues earned      conditions under which such through service
from, or allocate expenses to, that portion of   shall be rendered. If any tariff or schedule
the utility′s business that is regulated under   canceling any through service or joint rate
this chapter in order to subsidize activities    or classification without the consent of all
that are not regulated by this chapter.          the     telecommunications     utilities   party
     (2) The Public Utility Commission may       thereto, or authorization by the commission
not require revenues or expenses from an         is suspended by the commission for investi-
activity that is not regulated under this        gation, the burden of proof is upon the tele-
chapter to be attributed to the regulated ac-    communications utility proposing such
                                                 cancellation to show that it is consistent
tivities of a telecommunications utility.        with the public interest.
     (3) The commission may approve a tele-           (3) Whenever, after full hearing upon
communications utility rate proposal for         complaint or upon the commission′s own ini-
basic local service rates that utilizes reven-   tiative without complaint, the commission is
ues from other regulated services to partially   of the opinion that the divisions of joint
cover the costs of providing basic local ser-    rates between the telecommunications utili-
vice. [2005 c.232 §4]                            ties are or will be unjust, unreasonable, in-
     759.219 Certain taxes as operating ex-      equitable     or    unduly    preferential     or
pense; charge pro rata to users; condi-          prejudicial as between the telecommuni-
tion. The privilege tax authorized by ORS        cations utilities party thereto, whether
221.515, or other similar exactions imposed      agreed upon by such telecommunications
by any municipality in this state upon tele-     utilities or otherwise established, the com-
communications utilities for use and occu-       mission shall, by order, prescribe the just,
pancy of streets, alleys or highways, or all     reasonable and equitable divisions thereof to
of them, shall be allowed as an operating ex-    be received by the several telecommuni-
pense of the affected telecommunications         cations utilities. In cases where the joint
utilities operating in the municipality for      rate was established pursuant to the finding
rate-making purposes by the Public Utility       or order of the commission and the divisions
Commission. The cost of such privilege tax       thereto are found by the commission to have
or other similar exactions shall be charged      been unjust, unreasonable or inequitable, or
pro rata to the users of such telecommuni-       unduly preferential or prejudicial, the com-
cations utility within the municipality unless   mission may also by order determine what,
the Public Utility Commission determines on      for the period subsequent to the filing of the
a statewide basis that such pro rata charges     complaint or petition or the making of the
would be inequitable, in whole or in part, to    order of investigation, would have been the
city ratepayers or should otherwise be borne     just, reasonable and equitable division
as a statewide operating expense by the tele-    thereof to be received by the several tele-
communications utility. [Formerly 759.105]       communications utilities and require adjust-
                                                 ment to be made in accordance therewith.
     759.220 Joint rates and classifications;         (4) In so prescribing and determining the
procedure; considerations. (1) A telecom-        divisions of joint rates, the commission shall
munications utility may establish reasonable     give due consideration, among other things,
through service and joint rates and classi-      to:
fications with other telecommunications
utilities. Telecommunications utilities estab-        (a) The efficiency with which the tele-
lishing joint rates shall establish just and     communications utilities concerned are oper-
reasonable regulations and practices in con-     ated;
nection therewith and just, reasonable and            (b) The amount of revenue to pay their
equitable divisions thereof, as between the      respective operating expenses, taxes and a
public utilities participating therein which     fair return on their telecommunications util-
shall not unduly prefer or prejudice any of      ity property held for and used in service;
the participating telecommunications utili-
ties and every unjust and unreasonable rate,          (c) The importance to the public of the
classification, regulation, practice and divi-   services of such telecommunications utilities;
sion is prohibited.                                   (d) Whether any particular participating
     (2) The Public Utility Commission may,      telecommunications utility is an originating,
and shall, whenever deemed by the commis-        intermediate or delivering utility; and
sion to be necessary or desirable in the pub-         (e) Any other fact or circumstance which
lic interest, after full hearing upon            ordinarily would entitle one telecommuni-
complaint, or upon the commission′s own in-      cations utility to a greater or less proportion
itiative without complaint, establish through    of the joint rate than another. [1987 c.447 §19]

Title 57                                   Page 16                                 (2007 Edition)
                    TELECOMMUNICATIONS UTILITY REGULATION                                      759.245

    759.225 Application of ORS 759.220 to            upon number of calls, length of calls, dis-
unincorporated associations and cooper-              tance, time of day, or any combination
ative corporations. Notwithstanding any              thereof.
other provision of law, ORS 759.220 applies              (3) Nothing in this section is intended to
to any unincorporated association or cooper-         prohibit the commission from requiring tele-
ative corporation providing intrastate tele-         phone customers to pay on a mandatory
communications service. The application of           measured service basis for:
ORS 759.220 to unincorporated associations
and cooperative corporations:                            (a) Land, marine, or air mobile service.
    (1) Does not allow the Public Utility                (b) Local exchange telephone service re-
Commission to establish terms, conditions,           sold at a profit.
classifications or rates for services rendered           (4) The commission shall not change
to members of unincorporated associations            boundaries of local exchange service areas
or cooperative corporations;                         nor take any other actions if such changes
    (2) Does not make unincorporated associ-         or actions have the effect of circumventing
ations or cooperative corporations subject to        subsections (1) and (2) of this section.
the commission′s general powers of regu-             [Formerly 757.840; 1997 c.317 §1]
lation;                                                  759.240 Measuring quality of service;
    (3) Allows the commission to regulate            standards; rules. (1) The Public Utility
access charges imposed by unincorporated             Commission shall ascertain and prescribe for
associations and cooperative corporations;           each kind of telecommunications utility suit-
and                                                  able and convenient standard commercial
    (4) Requires unincorporated associations         units of service. These shall be lawful units
and cooperative corporations to provide in-          for the purposes of this chapter.
formation to the commission that the com-                (2) The commission shall ascertain and
mission deems necessary to establish new             fix adequate and serviceable standards for
extended service areas. [Formerly 757.860; 2001      the measurement of quality, pressure, initial
c.853 §1]
                                                     voltage or other conditions pertaining to the
    759.230 Measured service rate for                supply of the service rendered by any tele-
business customers; restriction. (1) Not-            communications utility and prescribe reason-
withstanding any other provision of this             able regulations for examination and testing
chapter, the Public Utility Commission shall         of such service and for the measurement
not authorize a telecommunications utility to        thereof. It shall establish reasonable rules,
implement a rate schedule that includes op-          regulations, specifications and standards to
tional measured service for business custom-         secure the accuracy of all meters and appli-
ers unless the rate for the service is               ances for the measurements, and every tele-
sufficient to defray all costs that must be in-      communications utility is required to carry
curred to implement the service, including           into effect all orders issued by the commis-
the costs of measuring and billing.                  sion relative thereto. [1987 c.447 §20]
    (2) As used in this section:
                                                         759.245 Examination and testing of
    (a) “Local exchange telephone service”           measuring appliances. (1) The Public Util-
means telephone service provided within the          ity Commission may provide for the exam-
boundaries of exchange maps filed with and           ination and testing of any and all appliances
approved by the commission.                          used for the measuring of any service of a
    (b) “Measured service” means local ex-           telecommunications utility and may provide
change telephone service, the rate for which         by rule that no such appliance shall be in-
is based upon the number of calls, length of         stalled and used for the measuring of any
calls, distance or time of day. [Formerly 757.835]   service of any telecommunications utility
    759.235 Mandatory measured service               until it has been examined and tested by the
rate; prohibition. (1) The Public Utility            commission and found to be accurate.
Commission shall be prohibited from requir-              (2) The commission shall declare and es-
ing any call aggregator, telephone customer          tablish a reasonable fee governing the cost
or class of customers to pay for local ex-           of such examination and test, which shall be
change telephone service, or any portion             paid to the commission by the telecommuni-
thereof, on a mandatory measured service             cations utility.
basis.
    (2) As used in this section:                         (3) The commission shall declare and es-
                                                     tablish reasonable fees for the testing of such
    (a) “Call aggregator” has the meaning            appliances on the application of the cus-
given that term in ORS 759.690.                      tomer, the fee to be paid by the customer at
    (b) “Measured service” means charging            the time of the customer′s request, but to be
for local exchange telephone service based           repaid to the customer by the commission

Title 57                                      Page 17                                    (2007 Edition)
759.250                           UTILITY REGULATION

and to be paid by the telecommunications          vice is subject to competition, the commis-
utility if the appliance is found defective or    sion shall consider whether the customer
incorrect to the disadvantage of the customer     might reasonably have chosen an alternative
or used beyond such reasonable limit as may       to the telecommunications utility′s service.
be prescribed by the commission.                       (b) The contracted price for the telecom-
    (4) All fees collected under the provisions   munications service is above the long run
of this section shall be paid by the commis-      incremental costs of providing such service
sion into the State Treasury.                     during the term of the contract. In making
    (5) The commission may purchase such          this calculation for a contract that includes
materials, apparatus and standard measuring       both competitive and noncompetitive service
instruments for the examination and tests as      elements, the commission shall consider sep-
the commission deems necessary. [1987 c.447       arately whether the competitive service ele-
§21]                                              ments are priced above the long run
                                                  incremental costs of providing such service
    759.250 Contracts for special services;       elements.
procedure for filing and approval; subse-
quent review and investigation. (1) A tele-            (c) The contracted price for the telecom-
communications utility may enter into a           munications service includes all costs of
contract with any customer for the provision      providing such service, including the rate
of a telecommunications service that the          that would be charged by a telecommuni-
Public Utility Commission determines is a         cations utility to any competitive telecom-
new service with limited availability, is de-     munications provider for any component
signed to respond to a unique customer re-        essential to the competitive telecommuni-
quirement or is subject to competition.           cations provider′s ability to offer the tele-
Contracts shall be for a stated time period,      communications service. The commission
not to exceed five years. If a contract in-       shall determine which components of the
cludes competitive and noncompetitive ser-        service shall be deemed essential and the
vice elements, the noncompetitive service         method to include prices of those components
elements shall be unbundled and priced sep-       in costs of such services.
arately from all other facilities and service          (5) The commission shall issue an order
elements in the contract. Such noncompet-         regarding any contract filed under subsection
itive service elements shall be made avail-       (2) of this section within 90 days of the filing.
able to all purchasers under the same or          If the commission does not act within 90
substantially the same circumstances at the       days of the filing, the contract shall be
same rate, terms and conditions.                  deemed approved. If the commission disap-
    (2) The telecommunications utility shall      proves the contract, it shall enter an order
file any contract with the commission no          describing the ways in which the contract
later than 90 days following its effective        fails to meet the standards set forth in sub-
date. At the customer′s request, the telecom-     section (4) of this section and declaring the
munications utility shall file the contract at    contract null and void. The telecommuni-
least 30 days in advance of the effective date.   cations utility or customer may request that
Notice of the filing of the contract shall be     the commission hold a hearing to determine
given by the commission to all persons who        whether the order should continue in effect.
have filed with the commission a petition to      Any such request for hearing shall be sub-
receive such notice.                              mitted to the commission not later than 15
                                                  days after the date of service of the order,
    (3) Contracts entered into under this         and the commission shall hold the hearing
section are not schedules of rates, tolls or      not later than 60 days after receipt of such
charges within the meaning of ORS 759.175.        request for hearing.
A contract entered into under this section
shall be enforceable by the contracting par-           (6) Notwithstanding ORS 192.410 to
ties according to its terms, unless the con-      192.505, the commission shall not disclose
tract has been rejected by the commission as      the identity of a customer or any customer
provided in this section.                         proprietary information contained in a con-
                                                  tract filed under subsection (2) of this section
    (4) Notwithstanding ORS 759.175 to            without the consent of the customer and the
759.185, the commission shall approve any
contract for a telecommunications service         telecommunications utility.
entered into under this section if the com-            (7) No contract filed under subsection (2)
mission finds the following:                      of this section may be automatically re-
    (a) The telecommunications service is a       newed. A contract renewal shall be treated
new service with limited availability, is de-     as a new contract.
signed to respond to a unique customer re-             (8) Nothing in this section shall be
quirement or is subject to competition. In        deemed state action for the purpose of ex-
making the determination of whether a ser-        empting a telecommunications utility from

Title 57                                    Page 18                                 (2007 Edition)
                  TELECOMMUNICATIONS UTILITY REGULATION                                     759.259

liability for anticompetitive conduct or other    commission shall establish objectives of the
unlawful practices.                               plan and conditions for review of the plan
    (9) Any contract executed prior to Sep-       during the operation of the plan. The com-
tember 29, 1991, and approved by the com-         mission may not consider return on invest-
mission is deemed lawful and shall be             ment of the utility when the commission
enforceable by the contracting parties ac-        establishes objectives of the plan and condi-
cording to its terms. A contract renewal          tions for review of the plan during the oper-
shall be deemed a new contract.                   ation of the plan.
    (10) Nothing in this section shall restrict       (4) A rate for any service in the plan au-
the commission from subsequent scrutiny of        thorized under subsection (1) of this section
the reasonableness of contracts filed under       may not be lower than the total service long
this section for ratemaking purposes.             run incremental cost, for nonessential func-
                                                  tions, of providing the service and the
    (11) In accordance with ORS 756.515, the      charges of essential functions used in pro-
commission may investigate contracts filed        viding the service. However, the commission
by a specific telecommunications utility un-      may allow a telecommunications utility to
der this section. Notwithstanding any other       establish rates for residential local exchange
provision of this section, if the commission      service at any level necessary to achieve the
finds that contracts entered into by a tele-      commission′s universal service objectives.
communications utility have not generally
been in the public interest, the commission,          (5) If the commission approves a plan
by order, may prevent or restrict the tele-       under subsection (1) of this section, the
communications utility from future contract-      commission may waive, in whole or in part,
ing pursuant to this section and may require      compliance by the telecommunications utility
the telecommunications utility to file con-       with ORS 759.120, 759.125, 759.130, 759.135,
tracts under ORS 759.175. [1991 c.527 §2]         759.180 to 759.205, 759.215, 759.220, 759.285
                                                  and 759.300 to 759.393. [1995 c.399 §2; 2005 c.232
    759.255 Setting prices without regard         §13b]
to return on utility investment; petition;
findings; conditions; application of stat-            759.257 Extended area service: Port-
utes to approved plan. (1) In addition to         land to Scappoose. (1) Two-way, flat rate or
powers vested in the Public Utility Commis-       measured extended area service shall be pro-
sion under ORS 759.195, and subject to the        vided by each telecommunications utility
limitations contained in subsections (2) to (4)   providing service between the Portland EAS
of this section, upon petition of a telecom-      Region and the Scappoose Exchange, as de-
munications utility that provides local ex-       scribed by EAS and exchange maps filed with
change service directly, or is affiliated with    and approved by the Public Utility Commis-
a utility that provides local exchange service,   sion.
the commission, after notice and hearing,             (2) The service provided for in subsection
may approve a plan under which the com-           (1) of this section may be implemented dur-
mission regulates prices charged by the util-     ing the currently pending Portland EAS Re-
ity, without regard to the return on              gion Expansion, but in no event shall such
investment of the utility. Prices approved        implementation occur later than November
under the plan are not subject to the pro-        1, 1998.
visions of ORS 759.180 to 759.190 and shall           (3) Nothing in subsection (1) of this sec-
become effective as stated in the plan.           tion authorizes a telecommunications utility
    (2) Prior to granting a petition to approve   to discontinue two-way, flat rate or measured
a plan under subsection (1) of this section,      extended area service in any exchange area
the commission must find that the plan is in      where that service was provided prior to Oc-
the public interest. In making its determi-       tober 4, 1997. [1997 c.796 §2]
nation the commission shall consider, among
other matters, whether the plan:                      759.259 Extended area service: Port-
                                                  land to Molalla. (1) Two-way, flat rate or
    (a) Ensures prices for telecommuni-           measured extended area service shall be pro-
cations services that are just and reasonable;    vided by each telecommunications utility
    (b) Ensures high quality of existing tele-    providing service between the Portland EAS
communications services and makes new             Region and the Molalla Exchange, as de-
services available;                               scribed by EAS and exchange maps filed with
                                                  and approved by the Public Utility Commis-
    (c) Maintains the appropriate balance be-     sion.
tween the need for regulation and competi-
tion; and                                             (2) The service provided for in subsection
                                                  (1) of this section may be implemented dur-
    (d) Simplifies regulation.                    ing the currently pending Portland EAS Re-
    (3) If the commission approves a plan         gion Expansion, but in no event shall such
under subsection (1) of this section, the         implementation occur later than November

Title 57                                    Page 19                                 (2007 Edition)
759.260                               UTILITY REGULATION

1, 1998, after approval by customers of the             mium with the purchase of a service. ORS
Molalla Exchange.                                       759.260 and 759.265 do not apply to pro-
    (3) Nothing in subsection (1) of this sec-          motions under this section, but the customer
tion authorizes a telecommunications utility            group to which the promotion is available
to discontinue two-way, flat rate or measured           must be based on reasonable distinctions
extended area service in any exchange area              among customers. [1993 c.204 §4]
where the service was provided prior to Oc-                  759.270 Reducing rates for persons
tober 4, 1997. [1997 c.505 §2]                          furnishing part of facilities; rental of
                                                        customer facilities; furnishing meters
            ILLEGAL PRACTICES                           and appliances. (1) No telecommunications
                                                        utility shall demand, charge, collect or re-
     759.260 Unjust discrimination in rates.            ceive from any person less compensation for
(1) Except as provided in ORS 759.265, no               any service rendered or to be rendered by
telecommunications utility or any agent or              the telecommunications utility in consider-
officer thereof shall, directly or indirectly, by       ation of the furnishing by such person of any
any device, charge, demand, collect or re-              part of the facilities incident thereto.
ceive from any person a greater or less com-
pensation for any service rendered or to be                  (2) This section does not prohibit any
rendered by it than:                                    telecommunications utility from renting any
                                                        customer′s facilities incident to providing its
     (a) That prescribed in the public sched-           services and for paying a reasonable rental
ules or tariffs then in force or established;           therefor.
or
                                                             (3) This section does not require a tele-
     (b) It charges, demands, collects or re-           communications utility to furnish any part
ceives from any other person for a like and             of such appliances which are situated in and
contemporaneous service under substantially             upon the premises of any customer, except
similar circumstances. A difference in rates            meters and appliances for measurements of
or charges based upon a difference in classi-           any service, unless otherwise ordered by the
fication pursuant to ORS 759.210 shall not              Public Utility Commission. [1987 c.447 §48]
constitute a violation of this paragraph.
                                                            759.275 Undue preferences and preju-
     (2) Any telecommunications utility vio-            dices. (1) No telecommunications utility
lating this section is guilty of unjust dis-            shall make or give undue or unreasonable
crimination. [1987 c.447 §46; 1989 c.5 §22; 1993 c.18   preference or advantage to any particular
§165]
                                                        person or locality, or shall subject any par-
    759.265 Practices not constituting un-              ticular person or locality to any undue or
just discrimination. (1) ORS 759.260 does               unreasonable prejudice or disadvantage in
not prevent any telecommunications utility              any respect.
from giving free service, or reduced rates                  (2) Any telecommunications utility vio-
therefor, to:                                           lating this section is guilty of unjust dis-
    (a) Its officers, directors, employees and          crimination. [1987 c.447 §49]
members of their families;                                  759.280 Soliciting or accepting rebates
    (b) Former employees of such telecom-               or special advantage. No person shall
munications utilities or members of their               knowingly solicit, accept or receive any re-
families where such former employees have               bate, concession or discrimination in respect
become disabled in the service of such tele-            to any service whereby any such service
communications utility or are unable from               shall, by any device, be rendered free or at
physical disqualification, including retire-            a lesser rate than that named in the pub-
ment, to continue in the service; or                    lished schedules and tariffs in force, or
    (c) Members of families of deceased em-             whereby any service or advantage is received
ployees of such telecommunications utility.             other than authorized in this chapter. [1987
                                                        c.447 §50]
    (2) The Public Utility Commission may
require any telecommunications utility to file              759.285 Charging rates based on cost
with the commission a list, verified under              of property not presently providing ser-
oath, of all free or reduced rate privileges            vice. No telecommunications utility shall,
granted by a telecommunications utility un-             directly or indirectly, by any device, charge,
der the provisions of this section. [1987 c.447         demand, collect or receive from any cus-
§47]                                                    tomer, rates which are derived from a rate
    759.267 Service promotion activities.               base which includes within it any construc-
A telecommunications utility may promote                tion, building, installation or real or personal
the use of its services by offering a waiver            property not presently used for providing
of part or all of a recurring or a nonrecur-            utility service to the customer. [1987 c.447 §51]
ring charge, a redemption coupon or a pre-                   759.290 [1989 c.621 §2; repealed by 2007 c.823 §6]

Title 57                                         Page 20                                        (2007 Edition)
                        TELECOMMUNICATIONS UTILITY REGULATION                             759.315

        ISSUANCE OF SECURITIES                     money in the treasury of the telecommuni-
    759.300 “Stocks” defined. As used in           cations utility not secured by or obtained
ORS 759.300 to 759.360, “stocks” means             from the issue of stocks or bonds, notes or
stocks, stock certificates or other evidence       other evidences of indebtedness, or securities
of interest or ownership. [1987 c.447 §28]         of such telecommunications utility, for any
                                                   of the purposes listed in paragraphs (a) to (c)
    759.305 Power to regulate issuance of          of this subsection except the maintenance of
telecommunications stocks. The power of            service and replacements, in cases where the
telecommunications utilities to issue stocks       applicant has kept its accounts and vouchers
and bonds, notes and other evidences of in-        for such expenditures in such manner as to
debtedness and to create liens on their prop-      enable the Public Utility Commission to as-
erty situated within this state is a special       certain the amount of money so expended
privilege, the right of supervision, regulation,   and the purposes for which such expendi-
restriction and control of which is and shall      tures were made.
continue to be vested in the state. Such               (e) The compliance with terms and con-
power shall be exercised as provided by law        ditions of options granted to its employees to
and under such rules and regulations as the        purchase its stock, if the commission first
Public Utility Commission may prescribe.           finds that such terms and conditions are
[1987 c.447 §29]
                                                   reasonable and in the public interest.
     759.310 When issuance of securities
void. All stocks and bonds, notes or other             (2) Before issuing such securities, a tele-
evidences of indebtedness and any security         communications utility, in addition to the
of a telecommunications utility shall be void      other requirements of law, shall secure from
when issued:                                       the commission upon application an order
                                                   authorizing such issue, stating:
     (1) Without an order of the Public Utility
Commission authorizing the same then in ef-            (a) The amount of the issue and the pur-
fect except as provided in ORS 759.315 (3) or      poses to which the issue or the proceeds
(5).                                               thereof are to be applied;
     (2) With the authorization of the com-            (b) In the opinion of the commission, the
mission, but not conforming in its provisions      money, property or labor to be procured or
to the provisions, if any, which it is required    paid for by such issue reasonably is required
by the order of authorization of the commis-       for the purposes specified in the order and
sion to contain; but no failure to comply with     compatible with the public interest, which is
the terms or conditions of the order of au-        necessary or appropriate for or consistent
thorization of the commission and no infor-        with the proper performance by the applicant
mality or defect in the application or in the      of service as a telecommunications utility,
proceedings in connection therewith or with        and will not impair its ability to perform that
the issuance of such order shall render void       service; and
any stock or bond, note or other evidence of           (c) Except as otherwise permitted in the
indebtedness, or security issued pursuant to       order in the case of bonds, notes or other
and in substantial conformity with an order        evidences of indebtedness, such purposes are
of the commission, except as to a person           not, in whole or in part, reasonably chargea-
taking the same otherwise than in good faith       ble to operating expenses or to income.
and for value and without actual notice. [1987         (3) This section and ORS 759.310 apply to
c.447 §30; 1993 c.204 §1]
                                                   demand notes but do not apply to the issu-
     759.315 Purposes for which securities         ance or renewal of a note or evidence of in-
may be issued; order required; excep-              debtedness maturing not more than one year
tions. (1) A telecommunications utility may        after date of such issue or renewal.
issue stocks and bonds, notes and other evi-           (4) Nothing in ORS 759.300 to 759.360
dences of indebtedness, and securities for the     shall prevent issuance of stock to stockhold-
following purposes and no others, except as        ers as a stock dividend if there has been se-
otherwise permitted by subsection (4) of this      cured from the commission an order:
section:
                                                       (a) Finding that the stock dividend is
     (a) The acquisition of property, or the       compatible with the public interest;
construction, completion, extension or im-
provement of its facilities.                           (b) Authorizing such issue and a transfer
                                                   of surplus to capital in any amount equal to
     (b) The improvement or maintenance of         the par or stated value of the stock so au-
its service.                                       thorized; and
     (c) The discharge or lawful refunding of          (c) Finding that a sum equal to the
its obligations.                                   amount to be so transferred was expended for
     (d) The reimbursement of money actually       the purposes enumerated in subsection (1) of
expended from income or from any other             this section.

Title 57                                     Page 21                               (2007 Edition)
759.320                                UTILITY REGULATION

    (5) A telecommunications utility that de-            the filing of such data as the commission
rives one-half or more of its gross revenue              deems necessary. The application for such
from sources outside this state does not re-             order shall be given priority and shall be
quire commission authorization to issue                  disposed of by the commission within 30 days
stocks and bonds, notes or other evidences               after the filing of such application, unless
of indebtedness and any security unless the              that period is extended with the consent of
commission finds that the authorization re-              the telecommunications utility.
quirements of ORS 759.310 and subsection (2)                 (2) The commission may, upon applica-
of this section are necessary to:                        tion of the telecommunications utility, after
    (a) Prevent the telecommunications util-             opportunity for hearing and for good cause
ity from issuing securities for purposes not             shown, make such supplemental orders in the
permitted under subsection (1) of this sec-              premises as the commission finds necessary
tion; or                                                 or appropriate, and may by any such supple-
    (b) Prevent impairment of the telecom-               mental order modify the provisions of any
munications utility′s ability to provide tele-           previous order as to the particular purposes,
communications utility services to its                   uses, extent to which, or the condition under
customers in this state. The commission shall            which, any security theretofore authorized
adopt rules that set forth independently de-             or its proceeds may be applied. Such supple-
termined financial indicators upon which the             mental orders are subject to the require-
commission must base any finding of im-                  ments of ORS 759.315. The period of time
paired ability to provide utility telecommuni-           permitted under subsection (1) of this section
cations services. [1987 c.447 §31; 1993 c.204 §2; 2001   for disposing of applications shall not apply
c.236 §1]                                                to supplemental orders.
    759.320 Application of ORS 759.315.                      (3) If a commission or other agency is
ORS 759.315 does not apply to the issuance,              empowered by another state to regulate and
renewal or assumption of liability on any ev-            control the amount and character of securi-
idence of indebtedness when such issuance,               ties to be issued by any telecommunications
renewal or assumption is for the purpose of              utility within such other state, the commis-
acquiring specific real or personal property,            sion of Oregon has power to agree with such
if the aggregate principal amount thereof,               commission or agency of such other state on
together with all other then outstanding evi-            the issue of stocks, bonds, notes, other evi-
dences of indebtedness issued, renewed or                dences of indebtedness or securities by a
assumed under this section, does not exceed              telecommunications utility owning or operat-
whichever is the greater of the following                ing a telecommunications utility both in such
amounts:                                                 state and in this state, and has power to ap-
    (1) The amount of $75,000.                           prove such issue jointly with such commis-
                                                         sion or agency and to issue a joint certificate
    (2) The amount of one-half of one percent            of such approval. However, no such joint
of the sum of:                                           approval is required in order to express the
    (a) The total principal amount of all                consent to and approval of such issue by the
bonds or other securities representing se-               State of Oregon if the issue is separately ap-
cured indebtedness of the telecommuni-                   proved by the Oregon commission. [1987 c.447
cations utility issued or assumed and then               §34]
outstanding; and                                             759.335 Obligation of state as conse-
    (b) The capital and surplus as then stated           quence of approval of issuance. No pro-
on the books of account of the telecommuni-              vision of ORS 759.300 to 759.360, and no deed
cations utility. [1987 c.447 §32]                        or act done or performed under or in con-
    759.325 Application of ORS 759.375.                  nection therewith, shall be held or construed
ORS 759.375 does not apply to any mortgage               to obligate the State of Oregon to pay or
or other encumbrance upon any real or per-               guarantee, in any manner whatsoever, any
sonal property given to secure payment of                stock or bond, note or other evidence of in-
any evidence of indebtedness issued under                debtedness, authorized, issued or executed
ORS 759.315. [1987 c.447 §33]                            under the provisions of ORS 759.300 to
                                                         759.360. [1987 c.447 §35]
    759.330 Hearings and supplemental
orders for securities issuance; joint ap-                    759.340 Conditional approval of issu-
proval for issuance by utility operating in              ance. The Public Utility Commission may by
another state. (1) To enable the Public                  order grant permission for the issue of stocks
Utility Commission to determine whether the              or bonds, notes or other evidences of indebt-
commission will issue an order under ORS                 edness in the amount applied for, or in a
759.315, the commission may hold a hearing               lesser amount, or not at all, and may attach
and may make such additional inquiry or in-              to the exercise of the permission such condi-
vestigation, examine such witnesses, books,              tion or conditions as the commission deems
papers, documents and contracts and require              reasonable and necessary. [1987 c.447 §36]

Title 57                                          Page 22                                (2007 Edition)
                  TELECOMMUNICATIONS UTILITY REGULATION                                   759.375

    759.345 Use of proceeds from issuance;            (2) In any proceeding before the commis-
accounting. (1) No telecommunications util-       sion, knowingly make any false statement or
ity shall, without the consent of the Public      representation or with knowledge of its fal-
Utility Commission, apply the issue of any        sity file or cause to be filed with the com-
stock or bond, note or other evidence of in-      mission any false statement or representation
debtedness, or any part or proceeds thereof,      which may tend in any way to influence the
to any purpose not specified in the commis-       commission to make an order authorizing the
sion′s order, or to any purpose specified in      issue of any stock or bond, note or other ev-
the commission′s order in excess of the           idence of indebtedness, or which results in
amount authorized for such purpose, or issue      procuring from the commission the making
or dispose of the same on any terms less fa-      of any such order.
vorable than those specified in such order,           (3) With knowledge that any false state-
or a modification thereof.                        ment or representation was made to the
    (2) The commission has power to require       commission in any proceeding tending in any
telecommunications utilities to account for       way to influence the commission to make
the disposition of the proceeds of all sales of   such order, issue, execute or negotiate, or
stocks and bonds, notes and other evidences       cause to be issued, executed or negotiated,
of indebtedness, in such form and detail as       any stock or bond, note or other evidence of
the commission deems advisable, and to es-        indebtedness.
tablish such rules and regulations as the             (4) Directly or indirectly, knowingly ap-
commission deems reasonable and necessary         ply, or cause or assist to be applied, the pro-
to insure the disposition of such proceeds for    ceeds, or any part thereof, from the sale of
the purpose or purposes specified in the or-      any stock or bond, note or other evidence of
der. [1987 c.447 §37]                             indebtedness, to any purpose not specified in
    759.350 Limitation on authority of            the commission′s order, or to any purpose
utility to guarantee debt of another. No          specified in the commission′s order in excess
telecommunications utility shall assume any       of the amount authorized for such purpose.
obligation or liability as guarantor, indorser,       (5) With knowledge that any stock or
surety or otherwise in respect to the securi-     bond, note or other evidence of indebtedness,
ties of any other person, firm or corporation,    has been issued or executed in violation of
when such securities are payable at periods       ORS 759.300 to 759.360, negotiate, or cause
of more than 12 months after the date             the same to be negotiated. [1987 c.447 §40]
thereof, without first having secured from
the Public Utility Commission an order au-
thorizing it to do so. Every assumption made            TRANSACTIONS OF UTILITIES
other than in accordance with such an order            759.375 Approval prior to sale, mort-
is void. [1987 c.447 §38]                         gage or disposal of operative utility
    759.355 Issuance or use of proceeds           property. (1) A telecommunications utility
contrary to commission order. No tele-            doing business in Oregon shall not, without
communications utility shall directly or indi-    first obtaining the Public Utility Commis-
rectly, issue or cause to be issued any stock     sion′s approval of such transaction:
or bond, note or other evidence of indebted-           (a) Sell, lease, assign or otherwise dis-
ness in nonconformity with the order of the       pose of the whole of the property of such
Public Utility Commission authorizing the         telecommunications utility necessary or use-
same or contrary to the provisions of ORS         ful in the performance of its duties to the
759.300 to 759.360, or of the Constitution of     public or any part thereof of a value in ex-
this state, or apply the proceeds from the        cess of $100,000, or sell, lease, assign or oth-
sale thereof, or any part thereof, to any pur-    erwise dispose of any franchise, permit or
pose other than the purposes specified in the     right to maintain and operate such telecom-
commission′s order, or to any purpose speci-      munications utility or telecommunications
fied in the commission′s order, in excess of      utility property, or perform any service as a
the amount in the order authorized for such       telecommunications utility;
purpose. [1987 c.447 §39]                              (b) Mortgage or otherwise encumber the
    759.360 Prohibited acts regarding is-         whole or any part of the property of such
suance of securities. No person shall:            telecommunications utility necessary or use-
    (1) Knowingly authorize, direct, aid in,      ful in the performance of its duties to the
issue or execute, or cause to be issued or        public, including any franchise, permit or
executed, any stock or bond, note or other        right to maintain and operate such telecom-
evidence of indebtedness, in nonconformity        munications utility or telecommunications
with the order of the Public Utility Commis-      utility property, or perform any service as a
sion authorizing the same, or contrary to the     telecommunications utility; or
provisions of ORS 759.300 to 759.360 or of the         (c) By any means whatsoever, directly or
Constitution of this state.                       indirectly, merge or consolidate any of its

Title 57                                    Page 23                                (2007 Edition)
759.380                           UTILITY REGULATION

lines, plant, system or other property what-      struction or management charges with re-
soever, or franchise or permit to maintain or     spect to any of the property, or for the
operate any telecommunications utility prop-      purchase of property, materials or supplies,
erty, or perform any service as a telecommu-      the proposed contract shall be filed with the
nications utility, or any part thereof, with      Public Utility Commission for the investi-
any other public utility or telecommuni-          gation and approval when the telecommuni-
cations utility.                                  cations utility owns a majority of or controls
    (2) A telecommunications utility that         directly or indirectly the voting stock of the
sells, leases, assigns or otherwise disposes of   other contracting corporations.
the whole of the property of such telecom-             (2) Any proposed contract described in
munications utility necessary or useful in the    subsection (1) of this section shall be filed
performance of its duties to the public or any    with the commission within 90 days of exe-
part thereof of a value in excess of $25,000,     cution of the contract. The contract shall be
but less than $100,000, shall notify the com-     deemed to be executed on the date the par-
mission of the sale within 60 days following      ties sign a written contract or on the date
the date of the sale.                             the parties begin to transact business under
    (3) Every sale, lease, assignment, mort-      the contract, whichever date is earlier. The
gage, disposition, encumbrance, merger or         commission shall promptly investigate and
consolidation subject to subsection (1) of this   act upon the contract in accordance with
section made other than in accordance with        ORS 759.390 (4) and (7).
the order of the commission authorizing the            (3) In making an investigation of the
same is void.                                     contract, the commission and accountants,
    (4) This section does not prohibit or in-     examiners and agents, appointed by the com-
validate the sale, lease or other disposition     mission for the purpose, shall be given free
by any telecommunications utility of prop-        access to all books, books of account, docu-
erty which is not necessary or useful in the      ments, data and records of the telecommuni-
performance of its duties to the public. [1987    cations utility, as well as of the corporation
c.447 §41; 1999 c.530 §2]                         with which it is proposing to contract, that
    759.380 Purchase of stock or property         the commission may deem material to the
of another utility. (1) No telecommuni-           investigation. The failure or refusal of either
cations utility shall, directly or indirectly,    of the parties to the proposed contract to
purchase, acquire or become the owner of          comply with this subsection is prima facie
any of the stocks or bonds or property uti-       evidence that the contract is unfair, unrea-
lized for utility purposes and having a value     sonable and contrary to public interest, and
in excess of $10,000 of any other public util-    is sufficient to justify a determination and
ity or telecommunications utility unless au-      finding of the commission to that effect. A
thorized to do so by the Public Utility           determination and finding by the commission
Commission.                                       under this subsection has the same force and
                                                  effect as any other determination or order of
    (2) Every contract by any telecommuni-        the commission.
cations utility for the purchase, acquisition,
assignment or transfer to it of any of the             (4) This section applies only to transac-
stock of any other telecommunications utility     tions in which the telecommunications utili-
by or through any person, partnership or          ty′s Oregon intrastate expenditure to the
corporation without the approval of the           affiliate is more than $100,000. [1987 c.447 §43;
                                                  1989 c.956 §4; 1991 c.899 §1; 1999 c.809 §1; 2005 c.232 §21]
commission shall be void and of no effect,
and no such transfer or assignment of such            759.390 Contracts with affiliated in-
stock upon the books of the corporation pur-      terests; procedure; use in rate pro-
suant to any such contract is effective for       ceedings. (1) As used in this section,
any purpose. [1987 c.447 §42]                     “affiliated interest” with a telecommuni-
    759.385 Contracts regarding use of            cations utility means:
utility property; filing with commission;             (a) Every person owning or holding di-
investigation. (1) When any telecommuni-          rectly or indirectly five percent or more of
cations utility doing business in this state,     the voting securities of the telecommuni-
except a telecommunications carrier that has      cations utility.
elected to be subject to ORS 759.405 and              (b) Every person in any chain of succes-
759.410, enters into a contract with another      sive ownership of five percent or more of the
corporation with relation to the construc-        voting securities of the telecommunications
tion, operation, maintenance or use of the        utility.
property of the telecommunications utility in
Oregon, or the use of the property of the             (c) Every corporation five percent or
other contracting party, or any part of the       more of whose voting securities are owned
property, or for service, advice, engineering,    by any person owning five percent or more
financing, rentals, leasing or for any con-       of the voting securities of the telecommuni-

Title 57                                    Page 24                                        (2007 Edition)
                   TELECOMMUNICATIONS UTILITY REGULATION                                    759.390

cations utility or by any person in any chain      construction, operation, maintenance, leasing
of successive ownership of five percent or         or use of the property of the telecommuni-
more of the voting securities of the telecom-      cations utility in Oregon, or the purchase of
munications utility.                               property, materials or supplies that is to be
     (d) Every individual who is an officer or     recognized as the basis of an operating ex-
director of the telecommunications utility or      pense or capital expenditure in any rate val-
of any person in any chain of successive           uation or any other hearing or proceeding,
ownership of five percent or more of the           the contract shall be filed with the commis-
voting securities of the telecommunications        sion within 90 days of execution of the con-
utility.                                           tract. The contract shall be deemed to be
                                                   executed on the date the parties sign a writ-
     (e) Every corporation that has two or         ten contract or on the date the parties begin
more officers or two or more directors in          to transact business under the contract,
common with the telecommunications utility.        whichever date is earlier.
     (f) Every entity, five percent or more of          (4) The commission promptly shall exam-
which is directly or indirectly owned by a         ine and investigate any contract submitted
telecommunications utility.                        to the commission under subsection (2) or (3)
     (g) Every person that the Public Utility      of this section. If, after the investigation, the
Commission determines as a matter of fact,         commission determines that it is fair and
after investigation and hearing, actually is       reasonable and not contrary to the public
exercising any substantial influence over the      interest, the commission shall enter findings
policies and actions of the telecommuni-           and order approving the contract and serve
cations utility, even though the influence is      a copy of the findings and order upon the
not based upon stockholdings, stockholders,        telecommunications utility. Following the
directors or officers to the extent specified in   commission′s determination of fairness and
this section.                                      reasonableness, any expenses and capital ex-
                                                   penditures incurred by the telecommuni-
     (h) Every person that the commission de-      cations utility under the contract may be
termines as a matter of fact, after investi-       recognized in any rate valuation or other
gation and hearing, actually is exercising         hearing or proceeding. If, after the investi-
such substantial influence over the policies       gation, the commission determines that the
and actions of the telecommunications utility      contract is not fair and reasonable in all its
in conjunction with one or more other per-         terms and is contrary to the public interest,
sons with whom they are related by owner-          the commission shall enter findings and or-
ship or blood or by action in concert that         der disapproving the contract and serve a
together they are affiliated with the tele-        copy of the findings and order upon the tele-
communications utility within the meaning          communications utility. Except as provided
of this section even though no one of them         in subsection (5) of this section, it is unlaw-
alone is so affiliated.                            ful to recognize a disapproved contract for
     (2) When any telecommunications utility       the purposes specified in this section.
doing business in this state, except a tele-            (5) When any contract described in sub-
communications carrier that has elected to         section (2) or (3) of this section has been
be subject to ORS 759.405 and 759.410, enters      filed with the commission within 90 days of
into any contract to make any payment, di-         execution and the commission has not en-
rectly or indirectly, to any person having an      tered an order disapproving the contract un-
affiliated interest, for service, advice, audit-   der subsection (4) of this section, the
ing, accounting, sponsoring, engineering,          commission may not base its refusal to rec-
managing, operating, financing, legal or           ognize any expenses or capital expenditures
other services, or enters any charge on the        incurred under the contract in any rate val-
books of the utility, and the contract is to       uation or other hearing or proceeding solely
be recognized as an operating expense or           on the basis that the contract has not been
capital expenditure in any rate valuation or       approved under subsection (4) of this section.
any other hearing or proceeding, the con-
tract shall be filed with the commission                (6) A telecommunications utility may not
within 90 days of execution of the contract.       issue notes or loan its funds or give credit
The contract shall be deemed to be executed        on its books or otherwise to any person hav-
on the date the parties sign a written con-        ing an affiliated interest, either directly or
tract or on the date the parties begin to          indirectly, without the approval of the com-
transact business under the contract, which-       mission.
ever date is earlier.                                   (7) The action of the commission with
     (3) When any telecommunications utility       respect to all the matters described in this
doing business in this state enters into any       section shall be by findings and order to be
contract, oral or written, with any person         entered within 90 days after the matter has
having an affiliated interest relating to the      been submitted to the commission for con-

Title 57                                     Page 25                                 (2007 Edition)
759.393                                    UTILITY REGULATION

sideration. The telecommunications utility,                        759.405 Election of regulation under
or any other person affected by any findings                   ORS 759.405 and 759.410; conditions; Tele-
and order of the commission under this sec-                    communications Infrastructure Account;
tion, may seek judicial review of the order                    remedy for failure of utility to comply
of the commission. An order of the commis-                     with conditions. (1) A telecommunications
sion under this section is subject to judicial                 carrier may elect to be subject to this sec-
review as an order in a contested case in the                  tion and ORS 759.410. The telecommuni-
manner provided by ORS 756.610.                                cations carrier shall notify, in writing, the
     (8) This section applies only to transac-                 Public Utility Commission of its election.
tions in which the telecommunications utili-                   Such election shall be effective 30 days after
ty′s Oregon intrastate expenditure to the                      the written notification is received by the
affiliate is more than $100,000. [1987 c.447 §44;              Public Utility Commission. A telecommuni-
1989 c.956 §5; 1991 c.899 §2; 1999 c.809 §2; 2005 c.232 §22;   cations carrier that elects to be subject to
2005 c.638 §16a]                                               this section and ORS 759.410 shall be subject
    759.393 Applicability of ORS 759.385                       to the infrastructure investment and price
and 759.390. (1) Except as provided in sub-                    regulation requirements of this section and
                                                               ORS 759.410 and shall not be subject to any
section (2) of this section, the filing of pro-                other regulation based on earnings, rates or
posed contracts under ORS 759.385 and                          rate of return.
759.390 shall constitute a telecommuni-
cations utility′s sole reporting obligation un-                    (2) A telecommunications carrier that
der ORS 759.385 and 759.390 and the Public                     elects to be subject to this section and ORS
Utility Commission may not require a tele-                     759.410 shall establish in its accounts a
                                                               Telecommunications Infrastructure Account.
communications utility to submit annual or
                                                               The telecommunications carrier shall commit
other cumulative reports regarding such                        to its Telecommunications Infrastructure
contracts, including contracts with affiliates                 Account over a four-year period amounts to-
of the utility.                                                taling 20 percent of the telecommunications
    (2) On April 1 of each year, every tele-                   carrier′s gross regulated intrastate revenue
communications utility shall file with the                     for the calendar year immediately prior to
commission a list of affiliate contracts exe-                  the year the telecommunications carrier
cuted in the preceding year. The list shall                    elects to be subject to this section and ORS
consist of the names of the parties to the                     759.410. Of the total committed amount, 30
contracts, the dollar amounts of the con-                      percent shall be credited to and made avail-
tracts and the dates of execution of the con-                  able for the purposes of the electing carrier′s
                                                               account on the date the telecommunications
tracts. [1999 c.809 §3]                                        carrier′s election becomes effective. An
    759.394 [1991 c.899 §4; repealed by 1999 c.809 §5]         electing telecommunications carrier shall
    759.395 [1987 c.447 §45; repealed by 1991 c.315 §1]        credit an equal amount on the same date in
                                                               the next following year. The electing carrier
                                                               shall credit to its Telecommunications Infra-
          PRICE CAP REGULATION                                 structure Account an amount equal to 20
                (Generally)                                    percent of the total committed amount on
                                                               the same date in each of the next following
    759.400 Definitions. As used in ORS                        two years.
759.400 to 759.455:
                                                                   (3)(a) A telecommunications carrier that
    (1) “Basic telephone service” means local                  elects to be subject to this section and ORS
exchange telecommunications service defined                    759.410 shall expend the moneys in the tele-
as basic by rule of the Public Utility Com-                    communications       carrier′s  Telecommuni-
mission.                                                       cations Infrastructure Account on a plan or
    (2) “Retail telecommunications service”                    plans approved by the Oregon Economic and
means a telecommunications service provided                    Community Development Commission under
for a fee to customers. “Retail telecommu-                     ORS 759.430. Subject to paragraphs (c) and
nications service” does not include a service                  (d) of this subsection, the total amount of
                                                               capital and other expenses associated with
provided by one telecommunications carrier                     completing the projects shall equal the total
to another telecommunications carrier, un-                     amount of moneys available in the account.
less the carrier receiving the service is the
end user of the service.                                           (b) Moneys in the account shall be used
                                                               primarily to ensure that rural and urban Or-
    (3) “Telecommunications carrier” means                     egonians have improved access to telecom-
any provider of retail telecommunications                      munications     technology     and    services.
services, except a call aggregator as defined                  Expenditures from the account shall be used
in ORS 759.690. [1999 c.1093 §23]                              for investment in telecommunications infra-

Title 57                                                 Page 26                               (2007 Edition)
                        TELECOMMUNICATIONS UTILITY REGULATION                           759.410

structure and deployment of new and ad-              (a) The State of Oregon cease regulation
vanced telecommunications services.              of telecommunications carriers on a rate of
    (c)(A) Within 120 days following the ef-     return basis;
fective date of a telecommunications carri-          (b) Telecommunications carriers subject
er′s election to be regulated under this         to rate of return regulation have the ability
section and ORS 759.410, but not later than      to opt out of rate of return regulation;
January 1 of the year following the effective        (c) A telecommunications carrier that
date of a telecommunications carrier′s           opts out of rate of return regulation under
election, and on the same date in each of the    this section and ORS 759.405 shall be subject
next following three years, a telecommuni-       to price cap regulation and the carrier under
cations carrier serving less than one million    price cap regulation shall continue to meet
access lines in Oregon shall transfer 40 per-    service quality requirements; and
cent of the moneys most recently credited to         (d) Telecommunications carriers that opt
its Telecommunications Infrastructure Ac-        out of rate of return regulation under this
count to the Connecting Oregon Communi-          section and ORS 759.405 shall make pay-
ties Fund established under ORS 759.445.         ments to the state to support the use of ad-
    (B) Within 120 days following the effec-     vanced telecommunications services and to
tive date of a telecommunications carrier′s      support deployment of advanced telecommu-
election to be regulated under this section      nications services.
and ORS 759.410, but not later than January          (2) A telecommunications carrier that
1 of the year following the effective date of    elects to be subject to this section and ORS
a telecommunications carrier′s election, and     759.405 shall be subject to price regulation
on the same date in the next following year,     as provided in this section and shall not be
a telecommunications carrier serving one         subject to any other retail rate regulation,
million or more access lines in Oregon shall     including but not limited to any form of
transfer 70 percent of the moneys most re-       earnings-based, rate-based or rate of return
cently credited to its Telecommunications        regulation.
Infrastructure Account to the Connecting             (3) The price a telecommunications util-
Oregon Communities Fund established under        ity that elects to be subject to this section
ORS 759.445.                                     and ORS 759.405 may charge for basic tele-
    (d) Notwithstanding ORS 285A.075 (2), if     phone service shall be established by the
the Oregon Economic and Community De-            Public Utility Commission under ORS
velopment Commission determines, following       759.425. Subject to ORS 759.415, the regular
notice and a public hearing, that the tele-      tariff rate of intrastate switched access and
communications carrier is not complying          retail telecommunications services regulated
with plans or plan modifications approved        by the commission, other than basic tele-
under ORS 759.430, following notice to the       phone service, in effect on the date the car-
telecommunications carrier and reasonable        rier elects to be subject to this section and
opportunity to cure any noncompliance, the       ORS 759.405 shall be the maximum price the
Oregon Economic and Community Develop-           telecommunications carrier may charge for
ment Commission may require the telecom-         that service.
munications carrier to transfer any or all           (4) A telecommunications carrier that
moneys remaining in the carrier′s Telecom-       elects to be subject to this section and ORS
munications Infrastructure Account, and any      759.405 may adjust the price for intrastate
future amounts credited to the account, to       switched access or a regulated retail tele-
the Connecting Oregon Communities Fund           communications service between the maxi-
established under ORS 759.445.                   mum price established under this section and
                                                 a price floor equal to the sum of the total
    (4) Nothing in this section affects the      service long run incremental cost of provid-
authority of a city or municipality to manage    ing the service for the nonessential functions
the public rights of way or to require fair      of the service and the price that is charged
and reasonable compensation from a tele-         to other telecommunications carriers for the
communications carrier, on a competitively       essential functions. Basic telephone service
neutral and nondiscriminatory basis, under       shall not be subject to a price floor.
ORS 221.420, 221.450, 221.510 and 221.515.
[1999 c.1093 §24; 2001 c.104 §295]                   (5) The price for a new regulated retail
                                                 telecommunications service introduced by a
    759.410 Intent of ORS 759.410; estab-        telecommunications carrier within four years
lishing maximum and minimum price for            after the date the carrier elects to be subject
telecommunications services; packaging           to this section and ORS 759.405 shall be
services; notice of price change, new ser-       subject to a price floor test by the commis-
vice; enforcement. (1) It is the intent of the   sion to ensure that the service is not priced
Legislative Assembly that:                       below the sum of the total service long run

Title 57                                   Page 27                               (2007 Edition)
759.415                          UTILITY REGULATION

incremental cost of providing the service for    package of services to determine that the
the nonessential functions of the service and    price complies with the provisions of this
the price that is charged to other telecom-      section and any other applicable law. If the
munications carriers for the essential func-     commission determines that the price of the
tions. Beginning on the date four years after    service or package of services does not com-
September 1, 1999, the price of a new tele-      ply with the provisions of this section or
communications service shall be subject to a     other applicable law, the commission may
price floor test by the commission to ensure     order the telecommunications carrier to take
that the service is not priced below the total   such action as the commission determines
service long run incremental cost of provid-     necessary to bring the price into compliance
ing the service, without regard to whether       with this section or other applicable law.
the service is considered essential or nones-        (9) Nothing in this section affects the
sential.                                         authority of a city or municipality to manage
    (6) A telecommunications carrier that        the public rights of way or to require fair
elects to be subject to this section and ORS     and reasonable compensation from a tele-
759.405 may package and offer any of its re-     communications carrier, on a competitively
tail telecommunications services with any        neutral and nondiscriminatory basis, under
other service at any price, provided the fol-    ORS 221.420, 221.450, 221.510 and 221.515.
lowing conditions apply:                             (10) Notwithstanding any other provision
    (a) Any regulated telecommunications         of this section, the commission shall estab-
service may be purchased separately at or        lish prices for extended area service in a
below the maximum price.                         manner that allows a telecommunications
    (b) The price of the package is not less     carrier that elects to be subject to this sec-
than the sum of the price floors of each reg-    tion and ORS 759.405 to recover all costs and
ulated retail telecommunications service in-     lost net revenues attributable to implement-
cluded in the package.                           ing new extended area service routes. The
                                                 provisions of this subsection apply to tele-
    (c) The price of a package that is com-      communications service provided on a flat or
prised entirely of regulated retail telecom-     measured basis between exchanges defined
munications services does not exceed the         by exchange maps filed with and approved by
sum of the maximum prices for each of the        the commission. [1999 c.1093 §25; 2001 c.966 §1; 2005
services.                                        c.232 §23]
    (d) The price of a package comprised of          759.415 Order in rate proceeding filed
regulated and unregulated retail telecommu-      prior to January 1, 1999, to establish
nications services does not exceed the sum       maximum rate for affected telecommuni-
of the maximum prices established under this     cations services; dismissal of rate pro-
section for regulated services and the retail    ceeding filed after January 1, 1999. (1) In
price charged by the carrier for the individ-    a rate proceeding brought by a telecommuni-
ual unregulated services in the package. A       cations carrier that elects to be subject to
telecommunications carrier subject to regu-      ORS 759.405 and 759.410, or by the Public
lation under this section shall provide notice   Utility Commission against an electing tele-
to the commission within 30 days of a change     communications carrier, prior to January 1,
in the price of an unregulated telecommuni-      1999, that is on appeal on September 1, 1999,
cations service contained in the package.        a final rate for a telecommunications service
    (7) Nothing in this section or ORS           implemented as a result of the final judgment
759.405 is intended to limit the ability of a    and order or negotiated settlement shall be-
telecommunications carrier to seek deregu-       come the maximum rate for purposes of ORS
lation of telecommunications services under      759.410.
ORS 759.052.                                         (2) A rate proceeding brought by or
    (8)(a) Notice of a price change authorized   against an electing telecommunications car-
under subsection (4) of this section, of the     rier, after January 1, 1999, that is pending
introduction of a new regulated telecommu-       on the effective date of the carrier′s election
nications service or of the packaging of ser-    to be subject to ORS 759.405 and 759.410,
vices, must be given to the commission           shall be dismissed by the commission or by
within 30 days following the effective date      the court if on appeal, provided the carrier
of the price change, new service or packaged     elects to be subject to regulation under ORS
service. Notice of a new regulated telecom-      759.405 and 759.410 within the later of:
munications service shall indicate the retail        (a) Ninety days from the commencement
price charged by the carrier for the service.    of the proceeding; or
    (b) The commission may investigate any
price change authorized under subsection (4)         (b) Ninety days from September 1, 1999.
of this section, the price of a new regulated        (3) Notwithstanding subsection (2) of this
telecommunications service or the price of a     section, the parties to a rate proceeding

Title 57                                   Page 28                                   (2007 Edition)
                  TELECOMMUNICATIONS UTILITY REGULATION                                  759.425

brought by or against an electing telecom-        basic telephone service and the benchmark,
munications carrier, after January 1, 1999,       less any explicit compensation received by
that is pending on the effective date of the      the carrier from federal sources specifically
carrier′s election to be subject to ORS           targeted to recovery of local loop costs and
759.405 and 759.410, may agree to continue        less any explicit support received by the car-
the proceeding. [1999 c.1093 §27]                 rier from a federal universal service pro-
    759.420 Application of ORS 759.400 to         gram.
759.455 to wholesale transactions regu-               (b) The commission in its discretion shall
lated under federal law. Nothing in ORS           periodically review the benchmark and ad-
759.400 to 759.455 is intended to affect, alter   just it as necessary to reflect:
or in any way modify wholesale transactions           (A) Changes in competition in the tele-
regulated by the federal Telecommunications       communications industry;
Act of 1996 (Public Law 104-104) as in effect
on September 1, 1999, and regulations                 (B) Changes in federal universal service
adopted thereunder. [1999 c.1093 §26]             support; and
                                                      (C) Other relevant factors as determined
          (Universal Service Fund)                by the commission.
    759.425 Universal service fund; com-              (c) Except for a telecommunications util-
mission to establish price for basic tele-        ity described in ORS 759.040, the commission
phone       service;    universal     service     shall seek to limit the difference between the
surcharge; application to cellular ser-           price a telecommunications utility may
vices. (1) The Public Utility Commission          charge for basic telephone service and the
shall establish and implement a competitively     benchmark.
neutral and nondiscriminatory universal ser-          (4) Except as provided in subsections (6)
vice fund to ensure basic telephone service       and (7) of this section, there is imposed on
is available at a reasonable and affordable       the sale of all retail telecommunications ser-
rate. The Public Utility Commission may           vices sold in this state a universal service
adopt rules to conform the universal service      surcharge. Unless otherwise provided by the
fund to section 254 of the federal Telecom-       Public Utility Commission by rule, the sur-
munications Act of 1996 (Public Law               charge shall be a uniform percentage of the
104-104), and to related rules adopted by the     sale of retail telecommunications services in
Federal Communications Commission, to the         an amount sufficient to support the purpose
extent that the Public Utility Commission         of the universal service fund. The surcharge
determines is appropriate. The commission         may be shown as a separate line item by all
may delay implementation for rural telecom-       telecommunications carriers using language
munications carriers, as defined in the fed-      prescribed by the commission. A telecommu-
eral Act, for up to six months after the date     nications carrier shall deposit amounts col-
the Federal Communications Commission             lected into the universal service fund
adopts a cost methodology for rural carriers.     according to a schedule adopted by the com-
    (2)(a) The Public Utility Commission          mission.
shall establish the price a telecommuni-              (5) The Public Utility Commission is au-
cations utility may charge its customers for      thorized to establish a universal service fund,
basic telephone service. The commission in        separate and distinct from the General Fund.
its discretion shall periodically review and      The fund shall consist of all universal service
evaluate the status of telecommunications         surcharge moneys collected by telecommuni-
services in the state and designate the ser-      cations carriers and paid into the fund. The
vices included in basic telephone service.        fund shall be used only for the purpose de-
The commission in its discretion shall peri-      scribed in this section, and for payment of
odically review and adjust as necessary the       expenses incurred by the commission or a
price a telecommunications utility may            third party appointed by the commission to
charge for basic telephone service.               administer this section. All moneys in the
    (b) The provisions of this subsection do      fund are continuously appropriated to the
not apply to the basic telephone service pro-     commission to carry out the provisions of
vided by a telecommunications utility de-         this section. Interest on moneys deposited in
scribed in ORS 759.040.                           the fund shall accrue to the fund.
    (3)(a) The Public Utility Commission              (6) For purposes of this section, “retail
shall establish a benchmark for basic tele-       telecommunications service” does not include
phone service as necessary for the adminis-       radio communications service, radio paging
tration and distribution of the universal         service, commercial mobile radio service,
service fund. The universal service fund shall    personal communications service or cellular
provide explicit support to an eligible tele-     communications service.
communications carrier that is equal to the           (7)(a) Notwithstanding subsection (6) of
difference between the cost of providing          this section, a person who primarily provides

Title 57                                    Page 29                               (2007 Edition)
759.430                                    UTILITY REGULATION

radio communications service, radio paging                    must be consistent with the purpose of the
service, commercial mobile radio service,                     fund as described in ORS 759.405. The com-
personal communications service or cellular                   mission shall give priority to projects that
communications service may request desig-                     provide increased bandwidth between com-
nation as an eligible telecommunications                      munities, route diversity and access to ad-
carrier by the Public Utility Commission for                  vanced telecommunications services in an
purposes of participation in the universal                    expedited manner. The commission shall seek
service fund.                                                 to ensure that an approved project is the
    (b) In the event a person who primarily                   most technically appropriate means of ad-
provides radio communications service, radio                  dressing the circumstances presented in a
paging service, commercial mobile radio ser-                  project plan. The commission shall review
vice, personal communications service or                      recommendations and analysis from the Con-
cellular communications service seeks desig-                  necting Oregon Communities Advisory Board
nation as an eligible telecommunications                      established in subsection (2) of this section
carrier for purposes of participation in the                  prior to approving a plan. Project plans may
universal service fund, the person shall pro-                 be submitted by local communities including
vide written notice to the Public Utility                     but not limited to local governments, com-
Commission requesting designation as an eli-                  munity institutions, citizen groups, public
gible telecommunications carrier within 60                    and private educational institutions and
days of the date the commission establishes                   business groups.
the fund. Upon receiving notice, the com-                          (b) Under the policies and guidance of
mission may designate the person as an eli-                   the commission, the Economic and Commu-
gible    telecommunications              carrier       for    nity Development Department shall adopt
purposes of participation in the fund.                        rules for the submission of project plans by
    (c) A person who primarily provides radio                 telecommunications carriers and other per-
communications service, radio paging ser-                     sons, including criteria for approval of such
vice, commercial mobile radio service, per-                   plans. The rules shall include criteria to
sonal communications service or cellular                      determine if the telecommunications carrier
communications service who fails to request                   reasonably should be expected to make the
designation as an eligible telecommuni-                       investment based on an economic analysis of
cations carrier within 60 days of the date the                the project. Projects that are determined to
universal service fund is established by the                  meet the criteria but are not economically
Public Utility Commission may not be desig-                   self-supporting or would not be undertaken
nated as an eligible telecommunications car-                  in the time frame proposed shall be given
rier unless the person has contributed to the                 priority over similar projects that would be
fund for at least one year immediately prior                  economically self-supporting or likely would
to requesting designation.                                    be completed in the time frame proposed. The
                                                              rules shall provide for review of the eco-
    (8) A pay telephone provider may apply                    nomic benefits of the proposed plan to the
to the Public Utility Commission, on a form                   affected community and the potential for the
developed by the commission, for a refund of                  proposed plan to leverage other funding
the universal service surcharge imposed on                    sources including but not limited to federal,
the provider under subsection (4) of this sec-                state and private sources.
tion for the provision of pay telephone ser-
vice. [1999 c.1093 §28; 2001 c.966 §3; 2003 c.14 §§455,456;        (c) The commission also shall approve
2007 c.353 §1]                                                expenditures from the Public Access Account
                                                              of the Connecting Oregon Communities Fund
                                                              established in ORS 759.445 (4).
         (Public Purpose Funding)
                                                                   (2) There is established within the Eco-
    759.430 Approval of projects funded by                    nomic and Community Development Depart-
carrier′s Telecommunications Infrastruc-                      ment the Connecting Oregon Communities
ture Account; Connecting Oregon Com-                          Advisory Board consisting of five members
munities      Advisory        Board.    (1)(a)                appointed by the commission. The commis-
Notwithstanding ORS 285A.075 (2), the Ore-                    sion shall seek advice from the Governor
gon Economic and Community Development                        prior to making an appointment to the advi-
Commission shall approve plans and plan                       sory board.
modifications for projects funded by a tele-
communications      carrier′s   Telecommuni-                       (3) There shall be one member of the ad-
cations Infrastructure Account established                    visory board from each of the following
under ORS 759.405. Projects funded from a                     areas:
telecommunications carrier′s Telecommuni-                          (a) Eastern Oregon, including Hood River
cations Infrastructure Account shall be com-                  County;
pleted by the carrier and shall be
substantially for the benefit of the carrier′s                     (b) Central Oregon;
customers. Plans approved by the commission                        (c) Southern Oregon;

Title 57                                               Page 30                               (2007 Edition)
                  TELECOMMUNICATIONS UTILITY REGULATION                                 759.435

     (d) Coastal Oregon; and                    subject to regulation under ORS 759.405 and
     (e) The Willamette Valley.                 759.410 shall transfer from the remaining
                                                funds in its Telecommunications Infrastruc-
     (4) Employees of the Public Utility Com-   ture Account the following amounts to the
mission, employees of state or local govern-    Economic and Community Development De-
ment who are responsible for purchasing         partment to be used for the payment of ex-
telecommunications services or equipment        penses described in paragraph (a) of this
and employees of a telecommunications car-      subsection:
rier may not be appointed to the advisory
board.                                              (A) $575,000 in 2000;
                                                    (B) $325,000 in 2001;
     (5) The advisory board shall select one
of its members as chairperson and another           (C) $325,000 in 2002; and
of its members as vice chairperson, for such        (D) $325,000 in 2003.
terms and with duties and powers necessary          (c) If more than one telecommunications
for the performance of the functions of those   carrier elects to be subject to regulation un-
offices as the board determines.                der ORS 759.405 and 759.410, the funding re-
     (6) The purpose of the advisory board is   quirements described in paragraph (b) of this
to review and make recommendations to the       subsection shall be distributed pro rata
Oregon Economic and Community Develop-          among the electing carriers. [1999 c.1093 §31]
ment Commission for approval of and modifi-
cations     to    projects   funded    by   a       759.435 Assessment of telecommuni-
telecommunications carrier′s Telecommuni-       cations infrastructure and community
cations Infrastructure Account under this       needs; contents; report. (1) The Economic
section and ORS 759.405. The advisory board     and Community Development Department, in
shall seek advice and comment on plans sub-     collaboration with affected telecommuni-
mitted by a telecommunications carrier from     cations carriers, the Connecting Oregon
affected local communities including but not    Communities Advisory Board, represen-
limited to local governments, citizens and      tatives of local communities and other mem-
businesses. The advisory board also shall       bers of the public interested in improved
seek advice and comment from state and          telecommunications services, shall conduct
federal agencies when appropriate to ensure     an assessment of telecommunications infra-
that investments will maximize statewide        structure and community telecommuni-
public benefits and are consistent with the     cations needs in local communities and
needs and desires of the local communities.     across the various regions of this state. The
The advisory board shall consider the needs     assessment shall include:
of and impact on education, health care,            (a) The type of telecommunications ser-
economic development and the delivery of        vices and technology, including infrastruc-
state and local governmental services when      ture, already deployed within communities
evaluating a plan.                              and regions;
     (7) The advisory board also shall review       (b) The type of telecommunications tech-
proposals submitted to the commission under     nology and services desired by communities
ORS 759.445 (5) and make recommendations        within regions;
to the commission regarding approval, mod-          (c) The competitiveness of the local tele-
ification or denial of the proposals.           communications market, including a list of
     (8) The advisory board shall make an an-   all telecommunications carriers and Internet
nual report to the Joint Legislative Commit-    service providers;
tee on Information Management and                   (d) The economic significance of desired
Technology on the plans and activities          telecommunications investments;
funded under ORS 759.405 and 759.445 (5).           (e) Community and regional priority lists
     (9)(a) Reasonable expenses incurred by     for telecommunications infrastructure and
the members of the advisory board in the        service investments;
performance of their duties, costs of the           (f) The ability of qualified public and
Economic and Community Development De-          nonprofit users within the community or re-
partment directly related to providing staff    gion to aggregate demand for telecommuni-
to the advisory board and costs to the de-      cations services and the benefits of such
partment for providing technical assistance     aggregation;
to local communities shall be paid out of the       (g) The estimated costs and implementa-
Telecommunications Infrastructure Accounts      tion schedule of desired or proposed tele-
created under ORS 759.405.                      communications investments;
     (b) Following the transfer of funds re-        (h) An analysis of state, federal, nonprofit
quired under ORS 759.405 (2) and (3), a tele-   and private sources of funding for the pro-
communications carrier that elects to be        posed improvements;

Title 57                                  Page 31                                (2007 Edition)
759.440                          UTILITY REGULATION

     (i) The ability of the investment to be     deposited pursuant to a performance assur-
self-supporting; and                             ance plan implemented by a telecommuni-
     (j) The ability of a community or region    cations carrier in connection with an
to make the investments necessary to con-        application under 47 U.S.C. 271, as in effect
nect to the Oregon Enterprise Network, and       on January 1, 2002. Interest earned on mon-
the local and statewide benefits of such in-     eys in the fund shall accrue to the fund.
vestments.                                       Moneys in the fund may be invested as pro-
                                                 vided in ORS 293.701 to 293.820. Moneys in
     (2)(a) To the maximum extent practicable,   the fund shall be used to provide access to
the assessment shall recognize and include       advanced telecommunications technology in
existing state, regional and local plans and     elementary schools and high schools, colleges
information. The department may use its own      and universities, community colleges, public
staff or may contract with third parties to      television corporations, rural health care
conduct the assessment.                          providers, public libraries and other eligible
     (b) A copy of the assessment shall be       persons.
submitted to the Oregon Economic and Com-             (2) Two dedicated accounts shall be es-
munity Development Commission and to the         tablished within the Connecting Oregon
Joint Legislative Committee on Information       Communities Fund for purposes of supporting
Management and Technology. The commis-           education and public access to advanced
sion shall consider the information contained    telecommunications services. The first $25
in the report when adopting or amending the      million of the moneys deposited in the Con-
rules required under ORS 759.430 (1).            necting Oregon Communities Fund in both
     (3) The commission shall not approve        2000 and 2001 shall be appropriated to the
plans under ORS 759.430 (1) until the com-       School Technology Account established un-
mission has received the assessment required     der subsection (3) of this section. Except as
under this section. The department shall re-     provided in subsection (8) of this section, any
port to the Joint Legislative Committee on       additional moneys available in the fund shall
Information Management and Technology on         be appropriated to the Public Access Ac-
implementation of ORS 759.430 to 759.445         count established under subsection (4) of this
prior to the approval of project plans under     section.
ORS 759.430 (1). [1999 c.1093 §32]                    (3) There is established the School Tech-
    759.440 Additional funding for evalu-        nology Account within the Connecting Ore-
ating project plans. The Economic and            gon Communities Fund. The purpose of the
Community Development Department may             School Technology Account is to improve
request approval from the Emergency Board        access to advanced telecommunications ser-
for the transfer of additional funds from a      vices for students attending public school in
telecommunications carrier′s Telecommuni-        kindergarten through grade 12. Moneys in
cations Infrastructure Account created under     the account shall be expended as provided in
ORS 759.405 for the purpose of providing         section 34, chapter 1093, Oregon Laws 1999.
technical assistance to the department and            (4)(a) There is established the Public Ac-
the Oregon Economic and Community De-            cess Account within the Connecting Oregon
velopment Commission in evaluating project       Communities Fund. The purpose of the Pub-
plans submitted under ORS 759.430. If the        lic Access Account is to improve access to
request is approved, the commission by order     advanced telecommunications services for
may direct the transfer of funds from a tele-    community colleges, universities, public li-
communications        carrier′s Telecommuni-     braries and rural health care providers.
cations Infrastructure Account to the                 (b) If funding has not been provided from
Economic and Community Development De-           other sources, the first $3 million available
partment. The department may not request         in the Public Access Account shall be trans-
and the Emergency Board shall not approve        ferred to the Department of Higher Educa-
a request or requests in excess of $100,000      tion for the purpose of funding the Oregon
per year. [1999 c.1093 §32a]                     Wide Area Network project to provide and
    759.445 Connecting Oregon Communi-           expand Internet access for the Oregon Uni-
ties Fund; School Technology Account;            versity System. The Department of Higher
Public Access Account. (1) There is estab-       Education shall complete an audit of band-
lished in the State Treasury, separate and       width utilization and report to the Joint
distinct from the General Fund, the Con-         Legislative Committee on Information Man-
necting Oregon Communities Fund. Moneys          agement and Technology during the Seventy-
in the fund shall consist of amounts depos-      first Legislative Assembly in the manner
ited in the fund under ORS 759.405 and any       provided in ORS 192.245.
other moneys deposited by a telecommuni-              (c) Following the transfer of funds de-
cations carrier that elects to be subject to     scribed in paragraph (b) of this subsection,
ORS 759.405 and 759.410, including amounts       the next $1 million available in the Public

Title 57                                   Page 32                               (2007 Edition)
                  TELECOMMUNICATIONS UTILITY REGULATION                                          759.445

Access Account shall be transferred to the        communications services, equipment or re-
Department of Higher Education for Oregon         curring     costs    of    telecommunications
State University for the purpose of providing     connectivity. Priority shall be given to col-
virtual access to persons with disabilities.      laborative projects that improve access to
    (d) Following the transfer of funds as de-    advanced telecommunications services.
scribed in paragraphs (b) and (c) of this sub-        (d) Funds available in the Public Access
section, the next $2 million available in the     Account under this subsection are contin-
Public Access Account shall be transferred        uously appropriated to the Economic and
to the Department of Community Colleges           Community Development Department for the
and Workforce Development for distribution        purposes described in this subsection.
to community colleges for the purpose of de-          (6) Public libraries and rural health care
veloping connectivity and distance education      providers must apply for federal universal
programs.                                         service support in order to be eligible for a
    (e) Following the transfer of funds de-       grant from the Public Access Account.
scribed in paragraphs (b) to (d) of this sub-         (7) The video transport and network
section, the next $4 million available in the     management services purchased with funds
Public Access Account shall be transferred        made available under this section shall be
to the Department of Higher Education for         purchased through the Oregon Department
video transport and network management            of Administrative Services.
services for the Oregon University System.
                                                      (8) Any moneys deposited in the Con-
    (f) Following the transfer of funds de-       necting Oregon Communities Fund under
scribed in paragraphs (b) to (e) of this sub-     subsection (1) of this section pursuant to a
section, the next $5.5 million available in the   performance assurance plan implemented by
Public Access Account shall be transferred        a telecommunications carrier in connection
to the Oregon Public Broadcasting Corpo-          with an application under 47 U.S.C. 271, as
ration for the purpose of digitizing the state    in effect on January 1, 2002, shall be placed
television network, using the Oregon Enter-       in the School Technology Account to be ex-
prise Network when possible.                      pended as provided in section 34, chapter
    (g) Following the transfer of funds de-       1093, Oregon Laws 1999. [1999 c.1093 §33; 2001
scribed in paragraphs (b) to (f) of this sub-     c.966 §7]
section, the next $500,000 available in the             Note: Sections 34 and 37, chapter 1093, Oregon
Public Access Account shall be transferred        Laws 1999, provide:
to the Southern Oregon Public Television                Sec. 34. (1) In addition to and not in lieu of any
                                                  other transfer or appropriation, for the calendar year
Corporation for the purpose of digitizing the     beginning January 1, 2000, there is transferred to the
state television network, using the Oregon        Department of Education from the School Technology
Enterprise Network when possible.                 Account the sum of $9,600 for each eligible school fa-
                                                  cility as defined in section 35 (1), chapter 1093, Oregon
    (h) Following the transfer of funds de-       Laws 1999, which shall be expended for the purpose of
scribed in paragraphs (b) to (g) of this sub-     providing a local area network and associated equip-
section, a state institution of higher            ment to public school facilities pursuant to section 35,
education, including the Oregon Health and        chapter 1093, Oregon Laws 1999.
Science University, may apply for one-time              (2) In addition to and not in lieu of any other
matching funds up to $1 million from the          transfer or appropriation, there is transferred to the
                                                  Department of Education from the School Technology
Public Access Account to endow a telecom-         Account, to be distributed to the Oregon Association of
munications chair for the purpose of in-          Education Service Districts for the Oregon Public Edu-
creasing research and development of              cation Network, for:
advanced telecommunications services appli-             (a) The recurring costs of Internet bandwidth:
cations. Only one chair may be endowed un-              (A) $500,000 for the calendar year beginning Janu-
der this paragraph.                               ary 1, 2000; and
    (5)(a) The Oregon Economic and Commu-               (B) $1 million for the calendar year beginning
nity Development Commission shall approve         January 1, 2001.
expenditure of any remaining moneys in the              (b) The purchase of telecommunications equipment:
Public Access Account consistent with this              (A) $250,000 for the calendar year beginning Janu-
section and ORS 759.430.                          ary 1, 2000; and
                                                        (B) $250,000 for the calendar year beginning Janu-
    (b) Community colleges, state institutions    ary 1, 2001.
of higher education, public libraries, public           (c) The purpose of an online film and video server
television corporations and rural health care     pilot project to digitize and electronically distribute
providers may apply to the Oregon Economic        video content, $250,000 for the calendar year beginning
and Community Development Commission for          January 1, 2000.
funding from the Public Access Account un-              (3) In addition to and not in lieu of any other
der this subsection.                              transfer or appropriation, for the calendar years begin-
                                                  ning January 1, 2000, and January 1, 2001, there is
    (c) Funds received from the account shall     transferred to the Department of Education from the
be used for the purchase of advanced tele-        School Technology Account the sum of $5,400 for each

Title 57                                    Page 33                                      (2007 Edition)
759.445                                  UTILITY REGULATION

eligible school facility as defined in section 36 (1),      ministrative     Services,    as    determined     by    the
chapter 1093, Oregon Laws 1999, for the purpose of dis-     implementation plan established under subsection (4)(b)
tribution to school districts and education service dis-    of this section.
tricts pursuant to section 36, chapter 1093, Oregon Laws          (d) Upon request of a school district or education
1999, for the recurring costs of telecommunications         service district, the Oregon Department of Administra-
connectivity.                                               tive Services may waive the requirements of paragraph
      (4)(a) In addition to and not in lieu of any other    (b) of this subsection if a state contract is not available
transfer or appropriation, there is transferred to the      for use by the district.
Department of Education from the School Technology                (6)(a) In addition to and not in lieu of any other
Account for the purpose of purchasing a two-way inter-      transfer or appropriation, there is transferred to the
active distance education system for each public high       Oregon Department of Administrative Services from the
school and education service district:                      School Technology Account for the purchase of hub
      (A) $3,050,000 for the calendar year beginning Jan-   equipment necessary to support public school needs for
uary 1, 2000; and                                           two-way interactive video system bridging and other
                                                            services:
      (B) $3,050,000 for the calendar year beginning Jan-
uary 1, 2001.                                                     (A) $700,000 for the calendar year beginning Janu-
                                                            ary 1, 2000; and
      (b) The Department of Education, in consultation
with the Oregon Department of Administrative Services,            (B) $700,000 for the calendar year beginning Janu-
shall develop an implementation plan for this subsec-       ary 1, 2001.
tion. The implementation plan shall include an imple-             (b) The Oregon Department of Administrative Ser-
mentation timeline and requirements for each public         vices shall reduce rates paid by school districts and
high school and education service district that receives    education service districts to the department for video
a two-way interactive distance education system under       services by the amount transferred under this subsec-
this subsection. The Department of Education shall en-      tion.
sure that a distance education system purchased by the
Department of Education meets State of Oregon infor-              (7) In addition to and not in lieu of any other
mation technology standards, is consistent with any re-     transfer or appropriation, there is transferred to the
lated interactive video strategy of the Oregon              Department of Education any amounts remaining in the
Department of Administrative Services and is procured       account after the transfers described in subsections (1)
through a competitively bid or negotiated state con-        to (6) of this section are made, which shall be distrib-
tract. The Department of Education shall reimburse the      uted to school districts pursuant to section 37, chapter
Oregon Department of Administrative Services from           1093, Oregon Laws 1999.
funds made available under this subsection for costs              (8) Amounts described in this section shall be
incurred by the Oregon Department of Administrative         transferred each year only when sufficient funds are
Services in developing the implementation plan.             available in the School Technology Account. [1999
      (5)(a) In addition to and not in lieu of any other    c.1093 §34; 2001 c.966 §8]
transfer or appropriation, there is transferred to the            Sec. 37. (1) As used in this section:
Department of Education from the School Technology                (a) “ADMw” means the weighted average daily
Account for the purpose of paying the recurring costs       membership of the school district for the prior fiscal
of telecommunications connectivity and video services       year as calculated under ORS 327.013.
associated with the two-way interactive distance educa-
tion systems purchased with funds transferred under               (b) “Statewide ADMw” means the total ADMw of
this section:                                               all school districts for the prior fiscal year as calculated
                                                            under ORS 327.013.
      (A) $550,000 for the calendar year beginning Janu-
ary 1, 2000; and                                                  (2) The Department of Education shall distribute
                                                            grants from amounts transferred under section 34 (7),
      (B) $550,000 for the calendar year beginning Janu-    chapter 1093, Oregon Laws 1999, to school districts.
ary 1, 2001.
                                                                  (3) Except as provided in subsection (4) of this
      (b) Any telecommunications or video services pur-     section, a school district′s grant under this section =
chased by the Department of Education with funds            the school district′s ADMw × (the total amount trans-
transferred under this subsection shall be purchased        ferred to the department for the grants under section
from the Oregon Department of Administrative Services       34 (7), chapter 1093, Oregon Laws 1999 ÷ the total
as long as such services are available through the Ore-     statewide ADMw).
gon Department of Administrative Services at a compa-
rable level and comparable cost as can be obtained                (4) A school district′s grant under this section shall
elsewhere. Purchase of services and technology from         not be less than $25,000.
the Oregon Department of Administrative Services shall            (5) A school district that receives grant funds under
be through the Oregon Enterprise Network provided the       this section shall use those funds to support telecom-
Oregon Enterprise Network can provide the services          munications connectivity including:
and technology at a cost equal to or less than the price          (a) Building wiring and electrical power require-
for the same or similar services and technology from        ments;
other contracts or programs of the Oregon Department
of Administrative Services. The Department of Educa-              (b) Servers, hubs and routers;
tion shall ensure that telecommunications and video               (c) Network design and installation;
services purchased by the Department of Education
meet State of Oregon information technology standards,            (d) Video distance education equipment;
are consistent with any related interactive video strat-          (e) Technology support staff salaries; and
egy of the Oregon Department of Administrative Ser-
vices and are purchased through a competitively bid or            (f) Other costs necessary to support telecommuni-
negotiated state contract.                                  cations connectivity.
      (c) Upon request of the North Central, Malheur,             (6) A school district may not use grant funds re-
Jackson or Northwest Region education service district,     ceived under this section for payment of debt service
the Department of Education may waive the require-          on bonds.
ments of paragraph (b) of this subsection until such              (7) The State Board of Education may adopt any
time as the district changes its systems to use the ser-    rules necessary for the administration of this section.
vices available through the Oregon Department of Ad-        [1999 c.1093 §37; 2001 c.966 §9]

Title 57                                             Page 34                                         (2007 Edition)
                  TELECOMMUNICATIONS UTILITY REGULATION                                   759.455

     SERVICE QUALITY STANDARDS                    provider that is not meeting the minimum
          AND PROHIBITED ACTS                     service quality standards to submit a plan for
     759.450 Minimum service quality stan-        improving performance to meet the stan-
dards; rules; customer impact indices;            dards. The commission shall review and ap-
factors; wholesale services; improvement          prove or disapprove the plan. If the carrier,
plan; penalties; exceptions. (1) It is the in-    utility or provider does not meet the goals
tent of the Legislative Assembly that every       of its improvement plan within six months
telecommunications carrier and those tele-        or if the plan is disapproved by the commis-
communications utilities and competitive          sion, penalties may be assessed against the
telecommunications providers that provide         carrier, utility or provider on the basis of the
wholesale services meet minimum service           carrier′s, utility′s or provider′s service qual-
quality standards on a nondiscriminatory ba-      ity measured against the minimum service
sis.                                              quality standards and, if assessed, shall be
                                                  assessed according to the provisions of ORS
     (2) The Public Utility Commission shall      759.990.
determine minimum service quality standards
that relate to the provision of retail tele-           (6) Prior to commencing an action under
communications services to ensure safe and        this section and ORS 759.990, the commission
adequate service.     Except as provided in       shall allow a telecommunications carrier,
subsections (8) and (9) of this section, mini-    telecommunications utility or competitive
mum service quality standards adopted under       telecommunications provider an opportunity
this section shall apply to all telecommuni-      to demonstrate that a violation of a minimum
cations carriers. The commission by rule          service quality standard is the result of the
shall review and revise the minimum service       failure of a person providing telecommuni-
quality standards as necessary to ensure safe     cations interconnection service to meet the
and adequate retail telecommunications ser-       person′s interconnection obligations.
vices.                                                 (7) Total annual penalties imposed on a
     (3) The minimum service quality stan-        telecommunications utility under this section
dards for providing retail telecommunications     shall not exceed two percent of the utility′s
services adopted by the commission shall re-      gross intrastate revenue from the sale of
late directly to specific customer impact in-     telecommunications services for the calendar
dices including but not limited to held           year preceding the year in which the penal-
orders, trouble reports, repair intervals and     ties are assessed. Total annual penalties im-
carrier inquiry response times. In adopting       posed on a competitive telecommunications
minimum service quality standards, the com-       provider under this section shall not exceed
mission shall, for each standard adopted,         two percent of the provider′s gross revenue
consider the following:                           from the sale of telecommunications services
                                                  in this state for the calendar year preceding
     (a) General industry practice and            the year in which the penalties are imposed.
achievement;
                                                       (8) The provisions of this section do not
     (b) National data for similar standards;     apply to:
     (c) Normal operating conditions;                  (a) Radio communications service, radio
     (d) The historic purpose for which the       paging service, commercial mobile radio ser-
telecommunications      network     was    con-   vice, personal communications service or
structed;                                         cellular communications service; or
     (e) Technological improvements and                (b) A cooperative corporation organized
trends; and                                       under ORS chapter 62 that provides telecom-
     (f) Other factors as determined by the       munications services.
commission.                                            (9) Telecommunications utilities and
     (4) Consistent with the federal Telecom-     groups of affiliated telecommunications utili-
munications Act of 1996 (Public Law               ties that serve fewer than 50,000 access lines
104-104), as amended and in effect on Sep-        in Oregon are exempt from any minimum
tember 1, 1999, the commission may establish      service quality standard adopted under this
minimum service quality standards related to      section that would require the utility or
providing wholesale, interconnection, trans-      group to measure carrier inquiry response
port and termination services provided by a       time. [1999 c.1093 §29; 2001 c.95 §1]
telecommunications carrier and those tele-             759.455 Prohibited acts; commission
communications utilities and competitive          action on allegation of violation; penal-
telecommunications providers that provide         ties; judicial review. (1) Unless exempt from
wholesale telecommunications services.            compliance under section 251(f) of the federal
     (5) The commission shall require a tele-     Telecommunications Act of 1996 (47 U.S.C.
communications carrier, telecommunications        251(f)), a telecommunications utility shall
utility or competitive telecommunications         not:

Title 57                                    Page 35                                (2007 Edition)
759.455                            UTILITY REGULATION

     (a) Discriminate against another provider          (j) Provide telephone service to a person
of retail telecommunications services by un-       acting as a telecommunications provider if
reasonably refusing or delaying access to the      the commission has ordered the telecommu-
telecommunications utility′s local exchange        nications utility to discontinue telephone
services.                                          service to the person.
     (b) Discriminate against another provider          (2) A complaint alleging a violation of
of retail telecommunications services by pro-      subsection (1) of this section shall be heard
viding access to required facilities on terms      by the Public Utility Commission or, at the
or conditions less favorable than those the        commission′s discretion, by an Administra-
telecommunications utility provides to itself      tive Law Judge designated by the commis-
and its affiliates. A telecommunications fa-       sion. A hearing under this subsection shall
cility, feature or function is a required facil-   be conducted in an expedited manner con-
ity if:                                            sistent with the following:
     (A) Access to a proprietary facility, fea-         (a) The complaint shall be served upon
ture or function is necessary; and                 the telecommunications carrier and filed
                                                   with the commission.
     (B) Failure to provide access to the fa-
cility, feature or function would impair a              (b) An answer or other responsive plead-
telecommunications carrier seeking access          ing to the complaint shall be filed with the
from providing the services the carrier is         commission not more than 10 days after re-
seeking to provide.                                ceipt of the complaint. Copies of the answer
                                                   or responsive pleading shall be served upon
     (c) Unreasonably degrade or impair the        the complainant and upon the commission.
speed, quality or efficiency of access or any
other service, product or facility provided to          (c) A prehearing conference shall be held
another provider of telecommunications ser-        not later than 15 days after the complaint is
vices.                                             filed. Hearing on the complaint shall com-
                                                   mence not later than 30 days after the com-
     (d) Fail to disclose in a timely and uni-     plaint is filed. Within 45 days after the
form manner, upon reasonable request and           complaint is filed, the commission shall ei-
pursuant to a protective agreement concern-        ther prepare a final decision or approve as
ing proprietary information, all information       final the decision of the Administrative Law
reasonably necessary for the design of net-        Judge. The final decision shall be issued as
work interface equipment, services or soft-        an order of the commission in the manner
ware that will meet the specifications of the      provided under ORS 756.558.
telecommunications utility′s local exchange
network.                                                (3) If the commission or Administrative
                                                   Law Judge finds that a violation of this sec-
     (e) Unreasonably refuse or delay inter-       tion has occurred, the commission shall,
connections or provide inferior intercon-          within five business days, order the telecom-
nections      to     another     provider     of   munications utility to remedy the violation
telecommunications services.                       within a specified period of time. The com-
     (f) Use basic exchange services rates, di-    mission may prescribe specific action to be
rectly or indirectly, to subsidize or offset the   taken by the utility, including but not lim-
cost of other products or services offered by      ited to submitting a plan for preventing fu-
the telecommunications utility.                    ture violations. If the violation continues
     (g) Discriminate in favor of itself or an     beyond the time period specified in the com-
affiliate in the provision and pricing of, or      mission′s order, the commission on its own
extension of credit for, any telephone service.    motion or upon the motion of an interested
                                                   party may seek penalties as provided in ORS
     (h) Fail to provide a service, product or     759.990 or otherwise may seek enforcement
facility in accordance with applicable con-        under ORS 756.160 or 756.180, or both.
tracts, and tariffs and rules of the Public
Utility Commission.                                     (4) Total annual penalties imposed on a
                                                   telecommunications utility under this section
     (i) Impose unreasonable or discriminatory     and ORS 759.450 shall not exceed two per-
restrictions on network elements or the re-        cent of the utility′s gross intrastate revenue
sale of its services, except that:                 from the sale of telecommunications services
     (A) The telecommunications utility may        for the year preceding the year in which the
require that residential service not be resold     violation occurred.
as a different class of service; and                    (5) An order of the commission under
     (B) The commission may prohibit the re-       this section is subject to judicial review as
sale of services the commission has approved       an order in a contested case in the manner
for provision to a not-for-profit entity at        provided by ORS 756.610.
rates below those offered to the general pub-           (6) The Court of Appeals shall give pro-
lic.                                               ceedings under this section priority over all

Title 57                                     Page 36                              (2007 Edition)
                       TELECOMMUNICATIONS UTILITY REGULATION                                                    759.560

other matters before the court.          [1999 c.1093 §38;       759.515 [1987    c.447 §56; repealed by 2005 c.232 §32]
2005 c.638 §17]                                                  759.520 [1987    c.447 §57; repealed by 2005 c.232 §32]
                                                                 759.525 [1987    c.447 §58; 2005 c.22 §509; repealed by
     ALLOCATION OF TERRITORIES                               2005 c.232 §32]
                 (Generally)                                     759.530 [1987    c.447 §59; repealed by 2005 c.232 §32]

    759.500 Definitions for ORS 759.500 to                        759.535 Application to serve unserved
759.570. As used in ORS 759.500 to 759.570,                  territory; hearing; notice. (1) A telecom-
unless the context requires otherwise:                       munications utility, cooperative corporation
                                                             or municipality that desires to provide local
    (1) “Allocated territory” means a ge-                    exchange telecommunications service in a
ographic area for which the Public Utility                   territory that is not served by another person
Commission has allocated to no more than                     providing a similar local exchange telecom-
one person the authority to provide local ex-                munications service may apply to the Public
change telecommunications service, the                       Utility Commission for an order allocating
boundaries of which are set forth on an ex-                  the territory to the applicant. The applica-
change map filed with and approved by the                    tion shall include an exchange map that
commission.                                                  shows the unserved territory that the appli-
    (2) “Person” includes:                                   cant is requesting to serve.
    (a) An individual, firm, partnership, cor-                    (2) The commission shall within 30 days
poration, association, cooperative or munic-                 after the filing of the application give notice
ipality; or                                                  of the filing. If the commission chooses, or if
    (b) The agent, lessee, trustee or referee                a customer requests a hearing on the matter
of an individual or entity listed in paragraph               within 30 days of the notice, the commission
(a) of this subsection.                                      shall hold a hearing by telephone or in per-
                                                             son. The commission shall give notice of the
    (3) “Local exchange telecommunications                   hearing within 30 days of the request. The
service” has the meaning given that term in                  notice shall set the date and place of hear-
ORS 759.005, except that “local exchange                     ing. The hearing shall be held at a place
telecommunications service” does not include                 within or conveniently accessible to the ter-
service provided through or by the use of any                ritory covered by the application. Notice of
equipment, plant or facilities:
                                                             the filing shall be by publication in a news-
    (a) For the provision of telecommuni-                    paper or newspapers of general circulation in
cations services that pass through or over                   the territory covered by the application and
but are not used to provide service in or do                 shall be published at least once weekly for
not terminate in an area allocated to another                two successive weeks. Written notice of the
person providing a similar telecommuni-                      filing shall be given to providers of similar
cations service;                                             local exchange telecommunications service
    (b) For the provision of local exchange                  in adjacent territory. [1987 c.447 §60; 2005 c.232
telecommunications service, as defined in                    §28]
ORS 759.005, commonly known as “private                             759.540 [1987 c.447 §61; repealed by 2005 c.232 §32]
lines” or “farmer lines”; or                                        759.545 [1987 c.447 §62; repealed by 2005 c.232 §32]
    (c) For the provision of shared telecom-                        759.550 [1987 c.447 §63; repealed by 2005 c.232 §32]
munications service. [1987 c.447 §53; 2005 c.232 §24;               759.555 [1987 c.447 §64; repealed by 2005 c.232 §32]
2007 c.825 §2]
    759.505 [1987 c.447 §54; repealed by 2005 c.232 §32]         759.560 Assignment or transfer of al-
    759.506 Purpose of allocated territory                   located territory. (1) The rights acquired by
laws. (1) The purpose of establishing allo-                  an allocation of territory may only be as-
cated territories under ORS 759.500 to                       signed or transferred with the approval of
759.570 is to ensure that telecommunications                 the Public Utility Commission after a finding
utilities, cooperative corporations and mu-                  that the assignment or transfer is not con-
nicipalities certified by the Public Utility                 trary to the public interest.
Commission to provide local exchange tele-                       (2) The commission may approve a trans-
communications service:                                      fer of territory previously allocated only
    (a) Provide adequate and safe service to                 upon receipt of an application for allocation
the customers of this state; and                             that is jointly filed by the transferor and the
                                                             transferee. The application shall include ex-
    (b) Serve all customers in an adequate                   change maps that show how the applicants
and nondiscriminatory manner.                                want the commission to allocate the terri-
    (2) The obligations described in this sec-               tory. The commission shall enter an order
tion may be referenced as carrier of last re-                either approving or disapproving the applica-
sort obligations. [2005 c.232 §26]                           tion as filed, or as amended, together with
    759.510 [1987 c.447 §55; repealed by 2005 c.232 §32]     findings of fact supporting the order.

Title 57                                              Page 37                                          (2007 Edition)
759.565                                    UTILITY REGULATION

    (3)(a) An order approving an allocation                 (3) ORS 759.500 to 759.570 may not be
of territory may not be construed to confer             construed to confer upon the Public Utility
any property right.                                     Commission any regulatory authority over
    (b) Notwithstanding paragraph (a) of this           rates, service or financing of cooperatives or
subsection, upon the death of an individual             municipalities. [1987 c.447 §67; 2005 c.232 §31]
to whom territory was allocated or who was                    759.575 [1987 c.447 §68; repealed by 1993 c.204 §5]
an applicant under an approved order, the                           (Unserved Territory)
executor or administrator of the estate of the               759.580 Power of commission to re-
individual shall continue the operation of lo-          quire service to unserved territory. The
cal exchange telecommunications service for             Public Utility Commission has power to re-
the purpose of transferring territorial allo-           quire any telecommunications utility, after a
cation rights. The executor or administrator            public hearing of all parties interested, to
shall continue the operation for a period not           extend its line, plant or system into, and to
to exceed two years from the date of death.             render service to, a locality not already
    (4) In the event the property of a person           served when the existing public convenience
serving an allocated territory is condemned,            and necessity requires such extension and
no value shall be claimed or awarded by                 service. However, no such extension of ser-
reason of the contract or order making the              vice shall be required until the telecommu-
allocation.                                             nications utility has been granted such
    (5) The commission may by rule establish            reasonable franchises as may be necessary
requirements for notice to affected persons             for the extension of service and unless the
of the assignment or transfer of allocated              conditions are such as to reasonably justify
territory. [1987 c.447 §65; 2005 c.232 §29]             the necessary investment by the telecommu-
                                                        nications utility in extending its line, plant
    759.565 Injunction against unauthor-                or system into such locality and furnishing
ized provision of service. In the event an              such service. [1987 c.447 §4]
allocated territory is served by a person that
is not authorized by the Public Utility Com-                 759.585 Definitions for ORS 759.585 to
mission to provide local exchange telecom-              759.595. As used in ORS 759.585 to 759.595,
munications service in the territory, an                “unserved person” means a person:
aggrieved person or the commission may file                  (1) Who does not have local exchange
an action in the circuit court for any county           telecommunications service;
in which is located some or all of the allo-                 (2) Who is applying for residential service
cated territory allegedly involved in the un-           or business service with five or fewer lines;
authorized provision of service, for an                 and
injunction against the alleged unauthorized
provision of service. The trial of the action                (3) Who, for the initiation of such ser-
shall proceed as in an action not triable by            vice, would be required to pay line extension
right to a jury. Any party may appeal to the            charges. [1989 c.574 §2; 1991 c.307 §1]
Court of Appeals from the circuit court′s                    759.590 Application for service by un-
judgment, as in other equity cases. The rem-            served person; rules. (1) An unserved per-
edy provided in this section shall be in addi-          son may file an application with the Public
tion to any other remedy provided by law.               Utility Commission for an order directing
[1987 c.447 §66; 2003 c.576 §562; 2005 c.232 §30]       another telecommunications utility to pro-
    759.570 Application of law to local                 vide local exchange service to the unserved
government. (1) ORS 759.500 to 759.570 may              person.
not be construed or applied to restrict the                  (2) The commission shall adopt rules
powers granted to cities to issue franchises            which prescribe the form of an application
or to restrict the exercise of the power of             filed under subsection (1) of this section and
condemnation by a municipality. If a munic-             which provide for reasonable notice and op-
ipality condemns or otherwise acquires                  portunity for hearing to all telecommuni-
equipment, plant or facilities from another             cations utilities affected by an application.
person for rendering local exchange telecom-            [1989 c.574 §3; 1991 c.307 §2]
munications service, the municipality ac-                   759.595 Criteria for granting applica-
quires all of the rights of the person whose            tion for service; effect on other territo-
property is condemned to serve the territory            rial allocation. (1) The Public Utility
served by the acquired properties.                      Commission shall grant an application filed
    (2) ORS 759.500 to 759.570 may not be               under ORS 759.590 if the commission finds
construed to restrict the right of a munic-             that:
ipality to provide local exchange telecommu-                (a) The telecommunications utility in
nications service for street lights, fire alarm         whose territory the unserved person is lo-
systems, airports, buildings and other munic-           cated has declined to serve without line ex-
ipal installations regardless of their location.        tension charges;

Title 57                                            Page 38                                      (2007 Edition)
                      TELECOMMUNICATIONS UTILITY REGULATION                                                  759.665

    (b) Another telecommunications utility                       759.655 Authority of commission to
has agreed to provide local exchange tele-                   regulate attachments. The Public Utility
communications service to the unserved per-                  Commission of Oregon shall have the au-
son with no line extension charge or with                    thority to regulate in the public interest the
line extension charges lower than those of-                  rates, terms and conditions for attachments
fered by the telecommunications utility in                   by licensees to poles or other facilities of
whose territory the unserved person is lo-                   telecommunications utilities. All rates, terms
cated; and                                                   and conditions made, demanded or received
    (c) Approval of the application is not                   by any telecommunications utility for any
contrary to the public interest.                             attachment by a licensee shall be just, fair
    (2) Any order of the commission issued                   and reasonable. [1987 c.447 §23]
under subsection (1) of this section shall not                   759.660 Fixing charges or rates; crite-
have the effect of changing any territory al-                ria; costs of hearing. (1) Whenever the
located under ORS 758.400 to 758.475 that is                 Public Utility Commission of Oregon finds,
being provided with local exchange telecom-                  after hearing had upon complaint by a li-
munications service. [1989 c.574 §4; 1991 c.307 §3]          censee or people′s utility district or a tele-
    759.600 [1989 c.574 §5; repealed by 1991 c.307 §4]       communications utility that the rates, terms
                                                             or conditions demanded, exacted, charged or
       ATTACHMENT REGULATION                                 collected in connection with attachments or
    759.650 Definitions for ORS 759.650 to                   availability of surplus space for such attach-
759.675. As used in ORS 759.650 to 759.675,                  ments are unjust or unreasonable, or that
unless the context requires otherwise:                       such rates or charges are insufficient to yield
    (1) “Attachment” means any wire or ca-                   a reasonable compensation for the attach-
ble for the transmission of intelligence by                  ment and the costs of administering the
telegraph, telephone or television (including                same, the commission shall determine the
cable television), light waves or other phe-                 just and reasonable rates, terms and condi-
nomena, or for the transmission of electricity               tions thereafter to be observed and in force
for light, heat or power, and any related de-                and shall fix the same by order. In determin-
vice, apparatus or auxiliary equipment, in-                  ing and fixing such rates, terms and condi-
stalled upon any pole or in any telegraph,                   tions, the commission shall consider the
telephone, electrical, cable television or                   interest of the customers of the licensee, as
communications right of way, duct, conduit,                  well as the interest of the customers of the
manhole or handhole or other similar facility                telecommunications utility or people′s utility
or facilities owned or controlled, in whole or               district which owns the facility upon which
in part, by one or more public utility, tele-                the attachment is made.
communications utility or people′s utility                       (2) When the order applies to a people′s
district.                                                    utility district, the order also shall provide
    (2) “Licensee” means any person, firm,                   for payment by the parties of the cost of the
corporation, partnership, company, associ-                   hearing. The payment shall be made in a
ation, joint stock association or cooper-                    manner which the commission considers eq-
atively organized association which is                       uitable. [1987 c.414 §166d; 1987 c.447 §24; 1989 c.5 §19]
authorized to construct attachments upon,
along, under or across the public ways.                          759.665 Considerations in determining
                                                             just and reasonable rate. A just and rea-
    (3) “People′s utility district” means any                sonable rate shall assure the telecommuni-
concern providing electricity organized pur-
suant to ORS 261.010 and includes any entity                 cations utility or people′s utility district the
cooperatively organized or owned by federal,                 recovery from the licensee of not less than
state or local government or a subdivision of                all the additional costs of providing and
state or local government.                                   maintaining pole attachment space for the
                                                             licensee nor more than the actual capital and
    (4) “Public utility” has the meaning for                 operating expenses, including just compensa-
that term provided in ORS 757.005, and does
not include any entity cooperatively organ-                  tion, of the telecommunications utility or
ized or owned by federal, state or local gov-                people′s utility district attributable to that
ernment or a subdivision of state or local                   portion of the pole, duct or conduit used for
government.                                                  the pole attachment, including a share of the
                                                             required support and clearance space in pro-
    (5) “Telecommunications utility” means
any telecommunications utility as defined in                 portion to the space used for pole attachment
ORS 759.005 and does not include any entity                  above minimum attachment grade level, as
cooperatively organized or owned by federal,                 compared to all other uses made of the sub-
state or local government, or a subdivision                  ject facilities and uses which remain avail-
of state or local government. [1987 c.447 §22;               able to the owner or owners of the subject
1989 c.5 §18]                                                facilities. [1987 c.447 §25]

Title 57                                                 Page 39                                    (2007 Edition)
759.670                           UTILITY REGULATION

    759.670 Presumption of reasonableness         technical limitations of the network prevent
of rates set by agreement. Agreements re-         the identification of incomplete calls, each
garding rates, terms and conditions of at-        operator service provider shall issue credits
tachments shall be deemed to be just, fair        for such calls upon the request of the caller.
and reasonable unless the Public Utility              (3) Each call aggregator who has a con-
Commission finds upon complaint by a tele-        tract with an operator service provider shall
communications utility, people′s utility dis-     post in the immediate vicinity of each tele-
trict or licensee party to such agreement and     phone available to the public the name of the
after hearing, that such rates, terms and         operator service provider, a toll-free cus-
conditions are adverse to the public interest     tomer service number, a statement that rate
and fail to comply with the provisions hereof.    quotes are available upon request and in-
[1987 c.447 §26; 1989 c.5 §20]
                                                  structions on how the caller may access
    759.675 Regulatory procedure. The pro-        other operator service providers.
cedures of the Public Utility Commission for          (4) Neither the operator service provider
petition, regulation and enforcement relative     nor the call aggregator shall block or pre-
to attachments, including any rights of ap-       vent a telephone user′s access to the user′s
peal from any decision thereof, shall be the      operator service provider of choice. In order
same as those applicable to the commission.       to prevent fraudulent use of its services, an
[1987 c.447 §27; 1989 c.5 §21]
                                                  operator service provider or a call aggregator
                                                  may block access if the provider obtains a
   OPERATOR SERVICE PROVIDERS                     waiver for such purpose from the Public
    759.690 Operator service provider du-         Utility Commission.
ties to service users; rules. (1) As used in          (5) The provisions of this section shall be
this section:                                     carried out in such manner as the commis-
    (a) “Call aggregator” means a person          sion, by rule, may prescribe. [1989 c.623 §2]
who furnishes a telephone for use by the
public, including but not limited to hotels,      RESIDENTIAL SERVICE PROTECTION
hospitals, colleges, airports, public pay sta-
                                                       Note: Sections 2 to 8 and 16, chapter 290, Oregon
tion owners and pay station agents.               Laws 1987, provide:
    (b) “Contract” means an agreement be-              Sec. 2. The Legislative Assembly declares that it
tween an operator service provider and a call     is the policy of this state to assure that adequate, af-
aggregator to automatically connect users of      fordable residential telecommunication service is avail-
telephones to the operator service provider       able to all citizens of this state. [1987 c.290 §2]
when certain operator-assisted long distance           Sec. 3. In carrying out the provisions of section 2
calls are made.                                   of this 1987 Act, the Public Utility Commission may re-
                                                  quire telecommunications public utilities to assure that
    (c) “Operator service” includes but is not    time payment plans for deposits and installation
limited to billing or completion of third-        charges or such other options as may be appropriate for
number, person-to-person, collect or credit       a particular telecommunications public utility are made
                                                  available. [1987 c.290 §3]
card calls.
                                                       Sec. 4. In carrying out the provisions of section 2
    (d) “Operator service provider” means a       of this 1987 Act the Public Utility Commission may:
person who furnishes operator service under            (1) Notwithstanding ORS 757.310, approve a differ-
contract with a call aggregator.                  ent rate for local exchange residential telecommunica-
    (2) Each operator service provider shall:     tion service for low income customers than the rate
                                                  charged to other residential customers. However, any
    (a) Notify all callers at the beginning of    such rate is subject to all other provisions of this
the call of the provider′s name.                  chapter.
                                                       (2) Establish plans, or require telecommunications
    (b) Disclose rate and service information     public utilities to establish plans, to educate customers
to the caller when requested.                     regarding the options available for obtaining telecom-
    (c) Maintain a current list of emergency      munication services. [1987 c.290 §4]
numbers for each service territory it serves.          Sec. 5. (1) In carrying out the provisions of section
                                                  2 of this 1987 Act, the Public Utility Commission shall
    (d) Transfer an emergency call to the ap-     establish rules to prohibit the termination of local ex-
propriate emergency number when requested.        change residential service when such termination would
                                                  significantly endanger the physical health of the resi-
    (e) Transfer a call to, or instruct the       dential customer.
caller how to reach, the originating local ex-         (2) The commission shall provide by rule a method
change company′s operator service upon re-        for determining when the termination of local exchange
quest of the caller, free of charge.              residential service would significantly endanger the
                                                  physical health of the residential customer.
    (f) Not transfer a call to another operator
service provider without the caller′s notifi-          (3)(a) The commission shall require that each tele-
                                                  communications public utility:
cation and consent.
                                                       (A) Accept medical statements by licensed physi-
    (g) Not bill or collect for calls not com-    cians and licensed nurse practitioners as sufficient evi-
pleted to the caller′s destination. Where         dence of significant endangerment of health; and

Title 57                                    Page 40                                       (2007 Edition)
                       TELECOMMUNICATIONS UTILITY REGULATION                                                   759.690

     (B) Establish procedures for submitting and receiv-           Sec. 7. (1) In order to fund the programs provided
ing such medical statements.                                  in sections 2 to 6 and 9 to 14, chapter 290, Oregon Laws
     (b) A medical statement submitted under this sub-        1987, the Public Utility Commission shall develop and
section shall be valid for such period as the commission,     implement a system for assessing a surcharge in an
by rule, may prescribe.                                       amount not to exceed 35 cents per month against each
                                                              paying retail subscriber who has telecommunications
     (4) Rules adopted by the commission pursuant to          service with access to the telecommunications relay
this section shall not apply to telecommunication ser-        service. The surcharge shall be applied on a telecom-
vice other than local exchange residential service.           munications circuit designated for a particular sub-
     (5) A customer submitting a medical certificate as       scriber. One subscriber line shall be counted for each
provided in this section is not excused from paying for       circuit that is capable of generating usage on the line
telecommunication service. Customers are required to          side of the switched network regardless of the quantity
enter into a time payment agreement with the utility if       of customer premises equipment connected to each cir-
an overdue balance exists. Local exchange service is          cuit. For providers of central office based services, the
subject to termination if a customer refuses to enter         surcharge shall be applied to each line that has unre-
into or fails to abide by terms of a payment agreement.       stricted connection to the telecommunications relay
                                                              service. These central office based service lines that
     (6) Nothing in this section prevents the termination     have restricted access to the telecommunications relay
of local exchange residential service if the telecommu-       service shall be charged based on software design. For
nications public utility providing the service does not       cellular, wireless or other radio common carriers, the
have the technical ability to terminate toll telecommu-       surcharge shall be applied on a per instrument basis,
nication service without also terminating local ex-           but applies only to subscribers whose place of primary
change telecommunication service. [1987 c.290 §5]             use, as defined and determined under 4 U.S.C. 116 to
     Sec. 6. (1) In carrying out the provisions of section    126, is within this state.
2, chapter 290, Oregon Laws 1987, the Public Utility                (2) The surcharge imposed by subsection (1) of this
Commission shall establish a plan to provide assistance       section does not apply to:
to low income customers through differential rates or
otherwise. The plan of assistance shall be designed to              (a) Services upon which the state is prohibited from
use, to the maximum extent possible, the available            imposing the surcharge by the Constitution or laws of
funding offered by the Federal Communications Com-            the United States or the Constitution or laws of the
mission, and may provide different levels of assistance       State of Oregon.
to low income customers based upon differences in local             (b) Interconnection between telecommunications
exchange rates. The plan established by the commission        utilities, telecommunications cooperatives, competitive
shall prescribe the amount of assistance to be provided       telecommunications services providers certified pursuant
and the time and manner of payment.                           to ORS 759.020, radio common carriers and interex-
     (2) For the purpose of establishing a plan to pro-       change carriers.
vide assistance to low income customers under this                  (3) The commission annually shall review the sur-
section, the commission shall require all public utilities,   charge and the balance in the Residential Service Pro-
cooperative corporations and unincorporated associ-           tection Fund and may make adjustments to the amount
ations providing local exchange telecommunication ser-        of the surcharge to ensure that the fund has adequate
vice to participate in the plan, except as provided in        resources but that the fund balance does not exceed six
subsection (3) of this section.                               months of projected expenses.
     (3) In lieu of participation in the commission′s plan          (4) Moneys collected pursuant to the surcharge
to assist low income customers, a public utility, coop-       shall not be considered in any proceeding to establish
erative corporation or unincorporated association pro-        rates for telecommunication service.
viding local exchange telecommunication service may
apply to the commission to establish an alternative plan            (5) The commission shall direct telecommunications
for the purpose of carrying out the provisions of section     public utilities to identify separately in bills to custom-
2, chapter 290, Oregon Laws 1987, for its own customers.      ers for service the surcharge imposed pursuant to this
The commission shall adopt standards for determining          section. [1987 c.290 §7; 1991 c.622 §2; 1991 c.872 §8; 1993
the adequacy of alternative plans.                            c.231 §1; 1995 c.79 §387; 1995 c.451 §1; 2001 c.408 §2]
     (4) The commission may contract with any govern-               Sec. 8. The Residential Service Protection Fund is
mental agency to assist the commission in the adminis-        established in the State Treasury, separate and distinct
tration of any assistance plan adopted pursuant to this       from the General Fund. Interest earned by moneys in
section.                                                      the fund shall be credited to the fund. All moneys in the
                                                              fund are appropriated to the Public Utility Commission
     (5)(a) As used in sections 2 to 6, chapter 290, Ore-     to carry out the provisions of chapter 290, Oregon Laws
gon Laws 1987, “low income customer” means an indi-           1987. [1987 c.290 §8; 1989 c.966 §74; 1991 c.622 §3; 1991
vidual determined by the commission:                          c.872 §1; 1993 c.231 §2]
     (A) To be receiving benefits from the federal food             Sec. 16. Chapter 290, Oregon Laws 1987, is repealed
stamp program or from another low income public as-           January 1, 2010. [1987 c.290 §16; 1991 c.622 §4; 1997 c.481
sistance program for which eligibility requirements limit     §1; 2001 c.408 §1]
participation to individuals with income that does not              Note: Sections 1 and 2, chapter 204, Oregon Laws
exceed 135 percent of federal poverty guidelines; or          2005, provide:
     (B) To be a resident of a long term care facility,            Sec. 1. Section 2 of this 2005 Act is added to and
as defined in ORS 442.015, or a residential care facility,    made a part of sections 2 to 6, chapter 290, Oregon Laws
as defined in ORS 443.400:                                    1987. [2005 c.204 §1]
    (i) Who receives medical assistance under ORS                  Sec. 2. (1) In carrying out the provisions of section
chapter 414; and                                              2, chapter 290, Oregon Laws 1987, the Public Utility
     (ii) Who has income that does not exceed 135 per-        Commission shall adopt rules to prohibit the termi-
cent of federal poverty guidelines.                           nation of local exchange residential service if the ter-
     (b) The commission must be able to verify the            mination would significantly endanger a customer, or a
continuing participation of a low income customer in a        person in the household of the customer, who is:
program described in paragraph (a) of this subsection.             (a) At risk of domestic violence, as defined in ORS
[1987 c.290 §6; 1991 c.622 §1; 2007 c.29 §1]                  135.230;

Title 57                                               Page 41                                        (2007 Edition)
759.690                                    UTILITY REGULATION

      (b) At risk of unwanted sexual contact, as defined            (4) “Audiologist” means a person who has a mas-
in ORS 163.305;                                               ter′s or doctoral degree in audiology and a Certificate
      (c) A person with a disability, as defined in ORS       of Clinical Competence in audiology from the American
124.005, who is at risk of abuse, as defined in ORS           Speech-Language-Hearing Association.
124.005 (1)(a), (d) or (e);                                         (5) “Deaf” means a profound hearing loss, as de-
                                                              termined by an audiologist or a vocational rehabili-
      (d) An elderly person, as defined in ORS 124.005,       tation counselor of the Department of Human Services,
who is at risk of abuse, as defined in ORS 124.005 (1)(a),    that requires use of an assistive telecommunication de-
(d) or (e); or                                                vice to communicate effectively on the telephone.
      (e) A victim of stalking, as described in ORS                 (6) “Deaf-blind” means a hearing loss and a visual
163.732.                                                      impairment, as determined by a licensed physician and
      (2) A customer may establish that termination of        by an audiologist or a vocational rehabilitation coun-
local exchange residential service would significantly        selor of the Department of Human Services, that require
endanger the customer, or a person in the household of        use of an assistive telecommunication device to com-
the customer, by providing a telecommunications public        municate effectively on the telephone.
utility with an affidavit signed by the customer stating            (7) “Disability” means a physical condition, as de-
that termination would place the customer, or a person        termined by a licensed physician or vocational rehabil-
in the household of the customer, at significant risk of      itation counselor of the Department of Human Services,
domestic violence, as defined in ORS 135.230, or of un-       other than hearing or speech impairment that requires
wanted sexual contact, as defined in ORS 163.305. The         use of adaptive equipment to utilize the telephone.
customer must attach to the affidavit a copy of an order
issued under ORS 30.866, 107.700 to 107.735, 124.005 to             (8) “Hearing aid specialist” means a person li-
124.040 or 163.738 that restrains another person from         censed to deal in hearing aids under ORS chapter 694.
contact with the customer, or a person in the household             (9) “Physician” means an applicant′s primary care
of the customer, or a copy of any other court order that      physician or a medical specialist who is able to deter-
restrains another person from contact with the cus-           mine an applicant′s disability and to whom the appli-
tomer, or a person in the household of the customer, by       cant was referred by the primary care physician.
reason of a risk described in subsection (1) of this sec-
tion or by reason of stalking.                                      (10) “Recipient” means a person who receives
                                                              adaptive equipment, an assistive telecommunication de-
      (3) The commission shall require that each tele-        vice or a signal device.
communications public utility establish procedures for
submitting and receiving affidavits under subsection (2)            (11) “Severely hard of hearing ” means a hearing
of this section.                                              loss, as determined by an audiologist or vocational re-
                                                              habilitation counselor of the Department of Human
      (4) This section does not apply to termination of       Services, that requires use of an assistive telecommu-
any telecommunication service other than local ex-            nication device to communicate effectively on the tele-
change residential service.                                   phone.
      (5) A customer submitting an affidavit as provided            (12) “Severely speech impaired” means a speech
by subsection (2) of this section is not excused from         disability, as determined by a speech-language pathol-
paying for telecommunication service. Customers are           ogist or vocational rehabilitation counselor of the De-
required to enter into a reasonable payment agreement         partment of Human Services, that requires use of an
with the telecommunications public utility if an overdue      assistive telecommunication device to communicate ef-
balance exists. Local exchange residential service may        fectively on the telephone.
be terminated if a customer refuses to enter into or fails          (13) “Signal device” means a mechanical device
to abide by the terms of a reasonable payment agree-          that alerts a person who is deaf, deaf-blind or severely
ment.                                                         hard of hearing of an incoming telephone call.
      (6) Nothing in this section prevents the termination          (14) “Speech-language pathologist” means a person
of local exchange residential service if the telecommu-       who has a master′s degree or equivalency in speech-
nications public utility providing the service does not       language pathology and a Certificate of Clinical Com-
have the technical ability to terminate toll telecommu-       petence         issued        by        the        American
nication service without also terminating local ex-           Speech-Language-Hearing Association.
change residential service. [2005 c.204 §2; 2007 c.70 §359]
                                                                    (15) “Telecommunications relay center” means a
                                                              facility authorized by the Public Utility Commission to
  ASSISTIVE TELECOMMUNICATION                                 provide telecommunications relay service.
       DEVICES FOR PERSONS                                          (16) “Telecommunications relay service” means the
         WITH DISABILITIES                                    provision of voice and teletype communication between
                                                              users of some assistive telecommunication devices and
     Note: Sections 9 to 16, chapter 290, Oregon Laws         other parties. [1987 c.290 §9; 1991 c.872 §2; 1995 c.280 §32;
1987, provide:                                                1995 c.451 §2; 1999 c.384 §1; 2007 c.28 §1; 2007 c.70 §353]
     Sec. 9. As used in sections 9 to 14, chapter 290,              Sec. 10. It is recognized that a large number of
Oregon Laws 1987, unless the context requires other-          people in this state, through no fault of their own, are
wise:                                                         unable to utilize telecommunication equipment due to
     (1) “Adaptive equipment” means equipment that            the inability to hear or speak well enough or due to
permits a person with a disability, other than a person       other disabilities. It is also recognized that present
who is hard of hearing or speech impaired, to commu-          technology is available, but at significant cost, that
nicate effectively on the telephone.                          would allow these people to utilize telecommunication
                                                              equipment in their daily activities. There is, therefore,
     (2) “Applicant” means a person who applies for an        a need to make available such technology in the form
assistive telecommunication device, adaptive equipment        of assistive telecommunication devices and a telecom-
or a signal device.                                           munications relay service for people who are deaf, se-
     (3) “Assistive telecommunication device” means a         verely hard of hearing or severely speech impaired or
device that utilizes a keyboard, acoustic coupler, display    adaptive equipment for people with disabilities at no
screen, Braille display, speakerphone or amplifier to         additional cost beyond normal telephone service. The
enable people who are deaf, deaf-blind, severely hard of      provision of assistive telecommunication devices and a
hearing or severely speech impaired to communicate ef-        telecommunications relay service or adaptive equipment
fectively on the telephone.                                   would allow those formerly unable to use telecommu-

Title 57                                               Page 42                                          (2007 Edition)
                        TELECOMMUNICATIONS UTILITY REGULATION                                                    759.705

nication systems to more fully participate in the activ-       tion devices or adaptive equipment devices may be pro-
ities and programs offered by government and other             vided to a household if more than one eligible person
community agencies, as well as in their family and so-         permanently resides in the household. Households with-
cial activities. The assistive telecommunication devices       out any assistive telecommunication devices or adaptive
or adaptive equipment would be provided on a loan              equipment shall be given priority over households with
basis to each recipient, to be returned if the recipient       one assistive telecommunication device or adaptive
moves out of the state. [1987 c.290 §10; 1991 c.872 §3; 1999   equipment device when such devices are distributed.
c.384 §2; 2007 c.70 §354]                                           (c) Sections 9 to 14, chapter 290, Oregon Laws 1987,
      Sec. 11. (1) With the advice of the Telecommu-           do not require a telecommunications utility to provide
nication Devices Access Program Advisory Committee,            an assistive telecommunication device to any person in
the Public Utility Commission shall establish and ad-          violation of ORS 646.730.
minister a statewide program to purchase and distribute             (2)(a) In order to be eligible to receive adaptive
assistive telecommunication devices to persons who are         equipment, individuals must be certified to have the re-
deaf, severely hard of hearing, severely speech impaired       quired disability by a person or agency designated by
or deaf-blind and establish a dual party relay system          the Public Utility Commission to make such certifica-
making telephone service generally available to persons        tions. Certification implies that the individual is unable
who are deaf, severely hard of hearing, severely speech        to use the telephone.
impaired or deaf-blind.
                                                                    (b) Sections 9 to 14, chapter 290, Oregon Laws 1987,
      (2) With the advice of the Telecommunication De-         do not require a telecommunications utility to provide
vices Access Program Advisory Committee, the Public            adaptive equipment to any person in violation of ORS
Utility Commission shall establish and administer a            646.730. [1987 c.290 §14; 1989 c.115 §1; 1991 c.872 §7; 1995
statewide program to purchase and distribute adaptive          c.280 §33; 1999 c.384 §5; 2007 c.28 §2; 2007 c.70 §357]
equipment to make telephone service generally available
to persons with physical disabilities. [1987 c.290 §11; 1991        Sec. 15. The program of distribution provided in
c.872 §4; 1999 c.384 §3; 2007 c.70 §355]                       sections 9 to 14 of this Act is to be phased in over a
                                                               period ending January 1, 1992. [1987 c.290 §15]
      Sec. 12. (1) A Telecommunication Devices Access
Program Advisory Committee shall be established to                  Sec. 16. Chapter 290, Oregon Laws 1987, is repealed
advise the Public Utility Commission concerning mat-           January 1, 2010. [1987 c.290 §16; 1991 c.622 §4; 1997 c.481
ters of general development, implementation and ad-            §1; 2001 c.408 §1]
ministration of the Telecommunication Devices Access
Program.                                                        INFORMATION SERVICE PROVIDERS
      (2) The Telecommunication Devices Access Program
Advisory Committee shall include:                                  759.700 Definitions for ORS 759.700 to
      (a) Nine consumers including seven who are deaf          759.720. As used in ORS 759.700 to 759.720:
or hard of hearing, one who is speech impaired and one             (1) “Information provider” means any
who has a disability;
                                                               person, company or corporation that operates
      (b) One professional in the field of speech impair-      an information delivery service on a pay-per-
ment, hearing impairment or deafness or disability;
                                                               call basis.
      (c) One member of the Public Utility Commission
or a designee of the commission; and                               (2) “Information delivery service” means
      (d) One representative from those telephone com-         any telephone-recorded messages, interactive
panies interested in providing telecommunication de-           programs or other information services that
vices access relay services. [1987 c.290 §12; 1991 c.872       are provided for a charge to a caller through
§5; 2007 c.70 §356]                                            an exclusive telephone number prefix or ser-
      Sec. 13. (1) The Public Utility Commission shall         vice access code. Where a preexisting writ-
employ a coordinator for the Telecommunication De-             ten contract exists between the customer and
vices Access Program, who shall be primarily responsi-
ble for:                                                       the information provider, this definition does
                                                               not apply. [1991 c.672 §7]
      (a) The distribution and maintenance of assistive
telecommunication devices and adaptive equipment;                  759.705 Program message preamble;
      (b) The provision of telecommunications relay ser-       information to be included. (1) An infor-
vices and monitoring of those service providers; and           mation provider that does business in this
      (c) Community outreach to locate potential benefi-       state shall include a preamble in its program
ciaries of the Telecommunication Devices Access Pro-           messages.
gram.
                                                                   (2) The preamble must:
      (2) The commission may contract with any govern-
mental agency, or other entity the commission considers            (a) Describe the service that the program
to be qualified, to assist the commission in the admin-        provides.
istration of sections 9 to 14, chapter 290, Oregon Laws
1987. [1987 c.290 §13; 1991 c.872 §6; 1999 c.384 §4]               (b) Advise the caller of the price per call,
      Sec. 14. (1)(a) In order to be eligible to receive       including:
assistive telecommunication devices or adaptive equip-             (A) Any per minute charge;
ment, individuals must be certified as deaf, severely
hard of hearing, severely speech impaired or deaf-blind            (B) Any flat rate charge;
by a licensed physician, audiologist, hearing aid spe-
cialist, speech-language pathologist or vocational re-             (C) Any minimum charge;
habilitation counselor of the Department of Human                  (D) The maximum charge possible for the
Services. Certification implies that the individual can-
not use the telephone for expressive or receptive com-         service as determined from multiplying max-
munication.                                                    imum duration in minutes by the cost per
      (b) No more than one assistive telecommunication         minute, unless the call has a possible indefi-
device or adaptive equipment device shall be provided          nite duration, in which case the charge for
to a household. However, two assistive telecommunica-          one hour of use shall be stated;

Title 57                                                Page 43                                         (2007 Edition)
759.710                           UTILITY REGULATION

    (E) Whether calls that may last more          ible letters and numbers set against a con-
than 20 minutes are interactive or have a         trasting background, the cost of calling the
possible indefinite duration; and                 advertised telephone number. The printed
    (F) The maximum possible charges for          disclosure of the cost of the call must be
any pay-per-call numbers to which the caller      displayed adjacent to the advertised number
may be referred by the information provider.      each time the number appears in the adver-
                                                  tisement. The lettering of the visual disclo-
    (c) Advise that the billing will begin        sure of the cost of the call must be the same
shortly after the end of the preamble. A rea-     size and typeface as that of the advertised
sonable length of time shall be allotted after    telephone number.
the preamble to give consumers an opportu-
nity to disconnect before the program mes-            (4) Except as provided in subsection (5)
sage starts.                                      of this section, an information provider that
                                                  advertises pay-per-call services must include
    (3) All preambles must be clearly artic-      the price or cost, including:
ulated in the language used in advertise-             (a) Any per minute charge;
ments for the telephone number and the
language used within the body of the pro-             (b) Any flat rate charge;
gram. The language in the preamble shall be           (c) Any minimum charge;
spoken in a normal cadence and at a volume            (d) The maximum charge possible for the
equal to that of the program message.             service as determined by multiplying maxi-
    (4) When an information provider′s pro-       mum duration in minutes by the cost per
gram message consists only of a polling ap-       minute, unless the call has a possible indefi-
plication that permits the caller to register     nite duration, in which case the charge for
an opinion or to vote on a matter by com-         one hour of use shall be stated;
pleting a call, or results in a flat charge of        (e) An indication whether calls are
$2 or less, this section does not apply. [1991    interactive or have a possible indefinite du-
c.672 §2]
                                                  ration; and
    759.710 Pay-per-call information; dis-            (f) The maximum possible charges for all
closure. (1) An information provider that         pay-per-call numbers to which the caller will
advertises pay-per-call services that are         be referred by the telephone number being
broadcast by radio or television, contained in    advertised.
home videos or that appear on movie screens
must include an announcement that accu-               (5) An information provider that adver-
rately represents the price of the service be-    tises pay-per-call services in telephone direc-
ing advertised. The announcement must be          tory classified advertising must include a
clearly articulated in the language used in       conspicuous disclosure in the advertisement
the body of the program or any other lan-         that the call is a pay-per-call service. [1991
guage spoken in the advertisement. These          c.672 §3]
price disclosures shall be spoken in a normal         759.715 Information service blocking;
cadence and at a volume equal to that used        suspension or termination of telephone
to announce the telephone number in the           service for nonpayment of information
advertisement. The advertisement must state       service charges. (1) Local exchange carriers
the price of the service each time the tele-      shall make information delivery service
phone number of the information provider          blocking available to all customers as soon
appears in the advertisement.                     as such a system becomes technically avail-
    (2) An information provider that adver-       able to local exchange carriers. Local ex-
tises pay-per-call services that are broadcast    change carriers shall notify customers of
by television, contained in home videos or        such a blocking service when available.
that appear on movie screens must include,            (2) A customer′s local or long distance
in clearly visible letters and numbers set        service shall not be suspended or terminated
against a contrasting background, the cost        for nonpayment of information delivery ser-
of calling the advertised number. Visual dis-     vice charges. The Public Utility Commission
closure of the cost of the call must be dis-      through orders and rules shall require tele-
played adjacent to the advertised telephone       phone utilities providing billing services for
number each time the number appears in the        information providers to adequately inform
advertisement. The lettering of the visual        consumers of their rights concerning infor-
disclosure of the cost of the call must be the    mation providers. [1991 c.672 §§5,6]
same size and typeface as that of the adver-
tised telephone number.                               759.720 Action against information
                                                  provider for failure to comply with law;
    (3) Except as provided in subsection (5)      remedies; customer liability for charges.
of this section, an information provider that     (1) Any customer, telecommunications utility
advertises pay-per-call services that appear in   or local exchange carrier who suffers dam-
printed material must include, in clearly vis-    ages from a violation of ORS 646.608, 646.639

Title 57                                    Page 44                               (2007 Edition)
                     TELECOMMUNICATIONS UTILITY REGULATION                                       759.900

and 759.700 to 759.720 by an information                     (2) If the Public Utility Commission as-
provider has a cause of action against such              sumes primary responsibility for resolving
information provider. The court may award                consumer complaints relating to changes in
the greater of three times the actual dam-               a consumer′s telecommunications carrier un-
ages or $500, or order an injunction or resti-           der this section, the commission shall by
tution. Except as provided in subsection (2)             rule:
of this section, the court may award reason-                 (a) Establish a complaint process for
able attorney fees to the prevailing party in            consumers who have had changes in tele-
an action under this section.                            communications carriers;
     (2) The court may not award attorney                    (b) Establish a process for investigating
fees to a prevailing defendant under the pro-            complaints under this section; and
visions of subsection (1) of this section if the
action under this section is maintained as a                 (c) Establish appropriate remedies for
class action pursuant to ORCP 32.                        consumers who have had changes in tele-
     (3) When an information provider has                communications carriers in violation of fed-
failed to comply with any provision of ORS               eral laws, federal regulations or Federal
646.608, 646.639 and 759.700 to 759.720, any             Communications Commission orders.
obligation by a customer that may have                       (3) Rules adopted by the Public Utility
arisen from the dialing of a pay-per-call tele-          Commission under this section must be con-
phone number is void and unenforceable.                  sistent with federal laws, federal regulations
     (4) Any obligation that may have arisen             and Federal Communications Commission
from the dialing of a pay-per-call telephone             orders relating to resolution of consumer
number is void and unenforceable if made by:             complaints arising out of changes in tele-
                                                         communications carriers, and may not im-
     (a) An unemancipated child under 18                 pose more stringent conditions or penalties
years of age; or                                         for changes in telecommunications carriers
     (b) A person whose physician substanti-             than the conditions and penalties imposed by
ates that:                                               federal laws, federal regulations or Federal
     (A) The person has a mental or emotional            Communications Commission orders for
disorder generally recognized in the medical             changes in telecommunications carriers.
or psychological community that makes the                    (4) The Public Utility Commission may
person incapable of rational judgments and               not adopt rules under this section that are
comprehending the consequences of the per-               applicable to radio common carriers.
son′s action; and                                            (5) Nothing in this section affects the
     (B) The disorder was diagnosed before               ability of the Attorney General to seek rem-
the obligation was incurred.                             edies under ORS 646.605 to 646.652 to the
     (5) Upon written notification to the in-            extent that an unauthorized change in tele-
formation provider or the billing agent for              communications carriers constitutes an un-
the information provider that a bill for in-             lawful practice under ORS 646.605 to 646.652.
                                                         [2003 c.642 §2]
formation delivery services is void and unen-
forceable under subsection (2) or (4) of this
section, no further billing or collection ac-                              DAMAGES
tivities shall be undertaken in regard to that               759.900 Liability of utility; effect on
obligation.                                              other remedies; liability for personal in-
     (6) The telecommunications utility or lo-           jury or property damage. (1) Any telecom-
cal exchange carrier may require the cus-                munications utility which does, or causes or
tomer to take pay-per-call telephone blocking            permits to be done, any matter, act or thing
service after the initial obligation has been            prohibited by this chapter or ORS chapter
voided. [1991 c.672 §4; 1993 c.513 §1; 1995 c.696 §49]   756, 757 or 758 or omits to do any act, matter
                                                         or thing required to be done by such stat-
      UNAUTHORIZED CHANGES IN                            utes, is liable to the person injured thereby
  TELECOMMUNICATIONS CARRIERS                            in the amount of damages sustained in con-
                                                         sequence of such violation. Except as pro-
    759.730 Unauthorized changes in tele-                vided in subsection (2) of this section, the
communications carriers (“slamming”);                    court may award reasonable attorney fees to
rules. (1) The Public Utility Commission                 the prevailing party in an action under this
may by rule assume primary responsibility                section.
for resolving consumer complaints relating
to changes in a consumer′s telecommuni-                      (2) The court may not award attorney
cations carrier, as defined in ORS 759.400, in           fees to a prevailing defendant under the pro-
violation of federal laws, federal regulations           visions of subsection (1) of this section if the
or Federal Communications Commission or-                 action under this section is maintained as a
ders.                                                    class action pursuant to ORCP 32.

Title 57                                          Page 45                                 (2007 Edition)
759.900                                 UTILITY REGULATION

    (3) Any recovery under this section does                    (8) The Governor shall appoint one member of the
not affect recovery by the state of the pen-               Oregon Telecommunications Coordinating Council to
                                                           represent community colleges. The Governor shall give
alty, forfeiture or fine prescribed for such               consideration to recommendations made by the Oregon
violation.                                                 Community College Association in making the appoint-
                                                           ment under this subsection.
    (4) This section does not apply with re-
spect to the liability of any telecommuni-                      (9) The Governor shall appoint one member of the
cations utility for personal injury or property            Oregon Telecommunications Coordinating Council to
                                                           represent the Oregon University System. The Governor
damage. [1989 c.827 §4; 1995 c.696 §51]                    shall give consideration to recommendations made by
                                                           the Chancellor of the Oregon University System in
                                                           making the appointment under this subsection.
   OREGON TELECOMMUNICATIONS
      COORDINATING COUNCIL                                      (10) The Oregon Telecommunications Coordinating
                                                           Council may by a majority vote of the council add
     Note: Sections 1 and 2, chapter 699, Oregon Laws      members to the council to represent telecommunication
2001, provide:                                             consortia coming into existence after January 1, 2003,
     Sec. 1. (1) There is established the Oregon Tele-     or to represent citizen groups recognized by the council.
communications Coordinating Council consisting of 20            (11) If no additional funds are required, the Eco-
members.                                                   nomic and Community Development Department, the
     (2) The Governor shall appoint one member to          Oregon Department of Administrative Services, the
represent each of the following entities, and in making    League of Oregon Cities and the Association of Oregon
the appointments under this subsection shall give con-     Counties may provide staff to the Oregon Telecommu-
sideration to recommendations made by the entity the       nications Coordinating Council.
member is to represent:                                          (12) Members of the Oregon Telecommunications
     (a) The Central Oregon Telecommunications Task        Coordinating Council are not entitled to compensation,
Force.                                                     but may be paid expenses if funding is available from
                                                           contributions under subsection (15) of this section.
     (b) CoastNet.
     (c) The Eastern Oregon Telecommunications Con-              (13) The Oregon Telecommunications Coordinating
sortium.                                                   Council shall study alternative approaches to providing
                                                           coordinated statewide, regional and local telecommu-
     (d) The Fiber South Consortium.                       nication services, including providing services to un-
     (e) Frontier Telenet.                                 served or underserved areas of the state. In addition,
                                                           the council shall study the manner in which telecom-
     (f) The Gorge Teleconsortium.                         munication investments can be coordinated to facilitate
     (g) The Regional Fiber Consortium (Lane and           partnerships between the public sector and the private
Klamath Counties).                                         sector and between state and local governments. The
                                                           council shall report its findings and recommendations
     (h) The North Coast Telecommunications Consor-        to the Governor and to the Joint Legislative Committee
tium.                                                      on Information Management and Technology before
     (i) The South Coast Telecommunications Consor-        each legislative session.
tium.                                                            (14) All agencies of state government, as defined in
     (j) The Southern Oregon Telecommunications and        ORS 174.111, are directed to assist the Oregon Telecom-
Technology Council.                                        munications Coordinating Council in the performance
                                                           of its functions and, to the extent permitted by laws
     (3) The Governor shall appoint two members of the     relating to confidentiality, to furnish such information
Oregon Telecommunications Coordinating Council to          and advice as the members of the council consider nec-
represent the counties of this state. The Governor shall   essary to perform their functions.
give consideration to recommendations made by the
Association of Oregon Counties in making the appoint-            (15) The Oregon Telecommunications Coordinating
ments under this subsection.                               Council may accept contributions of funds and assist-
                                                           ance from the United States or its agencies or from any
     (4) The Governor shall appoint two members of the     other source, public or private, and agree to conditions
Oregon Telecommunications Coordinating Council to          thereon not inconsistent with the purposes of the coun-
represent the cities of this state. The Governor shall     cil. All such funds are to aid in financing the functions
give consideration to recommendations made by the          of the council and shall be deposited in the General
League of Oregon Cities in making the appointments         Fund of the State Treasury to the credit of separate
under this subsection.                                     accounts for the council to disburse for the purpose for
     (5) The Governor shall appoint two members of the     which contributed in the same manner as funds appro-
Oregon Telecommunications Coordinating Council to          priated for the council.
represent telecommunication utilities and Internet ser-
vice providers in this state. The Governor shall give            (16) Official action by the Oregon Telecommuni-
consideration to recommendations made by the Oregon        cations Coordinating Council requires the approval of
Telecommunications Association in making the ap-           a majority of the members. The council may recommend
pointments under this subsection.                          legislation, and all legislation recommended by the
                                                           council must indicate that it is introduced at the re-
     (6) The Governor shall appoint one member of the      quest of the council. Legislation recommended by the
Oregon Telecommunications Coordinating Council to          council must be submitted to the Joint Legislative
represent Oregon tribes. The Governor shall give con-      Committee on Information Management and Technol-
sideration to recommendations made by the Commission       ogy. The legislation shall be prepared in time for pre-
on Indian Services in making the appointment under         session filing at regular sessions of the Legislative
this subsection.                                           Assembly.
     (7) The Governor shall appoint one member of the          (17) The Oregon Telecommunications Coordinating
Oregon Telecommunications Coordinating Council to          Council shall:
represent elementary and secondary schools. The Gov-
ernor shall give consideration to recommendations made          (a) Encourage the work of regional telecommuni-
by the Oregon School Boards Association in making the      cations consortia that have emerged throughout the
appointment under this subsection.                         state.

Title 57                                            Page 46                                        (2007 Edition)
                       TELECOMMUNICATIONS UTILITY REGULATION                                        759.990

     (b) Encourage state agencies to utilize telecommu-                       PENALTIES
nications.
     (c) Encourage efforts to provide cost-effective,
                                                                 759.990 Penalties. (1) Any telecommuni-
quality workforce development training using telecom-        cations utility violating ORS 759.260 commits
munications infrastructure and facilities to access dis-     a Class A violation, and upon conviction the
tance learning opportunities.                                court shall impose a fine of not less than
    (d) Encourage schools, education service districts       $100. Violation of ORS 759.260 by an officer
and local education agencies in unserved areas to pro-       or agent of a telecommunications utility is a
mote broadband access for the surrounding community.
                                                             Class D violation.
     (e) Encourage public and private entities to seek
opportunities for partnership with educational insti-            (2) Any person violating ORS 759.275
tutions that will stimulate the use of broadband tech-       shall, upon conviction, forfeit and pay to the
nologies through community projects and public
education.
                                                             State Treasurer not less than $100 and not
                                                             more than $10,000 for each offense. Violation
      (f) Recommend ways for the State of Oregon to
support innovative efforts that build effective and cost-    of ORS 759.275 by any agent or officer of any
efficient delivery of distance education supported by        telecommunications utility or person is pun-
telecommunications.                                          ishable, upon conviction, by a fine of not less
     (g) Encourage the Oregon Telehealth Alliance to         than $100 and not more than $1,000 for each
continue the work of the council′s Telehealth Commit-        offense.
tee.
     (h) Facilitate public and private organizations
                                                                 (3) Violation of ORS 759.280 is a Class A
working together in partnership to promote the use of        violation.
telecommunications infrastructure and new technology.            (4) Violation of ORS 759.355 is punish-
[2001 c.699 §1; 2003 c.775 §3; 2005 c.350 §1]
                                                             able, upon conviction, by a fine of not less
     Sec. 2. Section 1, chapter 699, Oregon Laws 2001,       than $500 nor more than $20,000 for each of-
is repealed on January 2, 2010. [2001 c.699 §2; 2003 c.775
§6; 2005 c.350 §2]                                           fense.
     Note: Section 4, chapter 775, Oregon Laws 2003,             (5) Violation of ORS 759.360 is a felony
provides:                                                    and is punishable, upon conviction, by a fine
     Sec. 4. (1) The Oregon Telecommunications Coor-         of not less than $1,000 nor more than
dinating Council shall collaborate with health care ed-      $20,000, or by imprisonment in the peniten-
ucation providers and members of the health care             tiary for not less than one nor more than
industry to develop and implement a plan that:
                                                             five years, or both.
     (a) Ensures that the education and health care
communities are able to connect by broadband and                 (6) A telecommunications carrier, as de-
other telecommunications infrastructures necessary for       fined in ORS 759.400, shall forfeit a sum of
distance learning.                                           not less than $100 nor more than $50,000 for
     (b) Encourages cooperative activities among the         each time that the carrier:
education and health care communities for the purpose
of establishing and implementing curriculum applica-             (a) Violates any statute administered by
tions that are necessary to fully utilize the connected      the Public Utility Commission;
networks.                                                        (b) Commits any prohibited act, or fails
     (c) Fully utilizes the resources of the education and   to perform any duty enjoined upon the car-
health care networks.                                        rier by the commission;
     (2) The plan developed under this section shall in-
clude determinations about the technical and financial           (c) Fails to obey any lawful requirement
resources needed to implement the plan.                      or order made by the commission; or
     (3) The Economic and Community Development                  (d) Fails to obey any judgment made by
Department may seek funding from the federal govern-         any court upon the application of the com-
ment and private sources to develop and implement the        mission.
plan described in this section. [2003 c.775 §4]
     Note: Section 3, chapter 350, Oregon Laws 2005,             (7) In construing and enforcing subsec-
provides:                                                    tion (6) of this section, the act, omission or
     Sec. 3. (1) The Oregon Telecommunications Coor-         failure of any officer, agent or other person
dinating Council shall report to the Seventy-fourth          acting on behalf of or employed by a tele-
Legislative Assembly, in the manner provided by ORS          communications carrier and acting within
192.245, no later than February 1, 2007. The report shall    the scope of the person′s employment shall
include information on the implementation of the plan
described in section 4, chapter 775, Oregon Laws 2003.       in every case be deemed to be the act, omis-
                                                             sion or failure of such telecommunications
     (2) The Oregon Telecommunications Coordinating
Council shall report to the Seventy-fifth Legislative As-    carrier.
sembly, in the manner provided by ORS 192.245, no later          (8) Except when provided by law that a
than February 1, 2009. The report shall include infor-
mation on the implementation of the plan described in
                                                             penalty, fine, forfeiture or other sum be paid
section 4, chapter 775, Oregon Laws 2003. [2005 c.350        to the aggrieved party, all penalties, fines,
§3]                                                          forfeitures or other sums collected or paid

Title 57                                              Page 47                                (2007 Edition)
759.990                         UTILITY REGULATION

under subsection (6) of this section shall be   [1987 c.447 §52; 1999 c.1051 §225; 1999 c.1093 §39; 2003
                                                c.576 §563]
paid into the General Fund and credited to
the Public Utility Commission Account.




Title 57                                  Page 48                                     (2007 Edition)
                                        Chapter 772
                                           2007 EDITION

                         Rights of Way for Public Uses

        CONDEMNATION OF PROPERTY BY                     772.215   Appropriation of public lands
      PRIVATE CORPORATIONS GENERALLY
772.010   Right of entry for survey of proposed right          CONDEMNATION FOR DRAINAGE OR
          of way; notice required                                          IRRIGATION
772.015   Condemnation of lands for rights of way       772.305  Condemnation of right of way for drain-
          and necessary facilities                               age or irrigation
772.020   Condemnation of additional land for rail-     772.310  Right to enlarge existing irrigation system
          way purposes
                                                               CONDEMNATION BY CORPORATIONS
772.025   Approval of railroad crossing, intersection           FOR REDUCTION OF ORES, MINING,
          or connection                                            QUARRIES, LUMBERING AND
772.030   Condemnation of right of way through                    TRANSPORTATION OF MINING
          canyon or pass for joint use by railroads                          PRODUCTS
772.035   Acquisition of water rights by corpo-         772.405   Condemnation by corporations for re-
          rations for canal, irrigation, domestic or              duction of ores
          stock purposes                                772.410   Right of entry and condemnation by min-
772.040   Condemnation rights of pipe corporations                ing, quarrying and lumber corporations
                                                        772.415   Public benefit and use of facilities con-
772.045   Right to cut timber and build aqueducts                 structed under ORS 772.410
772.050   Condemnation of riparian rights and for       772.420   Condemnation for transportation of min-
          reservoirs                                              erals; conditions of reversion
772.055   Condemnation procedure
772.060   Condemnation rights for change of grade               CONDEMNATION BY PIPELINE AND
          or location of railway, canal or pipes                          GAS COMPANIES
772.065   Appropriation of county road or property      772.505   Definitions for ORS 772.505 to 772.520
          in lieu thereof by agreement with county      772.510   Right of entry and condemnation by pipe-
          court                                                   line companies
772.070   Procedure on dispute between county and       772.515   Regulation concerning location of facili-
          corporation                                             ties
                                                        772.520   Resolution showing route and termini of
        APPROPRIATION OF PUBLIC LANDS                             pipeline
                 FOR RAILROADS
772.105   Authority to appropriate                            CONDEMNATION FOR UNDERGROUND
                                                                    NATURAL GAS STORAGE
     CONDEMNATION BY PUBLIC UTILITIES                   772.610  Definitions for ORS 772.610 to 772.625
        AND ELECTRICAL COOPERATIVE                      772.615  Condemnation for underground reservoirs;
                  ASSOCIATIONS                                   applicability of ORS chapter 35
772.205  Definitions for ORS 772.210 and 772.215        772.620  Placement of pipeline facilities
772.210  Right of entry and condemnation of lands       772.625  Resolution showing proposed route and
         for construction of service facilities                  termini of pipeline




Title 57                                          Page 1                                    (2007 Edition)
           UTILITY REGULATION




Title 57         Page 2         (2007 Edition)
                                RIGHTS OF WAY FOR PUBLIC USES                                              772.030

    772.005 [Repealed by 1971 c.655 §250]               route, and upon the grounds of such other
                                                        railway corporation, and make the necessary
  CONDEMNATION OF PROPERTY BY                           turnouts, sidings, switches and other con-
        PRIVATE CORPORATIONS                            veniences in furtherance of the object of its
                GENERALLY                               connection and may condemn to make such
                                                        crossings. The railway which is or may be
    772.010 Right of entry for survey of                intersected by new railways, may unite with
proposed right of way; notice required. (1)             the owners of such new railways in forming
A corporation organized for the construction            the intersection and connection, and grant
of a railway, sewer or canal or of any ditch            the facilities mentioned in this subsection.
or flume for the conducting of water for ir-
rigation or domestic purposes, or for the                   772.025 Approval of railroad crossing,
purpose of selling water to the public for              intersection or connection. (1) Whenever
general purposes for public use, or for con-            any railroad corporation, authorized by ORS
ducting potable or waste water by means of              772.020 to condemn the right to cross or
pipe laid upon or under the surface of the              connect with any other right of way or con-
ground; or desiring to use electrical power in          structed line of railroad, is unable to agree
the operation of any railway, shall have a              with the owner of the line which it desires
right to enter upon any land, between the               to cross, it may apply to the Department of
termini thereof or elsewhere, for the purpose           Transportation in the manner provided by
of examining, locating or surveying the lines           ORS 824.228 to 824.232.
of such electric or other railway, sewer, ca-               (2) Upon such application and upon no-
nal, ditch, flume or pipeline, for the purpose          tice and hearing as provided in ORS chapter
of surveying or measuring any lands or                  183 for contested cases, the department shall
rights appurtenant thereto needed for such              determine the right to crossing, intersection
purposes, doing no unnecessary damage                   or connection, the mode and manner thereof
thereby.                                                and the compensation to be paid therefor.
    (2) Prior to entering upon private land                 (3) No agreement for the crossing of one
under this section, a person who intends to             railroad by another shall be valid without
enter upon the land shall first provide writ-           the approval of the department. [Amended by
ten notice by first class mail to the record            1971 c.655 §234; 1995 c.733 §97; 1997 c.275 §23]
owner of the private property of such intent                772.030 Condemnation of right of way
to enter. [Amended by 1971 c.655 §232; 1999 c.629 §1]   through canyon or pass for joint use by
    772.015 Condemnation of lands for                   railroads. (1) Any railroad company whose
rights of way and necessary facilities.                 right of way passes through any canyon, pass
Any corporation mentioned in ORS 772.010                or defile shall not prevent any other railroad
may condemn so much land as may be nec-                 company from the use and occupancy of said
essary for the lines of such railway, sewer,            canyon, pass or defile for the purpose of its
canal, ditch, flume or pipeline, not exceeding          railroad in common with the railroad first
100 feet in width, besides a sufficient quan-           located.
tity of land for toolhouses, workshops, mate-               (2) Any railroad company authorized by
rials for construction, timber excepted, and            law to condemn property for right of way or
a right through such adjacent land to enable            any other corporate purpose, may commence
such corporation to construct and repair its            an action for condemnation of a right of way
lines, poles, towers, wires, underground                through any canyon, pass or defile for the
wires, supports and necessary equipment,                purpose of its railroad, where right of way
railway, sewer, canal, ditch, flume or other            has already been located, condemned or oc-
pipeline, and to make proper drains. [Amended           cupied by some other railroad company
by 1971 c.655 §233; 1999 c.629 §2]
                                                        through such canyon, pass or defile for the
    772.020 Condemnation of additional                  purpose of its railroad.
land for railway purposes. (1) Any railway                  (3) Thereupon like proceedings shall be
corporation mentioned in ORS 772.010 may                had as are provided by the laws of this state
condemn a sufficient quantity of land in ad-            for the condemnation of land for right of way
dition to that specified in ORS 772.015, for            and other railroad purposes. At the time of
necessary sidetracks, spur tracks and laterals          rendering judgment for damages, the court
reasonably necessary for manufacturing es-              or judge thereof shall enter a judgment au-
tablishments, also for depot and water                  thorizing the railroad to occupy and use the
stations, cuttings and embankments, and for             right of way, roadbed and track, if necessary,
the proper construction, security and con-              in common with the railroad company al-
venient operation of its road.                          ready occupying or owning the same, and
    (2) Any such railway corporation may                defining the terms and conditions upon
cross, intersect, join and unite its railway            which the same shall be so occupied and
with any other railway at any point in its              used in common. [Amended by 2003 c.576 §564]

Title 57                                          Page 3                                         (2007 Edition)
772.035                           UTILITY REGULATION

    772.035 Acquisition of water rights by        curves or grades, or unsafe or unsubstantial
corporations for canal, irrigation, do-           grounds or foundation, or for other like rea-
mestic or stock purposes. Any corporation         sonable causes. For the accomplishment of
organized in whole or in part for the con-        such change it has the same right to enter
struction of a canal for navigating or manu-      upon, examine, survey and appropriate the
facturing purposes or of any ditch or flume       necessary lands and materials as in the ori-
for the purpose of conveying water for irri-      ginal location and construction of such rail-
gating, domestic or stock purposes may con-       way, canal or water pipes. [Amended by 1971
demn such waterways, water rights or              c.655 §237]
privileges, or otherwise acquire established          772.065 Appropriation of county road
water rights or privileges, or those initiated    or property in lieu thereof by agreement
by performing any acts required, provided or      with county court. (1) Whenever it is nec-
permitted by law, as may be necessary or          essary for any corporation mentioned in ORS
convenient for the purpose of supplying, op-      772.010 to appropriate all or part of any
erating, constructing or maintaining the          county road or highway for right of way, the
same.                                             corporation may appropriate so much of the
    772.040 Condemnation rights of pipe           road as may be necessary, and in lieu thereof
corporations. Except in cities, any corpo-        may condemn or otherwise acquire property
ration organized for conducting water by          contiguous to or as near adjacent to the road
means of pipe laid upon or under the surface      as possible in an amount equal to the prop-
of the ground may, so far as may be neces-        erty to be appropriated.
sary for the laying and keeping in repair its         (2) Upon construction by the corporation
water pipes, condemn the use of so much           of a county road or highway on the property
land as may be necessary, and may make            so acquired in a manner conformable in the
whatever cuts and excavations as soon as          material character of the construction of said
practicable after condemnation.                   highways appropriated and upon the same
    772.045 Right to cut timber and build         grade or such other grade as may be agreed
aqueducts. Any railway corporation men-           upon by the corporation and the county
tioned in ORS 772.010 may cut down any            court or board of county commissioners of
standing timber in danger of falling upon its     the county in which the road is located, and
line or railway, making compensation there-       upon the acceptance by the county court or
for as provided in ORS 772.055 for lands          board of such newly constructed road, and
taken for the use of the corporation. [Amended    on the conveyance of same to the county, the
by 1971 c.655 §235]                               corporation shall then become the owner and
                                                  entitled to the possession of so much of the
    772.050 Condemnation of riparian              county road or highway so appropriated.
rights and for reservoirs. Any corporation
mentioned in ORS 772.010 may also condemn:            (3) ORS 772.065 and 772.070 do not apply
                                                  to roads or streets within any platted or in-
    (1) The rights of riparian proprietors in     corporated city or town, or any addition
any lake or stream, to enable such corpo-         thereto.
ration to develop, manufacture or furnish
electrical energy for the operation of any            772.070 Procedure on dispute between
railway in this state.                            county and corporation. (1) If the county
                                                  court or board of county commissioners and
    (2) Lands for the sites of reservoirs for     corporation cannot agree upon the matters
storing water for future use, and for rights      of appropriation under ORS 772.065, the dis-
of way for feeders carrying water to reser-       pute shall be referred to the Public Utility
voirs, and for ditches, canals, flumes or pipe-   Commission.
lines carrying the same away. [Amended by 1971
c.655 §236]                                           (2) The commission, after notice and
    772.055 Condemnation procedure. No            hearing, shall by order determine the terms
condemnation of private property shall be         and conditions upon which the corporation
made under ORS 772.010 to 772.020 or              may appropriate the county road or highway.
                                                  [Amended by 1971 c.655 §238]
772.030 to 772.050 until compensation is made
to the owner thereof, irrespective of any in-         772.100 [Repealed by 1971 c.655 §250]
creased value thereof by reason of the pro-
posed improvement by such corporation, in          APPROPRIATION OF PUBLIC LANDS
the manner provided in ORS chapter 35.                         FOR RAILROADS
    772.060 Condemnation rights for                   772.105 Authority to appropriate. (1)
change of grade or location of railway,           When it is necessary or convenient in the
canal or pipes. Any corporation may change        location of any railway to appropriate any
the grade or location of its railway, canal or    part of any public road, street, alley or public
pipes for the purpose of avoiding annoyances      grounds not within the corporate limits of a
to public travel or dangerous or deficient        municipal corporation, the county court of

Title 57                                    Page 4                                      (2007 Edition)
                                       RIGHTS OF WAY FOR PUBLIC USES                                            772.210

the county wherein such road, street, alley                      772.210 Right of entry and condemna-
or public grounds is located, may agree with                 tion of lands for construction of service
the corporation constructing the road, upon                  facilities. (1) Any public utility, electrical
the extent, terms and conditions upon which                  cooperative association or transmission com-
the same may be appropriated or used, and                    pany may:
occupied by such corporation. If the parties
are unable to agree, the corporation may ap-                     (a) Enter upon lands within this state in
propriate so much thereof as is necessary                    the manner provided by ORS 35.220 for the
and convenient in the location and construc-                 purpose of examining, locating and surveying
tion of the road.                                            the line thereof and also other lands neces-
                                                             sary and convenient for the purpose of con-
    (2) Whenever a private corporation is                    struction of service facilities, doing no
authorized to appropriate any public highway                 unnecessary damage thereby.
or grounds as mentioned in subsection (1) of
this section, within the limits of any town,                     (b) Condemn such lands not exceeding
whether incorporated or not, such corpo-                     100 feet in width for its lines (including
ration shall locate their road upon such par-                poles, towers, wires, supports and necessary
ticular road, street, alley or public grounds,               equipment therefor) and in addition thereto,
within such town as the local authorities                    other lands necessary and convenient for the
designate. If the local authorities fail to                  purpose of construction of service facilities.
make such designation within a reasonable                    If the lands are covered by trees that are li-
time when requested, the corporation may                     able to fall and constitute a hazard to its
make such appropriation without reference                    wire or line, any public utility or trans-
thereto. [Amended by 1971 c.655 §239]                        mission company organized for the purpose
     772.110   [Repealed by 1971 c.655 §250]                 of building, maintaining and operating a line
     772.115   [Repealed by 1971 c.655 §250]                 of poles and wires for the transmission of
     772.120   [Repealed by 1971 c.655 §250]                 electricity for lighting or power purposes
     772.125   [Amended by 1953 c.160 §3; repealed by 1971   may condemn such trees for a width not ex-
c.655 §250]                                                  ceeding 300 feet, as may be necessary or
     772.130   [Repealed   by   1971   c.655   §250]         convenient for such purpose.
     772.135   [Repealed   by   1971   c.655   §250]             (2) Notwithstanding subsection (1) of this
     772.140   [Repealed   by   1971   c.655   §250]         section, any public utility, electrical cooper-
     772.145   [Repealed   by   1971   c.655   §250]         ative association or transmission company
     772.150   [Repealed   by   1971   c.655   §250]
                                                             may, when necessary or convenient for
                                                             transmission lines (including poles, towers,
     772.155   [Repealed   by   1971   c.655   §250]         wires, supports and necessary equipment
     772.160   [Repealed   by   1971   c.655   §250]         therefor) designed for voltages in excess of
                                                             330,000 volts, condemn land not to exceed
      CONDEMNATION BY PUBLIC                                 300 feet in width. In addition, if the lands are
      UTILITIES AND ELECTRICAL                               covered by trees that are liable to fall and
     COOPERATIVE ASSOCIATIONS                                constitute a hazard to its wire or line, such
    772.205 Definitions for ORS 772.210                      public utility or transmission company may
and 772.215. As used in ORS 772.210 and                      condemn such trees for a width not exceed-
772.215, unless the context requires other-                  ing 100 feet on either side of the condemned
wise:                                                        land, as may be necessary or convenient for
                                                             such purpose.
    (1) “Electrical cooperative association”
means a cooperative association which is                         (3) Notwithstanding subsection (1) of this
subject to a tax on gross revenue derived                    section, a water or gas public utility may
from the use or operation of transmission                    condemn such lands, not exceeding 50 feet in
and distribution lines pursuant to ORS                       width, as may be necessary or convenient for
308.805 to 308.820.                                          purposes of constructing, laying, maintaining
    (2) “Public utility” has the meaning given               and operating its lines, including necessary
that term in ORS 757.005.                                    equipment therefor.
    (3) “Service facilities” include any line,                   (4) The proceedings for the condemnation
wire, pipe, conduit, main, pump, pole, tower,                of such lands shall be the same as that pro-
fixture, structure, shop, office or building for             vided in ORS chapter 35, provided that any
any use or purpose reasonably necessary and                  award shall include, but shall not be limited
incident to the conduct of the business of a                 to, damages for destruction of forest growth,
public utility.                                              premature cutting of timber and diminution
    (4) “Transmission company” has the                       in value to remaining timber caused by in-
meaning given that term in ORS 758.015.                      creased harvesting costs. [Amended by 1963 c.138
[Amended by 1971 c.655 §240; 1977 c.225 §1; 2001 c.913       §1; 1971 c.655 §241; 1977 c.225 §2; 2001 c.913 §9; 2003 c.477
§8]                                                          §10]

Title 57                                               Page 5                                          (2007 Edition)
772.215                                  UTILITY REGULATION

    772.215 Appropriation of public lands.              (4) In determining just compensation un-
When it is necessary or convenient, in the         der subsection (1) of this section for a right
location of any poles or lines mentioned in        of way across forestlands, consideration shall
ORS 772.210, to appropriate any part of any        be given, but not limited to, the effect of the
public road, street, alley or public grounds       right of way on:
not within the corporate limits of any mu-              (a) Access to the whole of the affected
nicipal corporation, the county court or           parcel;
board of county commissioners of the county
within which such road, street, alley or pub-           (b) Ease and method of timber harvesting
lic grounds is located, may agree with the         or other commercial uses of the affected
public utility or electrical cooperative asso-     parcel; and
ciation upon the extent, terms and conditions           (c) Any agricultural or silvicultural ac-
upon which the same may be appropriated or         tivities on the affected parcel, including but
used and occupied by such corporation. If          not limited to application of chemicals, cul-
such parties are unable to agree, the public       tivation or harvesting activities and move-
utility or electrical cooperative association      ment of equipment associated with any of the
may condemn so much thereof as is neces-           above activities. [Amended by 1989 c.509 §1; 1995
sary and convenient in the location and con-       c.365 §8]
struction of the poles or lines. The provisions        772.310 Right to enlarge existing irri-
of ORS chapter 35 are applicable to condem-        gation system. (1) When the United States,
nations under this section. [Amended by 1971       the state, or any person, firm or corporation
c.655 §242; 1971 c.741 §24; 1977 c.225 §3]
                                                   desires to convey water for irrigation, drain-
     772.220 [Repealed by 1971 c.655 §250]         age or for any other beneficial purpose, and
                                                   there is a canal or ditch already constructed
 CONDEMNATION FOR DRAINAGE OR                      that can be enlarged to convey the required
                 IRRIGATION                        quantity of water, then the United States,
                                                   the state, or any such person, firm or corpo-
     772.305 Condemnation of right of way          ration, or the owner or owners of the land
for drainage or irrigation. (1) The United         through which a new canal or ditch would
States, the state, or any person, firm, coop-      have to be constructed to convey the quan-
erative, association or corporation, shall         tity of water necessary, may enlarge the ca-
have the right of way across and upon pub-         nal or ditch already constructed, by
lic, private and corporate lands or other          compensating the owner of the canal or ditch
rights of way, for the construction, mainte-       to be enlarged for the damages, if any,
nance, repair and use of all necessary reser-      caused by the enlargement.
voirs, dams, water gates, canals, ditches,             (2) The enlargement may be made at any
flumes, tunnels, pipelines or other means of       time between October 1 and March 1, but
securing, storing and conveying water for ir-      not any other times, unless upon agreement
rigation or for drainage, or any other benefi-     in writing with the owner or owners of the
cial purpose, upon payment of just                 canal or ditch.
compensation therefor.
                                                       (3) If a water right permit is required
     (2) But such right of way shall in all        under the applicable provisions of ORS
cases be so constructed, obtained, located         chapter 537 in order to use, store or convey
and exercised in a manner consistent with          water within the enlargement, a person, firm,
proper and economical and engineering con-         cooperative, association or corporation may
struction, so as not to unnecessarily impair       not acquire an enlargement under this sec-
practical use of any other right of way,           tion before obtaining a water right permit or
highway or public or private road, nor to          obtaining a final order of the Water Re-
unnecessarily injure any public or private         sources Department approving an application
property.                                          for a water right permit. [Amended by 1989 c.509
                                                   §2; 1995 c.365 §9]
     (3) Such right of way may be acquired in
                                                        772.315 [Repealed by 1971 c.655 §250]
the manner provided by law for the taking
of private property for public use. If a water
right permit is required under the applicable       CONDEMNATION BY CORPORATIONS
provisions of ORS chapter 537 in order to           FOR REDUCTION OF ORES, MINING,
use, store or convey water within the right             QUARRIES, LUMBERING AND
of way, a person, firm, cooperative, associ-            TRANSPORTATION OF MINING
ation or corporation may not acquire a right                       PRODUCTS
of way under this subsection before obtaining          772.405 Condemnation by corporations
a water right permit or obtaining a final or-      for reduction of ores. (1) Every corporation
der of the Water Resources Department ap-          organized for the construction and operation
proving an application for a water right           of mills, smelters and other works for the
permit.                                            reduction of ores authorized to do business

Title 57                                       Page 6                                     (2007 Edition)
                           RIGHTS OF WAY FOR PUBLIC USES                                     772.510

within the state may condemn lands and              compensation therefor, but shall not be re-
property for the discharge and natural dis-         quired to carry passengers.
tribution of smoke, fumes and dust from such            (3) Such skidway, tramway, chute, pipe-
works in the manner provided by ORS chap-           line or flume shall afford to all persons equal
ter 35.                                             facilities in the use thereof for the purpose
    (2) The use of lands by such corporation        to which they are adapted, upon tender or
for the purpose of the discharge and natural        payment of the reasonable compensation for
distribution of smoke, fumes and dust from          such use. [Amended by 1953 c.559 §3]
any such mill, smelter or other works for the           772.420 Condemnation for transporta-
reduction of ores, under the conditions pre-        tion of minerals; conditions of reversion.
scribed in this section hereby is declared to       (1) Any person requiring land for a right of
be a public use.                                    way for the transportation of the products of
    (3) The right of eminent domain shall not       mines located in this state may acquire such
be exercised by such corporation:                   land for such purposes in the manner and
    (a) Beyond a radius of four miles from          subject to the rights, privileges and liabilities
such mill, smelter or other works for the re-       under ORS 376.505 to 376.540.
duction of ores.                                        (2) Lands acquired under this section
    (b) On any land situated within a radius        shall not revert to the original owner, the
of five miles of the corporate limits of any        heirs and assigns of the original owner, until
city in the state.                                  their use as contemplated in this section has
                                                    ceased for a period of five years.
    (c) Until after such corporation has ac-
quired the right to use 50 percent of the area
of the lands within a radius of four miles            CONDEMNATION BY PIPELINE AND
from the mill, smelter or other works for the                    GAS COMPANIES
reduction of ores.                                      772.505 Definitions for ORS 772.505 to
    772.410 Right of entry and condemna-            772.520. As used in ORS 772.505 to 772.520,
tion by mining, quarrying and lumber                unless the context otherwise requires:
corporations. Any corporation organized for             (1) “Pipeline” includes pipes, lines, na-
the purpose of opening or operating any gold,       tural gas mains or lines and their appurte-
silver, or copper vein or lode, or any coal or      nances, including but not limited to pumps
other mine, or any marble, stone or other           and pumping stations, used in transporting
quarry, or for cutting or transporting timber,      or distributing fluids, including petroleum
lumber, or cordwood, or for the manufacture         and petroleum products or natural gases.
of lumber:                                              (2) “Pipeline company” includes any cor-
    (1) May construct and operate railroads,        poration, partnership or limited partnership,
skid roads, tramways, chutes, pipelines and         transporting, selling or distributing fluids,
flumes between such points as may be indi-          including petroleum products, or natural
cated in their articles of incorporation.           gases and those organized for constructing,
                                                    laying, maintaining or operating pipelines,
    (2) May enter upon any land between             which are engaged, or which propose to en-
such points in the manner provided by ORS           gage in, the transportation of such fluids or
35.220 for the purpose of examining, locating       natural gases. [Amended by 1971 c.655 §242a; 1989
and surveying the line of such railroads, skid      c.821 §1]
roads, tramways, chutes, pipelines and
flumes, doing no unnecessary damage                     772.510 Right of entry and condemna-
thereby.                                            tion by pipeline companies. (1) Any pipe-
                                                    line company that is a common carrier and
    (3) May condemn so much of said land            that is regulated as to its rates or practices
as may be necessary for the purposes of this        by the United States or any agency thereof,
section, not exceeding 60 feet in width by a        may enter in the manner provided by ORS
condemnation action as prescribed by ORS            35.220 upon lands within this state outside
chapter 35. [Amended by 1953 c.559 §3; 2003 c.477   the boundaries of incorporated cities.
§11]
                                                        (2) This right may be exercised for the
     772.415 Public benefit and use of facil-       purpose of examining, surveying and locating
ities constructed under ORS 772.410. (1)            a route for any pipeline, but it shall not be
Railroads, skid roads, tramways, chutes,            done so as to create unnecessary damage.
pipelines or flumes constructed under ORS
772.410 shall be deemed to be for public ben-           (3) These pipeline companies may appro-
                                                    priate and condemn such lands, or easements
efit.                                               thereon or thereover, in such width as is
     (2) Such railroad shall afford to all per-     reasonably necessary to accomplish their
sons equal facilities for the transportation of     pipeline company purposes, by proceedings
freight upon payment or tender of reasonable        for condemnation as prescribed by ORS

Title 57                                      Page 7                                  (2007 Edition)
772.515                                            UTILITY REGULATION

chapter 35.      [Amended by 1971 c.655 §243; 1989 c.821     stock association, partnership or person au-
§2; 2003 c.477 §12]                                          thorized to do business in this state and en-
    772.515 Regulation concerning location                   gaged in the transportation, distribution or
of facilities. (1) Whenever such pipelines are               underground storage of natural gas.
laid along a public road, they shall be placed                   (2) “Pipeline” has the meaning given that
as closely as practicable to the extreme out-                term in ORS 772.505 (1).
side edge of the right of way of such road.                      (3) “Underground reservoir” means any
    (2) With the exception of pumping, com-                  subsurface sand, strata, formation, aquifer,
pressor, regulator or meter station buildings,               cavern or void whether natural or artificially
no pipes or pipelines shall pass under any                   created, suitable for the injection and stor-
building in this state. Such pipes or pipelines              age of natural gas therein and the with-
shall not pass through or under any ceme-                    drawal of natural gas therefrom, but
tery except by the consent of the owner                      excluding a “pool.”
thereof.                                                         (4) “Underground storage” means the
    (3) When cultivated lands are appropri-                  process of injecting and storing natural gas
ated under ORS 772.510, such pipes and                       within and withdrawing natural gas from an
pipelines shall be well buried under ground,                 underground reservoir. [1977 c.296 §8; 1989 c.821
in conformance with federal pipeline safety                  §5]
regulations in effect at the time of construc-                   772.615 Condemnation for under-
tion, and such surface shall be properly and                 ground reservoirs; applicability of ORS
promptly restored by such pipeline company                   chapter 35. Any natural gas company may
unless otherwise consented to by the owner                   condemn for its use for the underground res-
of such land.                                                ervoir, as well as other property or interests
    (4) When unimproved lands of another                     in property which may be necessary to ade-
are appropriated under ORS 772.510 and such                  quately maintain and utilize the underground
lands thereafter become cultivated or im-                    reservoir for the underground storage of na-
proved, such pipes or pipelines shall be                     tural gas, including easements and rights of
buried by the pipeline company as provided                   way for access to and egress from the
in subsection (3) of this section, within a                  underground storage reservoir. The pro-
reasonable time after notice by the owner of                 visions of ORS chapter 35 and ORS 520.340
such lands, or the agent of the owner, to the                and 520.350 are applicable to any condemna-
pipeline company or its agent. [Amended by 1989              tion action brought under this section. [1977
c.821 §3]                                                    c.296 §9]
     772.520 Resolution showing route and                        772.620 Placement of pipeline facilities.
termini of pipeline. (1) Prior to the filing                 (1) Whenever a pipeline or appurtenance
of any condemnation action under ORS                         used in conjunction with the underground
772.510, the pipeline company shall adopt a                  storage of natural gas in an underground
resolution showing the approximate route                     reservoir is laid along a public road, it shall
and termini of the proposed pipeline, or the                 be placed as closely as practicable to the ex-
extension or branch of any existing pipeline.                treme outside edge of the right of way of the
     (2) A copy of this resolution, certified by             road.
the pipeline company, shall be filed in the                      (2) Such pipeline or appurtenance shall
office of the Secretary of State, in the office              not be located under or pass through or un-
of each county clerk of those counties where                 der    any     cemetery,     church,   college,
such pipeline, extension or branch of an ex-                 schoolhouse,      residence,    business     or
isting pipeline is proposed to be constructed,               storehouse, or through or under any building
and also in the office of the Public Utility                 in this state, except by the consent of the
Commission. [Amended by 1989 c.821 §4]                       owner thereof.
     772.525   [Repealed   by   1971   c.655   §250]             (3) When cultivated lands are appropri-
     772.555   [Repealed   by   1971   c.655   §250]         ated under ORS 772.615, such pipelines shall
     772.560   [Repealed   by   1971   c.655   §250]         be well buried underground, at least 20
     772.605   [Repealed   by   1971   c.655   §250]         inches under the surface, which shall be
                                                             properly and promptly restored by the na-
                                                             tural gas company unless otherwise con-
          CONDEMNATION FOR                                   sented to by the owner of the land.
    UNDERGROUND NATURAL GAS
                 STORAGE                                         (4) When unimproved lands are appropri-
                                                             ated under ORS 772.615 and thereafter be-
    772.610 Definitions for ORS 772.610 to                   come cultivated or improved, such pipelines
772.625. As used in ORS 772.610 to 772.625,                  shall be buried by the natural gas company
unless the context otherwise requires:                       as provided in subsection (3) of this section,
    (1) “Natural gas company” means every                    within a reasonable time after notice by the
corporation, company, association, joint                     owner of such lands, or the agent of the

Title 57                                                 Page 8                                (2007 Edition)
                        RIGHTS OF WAY FOR PUBLIC USES                                  772.625

owner, to the natural gas company or its       underground reservoir to be used for the
agent. [1977 c.296 §10]                        underground storage of natural gas.
    772.625 Resolution showing proposed            (2) A copy of this resolution shall be filed
                                               in the office of the Secretary of State, and
route and termini of pipeline. (1) Prior to    also in the office of the county clerk of each
the filing of any condemnation action under    county or counties where such pipeline, ex-
ORS 772.615, the natural gas company shall     tension or branch of an existing pipeline, or
adopt a resolution showing the approximate     underground reservoir is proposed to be con-
route and termini of any proposed pipeline,    structed or utilized for the underground
or the extension or branch of any existing     storage of natural gas, and also published in
pipeline, to be used in conjunction with the   a newspaper of general circulation in each
underground storage of natural gas, and        county. [1977 c.296 §11]
showing the location and formation of any




Title 57                                 Page 9                                 (2007 Edition)
           UTILITY REGULATION




Title 57         Page 10        (2007 Edition)
                                           Chapter 774
                                              2007 EDITION

                                   Citizens′ Utility Board

774.010    Definitions                                     774.130   Mailing costs; reimbursement
774.020    Policy                                          774.140   Interference with mailings or contrib-
774.030    Citizens′ Utility Board; powers                           utions
774.040    Membership on board                             774.160   Disposition of complaints
774.060    Board of Governors; duties; executive           774.180   Intervention in agency proceedings af-
           committee                                                 fecting utility consumers; standing to ob-
774.070    Election of board; term; qualifications;                  tain judicial or administrative review
           statement of financial interest; disquali-      774.190   Applicability of certain laws to board;
           fication of candidate; recall; vacancies                  protection from liability
774.110    Meetings                                        774.210   Remedies; attorney fees
774.120    Inclusion of information in utility billings;
           frequency; notice; duty of utility to for-      774.250   Severability
           ward board mail                                 774.990   Penalty




Title 57                                             Page 1                                    (2007 Edition)
           UTILITY REGULATION




Title 57         Page 2         (2007 Edition)
                                CITIZENS′ UTILITY BOARD                                     774.070

    774.010 Definitions. As used in this               (b) To represent the interests of utility
chapter, except as otherwise specifically pro-     consumers before legislative, administrative
vided or unless the context requires other-        and judicial bodies.
wise:                                                  (c) To accept grants, contributions and
    (1) “Board” means the Citizens′ Utility        appropriations from any source, and to con-
Board of Governors.                                tract for services.
    (2) “Consumer” or “utility consumer”               (d) To adopt and modify bylaws governing
means any natural person 18 years of age or        the activities of the Citizens′ Utility Board.
older who is a resident of the State of Ore-       [1985 c.1 §3; 1989 c.1010 §179]
gon.                                                    774.040 Membership on board. (1) All
    (3) “District” means an electoral district     consumers are eligible for membership in the
for members of the Citizens′ Utility Board of      Citizens′ Utility Board. A consumer shall
Governors.                                         become a member of the Citizens′ Utility
                                                   Board upon contribution of at least $5 but
    (4) “Member” means a member of the             not more than $100 per year to the Citizens′
Citizens′ Utility Board.                           Utility Board. Each member shall be entitled
    (5) “Utility” means any utility regulated      to cast one vote for the election of the Citi-
by the Public Utility Commission pursuant          zens′ Utility Board of Governors. The board
to ORS chapters 757 and 759, which fur-            shall establish a method whereby econom-
nishes electric, telephone, gas or heating         ically disadvantaged individuals may become
service. However, “utility” does not include       members of the Citizens′ Utility Board with-
any municipality, cooperative, or people′s         out full payment of the yearly contribution.
utility district. [1985 c.1 §2; 1987 c.447 §102]        (2) Each year the Citizens′ Utility Board
    774.020 Policy. The people of the State        shall cause to be prepared, by a certified
of Oregon hereby find that utility consumers       public accountant authorized to do business
need an effective advocate to assure that          in this state, an audit of its financial affairs.
public policies affecting the quality and price    The audit is a public record subject to in-
of utility services reflect their needs and in-    spection in the manner provided in ORS
terests, that utility consumers have the right     192.410 to 192.505. [1985 c.1 §9]
to form an organization which will represent            774.060 Board of Governors; duties;
their interests before legislative, administra-    executive committee. The Citizens′ Utility
tive and judicial bodies, and that utility con-    Board of Governors shall manage the affairs
sumers need a convenient manner of                 of the Citizens′ Utility Board. The board may
contributing to the funding of such an or-         delegate to an executive committee composed
ganization so that it can advocate forcefully      of not fewer than five members of the board
and vigorously on their behalf concerning all      the authority as would be allowed by ORS
matters of public policy affecting their           65.354. [1985 c.1 §4; 1989 c.1010 §180]
health, welfare and economic well-being.                774.070 Election of board; term; quali-
[1985 c.1 §1]
                                                   fications; statement of financial interest;
    774.030 Citizens′ Utility Board; pow-          disqualification of candidate; recall; va-
ers. (1) The Citizens′ Utility Board is hereby     cancies. (1) The Citizens′ Utility Board of
created as an independent nonprofit public         Governors shall be comprised of three per-
corporation and is authorized to carry out         sons elected from each congressional district
the provisions of this chapter.                    described in ORS 188.135 by a majority of the
                                                   votes cast by members residing in that dis-
    (2) The Citizens′ Utility Board has per-       trict. The election shall be conducted by mail
petual succession and it may sue and be            ballot in such manner as the Citizens′ Utility
sued, and may in its own name purchase and         Board of Governors may prescribe.
dispose of any interest in real and personal
property, and shall have such other powers              (2) The term of office of a member of the
as are granted to corporations by ORS              Citizens′ Utility Board of Governors is four
                                                   years. No person may serve more than two
65.077. No part of its net earnings shall inure    consecutive terms on the Citizens′ Utility
to the benefit of any individual or member         Board of Governors.
of the Citizens′ Utility Board.
                                                        (3) Each candidate and each member of
    (3) The Citizens′ Utility Board shall have     the Citizens′ Utility Board of Governors
all rights and powers necessary to represent       must be a member of the Citizens′ Utility
and protect the interests of utility consum-       Board and must be a resident of the district
ers, including but not limited to the follow-      from which the candidate seeks to be or is
ing powers:                                        elected.
    (a) To conduct, fund or contract for re-            (4) At least 45 days before an election
search, studies, plans, investigations, demon-     each candidate shall file with the Citizens′
stration projects and surveys.                     Utility Board of Governors a statement of fi-

Title 57                                     Page 3                                  (2007 Edition)
774.110                            UTILITY REGULATION

nancial interests, which shall contain the in-          774.120 Inclusion of information in
formation in such form as the Citizens′            utility billings; frequency; notice; duty of
Utility Board of Governors shall determine.        utility to forward board mail. (1) Upon re-
Each candidate shall maintain a complete           quest by the Citizens′ Utility Board pursuant
record of contributions received and expend-       to this section, each utility shall include in
itures made with regard to an election cam-        billings to a utility consumer materials pre-
paign. Each candidate shall make the records       pared and furnished by the Citizens′ Utility
available for public inspection at such rea-       Board, not exceeding in folded size the di-
sonable times as the Citizens′ Utility Board       mensions of the envelope customarily used
of Governors considers appropriate.                by such utility to send billings to its cus-
                                                   tomers.
     (5) No member who is employed by a
utility shall be eligible for appointment or            (2) The Citizens′ Utility Board shall not
election to the Citizens′ Utility Board of         intentionally make any false material state-
Governors, and no member of the Citizens′          ment in any material submitted to a utility
Utility Board of Governors who obtains em-         for inclusion with a billing. If the utility be-
                                                   lieves that the Citizens′ Utility Board has
ployment by a utility may maintain a posi-         intentionally made false material statements
tion on the Citizens′ Utility Board of             in an enclosure, it may file a complaint with
Governors. While on the board, no director         the Public Utility Commission of Oregon
elected under this section may hold elective       within five days of receipt. The Public Util-
public office, be a candidate for any elective     ity Commission of Oregon must review the
public office, or be a state public official. No   complaint within 10 days, and if the commis-
person who owns or controls, either singly         sion determines that the Citizens′ Utility
or in combination with any immediate family        Board has intentionally made false material
member, utility stocks or bonds of a total         statements, the commission shall give the
value in excess of $3,000 is eligible to serve     Citizens′ Utility Board of Governors written
as an elected member of the Citizens′ Utility      notification that specifies any false material
Board of Governors.                                statements made and the reasons why the
     (6) The Citizens′ Utility Board of Gover-     commission determines the statements to be
nors may disqualify any candidate or member        false.
of the Citizens′ Utility Board of Governors             (3) No utility shall be required to enclose
for any violation of this chapter or of the        Citizens′ Utility Board material with a bill-
bylaws of the Citizens′ Utility Board.             ing more than six times in any calendar year.
     (7) Upon petition signed by 20 percent of          (4) The Citizens′ Utility Board shall no-
the members in a district for the recall of a      tify a utility of its intention to include under
member of the Citizens′ Utility Board of           the provisions of this chapter any material in
Governors elected from the district, the Citi-     any specified periodic billing or billings not
zens′ Utility Board of Governors shall mail        fewer than 30 calendar days prior to the
ballots to each member in the district, sub-       mailing of the periodic billings and shall
mitting the question whether the member of         supply the utility with the material not fewer
the Citizens′ Utility Board of Governors           than 20 calendar days prior to the mailing
shall be recalled. If a majority of the mem-       of the periodic billings.
bers voting at the election vote in favor of            (5) All material submitted by the Citi-
the recall, then the member of the Citizens′       zens′ Utility Board for inclusion in a utility
Utility Board of Governors shall be recalled.      billing must include the return address of the
Elections and recall proceedings shall be          Citizens′ Utility Board. A utility is not re-
conducted in a manner as the Citizens′ Util-       quired to deliver or forward to the Citizens′
ity Board of Governors may prescribe. Bal-         Utility Board material intended for the Citi-
lots for all election and recall proceedings       zens′ Utility Board mistakenly sent to the
shall be counted at a regular meeting of the       utility. However, a utility shall retain such
Citizens′ Utility Board of Governors.              materials for a period of 60 days from the
                                                   date of receipt. The utility shall notify the
     (8) The remaining members of the Citi-        Citizens′ Utility Board that such materials
zens′ Utility Board of Governors shall have        have been received and make these materials
the power to fill vacancies on the Citizens′       available to the Citizens′ Utility Board on
Utility Board of Governors. [1985 c.1 §6; 1997     demand. [1985 c.1 §10]
c.249 §222]
                                                        774.130 Mailing costs; reimbursement.
    774.110 Meetings. All meetings of the          (1) The Citizens′ Utility Board shall not be
Citizens′ Utility Board of Governors shall be      required to pay any postage charges for ma-
open to the public, except under the same          terials submitted by the Citizens′ Utility
circumstances in which a public agency             Board for inclusion in a utility billing if such
would be allowed to hold executive meetings        materials weigh four-tenths of one ounce
under ORS 192.660. [1985 c.1 §8]                   avoirdupois or less. If the materials submit-

Title 57                                     Page 4                                 (2007 Edition)
                               CITIZENS′ UTILITY BOARD                                    774.250

ted weigh over four-tenths of one ounce                (2) Citizens′ Utility Board shall have
avoirdupois, then the Citizens′ Utility Board     standing to obtain judicial or administrative
shall reimburse the utility for a portion of      review of any agency action, and may inter-
the postage costs which is equal to that por-     vene as of right as a party or otherwise par-
tion of the Citizens′ Utility Board material      ticipate in any proceeding which involves the
over four-tenths of one ounce avoirdupois in      review or enforcement of any action by an
proportion to the total weight of the billing.    agency, if the board determines that the ac-
In addition to postage costs, the Citizens′       tion may affect the interests of utility con-
Utility Board shall reimburse such other          sumers. [1985 c.1 §14]
reasonable costs, as determined by the Public          774.190 Applicability of certain laws to
Utility Commission of Oregon, incurred by a       board; protection from liability. (1) ORS
utility in complying with ORS 774.120.            279.835 to 279.855 and ORS chapters 278,
     (2) Reimbursement of a utility by the        279A, 279B, 279C, 282, 283, 291, 292, 293, 295
Citizens′ Utility Board shall be made within      and 297 do not apply to Citizens′ Utility
60 days of the date the utility submits to the    Board or to the administration and enforce-
Citizens′ Utility Board an itemized statement     ment of this chapter. An employee of Citi-
of the costs incurred by the utility. In no       zens′ Utility Board shall not be considered
event shall such reimbursement exceed the         an “employee” as the term is defined in the
fair market value for the services provided       public employees retirement laws. Citizens′
by the utility. [1985 c.1 §11]                    Utility Board and its employees shall be ex-
    774.140 Interference with mailings or         empt from the provisions of the State Per-
contributions. (1) No utility, nor any of its     sonnel Relations Law.
employees, officers, members of the board of           (2) ORS chapter 183 does not apply to
directors, agents, contractors or assignees,      determinations and actions by the board.
shall in any manner interfere with, delay,             (3) The board, and any of the officers,
alter or otherwise discourage the distribution    employees, agents or members of Citizens′
of any material or statement authorized by        Utility Board shall be provided the same
the provisions of this chapter for inclusion in   protections from liability as the board, offi-
periodic utility billings, nor in any manner      cers, employees, agents, or members of any
interfere with, hamper, hinder or otherwise       nonprofit corporation of the State of Oregon.
infringe upon a utility consumer′s right to       [1985 c.1 §15; 2003 c.794 §330]
contribute to Citizens′ Utility Board, nor in
any manner hamper, hinder, harass, penalize           774.210 Remedies; attorney fees. (1)
or retaliate against any utility consumer be-     Any utility, and any of its employees, offi-
cause of the consumer′s contribution to, or       cers, members of the board of directors,
participation in, any activities of the Citi-     agents, contractors or assignees which does,
zens′ Utility Board.                              or causes or permits to be done, any matter,
                                                  act or other thing prohibited by this chapter,
    (2) No utility may change its mailing,        or omits to do any act, matter or other thing
accounting, or billing procedures if such         required to be done by this chapter, is liable
change will hamper, hinder, or otherwise in-      for any injury to Citizens′ Utility Board and
terfere with the ability of the Citizens′ Util-   to any other person in the amount of dam-
ity Board to distribute materials or              ages sustained in consequence of such vio-
statements authorized by this chapter. [1985      lation. The court may award reasonable
c.1 §12]                                          attorney fees to the prevailing party in an
    774.160 Disposition of complaints. Citi-      action under this section.
zens′ Utility Board may submit to the appro-          (2) Citizens′ Utility Board may obtain
priate agency any complaint it receives           equitable relief, without bond, to enjoin any
regarding a utility company. Public agencies      violation of this chapter.
shall periodically inform Citizens′ Utility
Board of any action taken on complaints re-           (3) Any recovery or enforcement obtained
ceived pursuant to this section. [1985 c.1 §13]   under this section shall be in addition to any
                                                  other recovery or enforcement under this
    774.180 Intervention in agency pro-           section or under any statute or common law.
ceedings affecting utility consumers;             Any recovery under this section shall be in
standing to obtain judicial or administra-        addition to recovery by the state of the pen-
tive review. Notwithstanding any other pro-       alty or fine prescribed for such violation by
vision of law:                                    this chapter. The rights and remedies pro-
    (1) Whenever the board determines that        vided by this chapter shall be in addition to
any agency proceeding may affect the inter-       all other rights and remedies available under
ests of utility consumers, Citizens′ Utility      law. [1985 c.1 §16; 1995 c.618 §136]
Board may intervene as of right as an inter-          774.250 Severability. If any section, por-
ested party or otherwise participate in the       tion, clause or phrase of this chapter is for
proceeding.                                       any reason held to be invalid or unconstitu-

Title 57                                    Page 5                                  (2007 Edition)
774.990                         UTILITY REGULATION

tional the remaining sections, portions,
clauses and phrases shall not be affected but
shall remain in full force or effect, and to
this end the provisions of this chapter are             CHAPTER 775
severable. [1985 c.1 §18]
    774.990 Penalty. Willful violation of ORS
774.120 (1) or (5) or 774.140 is a Class A
misdemeanor. [1985 c.1 §17]                        [Reserved for expansion]




Title 57                                  Page 6                      (2007 Edition)
                                          Chapter 183
                                             2007 EDITION

               Administrative Procedures Act; Legislative
                    Review of Rules; Civil Penalties

       ADMINISTRATIVE PROCEDURES ACT                      183.440    Subpoenas in contested cases
                (General Provisions)                      183.445    Subpoena by agency or attorney of record
183.310  Definitions for chapter                                     of party when agency not subject to ORS
                                                                     183.440
183.315  Application of provisions of chapter to
         certain agencies                                 183.450    Evidence in contested cases
                                                          183.452    Representation of agencies at contested
                   (Adoption of Rules)                               case hearings
183.325    Delegation of rulemaking authority to          183.457    Representation of persons other than
           named officer or employee                                 agencies participating in contested case
                                                                     hearings
183.330    Description of organization; service of or-
           der; rules coordinator; effect of not put-     183.458    Nonattorney representation of parties in
           ting order in writing                                     certain contested case hearings
183.332    Policy statement; conformity of state          183.460    Examination of evidence by agency
           rules with equivalent federal laws and         183.462    Agency statement of ex parte commu-
           rules                                                     nications; notice
183.333    Policy statement; public involvement in        183.464    Proposed order by hearing officer;
           development of policy and drafting of                     amendment by agency; exemptions
           rules; advisory committees
                                                          183.470    Orders in contested cases
183.335    Notice; content; public comment; tempo-
           rary rule adoption, amendment or sus-
           pension; substantial compliance required                          (Judicial Review)
183.336    Cost of compliance effect on small busi-       183.480    Judicial review of agency orders
           nesses                                         183.482    Jurisdiction for review of contested cases;
183.337    Procedure for agency adoption of federal                  procedure; scope of court authority
           rules                                          183.484    Jurisdiction for review of orders other
183.341    Model rules of procedure; establishment;                  than contested cases; procedure; scope of
           compilation; publication; agencies re-                    court authority
           quired to adopt procedural rules               183.485    Decision of court on review of contested
183.355    Filing and taking effect of rules; filing of              case
           executive orders; copies                       183.486    Form and scope of decision of reviewing
183.360    Publication of rules and orders; excep-                   court
           tions; requirements; bulletin; judicial no-    183.490    Agency may be compelled to act
           tice; citation
                                                          183.497    Awarding costs and attorney fees when
183.362    Program for biennial publication of Ore-                  finding for petitioner
           gon Administrative Rules
183.365    Publication of administrative rules in                     (Appeals From Circuit Courts)
           electronic form                                183.500    Appeals
183.370    Distribution of published rules
183.390    Petitions requesting adoption of rules                    (Alternative Dispute Resolution)
183.400    Judicial determination of validity of rule     183.502    Authority of agencies to use alternative
183.405    Agency review of rules                                    means of dispute resolution; model rules;
                                                                     amendment of agreements and forms;
183.410    Agency determination of applicability of                  agency alternative dispute resolution pro-
           rule or statute to petitioner; effect; judi-              grams
           cial review
                                                                     (Housing Cost Impact Statement)
                   (Contested Cases)
                                                          183.530    Housing cost impact statement required
183.411    Delegation of final order authority                       for certain proposed rules
183.413    Notice to parties before hearing of rights     183.534    Housing cost impact statement described;
           and procedure; failure to provide notice                  rules
183.415    Notice of right to hearing                     183.538    Effect of failure to prepare housing cost
183.417    Procedure in contested case hearing                       impact statement; judicial review
183.425    Depositions or subpoena of material wit-
           ness; discovery                                          (Effects of Rules on Small Business)
183.430    Hearing on refusal to renew license; ex-       183.540     Reduction of economic impact on small
           ceptions                                                   business
183.435    Period allowed to request hearing for li-
           cense refusal on grounds other than test                 (Office of Administrative Hearings)
           or inspection results                          183.600    Definitions

Title 18                                            Page 1                                      (2007 Edition)
                             EXECUTIVE BRANCH; ORGANIZATION

183.605    Office of Administrative Hearings                           PERMITS AND LICENSES
183.610    Chief administrative law judge                183.700   Permits subject to ORS 183.702
183.615    Administrative law judges; duties; quali-     183.702   Statement of criteria and procedures for
           fications; rules                                        evaluating permit application; documen-
183.620    Contract administrative law judges                      tation of decision on application; required
183.625    Assignment of administrative law judges;                signature
           conduct of hearings                           183.705   Extended term for renewed licenses; fees;
183.630    Model rules of procedure; exemptions; de-               continuing education; rules
           positions
183.635    Agencies required to use administrative               LEGISLATIVE REVIEW OF RULES
           law judges from Office of Administrative      183.710  Definitions for ORS 183.710 to 183.725
           Hearings; exceptions
                                                         183.715  Submission of adopted rule to Legislative
183.640    Use of Office of Administrative Hearings               Counsel required; exception
           by exempt agencies and by political sub-
           divisions                                     183.720  Procedure for review of agency rule; re-
183.645    Request for change of administrative law               ports on rules claimed to be duplicative
           judge; rules                                           or conflicting
183.650    Form of order; modification of form of        183.722  Required agency response to Legislative
           order by agency; finding of historical fact            Counsel determination
183.655    Fees                                          183.725  Report of Legislative Counsel Committee
                                                                  to agencies and Legislative Assembly
183.660    Office of Administrative Hearings Operat-
           ing Account
                                                                          CIVIL PENALTIES
183.665    Estimates of office expenses
183.670    Rules                                         183.745   Civil penalty procedures; notice; hearing;
                                                                   judicial review; exemptions; recording;
183.675    Alternative dispute resolution                          enforcement
183.680    Standards and training program
183.685    Ex parte communications                              READABILITY OF PUBLIC WRITINGS
183.690    Office of Administrative Hearings Over-       183.750  State agency required to prepare public
           sight Committee                                        writings in readable form




Title 18                                           Page 2                                     (2007 Edition)
                               ADMINISTRATIVE PROCEDURES ACT                                         183.310

     183.010 [Repealed by 1971 c.734 §21]                     “Order” includes any agency determination
     183.020 [Repealed by 1971 c.734 §21]                     or decision issued in connection with a con-
     183.025 [Formerly 182.065; 1993 c.729 §4; 2003 c.749     tested case proceeding. “Order” includes:
§8; renumbered 183.750 in 2003]
                                                                   (A) Agency action under ORS chapter
     183.030 [Repealed by 1971 c.734 §21]                     657 making determination for purposes of
     183.040 [Repealed by 1971 c.734 §21]                     unemployment compensation of employees of
     183.050 [Repealed by 1971 c.734 §21]                     the state;
     183.060 [1957 c.147 §1; repealed by 1969 c.292 §3]            (B) Agency action under ORS chapter 240
     183.090 [1991 c.734 §2; 1997 c.387 §3; 2001 c.621 §71;   which grants, denies, modifies, suspends or
renumbered 183.745 in 2003]                                   revokes any right or privilege of an employee
                                                              of the state; and
 ADMINISTRATIVE PROCEDURES ACT                                     (C) Agency action under ORS 468B.050 to
             (General Provisions)                             issue a permit.
     183.310 Definitions for chapter. As                           (b) “Final order” means final agency ac-
used in this chapter:                                         tion expressed in writing. “Final order” does
                                                              not include any tentative or preliminary
     (1) “Agency” means any state board,                      agency declaration or statement that:
commission, department, or division thereof,
or officer authorized by law to make rules or                      (A) Precedes final agency action; or
to issue orders, except those in the legisla-                      (B) Does not preclude further agency
tive and judicial branches.                                   consideration of the subject matter of the
     (2)(a) “Contested case” means a proceed-                 statement or declaration.
ing before an agency:                                              (7) “Party” means:
     (A) In which the individual legal rights,                     (a) Each person or agency entitled as of
duties or privileges of specific parties are re-              right to a hearing before the agency;
quired by statute or Constitution to be de-                        (b) Each person or agency named by the
termined only after an agency hearing at                      agency to be a party; or
which such specific parties are entitled to
appear and be heard;                                               (c) Any person requesting to participate
                                                              before the agency as a party or in a limited
     (B) Where the agency has discretion to                   party status which the agency determines ei-
suspend or revoke a right or privilege of a                   ther has an interest in the outcome of the
person;                                                       agency′s proceeding or represents a public
     (C) For the suspension, revocation or re-                interest in such result. The agency′s deter-
fusal to renew or issue a license where the                   mination is subject to judicial review in the
licensee or applicant for a license demands                   manner provided by ORS 183.482 after the
such hearing; or                                              agency has issued its final order in the pro-
     (D) Where the agency by rule or order                    ceedings.
provides for hearings substantially of the                         (8) “Person” means any individual, part-
character required by ORS 183.415, 183.417,                   nership, corporation, association, govern-
183.425, 183.450, 183.460 and 183.470.                        mental subdivision or public or private
     (b) “Contested case” does not include                    organization of any character other than an
proceedings in which an agency decision                       agency.
rests solely on the result of a test.                              (9) “Rule” means any agency directive,
     (3) “Economic effect” means the eco-                     standard, regulation or statement of general
nomic impact on affected businesses by and                    applicability that implements, interprets or
the costs of compliance, if any, with a rule                  prescribes law or policy, or describes the
for businesses, including but not limited to                  procedure or practice requirements of any
the costs of equipment, supplies, labor and                   agency. The term includes the amendment or
administration.                                               repeal of a prior rule, but does not include:
     (4) “Hearing officer” includes an admin-                      (a) Unless a hearing is required by stat-
istrative law judge.                                          ute, internal management directives, regu-
                                                              lations or statements which do not
     (5) “License” includes the whole or part                 substantially affect the interests of the pub-
of any agency permit, certificate, approval,                  lic:
registration or similar form of permission re-
quired by law to pursue any commercial ac-                         (A) Between agencies, or their officers or
tivity, trade, occupation or profession.                      their employees; or
     (6)(a) “Order” means any agency action                        (B) Within an agency, between its offi-
expressed orally or in writing directed to a                  cers or between employees.
named person or named persons, other than                          (b) Action by agencies directed to other
employees, officers or members of an agency.                  agencies or other units of government which

Title 18                                                Page 3                                (2007 Edition)
183.315                         EXECUTIVE BRANCH; ORGANIZATION

do not substantially affect the interests of                        (5) The provisions of ORS 183.415 to
the public.                                                     183.430, 183.440 to 183.460, 183.470 to 183.485
    (c) Declaratory rulings issued pursuant                     and 183.490 to 183.500 do not apply to orders
to ORS 183.410 or 305.105.                                      issued to persons who:
    (d) Intra-agency memoranda.                                     (a) Have been committed pursuant to
                                                                ORS 137.124 to the custody of the Depart-
    (e) Executive orders of the Governor.                       ment of Corrections or are otherwise con-
    (f) Rules of conduct for persons commit-                    fined in a Department of Corrections facility;
ted to the physical and legal custody of the                    or
Department of Corrections, the violation of                         (b) Seek to visit an inmate confined in a
which will not result in:                                       Department of Corrections facility.
    (A) Placement in segregation or isolation                       (6) ORS 183.410, 183.415, 183.417, 183.425,
status in excess of seven days.                                 183.440, 183.450, 183.460, 183.470 and 183.482
    (B) Institutional transfer or other trans-                  (3) do not apply to the Public Utility Com-
fer to secure confinement status for discipli-                  mission. Notwithstanding ORS 183.480 and
nary reasons.                                                   except as provided in ORS 757.495 and
                                                                759.390, only a party to a hearing before the
    (C) Disciplinary procedures adopted pur-                    Public Utility Commission is entitled to seek
suant to ORS 421.180.                                           judicial review of an order of the commis-
    (10) “Small business” means a corpo-                        sion.
ration, partnership, sole proprietorship or                         (7) The provisions of this chapter do not
other legal entity formed for the purpose of                    apply to the suspension, cancellation or ter-
making a profit, which is independently                         mination of an apprenticeship or training
owned and operated from all other businesses                    agreement under ORS 660.060.
and which has 50 or fewer employees. [1957
c.717 §1; 1965 c.285 §78a; 1967 c.419 §32; 1969 c.80 §37a;          (8) The provisions of ORS 183.413 to
1971 c.734 §1; 1973 c.386 §4; 1973 c.621 §1a; 1977 c.374 §1;    183.497 do not apply to administrative pro-
1977 c.798 §1; 1979 c.593 §6; 1981 c.755 §1; 1987 c.320 §141;   ceedings conducted under rules adopted by
1987 c.861 §1; 2003 c.75 §71; 2005 c.523 §8; 2007 c.288 §9]
                                                                the Secretary of State under ORS 246.190.
     Note: See note under 183.417.                              [1971 c.734 §19; 1973 c.612 §3; 1973 c.621 §2; 1973 c.694
                                                                §1; 1975 c.759 §1; 1977 c.804 §45; 1979 c.593 §7; 1981 c.711
    183.315 Application of provisions of                        §16; 1987 c.320 §142; 1987 c.373 §21; 1989 c.90 §1; 1997 c.26
chapter to certain agencies. (1) The pro-                       §1; 1999 c.448 §6; 1999 c.679 §1; 2003 c.64 §8; 2005 c.512
visions of ORS 183.410, 183.415, 183.417,                       §30; 2005 c.638 §1; 2007 c.239 §8; 2007 c.288 §10]
183.425, 183.440, 183.450, 183.452, 183.458,                         Note: The amendments to 183.315 by section 8,
183.460, 183.470 and 183.480 do not apply to                    chapter 239, Oregon Laws 2007, become operative July
local government boundary commissions cre-                      1, 2008. See section 16, chapter 239, Oregon Laws 2007.
                                                                The text that is operative until July 1, 2008, including
ated pursuant to ORS 199.430, the Depart-                       amendments by section 10, chapter 288, Oregon Laws
ment of Revenue, State Accident Insurance                       2007, is set forth for the user′s convenience.
Fund Corporation, Department of Consumer                             183.315. (1) The provisions of ORS 183.410, 183.415,
and Business Services with respect to its                       183.417, 183.425, 183.440, 183.450, 183.452, 183.458, 183.460,
functions under ORS chapters 654 and 656,                       183.470 and 183.480 do not apply to local government
Psychiatric Security Review Board or State                      boundary commissions created pursuant to ORS 199.425
Board of Parole and Post-Prison Supervision.                    or 199.430, the Department of Revenue, State Accident
                                                                Insurance Fund Corporation, Department of Consumer
    (2) This chapter does not apply with re-                    and Business Services with respect to its functions un-
spect to actions of the Governor authorized                     der ORS chapters 654 and 656, Psychiatric Security Re-
                                                                view Board or State Board of Parole and Post-Prison
under ORS chapter 240 and ORS 396.125 or                        Supervision.
actions of the Adjutant General authorized
under ORS 396.160 (14).                                              (2) This chapter does not apply with respect to ac-
                                                                tions of the Governor authorized under ORS chapter 240
    (3) The provisions of ORS 183.410,                          and ORS 396.125 or actions of the Adjutant General
183.415, 183.417, 183.425, 183.440, 183.450,                    authorized under ORS 396.160 (14).
183.452, 183.458 and 183.460 do not apply to                         (3) The provisions of ORS 183.410, 183.415, 183.417,
the Employment Appeals Board or the Em-                         183.425, 183.440, 183.450, 183.452, 183.458 and 183.460 do
                                                                not apply to the Employment Appeals Board or the
ployment Department.                                            Employment Department.
    (4) The Employment Department shall be                           (4) The Employment Department shall be exempt
exempt from the provisions of this chapter to                   from the provisions of this chapter to the extent that a
the extent that a formal finding of the                         formal finding of the United States Secretary of Labor
United States Secretary of Labor is made                        is made that such provision conflicts with the terms of
                                                                the federal law, acceptance of which by the state is a
that such provision conflicts with the terms                    condition precedent to continued certification by the
of the federal law, acceptance of which by                      United States Secretary of Labor of the state′s law.
the state is a condition precedent to contin-                        (5) The provisions of ORS 183.415 to 183.430, 183.440
ued certification by the United States Secre-                   to 183.460, 183.470 to 183.485 and 183.490 to 183.500 do
tary of Labor of the state′s law.                               not apply to orders issued to persons who:

Title 18                                                  Page 4                                           (2007 Edition)
                               ADMINISTRATIVE PROCEDURES ACT                                                    183.333

      (a) Have been committed pursuant to ORS 137.124              (c) Keep and make available the mailing
to the custody of the Department of Corrections or are        list required by ORS 183.335 (8).
otherwise confined in a Department of Corrections fa-
cility; or                                                         (3) An order shall not be effective as to
      (b) Seek to visit an inmate confined in a Depart-       any person or party unless it is served upon
ment of Corrections facility.                                 the person or party either personally or by
      (6) ORS 183.410, 183.415, 183.417, 183.425, 183.440,    mail. This subsection is not applicable in fa-
183.450, 183.460, 183.470 and 183.482 (3) do not apply to     vor of any person or party who has actual
the Public Utility Commission. Notwithstanding ORS            knowledge of the order.
183.480 and except as provided in ORS 757.495 and
759.390, only a party to a hearing before the Public               (4) An order is not final until it is re-
Utility Commission is entitled to seek judicial review        duced to writing. [1957 c.717 §2; 1971 c.734 §4; 1975
of an order of the commission.                                c.759 §3; 1979 c.593 §8; 1993 c.729 §2; 2001 c.220 §3]
      (7) The provisions of this chapter do not apply to
the suspension, cancellation or termination of an ap-             183.332 Policy statement; conformity
prenticeship or training agreement under ORS 660.060.         of state rules with equivalent federal
      (8) The provisions of ORS 183.413 to 183.497 do not     laws and rules. It is the policy of this state
apply to administrative proceedings conducted under           that agencies shall seek to retain and pro-
rules adopted by the Secretary of State under ORS             mote the unique identity of Oregon by con-
246.190.                                                      sidering local conditions when an agency
      Note: See note under 183.417.                           adopts policies and rules. However, since
      183.317 [1971 c.734 §187; repealed by 1979 c.593 §34]   there are many federal laws and regulations
      183.320 [1957 c.717 §15; repealed by 1971 c.734 §21]
                                                              that apply to activities that are also regu-
                                                              lated by the state, it is also the policy of this
                                                              state that agencies attempt to adopt rules
             (Adoption of Rules)                              that correspond with equivalent federal laws
     183.325 Delegation of rulemaking au-                     and rules unless:
thority to named officer or employee.                             (1) There is specific statutory direction
Unless otherwise provided by law, an agency                   to the agency that authorizes the adoption
may delegate its rulemaking authority to an                   of the rule;
officer or employee within the agency. A de-                      (2) A federal waiver has been granted
legation of authority under this section must                 that authorizes the adoption of the rule;
be made in writing and filed with the Secre-
tary of State before the filing of any rule                       (3) Local or special conditions exist in
adopted pursuant to the delegation. A deleg-                  this state that warrant a different rule;
ation under this section may be made only                         (4) The state rule has the effect of clari-
to one or more named individuals. The de-                     fying the federal rules, standards, procedures
legation of authority shall reflect the name                  or requirements;
of the authorized individual or individuals,
and be signed in acknowledgment by the                            (5) The state rule achieves the goals of
named individuals. Any officer or employee                    the federal and state law with the least im-
to whom rulemaking authority is delegated                     pact on public and private resources; or
under this section is an “agency” for the                         (6) There is no corresponding federal
purposes of the rulemaking requirements of                    regulation. [1997 c.602 §2]
this chapter. [1979 c.593 §10; 1993 c.729 §1]                     183.333 Policy statement; public in-
     183.330 Description of organization;                     volvement in development of policy and
service of order; rules coordinator; effect                   drafting of rules; advisory committees. (1)
of not putting order in writing. (1) In ad-                   The Legislative Assembly finds and declares
dition to other rulemaking requirements im-                   that it is the policy of this state that when-
posed by law, each agency shall publish a                     ever possible the public be involved in the
description of its organization and the meth-                 development of public policy by agencies and
ods whereby the public may obtain informa-                    in the drafting of rules. The Legislative As-
tion or make submissions or requests.                         sembly encourages agencies to seek public
                                                              input to the maximum extent possible before
     (2) Each state agency that adopts rules                  giving notice of intent to adopt a rule. The
shall appoint a rules coordinator and file a                  agency may appoint an advisory committee
copy of that appointment with the Secretary                   that will represent the interests of persons
of State. The rules coordinator shall:                        likely to be affected by the rule, or use any
     (a) Maintain copies of all rules adopted                 other means of obtaining public views that
by the agency and be able to provide infor-                   will assist the agency in drafting the rule.
mation to the public about the status of                          (2) Any agency in its discretion may de-
those rules;                                                  velop a list of interested parties and inform
     (b) Provide information to the public on                 those parties of any issue that may be the
all rulemaking proceedings of the agency;                     subject of rulemaking and invite the parties
and                                                           to make comments on the issue.

Title 18                                                Page 5                                          (2007 Edition)
183.335                   EXECUTIVE BRANCH; ORGANIZATION

    (3) If an agency appoints an advisory                  (c) At least 28 days before the effective
committee for consideration of a rule under           date, to persons who have requested notice
subsection (1) of this section, the agency            pursuant to subsection (8) of this section;
shall seek the committee′s recommendations            and
on whether the rule will have a fiscal im-                 (d) At least 49 days before the effective
pact, what the extent of that impact will be          date, to the persons specified in subsection
and whether the rule will have a significant          (15) of this section.
adverse impact on small businesses. If the
committee indicates that the rule will have                (2)(a) The notice required by subsection
a significant adverse impact on small busi-           (1) of this section must include:
nesses, the agency shall seek the committee′s              (A) A caption of not more than 15 words
recommendations on compliance with ORS                that reasonably identifies the subject matter
183.540.                                              of the agency′s intended action. The agency
    (4) An agency shall consider an advisory          shall include the caption on each separate
committee′s recommendations provided under            notice, statement, certificate or other similar
subsection (3) of this section in preparing the       document related to the intended action.
statement of fiscal impact required by ORS                 (B) An objective, simple and understand-
183.335 (2)(b)(E).                                    able statement summarizing the subject mat-
    (5) If an agency does not appoint an ad-          ter and purpose of the intended action in
visory committee for consideration of a per-          sufficient detail to inform a person that the
manent rule under subsection (1) of this              person′s interests may be affected, and the
section and 10 or more persons likely to be           time, place and manner in which interested
affected by the rule object to the agency′s           persons may present their views on the in-
statement of fiscal impact as required by             tended action.
ORS 183.335 (2)(b)(E) or an association with               (b) The agency shall include with the
at least 10 members likely to be affected by          notice of intended action given under sub-
the rule objects to the statement, the agency         section (1) of this section:
shall appoint a fiscal impact advisory com-                (A) A citation of the statutory or other
mittee to provide recommendations on                  legal authority relied upon and bearing upon
whether the rule will have a fiscal impact            the promulgation of the rule;
and what the extent of that impact will be.
An objection under this subsection must be                 (B) A citation of the statute or other law
                                                      the rule is intended to implement;
made not later than 14 days after the notice
required by ORS 183.335 (1) is given. If the               (C) A statement of the need for the rule
agency determines that the statement does             and a statement of how the rule is intended
not adequately reflect the rule′s fiscal im-          to meet the need;
pact, the agency shall extend the period for               (D) A list of the principal documents, re-
submission of data or views under ORS                 ports or studies, if any, prepared by or relied
183.335 (3)(a) by at least 20 days. The agency        upon by the agency in considering the need
shall include any recommendations from the            for and in preparing the rule, and a state-
committee in the record maintained by the             ment of the location at which those docu-
agency for the rule.                                  ments are available for public inspection.
    (6) Subsection (5) of this section does not       The list may be abbreviated if necessary, and
apply to any rule adopted by an agency to             if so abbreviated there shall be identified the
comply with a judgment or a settlement of a           location of a complete list;
judicial proceeding. [2003 c.749 §4; 2005 c.807 §4]        (E) A statement of fiscal impact identify-
    183.335 Notice; content; public com-              ing state agencies, units of local government
ment; temporary rule adoption, amend-                 and the public which may be economically
ment      or     suspension;      substantial         affected by the adoption, amendment or re-
compliance required. (1) Prior to the adop-           peal of the rule and an estimate of that eco-
tion, amendment or repeal of any rule, the            nomic impact on state agencies, units of
agency shall give notice of its intended ac-          local government and the public. In consid-
tion:                                                 ering the economic effect of the proposed
                                                      action on the public, the agency shall utilize
    (a) In the manner established by rule             available information to project any signif-
adopted by the agency under ORS 183.341 (4),          icant economic effect of that action on busi-
which provides a reasonable opportunity for           nesses which shall include a cost of
interested persons to be notified of the agen-        compliance effect on small businesses af-
cy′s proposed action;                                 fected. For an agency specified in ORS
    (b) In the bulletin referred to in ORS            183.530, the statement of fiscal impact shall
183.360 at least 21 days prior to the effective       also include a housing cost impact statement
date;                                                 as described in ORS 183.534;

Title 18                                        Page 6                                (2007 Edition)
                         ADMINISTRATIVE PROCEDURES ACT                                   183.335

    (F) If an advisory committee is not ap-       the rule applies. If a newspaper of general
pointed under the provisions of ORS 183.333,      circulation is not published within the ge-
an explanation as to why no advisory com-         ographical area that is affected by the rule
mittee was used to assist the agency in           or to which the rule applies, the publication
drafting the rule; and                            shall be made in the newspaper of general
    (G) A request for public comment on           circulation published closest to the ge-
whether other options should be considered        ographical area.
for achieving the rule′s substantive goals             (c) Notwithstanding paragraph (a) of this
while reducing the negative economic impact       subsection, the Department of Corrections
of the rule on business.                          and the State Board of Parole and Post-
    (c) The Secretary of State may omit the       Prison Supervision may adopt rules limiting
information submitted under paragraph (b)         participation by inmates in the proposed
of this subsection from publication in the        adoption, amendment or repeal of any rule to
bulletin referred to in ORS 183.360.              written submissions.
    (d) When providing notice of an intended           (d) If requested by at least five persons
action under subsection (1)(c) of this section,   before the earliest date that the rule could
the agency shall provide a copy of the rule       become effective after the agency gives no-
that the agency proposes to adopt, amend or       tice pursuant to subsection (1) of this sec-
repeal, or an explanation of how the person       tion, the agency shall provide a statement
may acquire a copy of the rule. The copy of       that identifies the objective of the rule and
an amended rule shall show all changes to         a statement of how the agency will subse-
the rule by striking through material to be       quently determine whether the rule is in fact
deleted and underlining all new material, or      accomplishing that objective.
by any other method that clearly shows all             (e) An agency that receives data or views
new and deleted material.                         concerning proposed rules from interested
    (3)(a) When an agency proposes to adopt,      persons shall maintain a record of the data
amend or repeal a rule, it shall give inter-      or views submitted. The record shall contain:
ested persons reasonable opportunity to sub-           (A) All written materials submitted to an
mit data or views. Opportunity for oral           agency in response to a notice of intent to
hearing shall be granted upon request re-         adopt, amend or repeal a rule.
ceived from 10 persons or from an associ-              (B) A recording or summary of oral sub-
ation having not less than 10 members before      missions received at hearings held for the
the earliest date that the rule could become      purpose of receiving those submissions.
effective after the giving of notice pursuant
to subsection (1) of this section. An agency           (C) Any public comment received in re-
holding a hearing upon a request made under       sponse to the request made under subsection
this subsection shall give notice of the hear-    (2)(b)(G) of this section and the agency′s re-
ing at least 21 days before the hearing to the    sponse to that comment.
person who has requested the hearing, to               (D) Any statements provided by the
persons who have requested notice pursuant        agency under paragraph (d) of this subsec-
to subsection (8) of this section and to the      tion.
persons specified in subsection (15) of this
section. The agency shall publish notice of            (4) Upon request of an interested person
the hearing in the bulletin referred to in        received before the earliest date that the rule
ORS 183.360 at least 14 days before the           could become effective after the giving of
hearing. The agency shall consider fully any      notice pursuant to subsection (1) of this sec-
written or oral submission.                       tion, the agency shall postpone the date of
                                                  its intended action no less than 21 nor more
    (b) If an agency is required to conduct an    than 90 days in order to allow the requesting
oral hearing under paragraph (a) of this sub-     person an opportunity to submit data, views
section, and the rule for which the hearing       or arguments concerning the proposed ac-
is to be conducted applies only to a limited      tion. Nothing in this subsection shall pre-
geographical area within this state, or affects   clude an agency from adopting a temporary
only a limited geographical area within this      rule pursuant to subsection (5) of this sec-
state, the hearing shall be conducted within      tion.
the geographical area at the place most con-
venient for the majority of the residents              (5) Notwithstanding subsections (1) to (4)
within the geographical area. At least 14         of this section, an agency may adopt, amend
days before a hearing conducted under this        or suspend a rule without prior notice or
paragraph, the agency shall publish notice of     hearing or upon any abbreviated notice and
the hearing in the bulletin referred to in        hearing that it finds practicable, if the
ORS 183.360 and in a newspaper of general         agency prepares:
circulation published within the geographical          (a) A statement of its findings that its
area that is affected by the rule or to which     failure to act promptly will result in serious

Title 18                                    Page 7                                (2007 Edition)
183.335                 EXECUTIVE BRANCH; ORGANIZATION

prejudice to the public interest or the inter-         (b) A request under this subsection must
est of the parties concerned and the specific     indicate that the person requests one of the
reasons for its findings of prejudice;            following:
    (b) A citation of the statutory or other           (A) The person may request that the
legal authority relied upon and bearing upon      agency mail paper copies of the proposed
the promulgation of the rule;                     rule and other information required by sub-
    (c) A statement of the need for the rule      section (2) of this section to the postal mail-
and a statement of how the rule is intended       ing address.
to meet the need;                                      (B) If the agency posts notices of in-
    (d) A list of the principal documents, re-    tended action on a website, the person may
ports or studies, if any, prepared by or relied   request that the agency mail the information
upon by the agency in considering the need        required by subsection (2)(a) of this section
for and in preparing the rule, and a state-       to the postal mailing address with a refer-
ment of the location at which those docu-         ence to the website where electronic copies
ments are available for public inspection; and    of the proposed rule and other information
                                                  required by subsection (2) of this section are
    (e) For an agency specified in ORS            posted.
183.530, a housing cost impact statement as
defined in ORS 183.534.                                (C) If the agency provides notice by elec-
                                                  tronic mail, the person may request that the
    (6)(a) A rule adopted, amended or sus-        agency electronically mail the information
pended under subsection (5) of this section is    required by subsection (2)(a) of this section
temporary and may be effective for a period       to the electronic mailing address, and either
of not longer than 180 days. The adoption of      provide electronic copies of the proposed rule
a rule under this subsection does not pre-        and other information required by subsection
clude the subsequent adoption of an identical     (2) of this section or provide a reference to
rule under subsections (1) to (4) of this sec-    a website where electronic copies of the pro-
tion.                                             posed rule and other information required by
    (b) A rule temporarily suspended shall        subsection (2) of this section are posted.
regain effectiveness upon expiration of the            (c) Upon receipt of any request under
temporary period of suspension unless the         this subsection, the agency shall acknowl-
rule is repealed under subsections (1) to (4)     edge the request, establish a mailing list and
of this section.                                  maintain a record of all mailings made pur-
    (7) Notwithstanding subsections (1) to (4)    suant to the request. Agencies may establish
of this section, an agency may amend a rule       procedures for establishing the mailing lists
without prior notice or hearing if the            and keeping the mailing lists current. Agen-
amendment is solely for the purpose of:           cies by rule may establish fees necessary to
    (a) Changing the name of an agency by         defray the costs of mailings and maintenance
reason of a name change prescribed by law;        of the lists.
    (b) Changing the name of a program, of-            (9) This section does not apply to rules
fice or division within an agency as long as      establishing an effective date for a previously
the change in name does not have a sub-           effective rule or establishing a period during
stantive effect on the functions of the pro-      which a provision of a previously effective
gram, office or division;                         rule will apply.
    (c) Correcting spelling;                           (10) This section does not apply to ORS
    (d) Correcting grammatical mistakes in a      279.835 to 279.855, 279A.140 to 279A.155,
manner that does not alter the scope, appli-      279A.250 to 279A.290, 279A.990, 279B.050 to
cation or meaning of the rule;                    279B.085, 279B.200 to 279B.240, 279B.270,
                                                  279B.275, 279B.280, 279C.360, 279C.365,
    (e) Correcting statutory or rule refer-       279C.370, 279C.375, 279C.380, 279C.385,
ences; or                                         279C.500 to 279C.530, 279C.540, 279C.545,
    (f) Correcting addresses or telephone         279C.550 to 279C.570, 279C.580, 279C.585,
numbers referred to in the rules.                 279C.590, 279C.600 to 279C.625, 279C.650 to
    (8)(a) Any person may request in writing      279C.670 and 279C.800 to 279C.870 relating
that an agency send to the person copies of       to public contracts and purchasing.
the agency′s notices of intended action is-            (11)(a) Except as provided in paragraph
sued under subsection (1) of this section. The    (c) of this subsection, a rule is not valid un-
person must provide an address where the          less adopted in substantial compliance with
person elects to receive notices. The address     the provisions of this section in effect on the
provided may be a postal mailing address or,      date that the notice required under subsec-
if the agency provides notice by electronic       tion (1) of this section is delivered to the
mail, may be an electronic mailing address.       Secretary of State for the purpose of publi-

Title 18                                    Page 8                                (2007 Edition)
                         ADMINISTRATIVE PROCEDURES ACT                                                 183.337

cation in the bulletin referred to in ORS         tion, notice shall be given to the chair or
183.360.                                          cochairs of any interim or session committee
    (b) In addition to all other requirements     with authority over the subject matter of the
with which rule adoptions must comply, a          rule.
rule is not valid if the rule has not been            (c) If notice cannot be given under para-
submitted to the Legislative Counsel in the       graph (a) or (b) of this subsection, notice
manner required by ORS 183.715.                   shall be given to the Speaker of the House
    (c) A rule is not subject to judicial re-     of Representatives and to the President of
view or other challenge by reason of failing      the Senate who are in office on the date the
to comply with subsection (2)(a)(A) of this       notice is given.
section.                                              (16)(a) Upon the request of a member of
    (12)(a) Notwithstanding the provisions of     the Legislative Assembly or of a person who
subsection (11) of this section, but subject to   would be affected by a proposed adoption,
paragraph (b) of this subsection, an agency       amendment or repeal, the committees receiv-
may correct its failure to substantially com-     ing notice under subsection (15) of this sec-
ply with the requirements of subsections (2)      tion shall review the proposed adoption,
and (5) of this section in adoption of a rule     amendment or repeal for compliance with the
by an amended filing, as long as the non-         legislation from which the proposed adoption,
compliance did not substantially prejudice        amendment or repeal results.
the interests of persons to be affected by the        (b) The committees shall submit their
rule.                                             comments on the proposed adoption, amend-
    (b) An agency may use an amended filing       ment or repeal to the agency proposing the
to correct a failure to include a fiscal impact   adoption, amendment or repeal. [1971 c.734 §3;
statement in a notice of intended action, as      1973   c.612 §1; 1975 c.136 §11; 1975 c.759 §4; 1977 c.161 §1;
                                                  1977   c.344 §6; 1977 c.394 §1a; 1977 c.798 §2; 1979 c.593 §11;
required by subsection (2)(b)(E) of this sec-     1981   c.755 §2; 1987 c.861 §2; 1993 c.729 §3; 1995 c.652 §5;
tion, or to correct an inaccurate fi