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PUBLIC UTILITY COMMISSION

 

DIVISION 22

RATES

860-022-0000

Applicability of Division 22

(1) The rules contained in this Division apply to energy utilities and large telecommunications utilities, as defined in OAR 860-022-0001.

(2) Upon request or its own motion, the Commission may waive any of the Division 022 rules for good cause shown. A request for waiver must be made in writing, unless otherwise allowed by the Commission.

Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 756.040, 759.030, 759.040 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 14-1997, f. & cert. ef. 11-20-97; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 14-2000, f. & cert. ef. 8-23-00; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 11-2001, f. & cert. ef. 4-18-01; PUC 6-2011, f. & cert. ef. 9-14-11

860-022-0001

Definitions for Utility Rates

For purposes of this Division, except when a different scope is explicitly stated:

(1) "Consumer-owned utility" has the meaning given to the term under ORS 757.270(2).

(2) "Energy utility" means a public utility as defined in ORS 757.005 except a water utility or wastewater utility. An energy utility can be an "electric company," "gas utility," or "steam heat utility."

(3) "Large telecommunications utility" means any telecommunications utility, as defined in ORS 759.005 that is not partially exempt from regulation under 759.040.

(4) "Non-energy attributes" means the environmental, economic, and social benefits of generation from renewable energy facilities. These attributes are normally transacted in the form of Tradable Renewable Certificates.

(5) "Utility" means all energy utilities and large telecommunications utilities, as defined in sections (2) and (3) of this rule.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040 & 759.005
Hist.: PUC 2-1996, f. & cert. ef. 4-18-96 (Order No. 96-102); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 7-2005, f. & cert. ef. 11-30-05

860-022-0003

Through Service

"Through service" means an Oregon intrastate telecommunications service the provision of which involves the facilities, equipment, or services of two or more telecommunications utilities and/or cooperatives. Examples of "through services" may include, but are not limited to, intrastate toll/access service, extended area service, and E 9-1-1 service. Whether a service is a "through service" is determined on a case-by-case basis.

Stat. Auth.: ORS 183 & 759
Stats. Implemented: ORS 759.220
Hist.: PUC 3-1998, f. & cert. ef. 2-24-98

860-022-0005

Tariff Specifications for Energy Utilities and Large Telecommunications Utilities

(1) Form and style of tariffs:

(a) All tariffs must be in loose-leaf form so changes can be made by reprinting and inserting a single leaf;

(b) Each energy or large telecommunications utility must designate the initial tariff as PUC Oregon No. 1, and designate successive tariffs with the next number in consecutive numerical order. Supplemental information not otherwise provided by the tariff must be inserted in the most appropriate location and denoted by the previous sheet numbers plus a letter, for example, 3A, 3B, etc. Revisions to tariffs must be denoted by 1st Revised Sheet No. 3, 2nd Revised Sheet No. 3, etc.;

(c) The title page should be uniform. Rates, rules, and regulations must be written only on one side of a sheet. If a single sheet is insufficient, two or more pages should be used; and

(d) Separate tariffs must be filed for electric, telecommunications, telegraph, gas, heat, or for any other service entered.

(2) Size of tariffs and copies required:

(a) Tariffs and supplements thereto must be prepared using a readable font that, when printed, will fit on an 8-1/2 x 11 inch page; and

(b) Energy and large telecommunication utilities must file with the Commission an original of each tariff, rate schedule, revision, or supplement. The utility must supplement the filing with an exact copy of the tariff in electronic form as required in OAR 860-001-0170. The advice letter accompanying the tariffs must bear the signature of the issuing officer or utility representative. The tariffs do not require a signature.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 757.205
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 176, f. 11-17-76, ef. 12-1-76 (Order No. 76-806); PUC 15-1987, f. & ef. 12-3-87 (Order No. 87-1185); PUC 8-1995, f. & cert. ef. 8-30-95 (Order No. 95-858); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 18-2004, f. & cert. ef. 12-30-04

860-022-0010

Tariff Contents for Energy Utilities and Large Telecommunications Utilities

(1) The tariffs of each energy utility and large telecommunications utility must explicitly state the utility rates and charges for each class of service rendered, designating the area or district to which they apply.

(2) The energy or large telecommunications utility's rules and regulations that in any manner affect the rates charged or to be charged or define the extent or character of the service to be given shall be included with each tariff.

Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 757.205 & 759.175
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01

860-022-0015

Tariff Changes by Energy Utilities and Large Telecommunications Utilities Require 30 Days' Notice to the Commission

Except as hereinafter provided in this Division, energy utilities and large telecommunications utilities must file with the Commission all tariffs, rate schedules, or supplements thereto containing any change in rates, tolls, charges, rules, or regulations at least 30 days before the effective date of such changes. The Commission will reject tariffs or schedules not conforming with the rules in this Division.

Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 757.007, 757.220 & 759.190
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 176, f. 11-17-76, ef. 12-1-76 (Order No. 76-806); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 18-2004, f. & cert. ef. 12-30-04

860-022-0017

Announcement of Utility Tariff Changes

(1) Within 15 days of filing with the Commission new or revised tariff schedules which constitute a general rate revision, an energy or large telecommunications utility shall inform its customers of the filing. A "general rate revision" is a filing by an energy or large telecommunications utility which affects all or most of a utility's rate schedules. "General rate revision" excludes changes in an automatic adjustment clause under ORS 757.210(1), changes in the credit reflected on certain electric company rate schedules relating to Section 5(c) of the Pacific Northwest Electric Power Planning and Conservation Act of 1980, or similar changes in one rate schedule, such as for an amortization, that affects other rate schedules.

(2) The energy or large telecommunications utility shall inform its customers by:

(a) Inserting a display announcement, not less than a three column standard advertising unit (SAU) by ten-inch advertisement, at least once in a newspaper of general circulation in the communities served by the energy or large telecommunications utility;

(b) Inserting an announcement in the energy or large telecommunications utility's regular billing to its customers; or

(c) Mailing an announcement to each customer.

(3) The energy or large telecommunications utility's announcement shall include:

(a) The approximate annualized amount of the proposed total change, expressed both in dollar and in percentage terms; and the approximate amount of the proposed change for an average residential customer's monthly bill, expressed in dollar terms;

(b) A brief statement of the reasons why the energy or large telecommunications utility seeks the change;

(c) A statement that copies of the energy or large telecommunications utility's testimony and exhibits are available for inspection at its main and district offices;

(d) The mailing address and telephone number of the energy or large telecommunications utility's office that customers may contact for additional information about the filing;

(e) The mailing address and toll-free telephone number of the Commission to which requests to receive notice of the time and place of any hearing on the matter may be directed; and

(f) A statement that the purpose of the announcement is to provide the energy or large telecommunications utility's customers with general information about the utility's proposals and their effects on its customers, but that the calculations and statements contained in the announcement are not binding on the Commission.

(4) Within 20 days of issuing the announcement, the energy or large telecommunications utility shall file an affidavit that notice has been given and a copy of the notice.

(5) An energy or large telecommunications utility may submit to the Commission, and request approval of, a list of the newspapers of general circulation in the communities served by the utility. The utility may revise the list by written request to the Commission.

(6) The Commission may waive the requirements of this rule upon a showing by the energy or large telecommunications utility that the notice required by this rule has been given with respect to a particular general rate revision, and upon a further showing that additional notice with respect to that rate revision would be duplicative, confusing to customers, and burdensome to the utility.

Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 757.205 - 757.220 & 759.175 - 759.190
Hist.: PUC 1-1985, f. & ef. 2-1-85 (Order No. 85-075); PUC 11-1990(Temp), f. & cert. ef. 6-21-90 (Order No. 90-968); PUC 22-1990, f. & cert. ef. 12-31-90 (Order No. 90-1917); PUC 2-1993, f. & cert. ef. 1-8-93 (Order No. 92-1793 & 93-035); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 7-2005, f. & cert. ef. 11-30-05

860-022-0019

General Rate Revisions

(1) Any utility filing new or revised tariff schedules that constitute a general rate revision must include supporting testimony and exhibits, work papers, and an executive summary. A general rate revision is a filing by a utility that affects all or most of the utility's rate schedules. The term "general rate revision" does not include the exclusions in OAR 860-022-0017(1). The executive summary must contain an exhibit showing in summary form the following information:

(a) The dollar amount of total revenues that would be collected under the proposed rates;

(b) The dollar amount of revenue change requested, total revenues, and revenues net of any credits from federal agencies;

(c) The percentage change in revenues requested, total revenues, and revenues net of any credits from federal agencies;

(d) The test period;

(e) The requested return on capital and return on equity;

(f) The rate base proposed in the filing;

(g) The results of operations before and after the proposed rate change; and

(h) The proposed effect of the rate change on each class of customers.

(2) The initial filing of a general rate revision must contain the following:

(a) All information required by the most recent version of the Standard Data Requests for Energy Rate Cases, available at http://www.puc.state.or.us including tax-related information; and

(b) A motion for a general protective order or modified protective order under OAR 860-001-0080, if necessary for the release of information under sections (1)(a) through (g), and (2)(a) of this rule.

(3) Telecommunications utilities partially exempt from regulation under ORS 759.040 must file tariffs as specified in OAR 860-034-0300.

Stat. Auth.: ORS 756.040 & 756.060
Stats. Implemented: ORS 756.040, 757.205 and 759.175
Hist.: PUC 1-1985, f. & ef. 2-1-85 (Order No. 85-075); PUC 10-1994, f. & cert. ef 7-21-94 (Order No. 94-1127); PUC 15-1997, f. & cert. ef. 11-20-97; PUC 12-1999, f. & cert. ef. 11-18-99; PUC 3-2002, f. & cert. ef. 2-5-02; PUC 18-2004, f. & cert. ef. 12-30-04; Renumbered from 860-013-0075, PUC 5-2010, f. & cert. ef. 10-22-10; PUC 4-2012, f. & cert. ef. 4-17-12

860-022-0020

Applications to Make Tariffs or Rate Schedules Effective on Less Than Statutory Notice

An energy or large telecommunications utility seeking authority to make tariffs or rate schedules effective on less than statutory notice must use application forms approved by the Commission.

[ED. NOTE: Forms referenced are available from the agency.]

Stat. Auth.: ORS 183, 756 & 757, 759
Stats. Implemented: ORS 757.220, 759.190
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 16-2001, f. & cert. ef. 6-21-01; PUC 18-2004, f. & cert. ef. 12-30-04

860-022-0025

Requirements for Filing Tariffs or Schedules Changing Rates

(1) An energy or large telecommunications utility may make tariff changes by filing an entirely new tariff or by filing revised sheets which shall refer to the tariff sheets on file. Additions to the tariff on file may be made by filing additional sheets.

(2) Each energy or large telecommunications utility filing tariffs or schedules changing existing tariffs or schedules shall submit therewith the following information:

(a) A statement plainly indicating the increase, decrease, or other change thereby made in existin g rates, charges, tolls, or rules and regulations;

(b) A statement setting forth the number of customers affected by the proposed change and the resulting change in annual revenue; and

(c) A detailed statement setting forth the reasons or grounds relied upon in support of the proposed change.

Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 757.205, 757.061 & 759.175
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01

860-022-0026

Requests to Abandon, Exempt from Regulation, or Price-List Regulated Telecommunications Services

A large telecommunications utility is subject to the requirements set forth in OAR 860-032-0020, 860-032-0023, 860-032-0025, and 860-032-0035.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.020, 759.030, 759.035, 759.050, 759.190 & 759.195
Hist.: PUC 15-2001, f. & cert. ef. 6-21-01

860-022-0030

Requirements for Filing Tariffs or Schedules Naming Increased Rates

(1) Each energy or large telecommunications utility filing tariffs or schedules which name increased rates shall submit therewith, in addition to requirements of OAR 860-022-0025, the following information:

(a) A statement setting forth for each separate schedule the total number of customers affected, the total annual revenue derived under the existing schedule, and the amount of estimated revenue which will be derived from applying the proposed schedule;

(b) A statement setting forth for each separate schedule the average monthly use and resulting bills under both the existing rates and the proposed rates for characteristic customers, which will fairly represent the application of the proposed tariff or schedules; and

(c) A detailed statement setting forth the reasons or grounds relied upon in support of the proposed increase.

(2) Additional information from the energy or large telecommunications may be required to be filed either before the Commission's acceptance of the tendered filing or at any stage in the proceeding.

Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 757.205 & 759.175
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01

860-022-0032

Tariff Changes Effective With Service Rendered by an Energy or Large Telecommunications Utility

An energy or large telecommunications utility shall make all tariff changes applicable with service rendered on and after the effective date of the changes, unless the Commission by order provides otherwise. As used in this rule, "service rendered" means units of energy consumed, toll calls connected, basic service provided, or likewise as the context requires

Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 757.007, 757.220 & 759.190
Hist.: PUC 176, f. 11-17-76, ef. 12-1-76 (Order No. 76-806); PUC 13-1997, f. & cert. ef. 11-12-97; PUC 16-2001, f. & cert. ef. 6-21-01

860-022-0035

Special Contracts

(1) Energy and telecommunications utilities within Oregon entering into special contracts with certain customers prescribing and providing rates, services, and practices not covered by or permitted in the general tariffs, schedules, and rules filed by such utilities are in legal effect tariffs and are subject to supervision, regulation, and control as such.

(2) All special agreements designating service to be furnished at rates other than those shown in tariffs now on file in the Commission's office shall be classified as rate schedules. True and certified copies shall be filed subject to review and approval pursuant to the requirements of OARs 860-022-0005 through 860-022-0030.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 757.007 & 759.250
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01

860-022-0038

Notice to Interested Persons of Tariffs Filed Under ORS 757.205 or 759.175

(1) This rule applies to any tariff filed by an energy utility under ORS 757.205 or by a telecommunications utility under ORS 759.175.

(2) Any person who requests of the Commission, in writing, to be notified of utility tariff filings covered under section (1) of this rule must be included on a notice list.

(3) The Commission must notify all persons on the notice list referred to in section (2) of this rule of any applicable tariff filing. The notice will be given within ten days of any tariff filing under section (1) of this rule that complies with OARs 860-022-0025 through 860-022-0035.

(4) The Commission may periodically delete persons' names from the notice list who do not demonstrate a continued interest in receiving the notices in section (2) of this rule. No person's name may be deleted from the list without 20 days' notice before deletion.

(5) The notice must include the following information:

(a) Name of the filing utility;

(b) Subject;

(c) Advice number;

(d) Filing date;

(e) Effective date;

(f) Date of the public meeting when the tariff will be considered (when the information is available);

(g) Customer classes affected, if readily ascertainable from the utility's advice letter; and

(h) Whether the tariff schedule is primarily related to price competition or a service alternative, if readily ascertainable from the utility's advice letter.

Stat. Auth.: ORS 183, 756 & 757, 759
Stats. Implemented: ORS 757.205, 757.230, 759.175 & 759.210
Hist.: PUC 16-1988, f. & cert. ef. 10-21-88 (Order No. 88-1216); PUC 12-1997, f. & cert. ef. 10-30-97; PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 18-2004, f. & cert. ef. 12-30-04

860-022-0040

Relating to City Fees, Taxes, and Other Assessments Imposed Upon Electric Companies, Gas Utilities, and Steam Heat Utilities

(1) The aggregate amount of all business or occupation taxes, license, franchise or operating permit fees, or other similar exactions or costs, excepting volumetric-based fees in section (3) of this rule, imposed upon energy utilities by any city in Oregon for engaging in business within such city or for use and occupancy of city streets and public ways, which does not exceed 3 percent for gas utilities or 3.5 percent for electric companies and steam heat utilities, applied to gross revenues as defined herein, shall be allowed as operating expenses of such utilities for rate-making purposes and shall not be itemized or billed separately. All other costs not allowed as operating expenses shall be itemized or billed separately.

(2) Except as otherwise provided herein, "gross revenues" means revenues received from utility operations within the city less related net uncollectibles. Gross revenues of an energy utility shall include revenues from the use, rental, or lease of the utility's operating facilities other than residential-type space and water heating equipment. Gross revenues shall not include proceeds from the sale of bonds, mortgage or other evidence of indebtedness, securities or stocks, sales at wholesale by one utility to another when the utility purchasing the service is not the ultimate customer, or revenue from joint pole use.

(3) Each electric company subject to volumetric-based privilege taxes or fees shall determine for each city imposing such volumetric charges a base volumetric rate for each customer class calculated as 3.5 percent of the class 1999 gross operating revenues within the city divided by the amount of electric energy in kilowatt-hours delivered to the class in 1999. In cases where 1999 data is not available for a particular city and/or class, the utility's total 1999 Oregon revenues and kilowatt-hour deliveries for the customer class shall be used to calculate the base volumetric rate. An amount equal to the base volumetric rates multiplied by the corresponding amount of electric energy in kilowatt hours delivered in the 12-month period used to determine the electric company's revenue requirement shall be allowed as operating expenses and shall not be itemized or billed separately. The privilege tax shall be allocated across an electric company's customer classes in the same proportional amounts as levied by cities against the electric company.

(4) Permit fees or similar charges for street opening, installations, construction, and the like to the extent such fees or charges are reasonably related to the city's costs for inspection, supervision, and regulation in exercising its police powers, and the value of any utility services or use of facilities provided on November 6, 1967, to a city without charge, shall not be considered in computing the percentage levels set forth in sections (1) and (3) of this rule. Any such services may be continued within the same category or type of use. The value of any additional category of utility service or use of facilities provided after November 6, 1967, to a city without charge shall be considered in computing the percentage levels herein set forth.

(5) This rule shall not affect franchises existing on November 6, 1967, granted by a city. Payments made or value of service rendered by an energy utility under such franchises shall not be itemized or billed separately. When compensation different from the percentage levels in section (1) of this rule is specified in a franchise existing on November 6, 1967, such compensation shall continue to be treated by the affected utility as an operating expense during the balance of the term of such franchise. Any tax, fee, or other exaction set forth in section (1) of this rule, unilaterally imposed or increased by any city during the unexpired term of a franchise existing on November 6, 1967, and containing a provision for compensation for use and occupancy of streets and public ways, shall be charged pro rata to local users as herein provided.

(6) Except as provided in section (5) of this rule, to the extent any city tax, fee, or other exaction referred to in sections (1) and (3) of this rule exceeds the percentage levels allowable as operating expenses in sections (1) and (3) of this rule, such excess amount shall be charged pro rata to energy customers within said city and shall be separately stated on the regular billings to such customers.

(7) The percentage levels in sections (1) and (3) of this rule may be changed if the Commission determines after such notice and hearing, as required by law, that fair and reasonable compensation to a city or all cities should be fixed at a different level or that by law or the particular circumstances involved a different level should be established.

(8) The amount allowed as an operating expense may be described on customers' bills in a manner determined by the energy utility.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040 & 757.600 - 757.667
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 3-1990, f. & cert. ef. 4-6-90 (Order No. 90-417); PUC 14-1990, f. & cert. ef. 7-11-90 (Order No. 90-1031); PUC 7-1998, f. & cert. ef. 4-8-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 17-2000, f. & cert. ef. 9-29-00; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 15-2002, f. & cert. ef. 6-14-02; PUC 14-2003, f. & cert. ef. 7-24-03; PUC 7-2005, f. & cert. ef. 11-30-05

860-022-0042

Relating to City Privilege Taxes, Fees, and Other Assessments Imposed Upon a Large Telecommunications Utility

(1) The aggregate amount of all privilege taxes and fees and other assessments imposed upon a large telecommunications utility by any city in Oregon for engaging in business within such city or for use and occupancy of city streets and public ways, whether applied to regulated revenues, net income, or other bases, shall be allowed as operating expenses of the large telecommunications utility for rate-making purposes, subject to sections (2) through (4) of this rule.

(2) As used in this rule:

(a) "Fees and other assessments" means business or occupation taxes or licenses; franchise or operating permit fees; sales, use, net income, gross receipts, and payroll taxes, levies, or charges; and other similar exactions imposed by cities, other than ad valorem taxes, upon revenues or income received from regulated telecommunications services by a large telecommunications utility;

(b) "Local access revenues" means those revenues derived from exchange access services within the city, as defined in ORS 401.710, less related net uncollectibles;

(c) "Privilege taxes" means taxes levied and collected by cities from a large telecommunications utility for use and occupancy of city streets, alleys, or highways, as provided under ORS 221.515;

(d) "Regulated revenues" means those revenues derived from regulated telecommunications services within the city less related net uncollectibles. Regulated revenues include, but are not limited to, local access revenues.

(3) Separate fees for street opening, installations, construction, and maintenance of fixtures or facilities to the extent such fees or charges are reasonably related to the city's costs for inspection, supervision, and regulation in the exercise of its police powers shall be allowed as operating expenses of a large telecommunications utility for rate-making purposes. Such fees shall not be deducted in computing the percentage level set forth in section (4) of this rule.

(4) The aggregate amount of all privilege taxes and fees and other assessments imposed upon a large telecommunications utility by a city, which does not exceed 4 percent of local access revenues, shall be allowed as operating expenses for rate-making purposes and shall not be itemized or billed separately. All privilege taxes and fees and other assessments in excess of 4 percent of local access revenues shall be charged pro rata to users of local access services within the city, and the aggregate excess amount shall be separately itemized on customers' bills or billed separately.

(5) The amount allowed as an operating expense may be described on customers' bills in a manner determined by the large telecommunications utility.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.105
Hist.: PUC 14-1990, f. & cert. ef. 7-11-90 (Order No. 90-1031); PUC 7-1998, f. & cert. ef. 4-8-98; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 14-2003, f. & cert. ef. 7-24-03

860-022-0045

Relating to Local Government Fees, Taxes, and Other Assessments Imposed Upon an Energy or Large Telecommunications Utility

(1) If any county in Oregon, other than a city-county, imposes upon an energy or large telecommunications utility any new taxes or license, franchise, or operating permit fees, or increases any such taxes or fees, the utility required to pay such taxes or fees shall collect from its customers within the county imposing such taxes or fees the amount of the taxes or fees, or the amount of increase in such taxes or fees. However, if the taxes or fees cover the operations of an energy or large telecommunications utility in only a portion of a county, then the affected utility shall recover the amount of the taxes or fees or increase in the amount thereof from customers in the portion of the county which is subject to the taxes or fees. "Taxes," as used in this rule, means sales, use, net income, gross receipts, payroll, business or occupation taxes, levies, fees, or charges other than ad valorem taxes.

(2) The amount collected from each utility customer pursuant to section (1) of this rule shall be separately stated and identified in all customer billings.

(3) This rule applies to new or increased taxes imposed on and after December 16, 1971, including new or increased taxes imposed retroactively after that date.

Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 757.110 & 759.115
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 7-1998, f. & cert. ef. 4-8-98; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 6-2011, f. & cert. ef. 9-14-11

860-022-0046

Forced Conversion of Electric and Communication Facilities

(1) As used in this rule:

(a) "Convert," "converting," or "conversion" means the removal of overhead electric or communication facilities and the replacement of those facilities with underground electric or communication facilities at the same or different locations;

(b) "Conversion cost" means the difference in cost between constructing an underground system and retaining the existing overhead system. This difference is generally equal to the cost of all necessary excavating, road crossings, trenching, backfilling, raceways, ducts, vaults, transformer pads, other devices peculiar to underground service, and "overhead retirement costs." However, if the conversion is required in conjunction with a public project which would necessitate the relocation of the electric company's or large telecommunications utility's facilities at the utility's expense, "conversion costs" shall not include any "overhead retirement costs;"

(c) "Electric or communication facilities" means any works or improvements used or useful in providing electric or communication service, including but not limited to poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, cross-arms, braces, transformers, insulators, cutouts, switches, capacitors, meters, communication circuits, appliances, attachments and appurtenances, and all related facilities required for the acceptance of electric or communication services. However:

(A) "Electric facilities" excludes any facilities used or intended to be used for the transmission of electric energy at nominal voltage in excess of 35,000 volts;

(B) "Communication facilities" excludes facilities used or intended to be used for the transmission of intelligence by microwave or radio apparatus cabinets or outdoor public telephones;

(C) "Electric or communication facilities" excludes any electric or communication facilities owned or used by or provided for a railroad or pipeline and located upon or above the right-of-way of the railroad or pipeline.

(d) "Local government" includes cities; counties; authorities and agencies created pursuant to ORS Chapters 456 and 457; special districts of the type described in 198.010, 198.180; and all other political subdivisions of Oregon;

(e) "Overhead electric or communication facilities" means electric or communication facilities located above the surface of the ground;

(f) "Overhead retirement cost" means the original cost, less depreciation, less salvage value, plus removal costs, of existing overhead distribution facilities no longer used or useful by reason of the conversion;

(g) "Underground electric or communication facilities" means electric or communication facilities located below the surface of the ground exclusive of those facilities such as substations, transformers, pull boxes, service terminals, pedestal terminals, splice closures, apparatus cabinets, and similar facilities which normally are above the surface in areas where electric company or large telecommunications utility facilities are underground in accordance with standard underground practices.

(2) This rule does not apply if the total conversion cost incurred by the electric company or large telecommunications utility during one calendar year does not exceed five-one hundredths of 1 percent (.05 percent) of the utility's annual revenues derived from customers residing within the boundaries of the local government.

(3) When a local government requires an energy or large telecommunications utility to convert electric or telecommunications facilities at the utility's expense, the utility shall collect the conversion costs from customers located within the boundaries of the local government.

(4) The local government may direct the electric company or large telecommunications utility to collect conversion costs from only a portion of the customers located within the boundaries of the local government.

(5) Conversion costs incurred by the electric company or large telecommunications utility shall be accumulated in a separate account in the electric company or large telecommunications utility's books. Interest shall accrue from the date the electric company or large telecommunications utility incurs the cost. The rate of such interest shall be equal to the effective cost of the senior security issue which most recently preceded the incurrence of the cost.

(6) The electric company or large telecommunications utility shall collect the conversion costs and interest over a reasonable period of time subject to the Commission's approval. However, the pay-back period shall not exceed the depreciable life of the facilities. Collection shall begin as soon as practical after the end of the year in which the conversion costs are incurred.

(7) The conversion cost to be recovered from each customer shall be calculated by applying a uniform percentage to each customer's total monthly bill for service rendered within the boundaries of the local government. The amount collected shall be separately stated and identified on each bill.

(8) This rule applies to conversions upon which construction began on or after August 13, 1984.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040
Hist.: PUC 17-1984, f. & ef. 8-14-84 (Order No. 84-615); PUC 20-1984, f. & ef. 9-19-84 (Order No. 84-737); PUC 2-1993, f. & cert. ef. 1-8-93 (Order No. 92-1793 & 93-035); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 7-2005, f. & cert. ef. 11-30-05

860-022-0047

Recovery of Certain Facility Relocation Costs

(1) This rule provides a means for a utility to recover from its customers the unreimbursed costs of facility relocation activities required by a public body, as provided in ORS 758.025.

(2) As used in this rule:

(a) “Facility” or “facilities” refers to a utility’s tangible plant which ordinarily has a service life of more than one year that provides utility service, and is included in the utility’s books of account as Telecommunications Plant in Service (account 2001. 47 C.F.R. 32).

(b) “Facility costs” represent the cost of materials installed because of a facility relocation required by a public body.

(c) “Nonfacility costs” are those non-material costs (e.g. labor) incurred to place or move utility facilities and which are authorized for recovery by the utility under this rule.

(d) “Public body” has the meaning given that term in ORS 174.109.

(e) “Recoverable relocation costs” has the meaning given in ORS 758.025(5)(a).

(f) “Undepreciated value of facilities replaced” represents the net book value (original cost minus accumulated depreciation) of the facilities removed or retired.

(g) “Utility” means a telecommunications utility or competitive telecommunications provider, as those terms are defined in ORS 759.005.

(3) A telecommunications utility that is not subject to rate-of-return regulation, including a utility regulated under ORS 759.255 may, after participating in the process described in 758.025(3), petition the Commission for approval to recover from its customers prudent costs incurred for the relocation of facilities required by a public body that are not otherwise paid or reimbursed from another source.

(4) The utility's petition must follow the requirements of filing and service for contested cases found in OAR Chapter 860, Division 001 and include:

(a) The name of the utility as it appears on its certificate of authority.

(b) The name, telephone number, electronic mail address, and mailing address of the person to be contacted for additional information about the petition.

(c) The name, telephone number, electronic mail address, and mailing address of the person to be contacted for regulatory information, if different from the person specified in subsection (b) of this section.

(d) A general description of the relocation project or projects including a statement as to why the relocation was necessary and unavoidable, and a description of the locations and public bodies involved.

(e) A statement that, for each project identified in subsection (d) above, the utility participated in the planning and design process described in ORS 758.025(3).

(f) Evidence from each public body that the public body required the utility to relocate its facilities within the public body’s jurisdiction.

(g) A general statement of the overall impact on the utility of the relocation project or projects.

(h) One or more schedules of costs for which the utility seeks recovery. The utility must:

(A) Include in its petition only those costs directly related to a relocation required by a public body.

(B) Exclude any costs subject to reimbursement from other sources, such as state or federal highway funds.

(C) Identify capital and expense costs separately.

(D) Identify facility and nonfacility costs separately.

(E) Exclude all costs related to improvements and upgrades, except that costs related to mandatory conversions ordered by a public body may be included.

(F) Ensure that all schedules, plant records, and job costs meet FCC accounting requirements (47 C.F.R. 32).

(G) Limit recoverable facility costs to the undepreciated value of the facilities replaced.

(i) The utility’s proposed allocation of costs between services, customers, jurisdictions, or other groups as appropriate.

(j) The utility’s proposed method of cost recovery.

(A) Approved relocation costs may be recovered by one or more line items on customer bills.

(B) The utility may propose alternative forms of cost recovery subject to Commission review and approval.

(C) Line items must not be described on the customer’s bill as a tax or other mandatory government fee.

(k) The utility’s proposed time period for cost recovery. A utility may recover its cost over no less than twelve months, subject to an annual true up.

(l) A copy of the customer notice required by section (8) of this rule.

(m) An affidavit of notice required by section (10) of this rule.

(5) The petition may include any other relevant information the utility wishes the Commission to consider.

(6) If the utility designates any portion of the petition to be confidential, it must provide an affidavit stating the legal basis for the claim of confidentiality and comply with the requirements of OAR 860-001-0070 or 860-001-0080.

(7) The petition must be filed at least 90 days before the proposed effective date of the cost recovery.

(8) The customer notice (notice) must include:

(a) The name of the utility as it normally appears on a customer bill.

(b) A statement that the utility has petitioned the Commission for recovery of certain mandatory facility relocation costs.

(c) The proposed impact on the customer's bill and the proposed duration of any cost recovery billing.

(d) The proposed effective date of cost recovery billing.

(e) A statement that customers may submit objections or comments regarding the petition to the Commission within 45 days of receipt of the notice.

(f) The name, telephone number, electronic mail address, and mailing address of the utility's contact person for more information.

(9) The utility must provide the notice:

(a) To all customers whose bills will be affected if the requested cost recovery is approved by the Commission.

(b) To affected customers on or before the date the utility submits its petition for cost recovery to the Commission.

(c) To persons who are not customers of the utility if the utility seeks cost recovery from those persons. The utility must explain in its petition why those persons should contribute to the utility’s cost recovery. The utility must provide notice to those persons at the same time as the utility provides notice to its customers.

(10) The affidavit of notice must include:

(a) A certificate of service stating when and by what means (for example, direct mail, bill message, bill insert, or electronic mail) the notice was provided to the persons identified in section (9) above.

(b) A statement of efforts taken by the utility to provide notice in those instances when service was not completed.

(11) The utility must identify in its petition its recoverable costs that are substantial and beyond the normal course of business, subject to Commission review and approval.

(12) In its review of the petition under ORS 758.025(5), the Commission will:

(a) Verify the utility’s participation in the design and planning process described in ORS 758.025(3).

(b) Verify the relocation costs for which the utility requests recovery.

(c) Determine the allocation of costs between interstate and intrastate services, geographic areas, customers and services.

(d) Prescribe the method of cost recovery.

(13) The Commission may audit any relocation costs or other information submitted by the utility.

(14) The Commission may administratively approve an unopposed petition without a hearing. For good cause, the Commission may suspend the effective date of a petition (whether opposed or unopposed) without a hearing for a period not to exceed six months.

(15) If opposition to the petition is filed with the Commission within 45 days of service of the notice, the Commission will schedule a conference to determine the schedule and proceedings necessary to complete its review of the petition. Contested cases will follow the procedures in OAR Chapter 860, Division 001.

(16) The utility must file the approved surcharge (or other approved cost recovery mechanism) in its tariff and price list before it can bill the surcharge to its customers.

(17) With respect to relocation of utility facilities required by a public body, this rule does not supersede any franchise agreement, ordinance, or applicable state law.

(18) This rule applies to relocations for which construction began on or after January 1, 2010.

Stat. Auth.: ORS Ch. 183, 756, 758 & 759
Stats. Implemented: ORS 758.025
Hist.: PUC 5-2012, f. & cert. ef. 8-23-12

860-022-0065

Attachments to Poles and Conduits Owned by Public, Telecommunications, and Consumer-Owned Utilities

Pole and conduit attachments shall comply with the rules set forth in OAR chapter 860, division 028.

Stat. Auth.: ORS 183, 756, 757, 758 & 759
Stats. Implemented: ORS 757.035, 757.542 - 757.562, 758.215, 759.045 & 759.650 - 759.675
Hist.: PUC 23-2001, f. & cert. ef. 10-11-01

860-022-0070

Procedures and Standards for Reviewing Gas Utility Rates in the Context of the Purchased Gas Adjustment Mechanism

(1) The purpose of sections (1) through (7) of this rule is to ensure that earnings of a natural gas utility local distribution company ("gas utility" or "LDC") with a purchased gas adjustment ("PGA") mechanism are not excessive prior to passing through prudently incurred base gas cost changes in rates through a mechanism which is fair to all parties and efficient to administer. For purposes of this rule, earnings are excessive only if a gas utility does not share with its customers past revenues related to earnings that exceed an earnings threshold determined by the Commission.

(2) Prudently incurred base gas cost changes will be included in rates through tracking filings, subject to the Commission's review of gas cost purchasing practices at the time of those filings.

(3) A separate, simplified earnings review will be conducted on an annual basis independent of and in advance of the PGA filings. The purpose of such an earnings review is to determine whether the gas utility's earnings are above an earnings threshold so as to require some sharing of revenue with customers before passing through base gas cost changes. The purpose is not to make a forward-looking, permanent change in rates.

(4) In an earnings review conducted under this rule, it is reasonable for PGA base gas cost changes to be passed through into rates if, in circumstances when the gas utility's earnings in the prior year were above an earnings threshold determined in section (5) of this rule, revenue representing a percentage of earnings in that year above that earnings threshold is shared with customers.

(5) The standards to be applied in an earnings review under this rule for each LDC are as follows:

(a) Test year: The test year for the earnings review will be the calendar year immediately prior to the year in which the PGA filing is made, unless otherwise specified by the Commission.

(b) Normalization and adjustments: The test year results will be adjusted with a predetermined list of rate-making adjustments equivalent to those applied in the gas utility's most recent general rate proceeding.

(c) Earnings threshold: There will be no revenue sharing required for years when a gas utility's return on equity from utility operations in Oregon is lower than the earnings threshold determined by the Commission for each LDC. Neither this value nor any of the components implied in establishing it will be precedential in a general rate case involving any Oregon public utility. The Commission will update the value for the earnings threshold annually for each LDC, pursuant to a mechanism established by order of the Commission for each LDC, to reflect changes in conditions in the capital markets. Upon a showing of good cause, the Commission may consider other relevant factors in addition to changes in conditions in the capital markets.

(d) Sharing percentage: The amount of revenue in a test year representing a specified percentage of the earnings above the earnings threshold will be shared with customers. The Commission by order will determine the sharing percentage for each LDC.

(e) Deferral and amortization: Any revenue determined for the gas utility for a test year under section 5(d) of this rule will be deferred as of December 31 of the test year. The balance in the deferred account will accrue interest from that date at the LDC's rate of return on rate base determined in its last general rate case. Interest will continue to accrue at this rate during the amortization period, which will begin on the date of the next PGA rate change and extend for twelve months. The Commission by order will determine the method for allocating amounts to be amortized among customer classes.

(6) Each LDC will file test year results of operations by May 1. Any person may request to be placed on a list to receive all such earnings review filings at the time they are submitted to the Commission or may request a copy of individual filings. Any person wishing to participate as a party shall so notify the Commission and other parties via letter. Commission staff will complete its review and distribute summary conclusions by June 10 to all parties. Staff will present the results of the earnings review at the first regular public meeting in July; alternatively, if issues are unresolved among all parties, a settlement conference including all parties will be conducted. By August 1, the parties will file position statements with the Commission on unresolved issues, if needed. The Commission will issue its decision on unresolved issues, if any, by August 15. Unless otherwise directed by the Commission, each LDC will file its annual gas cost tracking filing by August 31, including amortization of credit amounts in the deferred account, if any, resulting from the earnings review.

Stat. Auth.: ORS 183 & 757
Stats. Implemented: ORS 757.210 & 757.259
Hist.: PUC 1-1999, f. & cert. ef. 4-21-99; PUC 5-2003, f. & cert. ef. 4-14-03; PUC 1-2007, f. & cert. ef. 1-23-07; PUC 2-2009, f. & cert. ef. 3-25-09

860-022-0075

Ownership of Non-Energy Attributes of Generation from Renewable Energy Facilities

(1) This rule applies to non-energy attributes associated with energy generated and sold under an applicable contract, as identified in section (2) of this rule, that is executed on or after the effective date of this rule.

(2) Unless otherwise agreed to by separate contract, the owner of the renewable energy facility retains ownership of the non-energy attributes associated with electricity the facility generates and sells to an electric company pursuant to:

(a) The provisions of a net metering tariff;

(b) An Oregon contract with the electric company entered into pursuant to Section 210 of the Public Utility Regulatory Policies Act of 1978; or

(c) Another retail power production tariff.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040, 757.205, 757.210
Hist.: PUC 7-2005, f. & cert. ef. 11-30-05

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