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PUBLIC UTILITY COMMISSION

 

DIVISION 36

WATER UTILITIES AND ASSOCIATIONS

General

860-036-0001

Scope and Applicability of Rules

(1) Upon request or its own motion, the Commission may waive any of the Division 036 rules for good cause shown. A request for waiver must be made in writing, unless otherwise allowed by the Commission.

(2) The rules contained in Division 036 are applicable to water utilities, defined as public utilities in ORS 757.005, providing service in the State of Oregon.

(3) The rules contained in Division 036 do not restrict the authority of the Commission to require service improvements incorporating standards other than those set forth in this division when, after investigation, the Commission determines that such improvements are necessary.

(4) A water utility must provide the Commission with all Commission requested information concerning the water utility and its facilities, operations, management, and administration.

(5) The Commission may physically inspect a water utility’s system and the work performed thereon to determine past and present conformance to the Commission rules and regulations.

(6) All water utilities must comply with the Commission’s rules and regulations. Inadequate or discriminatory service by a water utility may cause a change in the water utility’s regulatory status per ORS 757.061.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 6-2011, f. & cert. ef. 9-14-11; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0005

Applicability and Formal Requirements

All applications or petitions filed under the rules contained in Division 036 must also comply with all other applicable Commission rules.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0010

Definitions for Water Utilities and Associations

As used in Division 036:

(1) "Applicant" means a person who:

(a) Applies for service with a water utility; or

(b) Reapplies for service at a new or existing location after service has been discontinued.

(2) "Association" means an association of individuals with a shared interest in a water system that furnishes water service to those individuals or members, even if the association does not furnish water directly to or for the public. An association providing water service to a nonmember customer is considered a public water utility as defined in ORS 757.005.

(3) "Co-customer" means a person who meets the definition of "customer" and is jointly responsible with another person for payments for water utility service on an account with the water utility. If only one of the co-customers discontinues service in his/her name, the remaining co-customer shall retain customer status only if he/she reapplies for service in his/her own name within 20 days of such discontinuance provided the water utility contacts the co-customer or mails a written request for an application to the remaining co-customer within one business day of the discontinuance.

(4) "Commercial customer" means a customer who uses the water provided by a water utility in the promotion of a business or business product that is a source of revenue or income to the customer or others using the premises.

(5) "Commission" means the Public Utility Commission of Oregon.

(6) "Contributions in aid of construction" means any money, services or property received by a water utility to fund capital investments at no cost to the company with no obligation to repay.

(7) "Construction work in progress (CWIP)" means the Commission-approved recoverable costs of a water utility plant under construction but not yet placed in service.

(8) "Cost-based" means the direct and indirect costs of a specific item or project, including overhead and a reasonable expected return on investment.

(9) "Customer" means a person who has applied for, been accepted, and is currently receiving service unless otherwise noted. Notwithstanding section (1) of this rule, a customer who voluntarily disconnects service and subsequently asks for service with the same water utility at a new or existing location within 20 calendar days after disconnection retains customer status.

(10) "Emergency" means an extraordinary interruption of the usual course of water service by a natural cause, an unforeseen event, or a combination of unexpected circumstances; an urgent need for assistance or relief; or the resulting state that calls for immediate action.

(11) “Flat rate” means a periodic stated charge for water utility service not based on metered quantity of service. Such a rate is used where service is provided on an unmetered basis.

(12) "Formal complaint" means a written complaint filed with the Commission's Administrative Hearings Division.

(13) "Mainline extension" means the extension of a main line to an area not previously served.

(14) “Metered rate” means a periodic stated charge for water utility service that is based on metered quantity of water consumed.

(15) “Metered system” means a water system that uses a meter to measure consumption of water and uses a metered rate as a charge to customers.

(16) "Public utility" has the meaning given the term in ORS 757.005.

(17) "Rate-regulated water utility" means a public water utility that is subject to rate regulation under ORS 757.061.

(18) “Rate regulation” means regulation of a water utility’s rates and services. A water utility regulated for rates is also regulated for service.

(19) "Registered dispute" means an unresolved issue between a customer or applicant and a water utility that is under investigation by the Commission's Consumer Services Section, but is not the subject of a formal complaint.

(20) "Residential customer" means a customer who receives domestic or irrigation water in residential areas and is not considered a commercial customer.

(21) “Service-regulated water utility” means a public water utility that is subject to service regulation under ORS 757.061.

(22) “Service regulation” means regulation of the adequacy of a water utility’s service and product, which includes, but is not limited to, rules, procedures, customer service, billing and collection, disconnects and reconnects, and water pressure, quality, and capacity. Service regulation does not include regulation of the dollar amount of any rate or charge.

(23) “Statement of rates” means a rate schedule or collection of rate schedules and the terms and conditions for use of water service for water utilities that are not rate regulated.

(24) "System impact fee" is the proportionate fee charged by a water utility prior to service being initiated that encompasses the cost of the system allocated to all potential customers.

(25) “Tariff” means a published rate schedule or collection of rate schedules and the terms and conditions for use of water utility service for a rate-regulated water utility that has been filed with and approved by the Commission.

(26) “Unmetered system” means a water system that does not use a meter to measure consumption and charges customers a flat rate.

(27) "Utility" means any water utility, except when a more limited scope is explicitly stated.

(28) “Water system” means all assets, equipment, and infrastructure necessary in the provision of water service to customers.

(29) "Water utility" has the same meaning as public utility in ORS 757.005, except if a more limited scope is explicitly stated.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040, 756.105 & 757.061
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 9-2001, f. & cert. ef. 3-21-01; PUC 22-2001(Temp), f. & cert. ef. 9-26-01 thru 3-24-02; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2003, f. & cert. ef. 10-6-03; PUC 24-2003(Temp), f. & cert. ef. 12-10-03 thru 6-7-04; PUC 7-2004, f. & cert. ef 4-9-04; PUC 13-2009, f. & cert. ef. 11-24-09; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0015

Information for Customers and Applicants

(1) Upon request, the water utility must provide a customer or applicant with an application form for service and all information necessary to secure efficient service.

(2) Upon request, the water utility providing metered service must inform its customers or applicants how to read meters. The water utility may provide meter reading information either in writing or by explanation at the water utility's offices.

(3) A water utility must keep on file and open for public inspection at its offices: complete rate schedules, service application forms, contract forms, the utility’s rules and regulations, and a copy of the Commission's rules and regulations.

(4) Upon request, the water utility must provide a copy of its approved tariffs or statement of rates applicable to the type or types of service furnished to the customer.

(5) A water utility must provide its customers with a written summary of the customers’ water service rights and responsibilities when service is initiated and not less than once each year. If service is initiated without a personal contact between the water utility and the customer, the water utility must mail the summary to the customer no later than when the first bill statement is mailed. The summary must include the text approved by the Commission's Consumer Services Section and describe:

(a) The customer's option to designate a third party to receive bills and notices and the availability of notices in languages other than English;

(b) Special payment options such as equal payment plans;

(c) Any late-payment charges and preferred billing date options; and

(d) Procedures for dispute resolution, including how to register a dispute with the water utility and with the Commission and the toll-free number of the Commission's Consumer Services Section.

(6) When service is initiated, the water utility must inquire if the customer would like to receive notices in a language other than English and inform the customer of the types of notices and translations currently available. If the language chosen is not available, the water utility must inform the customer or applicant that the translated version does not yet exist, but that the customer's or applicant's interest will be recorded for the Commission. Each water utility must report the number of requests for notices and summaries in non-English languages to the Commission. The report must specify the number of requests for each language.

(7) Upon request, the Commission will translate the Rights and Responsibilities Summary for Oregon Utility Consumers into the designated non-English languages and provide copies to water utilities. The information published by a water utility per section (5) of this rule must prominently display in bold face type the following statement in the designated non-English languages at the beginning of the summary: A version of the Rights and Responsibilities Summary for Oregon Utility Consumers printed in this language is available by calling (name of utility) at (phone number).

(8) Each water utility must maintain a business location and a regular telephone number at which it may be contacted directly by customers, applicants, or the Commission during its regular business hours. The water utility must respond to nonemergency customer inquiries, complaints, and service problems within a reasonable time. For purposes of this rule, a reasonable time is considered to be within 24 hours.

(9) The water utility must provide a means by which it may be contacted at any hour by a customer or applicant to leave a message reporting a water failure or emergency. The water utility must respond to the caller within one hour of the time of the call or message and promptly take appropriate action to resolve the failure or emergency. If extenuating circumstances exist that prevent the water utility from responding to the caller within one hour, the Commission may require the water utility to justify the delay.

(10) In the event of an emergency involving all customers, a major portion of customers, or a specific geographical area of customers, the water utility must use its best efforts to communicate and provide information to all affected customers as soon as possible.

(11) Notices regarding the customers’ rights and responsibilities must be posted in a conspicuous place in each water utility office where credit matters are transacted. The notices must be printed, written using plain language, and approved by the Commission.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 22-2001(Temp), f. & cert. ef. 9-26-01 thru 3-24-02; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2003, f. & cert. ef. 10-6-03; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-1

860-036-0020

Designation of Third Party to Receive Notices

A water utility shall offer its customer or applicant the option to designate a third party to receive bills and notices set forth in these rules. When a water utility receives such designation, it shall send bills and notices required under these rules to the customer's representative, with duplicate copies of disconnect notices also served on the customer.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98

860-036-0025

Dispute Resolution

(1) When a dispute occurs between a customer or applicant and a water utility about any bill, charge, or service, the water utility shall thoroughly investigate the matter and promptly report the results of its investigation to the customer or applicant. The water utility shall prepare a written record showing the name and address of the customer or applicant involved, the date and character of the dispute, and the disposition of the matter. The utility shall retain records of the dispute pursuant to OAR 860-036-0760.

(2) The water utility shall inform the customer or applicant of the right to a water utility supervisory review of any dispute, including but not limited to, establishment of credit and termination of service. If a dispute is not resolved, the water utility shall notify the customer or applicant of the Commission's dispute resolution procedure and its toll-free telephone number.

(3) A customer or applicant may request the Commission's assistance in resolving the dispute by contacting the Commission's Consumer Services at:

(a) 1-800-522-2404; TTY 711;

(b) The Commission's mailing address: PUBLIC UTILITY COMMISSION OF OREGON, CONSUMER SERVICES, PO BOX 2148, SALEM OR 97308-2148; or

(c) The Commission's street address: Public Utility Commission of Oregon, 550 Capitol Street NE Suite 215, Salem, OR 97301-2551. The Commission shall notify the water utility upon receipt of such a request.

(4) The Commission's Consumer Services shall assist the complainant and the water utility in an effort to reach an informal resolution of the dispute.

(5) If a registered dispute cannot be resolved informally, the Commission's Consumer Services shall advise the complainant of the right to file a formal written complaint with the Commission. The complaint shall state the facts of the dispute and the relief requested. The water utility shall answer the complaint within 15 days of service of the complaint. The matter shall then be set for hearing. A hearing may be held on less than 10 days' notice when good cause is shown.

(6) Pending resolution of the dispute, the complainant's obligation to pay undisputed amounts continues.

(7) A customer who has a registered dispute or formal complaint pending with the Commission shall be entitled to continued or restored service provided:

(a) Service was not terminated for theft of service or failure to establish credit;

(b) A bona fide dispute exists in which the facts asserted by the customer entitle the customer to service;

(c) When termination is based on nonpayment, the customer makes adequate arrangement to avoid future loss to the water utility, such as prepaying estimated monthly water utility charges; and

(d) The customer or applicant diligently pursues conflict resolution under the Commission's rules.

(8) If the conditions in section (7) of this rule are not satisfied, the water utility has no obligation to provide continued service. A water utility discontinuing service because of a failure to meet the conditions of subsections (7)(c) or (7)(d) of this rule shall give the customer a five-business-day disconnect notice. The notice shall be served in the same manner as provided by OAR 860-036-0245, except that it need only describe the defect in performance, the date and time when water utility service will terminate and the toll-free number of the Commission's Consumer Services. In deciding whether the conditions are met, the water utility shall consult with the Commission's Consumer Services. The customer who has filed a formal complaint, the water utility, or the Commission's Consumer Services may ask the Commission for a hearing to decide if the conditions are met. Unless extraordinary circumstances exist, the hearing will be conducted by telephone conference within three business days from the date requested. Notice of hearing will be given to the customer, the water utility, and the Commission's Consumer Services at least 12 hours before the date and time of the hearing. Notice is effective when given in person, by telephone, or in writing delivered to the party's last known address. Mailed notice is effective two days after deposit in the U.S. mail, excluding Sundays and holidays.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 756.500, 756.512
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef 8-27-98; PUC 8-1999, f. & cert. ef. 10-18-99; PUC 18-2003, f. & cert. ef. 10-6-03

860-036-0030

Threshold Levels of Rates and Charges for Water Utilities Serving Fewer than 500 Customers

As required by ORS 757.061(5), the Commission adopts the following maximum rates and charges for water utilities that are not rate regulated and are serving fewer than 500 customers:

(1) An annual average monthly residential rate of $33 for unmetered water systems and $36 for metered water systems;

(2) An annual average monthly service rate for small commercial customers with a meter or pipe diameter one inch or less of $33 for unmetered water systems and $36 for metered water systems;

(3) An annual average monthly service rate for large commercial customers with a meter or pipe diameter larger than one inch of $110 for unmetered water systems and $119 for metered water systems; and

(4) Any service connection charge, system impact fee, facilities charge, main line extension, or other similar charge must be reasonable and cost based. Upon the Commission’s request, a water utility must be able to demonstrate compliance with this requirement.

Stats. Implemented: ORS 757.061
Stat. Auth.: ORS 183, 756 & 757
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 18-2003, f. & cert. ef. 10-6-03; PUC 7-2004, f. & cert. ef 4-9-04; PUC 2-2008, f. & cert. ef. 5-30-08; PUC 13-2009, f. & cert. ef. 11-24-09; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0035

Applications for Water Utility Service

(1) An application for water utility service must be made when:

(a) Service is requested by an applicant who has not previously been served by the water utility;

(b) Service has been involuntarily discontinued in accordance with these rules and the customer or applicant later seeks to have service restored; or

(c) Service has been voluntarily discontinued and a request to restore service has not been made within 20 days.

(2) An application is a request for water utility service. The water utility shall not accept an application for service until the applicant establishes credit as set forth in OAR 860-036-0040. However, the water utility may refuse a service application under OAR 860-036-0080.

(3) A water utility may require an applicant to provide the following information when applying for service:

(a) The name of person(s) responsible for payment on the account;

(b) The name to be used to identify the account, if different than the actual name;

(c) The birth date of person(s) responsible for payment on the account;

(d) The social security number of person(s) responsible for payment on the account;

(e) A current valid Oregon driver license number of the person(s) responsible for payment on the account;

(f) The service address;

(g) The billing address, if different than service address; and

(h) Any available telephone numbers where the applicant can be reached night and day.

(4) In lieu of providing a valid social security number or current valid Oregon driver license number under section (3) of this rule, an applicant may provide:

(a) A valid state or federal identification containing name and photograph of the person(s) responsible for payment on the account;

(b) A combination of:

(A) An original or certified true copy of his or her birth certificate;

(B) A current identification from school or employer containing a photograph; and

(C) The name, address, and telephone number of a person who can verify the applicant's identity, such as a teacher, employer, or caseworker; or

(c) Other information deemed sufficient by the utility to establish an applicant's identification.

(5) If an applicant is denied service for failure to provide an acceptable form of identification, the applicant may pursue conflict resolution under the Commission's rules.

(6) Upon request, the water utility shall protect the account from access by others through the use of a personalized password or other means acceptable to both the water utility and the customer.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 16-2003, f. & cert. ef. 10-1-03; PUC 16-2004, f. & cert. ef. 12-1-04

860-036-0040

Establishing Credit for Residential Service

(1) If a deposit is not required under section (2) of this rule, an applicant or a customer may demonstrate satisfactory credit for new or continuing service by showing any of the following:

(a) Received 12 months of continuous water utility service during the preceding 24 months and the water utility can verify, either by contacting the former water utility or through an authorized letter provided by the applicant or customer, that the applicant or customer voluntarily terminated service and timely paid for all services rendered;

(b) Meets the water utility’s minimum credit requirements based on a third party credit report score or based on the water utility’s own credit scoring formula approved by the Commission; or

(c) Proof of ability to pay by providing either:

(A) Proof of employment during the entire 12 months previous to the application of service for person(s) responsible for payment on the account and a work telephone number to enable the water utility to verify employment; or

(B) A statement or other documentation from the income provider or an authorized representative, that the water utility can verify, indicating that the applicant or customer receives a regular source of income.

(2) An applicant or customer may be required to pay a deposit at the time of application for new or continued service when:

(a) The applicant or customer is unable to establish credit as defined in section (1) of this rule;

(b) The applicant or customer received the same type of water utility service from it or any Oregon public water utility, as defined in ORS 757.005, within the preceding 24 months and owed an account balance that was not paid in full when service was terminated. This subsection does not apply to a customer who registered a dispute with the Commission within 60 calendar days after service was terminated and who paid all undisputed or adjudicated amounts; or

(c) The applicant or customer was previously terminated for theft of service by any Oregon public water utility as defined in ORS 757.005, was found to have tampered with the meter or other water utility facilities, or was otherwise found to have diverted water utility service.

(3) In lieu of paying a deposit, an applicant or customer may provide the water utility a written surety agreement from a responsible party to secure payment in an amount equal to two months' average usage. For purposes of this section of this rule, a responsible party is a customer with the same water utility who meets one of the qualifying conditions outlined in section (1) of this rule. The surety agreement obligation will automatically terminate if the responsible party no longer meets the conditions in section (1) of this rule. If a responsible party is subsequently found not to qualify, the applicant or customer will be required to either pay a deposit or obtain a written surety agreement from another responsible party. The surety obligation ceases when the customer establishes good credit.

(4) Deposits for water service must not exceed one-sixth the amount of reasonable billing for one year at the rates then in effect. The estimate must be based on the use of the service at the premises during the prior year or on the type and size of the customer’s equipment that will use the service. Each deposit must be rounded to the nearest whole dollar.

(5) A new or additional deposit, calculated in compliance with section (4) of this rule and based upon the most recent information available, may be required from a customer as a condition of continued service when:

(a) The water utility discovers that the customer gave false information to establish an account or credit status;

(b) The water utility discovers that the customer has stolen water service, has tampered with the meter or other water utility facilities, or was otherwise found to have diverted water utility service; or

(c) A customer moves and the anticipated bill at the new residence will be at least 20 percent greater than the basis of the existing deposit.

(6) Paying a deposit does not excuse a customer from complying with the Commission’s rules and regulation, the water utility's rules and regulations or the rate-regulated water utility’s tariffs on file with the Commission, including the obligation to promptly pay bills.

(7) A water utility may require less stringent deposit requirements than those specified in this rule, as long as the deposit requirement is applied in a consistent and nondiscriminatory manner. Deposit requirements must be stated in the water utility rules and regulations or in the rate-regulated water utility tariffs, whichever is applicable.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00; PUC 16-2003, f. & cert. ef. 10-1-03; PUC 2-2004(Temp), f. & cert. ef. 1-9-04 thru 7-2-04; PUC 11-2004, f. & cert. ef. 6-2-04; PUC 16-2004, f. & cert. ef. 12-1-04; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0045

Deposit Payment Arrangements for Residential Water Service

(1) When a water utility requires a deposit, the customer or applicant may pay the deposit in full or in three installments. Installments shall be one-third the deposit. The first installment is due immediately; the remaining installments are due 30 days and 60 days after the first installment payment.

(2) When an installment payment for a deposit or a deposit is made with a payment for water utility service, the amount paid shall first be applied toward payment of the amount due for deposit.

(3) A customer who is required to pay an additional deposit shall pay one-third of the total deposit within five days. The remainder of the deposit is due under the terms of section (1) of this rule. If the customer has an existing deposit installment agreement, the remaining installment payments will be adjusted to include the additional deposit; however, two installment payments cannot be required within the same 30-day period.

(4) If a customer is disconnected by the water utility for theft of service, the water utility may require the customer to pay a deposit in addition to any overdue charges on the customer's account and repair charges as explained in OAR 860-036-0250. This deposit may be paid in one payment or in two equal installments. The deposit or first deposit installment is due upon restoration of service and the second installment is due within 30 days of the restoration of service.

(5) When a customer enters into an installment agreement for payment of a deposit under section (1) of this rule, the water utility shall provide written notice explaining the deposit requirements. The notice shall specify the date each installment payment shall be due and shall include a statement printed in bold-face type informing the person that water service will be disconnected if payment is not received when due.

(6) If a customer or applicant fails to abide by the terms of a deposit installment agreement, the water utility may disconnect service after providing a written five-business-day disconnect notice. The notice shall comply with the requirements of OAR 860-036-0245.

(7) When good cause exists, the water utility may provide, or the Commission may require, more liberal arrangements for payment of deposits than those set forth in this rule. The water utility shall keep a written record of the reasons for such action.

(8) If disconnection for nonpayment of a deposit occurs, the customer or applicant disconnected shall pay the full amount of the outstanding deposit, any applicable reconnection fee, late-payment fee, and past due amount before service is restored. A customer may continue with an existing time-payment agreement by paying all past-due installments.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 18-2003, f. & cert. ef. 10-6-03

860-036-0050

Interest on Deposits for Residential and Nonresidential Service by Rate-Regulated Utilities

(1) Each year, the Commission will establish an annual interest rate that must be paid by rate-regulated water utilities on customer deposits. The Commission will base the rate upon consideration of the effective interest rate for new issues of one-year Treasury Bills issued during the last week of October, the interest rate on the most recent issuance of one-year Treasury Bills, or the effective interest rate for the average yield of Treasury Bills of the closest term issued during the last week of October. If one-year Treasury Bills have not been issued at such times, the Commission will use Treasury Bills of the closest term to one year that were issued. This interest rate, rounded to the nearest one-half of one percent,will apply to deposits held during January 1 through December 31 of the subsequent year. The Commission will advise all rate-regulated water utilities of the changes in the rate to be paid on customer deposits held as needed.

(2) Upon payment of a deposit, a water utility must provide the customer documentation showing the date, name of the customer or applicant, the service address, the amount of deposit, the interest rate, and an explanation of the conditions under which the deposit will be refunded.

(3) If the deposit is held beyond one year, accrued interest must be paid by a credit to the customer's account. If held less than one year, interest must be prorated. A water utility must keep a detailed record of each deposit received until the deposit is credited or refunded.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 16-2003, f. & cert. ef. 10-1-03; PUC 16-2004, f. & cert. ef. 12-1-04; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-1

860-036-0055

Refund of Water Utility Deposits for Residential and Nonresidential Service

(1) A water utility shall promptly refund a customer's deposit with accrued interest when service is terminated, provided a refund due shall first be applied to any unpaid balance on the customer's account.

(2) A water utility may continue holding a deposit until credit is satisfactorily established or reestablished. For purposes of this rule, credit is considered established or reestablished one year after a deposit is made if:

(a) The account is current;

(b) Not more than two five-day disconnection notices were issued to the customer during the previous 12 months; and

(c) The customer was not disconnected for nonpayment during the previous 12 months.

(3) After satisfactory credit has been established or reestablished, the deposit plus any accrued interest shall be promptly refunded or credited to the customer's account. A customer shall be entitled to a refund upon request.

(4) When the customer moves to a new address within the water utility's service area, the deposit and accrued interest will be transferred to the new account.

(5) Deposits plus accrued interest may be refunded or credited, in whole or in part, to the customer's account at any time earlier than prescribed in this rule, provided the water utility's procedures are nondiscriminatory.

(6) Unless otherwise specified by the customer, a water utility shall mail deposit refunds to the customer's last known address. The water utility will honor valid claims for payment of refunds if received within one year of the date service is terminated. Funds held beyond one year after the date service is terminated will be disposed of in accordance with ORS 98.316.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 98.316, 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98

860-036-0060

Installation of Water Service Connection

(1) The “service connection” consists of all necessary pipes, valves, equipment, and fittings necessary to make the connection between the water utility’s main line and the customer’s service line. A water utility must, with the exceptions listed below, furnish at its own expense all necessary trenching, construction, labor, equipment, pipes, valves and fittings necessary to complete the service connection. The water utility owns the water service connection and is required to operate, maintain, repair, and replace the service connection when needed.

(2) A water utility may require the customer to pay a reasonable, cost-based service connection charge to offset its expenses listed in section (1) of this rule. The service connection charge may not include the cost or installation of the meter, except when the cost has been approved for inclusion in the service connection charge and is included in the water utility’s tariffs or statement of rates, whichever is applicable. Service connection charges must be applied in a nondiscriminatory manner.

(3) The water utility and the customer must agree on the amount of the charge prior to actual installation. If an amount cannot be agreed upon, the customer may initiate a dispute resolution process.

(4) The water utility bears the burden of proof that the charge for the service connection is necessary, reasonable, and cost based.

(5) The customer must furnish and install the necessary parts and materials to make the connection from the customer's premises to the water utility's service connection. This line is the "customer service line." The customer owns the customer service line and must maintain, repair, and replace it as needed.

(6) A customer service line must extend to that point on the customer's property line of easiest access to the water utility from its distribution system, or requiring the least extension of the system. In any case, where a reasonable doubt exists as to the proper location for the customer service line, the water utility should be consulted and a location agreed upon. If agreement cannot be reached, the water utility and customer may pursue dispute resolution.

(7) All construction and installation of water service connections must comply with all applicable rules, regulations, codes, and best practices and standards of the water industry.

(8) The water utility must take reasonable steps to restore the surrounding area disturbed during utility construction or installation to its previous condition. The customer has the burden of demonstrating that steps taken by the water utility to restore the surrounding area were not reasonable.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2003, f. & cert. ef. 10-6-03; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0065

Installation of Main Line Extension

(1) A water utility must develop a uniform policy governing main line extensions and applicable charges.

(2) The main line extension policy and charges must be included in a utility’s tariff or statement of rates, whichever is applicable, and must be reasonable and cost based. Customers of public utilities may be required to pay a reasonable, cost-based charge consistent with the applicable tariff or statement of rates.

(3) Upon request by a customer or the Commission, the water utility must provide a written breakdown of all costs associated with the main line extension. The breakdown must include all materials and labor necessary for the construction and installation, and it must explain how the customer’s proportional cost was calculated.

(4) Each water utility must establish a main line extension policy that includes the following:

(a) Schedule of charges;

(b) Advance and refund provisions that describe the mechanism for collecting main line extension charges and rebating main line extension charges to customers that equitably distributes the cost of the main line extension among customers of the line who contributed to the payment of the cost of the line; and

(c) Time period during which advance and rebate provisions will be in effect.

(5) All main line extension policies must be applied uniformly among the water utility's customers.

(6) All construction and installation of main lines and extensions must comply with all applicable rules, regulations, codes, and best practices and standards of the water industry.

(7) The water utility must take reasonable steps to restore the surrounding area disturbed during utility construction or installation to its previous condition. The customer has the burden of demonstrating that steps taken by the water utility to restore the surrounding area were not reasonable.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0070

Temporary Service

A water utility may render temporary service to a customer and may require the customer to bear all the cost of installing and removing the service in excess of any salvage realized. The length of temporary service shall be specified in the applicable tariffs approved by the Commission or contained within the water utility's rules.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97

860-036-0075

Interruption of Service

(1) A water utility shall keep a record of any interruption of service affecting its whole system, or a major section thereof, including a statement of the time, duration, and cause of interruption.

(2) A water utility shall make all reasonable efforts to prevent interruptions of service. When such interruptions occur, the water utility shall endeavor to reestablish service with the shortest possible delay consistent with the safety of its customers and the general public.

(3) Each water utility shall make all reasonable efforts to notify every customer affected in advance of any scheduled work that will interrupt service, but such notice shall not be required in case of interruption due to emergency repairs or for repairs or maintenance work that results in an interruption of less than five minutes. All scheduled interruptions shall be made at a time causing minimum inconvenience to customers. In determining reasonable notice, the water utility shall consider the length of the planned interruption, the type and number of customers affected, the potential impact of the interruption on customers, and other surrounding circumstances. Notice may be given in writing, either via US mail or a door hanger on the affected premises, or by contact with the customer or an adult at the residence by personal visit or by telephone.

Stat. Auth.: ORS 183, 756, 757

Stats. Implemented: ORS 756.040

Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 16-2003, f. & cert. ef. 10-1-03; PUC 16-2004, f. & cert. ef. 12-1-04

860-036-0080

Refusal of Water Utility Service

(1) A water utility may refuse to provide service to a customer or applicant until it receives full payment of any overdue amount of an Oregon tariffed or price-listed charge and any other like obligation related to a prior account except as provided below:

(a) Except for residential customers or applicants who were disconnected for theft of service, a water utility shall provide service to a residential applicant upon receipt of payment equal to at least one-half of any overdue amount. The balance of the amount owed to the utility shall be paid within 30 days of the date service is initiated. Except for the last payment, installments shall be the greater of $30 or one-half the overdue amount.

(b) Upon failure to pay, the water utility may disconnect service after providing a written five-day notice. The notice shall contain the information and be served in the manner prescribed as provided in OAR 860-036-0245. When a customer whose service was terminated applies for service within 20 days of the termination, the provisions of this rule apply.

(2) If water service is disconnected for failure to comply with the payment terms set forth in section (1)(a) of this rule, the water utility may refuse to restore service until it receives full payment of any overdue obligation of an Oregon tariffed or price-listed charge and any other like obligation related to a prior account, including any reconnection fee, late payment fee, and past due bill.

(3) A water utility may refuse to provide service until payment is received when the following circumstances exist:

(a) A residential customer has incurred an overdue balance at a service address;

(b) A residential applicant for service resided at the service address described in subsection (1)(a) of this rule during the time the overdue balance was incurred; and

(c) The residential customer described in subsection (1)(a) of this rule will reside at the location to be served under the new application.

(4) Any water utility shall refuse to provide service if a customer or applicant has not complied with state and municipal codes and regulations governing service and with the rules and regulations of the water utility.

(5) A water utility shall refuse to serve a customer or applicant, if, in the best judgment of the water utility, the facilities of the customer or applicant are of such a character that safe and satisfactory service cannot be given.

(6) If service is refused, the water utility shall provide written notification within 10 working days to the customer or applicant of the reasons for refusal and of the Commission's complaint process. A copy of the notice shall also be sent to the Commission unless service was refused for nonpayment.

(7) A water utility shall not accept an application for service or materially change service to a customer if it does not have adequate facilities or water resources to render the service applied for, if the desired service is of a character that is likely to unfavorably affect service to other customers, or if it is prohibited by law from providing the service. If a water utility refuses service on the grounds of inadequate facilities or water resources, the water utility shall provide the customer or applicant with a written letter of refusal, a copy of which shall be sent to the Commission. The letter must:

(a) Provide the reason for the refusal;

(b) Inform the customer or applicant that he/she may request the details upon which the water utility's decision was based, including but not limited to current capacity and load measured in gallons or cubic feet per minute and pounds per square inch (psi);

(c) When capacity does not exist, provide the costs to provide capacity for the customer or applicant; and

(d) Inform the customer or applicant that he/she may challenge the water utility's refusal of service through the Commission's dispute resolution process pursuant to OAR 860-036-0025.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.035, 757.225
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 22-2002, f. & cert. ef. 9-9-02; PUC 18-2003, f. & cert. ef. 10-6-03; PUC 21-2003(Temp), f. & cert. ef. 11-14-03 thru 5-12-04; PUC 8-2004, f. & cert. ef. 4-9-04

860-036-0085

Restrictions on Entering a Customer Residence

No water utility employee shall enter the residence of a customer without proper authorization except in an emergency endangering life or property.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97

860-036-0095

Annual Fees Payable to the Commission by a Water Utility

(1) On statement forms prescribed by the Commission, each water utility must provide the requested information for the subject year.

(2) Each water utility must pay to the Commission:

(a) A minimum annual fee of $10. The annual fee is due on or before April 1 of the year after the calendar year on which the annual fee is based. The annual fee rate will not exceed 25 hundredths of one percent (0.25 percent) of the Oregon revenue during the prior calendar year.

(b) A late statement fee in accordance with OAR 860-001-0050, if the Commission has not received the utility's statement form, completed in compliance with section (1) of this rule, on or before 5 p.m. Pacific Time on the fifth business day following the due date.

(c) A penalty fee for failure to pay the full amount when due, as required under ORS 756.350.

(d) A service fee in accordance with OAR 860-001-0050 for each payment returned for non-sufficient funds.

(e) All costs incurred by the Commission to collect a past-due annual fee from the utility.

(3) The annual fee payment must be received by the Commission no later than 5 p.m. Pacific Time on the due date. A payment may be by cash, money order, bank draft, sight draft, cashier's check, certified, or personal check. A payment made by check will be conditionally accepted until the check is cleared by the bank on which it is drawn.

(4) For any year in which a water utility's statement form was due, the Commission may audit the utility as the Commission deems necessary and practicable:

(a) The Commission's audit must begin no later than three (3) years after the statement form's due date.

(b) If the Commission determines that the utility has underreported its subject revenues, the Commission may assess an additional annual fee, along with a penalty fee for failure to pay under ORS 756.350.

(c) If the Commission determines that the utility has overpaid its annual fee, the Commission may, at its discretion, recompense the utility with a refund or a credit against annual fees subsequently due.

Stat. Auth.: ORS 183 & 756
Stats. Implemented: ORS 756.310, 756.320 & 756.350
Hist.: PUC 11-1999, f. & cert. ef. 11-18-99; PUC 15-2003, f. & cert. ef. 7-24-03; PUC 20-2003, f. & cert. ef. 11-14-03; PUC 16-2004, f. & cert. ef. 12-1-04; PUC 18-2004, f. & cert. ef. 12-30-04

860-036-0097

Estimated Annual Fees Payable to the Commission by a Water Utility

(1) For any year in which a water utility fails to file a completed statement form, the Commission may determine a proposed annual fee based upon any information available to the Commission. The proposed annual fee must:

(a) Include a penalty fee for failure to pay as required by ORS 756.350;

(b) Include a late statement fee in accordance with OAR 860-001-0050; and

(c) Be made no later than three (3) years after the statement form's due date.

(2) The Commission will provide written notice of the proposed annual fee to the water utility.

(3) Within 30 calendar days after service of the notice of proposed annual fee, the water utility may file a petition with the Commission for a hearing. In its petition, the water utility must specify its reasons for disputing the proposed annual fee. The Commission may conduct a hearing on the petition under its rules governing hearings and proceedings.

(4) If the water utility has not filed a petition by the end of the 30-day period, the proposed annual fee is due and payable.

(5) During the 30-calendar-day period allowed for filing a petition, the water utility may file its completed statement form and pay the annual fee, penalties, and late statement fee. The Commission will accept the statement form, fees, and penalties in accordance with the original due date for that year's statement form and payment.

Stat. Auth.: ORS 183, 192, 756 & 757
Stats. Implemented: ORS 756.040, 756.310, 756.320 & 756.350
Hist.: PUC 15-2003, f. & cert. ef. 7-24-03; PUC 20-2003, f. & cert. ef. 11-14-03; PUC 16-2004, f. & cert. ef. 12-1-04; PUC 18-2004, f. & cert. ef. 12-30-04; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

 

Water Meters and Billing

860-036-0105

Use of Water Meters

(1) Unless otherwise authorized by the Commission, each water utility will own, maintain, and operate all equipment needed to regulate and measure water to its customers. When the water utility furnishes additional meters or relocates meters for the customer's convenience, the water utility may make a reasonable charge for such meters and installation.

(2) No water utility shall charge for furnishing, installing, or maintaining any meter or other appliance for measurement purposes except by the Commission's permission, or as provided in OARs 860-036-0060 and 860-036-0070.

(3) If the Commission determines that refunds are appropriate, the amount paid shall be refunded to the customer by allowing a credit of one-half of the monthly bill until the amount has been paid, provided such refund payments do not run for more than three years from the date when the refund began.

(4) No rental fee shall be charged by any water utility for any meter or appliance installed by the water utility and used as a basis for the rendering of bills, except when an additional meter or appliance is requested by the customer for his/her convenience.

(5) The water utility shall have the right to set meters or other devices for detecting and preventing fraud or waste, without notifying the customer.

(6) No water utility shall use prepayment meters except in special cases or for clearly defined special classes of service authorized by the Commission.

(7) If damage results to the meter from tampering or willful neglect by the customer, the water utility shall repair or replace the meter and may bill the customer for the reasonable cost.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.250
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2003, f. & cert. ef. 10-6-03

860-036-0110

Testing Water Meters

(1) All meters shall be tested before installation, or within 30 days thereafter. No meter will be placed in service or be allowed to remain in service that has an error in registration in excess of 2 percent under conditions of normal operation. The water utility may seek a waiver of this requirement under OAR 860-036-0001(1) if it can demonstrate to the satisfaction of the Commission a suitable random sampling technique for testing new meters.

(2) New meters, repaired meters, and meters that have been removed from service shall be correct to within 2 percent fast or slow before being installed or reinstalled.

(3) Each water utility shall adopt schedules for periodic tests and repairs of meters. The length of time meters may be allowed to remain in service before receiving periodic tests and repairs is to be determined from periodic analysis of the accuracy of meters tested. The schedules adopted shall be subject to the Commission's approval.

(4) Whenever any meter is tested, the water utility shall prepare a test record, including the information needed for identifying the meter, the reason for making the test, the reading of the meter, the result of the test, and all data taken at the time of the test in complete form to permit the convenient checking of methods employed. The water utility shall retain the current and immediately prior test records for all meters tested.

(5) Each water utility shall provide such laboratory meter-testing equipment and other equipment and facilities as needed to make the tests required of it by these rules or other orders of the Commission. The apparatus and equipment so provided may be subject to the Commission's approval.

(6) All meters used for measuring the quantity of water to a customer shall be in good working condition. They shall be adequate in size and design for the type of service measured and shall be accurate to register no more than 2 percent fast or slow under conditions of normal operation. The water utility is responsible for repairing or replacing inaccurate or substandard meters at its own cost. Any such repair or replacement will be completed promptly at the water utility's expense and, until such completion, the customer water service bill must be adjusted to compensate for the inaccuracy.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040 & 757.250
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 6-2011, f. & cert. ef. 9-14-11

860-036-0115

Customer Requested Meter Test

(1) Any customer may ask the water utility to test the water meter used to measure the customer's service. The water utility shall make such test within 20 working days of the request at no cost to the customer. If a customer requests more than one meter test within any 12-month period, the water utility may charge the customer to recover the reasonable cost of the test. The water utility may not charge the customer if the meter is found to register outside the 2 percent accepted tolerance standard under normal operating conditions.

(2) A customer or a designated representative shall have the right to be present at any meter test. The test shall be conducted at a mutually acceptable time during regular business hours.

(3) The water utility must provide a written report to the customer within 10 working days from the date the meter test showing the customer's name, the request date, the address where the meter is installed, the meter's identification number, the date tested, and the test result.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 16-2003, f. & cert. ef. 10-1-03; PUC 20-2003, f. & cert. ef. 11-14-03; PUC 16-2004, f. & cert. ef. 12-1-04

860-036-0120

Meter Readings and Bill Forms

(1) Every water utility providing metered service shall indicate clearly on the meter the units of service for which the charge is made to the customer, except when automatic meter reading systems preclude such facilities.

(2) All water service bills shall show the beginning and ending meter readings for the period the bills are rendered, the date of the meter readings, the number of units of service supplied clearly stated (gallons or cubic feet), the schedule number under which the bill was computed, and any other information needed to compute the bill. Each bill shall bear on its face the delinquent date of the bill and the water utility's telephone number. When there is good reason for so doing, estimated bills may be submitted. Any estimated reading shall be clearly designated as such on the bill.

(3) As a matter of general practice, all service meters shall, as nearly as possible, be read at monthly intervals on the corresponding day of each meter reading period. Meters may be read at other than monthly intervals, if the Commission is given notice and does not object to the water utility's meter reading proposal. The water utility shall provide each customer a written statement that explains the disadvantages of having the meter read and billed less often than monthly. If at any time the Commission determines that circumstances warrant, a water utility may be required to return to monthly meter reading.

(a) When access to a meter is difficult due to the meter location or other circumstance, the water utility shall seek the customer's cooperation in obtaining monthly meter readings (for example, having the customer complete and return a meter reading form). Any customer reading shall be subject to actual verification by the water utility not less than once every four months;

(b) Each customer shall provide the water utility with regular access to the meter on the customer's property. Failure to permit the water utility access at reasonable times and after reasonable written notice of requested access is grounds for disconnection.

(4) Upon written request by a customer, the water utility shall cause the meter reader, when the customer's meter is read, to leave on such meter or with such customer, a card showing the actual meter reading and the date and time such reading was made.

(5) Water utilities shall make reasonable efforts to prepare opening and closing bills from actual meter readings.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.250
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 7-2004, f. & cert. ef 4-9-04

860-036-0125

Due and Payable Period; Time-Payment Agreements for Residential Service

(1) Each water utility shall establish procedures to ensure that the period from the billing transmittal for all current charges, including payment of the final bill, to the due date is not less than 15 days. If the bill is delivered by US mail, the due and payable period begins the day after the US Postal Service postmark or the day after the date of postage metering.

(2) A water utility may not disconnect residential service for non-payment if a customer enters into a written time-payment plan. A water utility will offer customers a choice of payment agreements. At a minimum, the customer may choose between a levelized-payment plan and an equal-pay arrearage plan.

(3) A customer who selects a levelized-payment plan will pay a down payment equal to the average annual bill including the account balance, divided by 12, and a like payment each month for 11 months thereafter:

(a) The monthly installment plan shall be reviewed by the water utility periodically. If necessary, due to changing rates or variations in the amount of service used by the customer, the installment amount may be adjusted in order to bring the account into balance within the time period specified in the original agreement.

(b) If a customer changes service address at any time during the period of a time-payment agreement, provided that payments are then current and the customer pays other scheduled or tariffed charges associated with the change in residence, the water utility shall recalculate the customer's deposit or monthly installment. The recalculated amount shall reflect the balance of the account at the previous service address and the average annual bill at the new service address for the months remaining in the original time-payment agreement. When installments on a time-payment agreement have not been kept current, a customer shall be required to pay all past-due installments, together with any other applicable charges before service is provided at the new residence.

(4) A customer who selects an equal-pay arrearage plan will pay a down payment equal to 1/12 the amount owed for past water utility service (including the overdue amount and any amounts owed for a current bill or a bill being prepared but not yet delivered to the customer). Each month, for the next 11 months, an amount equal to the down payment will be added to, and payable with, the current charges due for water utility service. If a customer changes service address at any time during the period of an equal-pay arrearage plan, the plan continues. However, the customer must pay any past-due charges and all other applicable charges before the water utility provides service at the new address.

(5) The water utility and customer may agree in writing to an alternate payment arrangement, provided the water utility first informs the customer of the availability of the payment terms set forth in sections (3) and (4) of this rule.

(6) If a customer fails to abide by the time-payment agreement, the water utility may disconnect service after serving a 15-day disconnect notice. The notice shall comply with OAR 860-036-0245, except that subsection (5)(d) shall not be applicable. Such customers shall not be eligible for a renewal or renegotiation of a time-payment plan.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 16-2003, f. & cert. ef. 10-1-03; PUC 16-2004, f. & cert. ef. 12-1-04

860-036-0130

Late-Payment Charge

(1) Except as provided in section (2) of this rule, if a water utility’s late payment charge is included in its tariffs or statements of rates, the water utility may apply a late-payment charge to customer accounts not paid in full each month.

(2) The late-payment charge must be based on a monthly late-payment rate applied to only overdue account balances at the time of preparing the subsequent month's bill for residential accounts or by the bill due date for all other accounts. The late-payment charge may not be applied to time-payment or equal-payment accounts that are current.

(3) For rate-regulated water utilities, the Commission will determine the late-payment rate based on a survey of prevailing market rates for late-payment charges of commercial enterprises and will advise all rate-regulated water utilities of the changes in the rate they may use to determine late-payment charges on overdue customer accounts as needed.

(4) The current late-payment rate and the conditions for its application to customer accounts must be specified on the water utility bill.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 4-2001, f. & cert. ef 1-24-01; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0135

Adjustment of Bills

(1) When an underbilling or overbilling occurs, the water utility shall provide written notice to the customer detailing the circumstances, period of time, and amount of adjustment. If it can be shown that the error was due to an identifiable cause, and the date can be fixed, then the overcharge or undercharge shall be computed back to such date. If no date can be fixed, the water utility shall refund the overcharge or rebill the undercharge for no more than six months' usage. In no event shall an overbilling or under billing be for more than three years' usage.

(2) When a customer is required to repay an under billing, the customer shall be entitled to enter into a time-payment agreement without regard to whether the customer already participates in such an agreement. If the customer and water utility cannot agree upon payment terms, the Commission shall establish terms and conditions to govern the repayment obligation. The water utility shall provide written notice advising the customer of the opportunity to enter into a time-payment agreement and of the Commission's complaint process.

(3) No billing adjustment due to meter error shall be allowed if a water meter registers less than 2 percent error under conditions of normal operation.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.250
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00

860-036-0140

Transfer Billings

(1) If a water utility identifies a balance a customer owes the water utility from the customer's prior account for Oregon service, the water utility shall have the option to transfer the amount to the customer's current account. The water utility must give the customer prior notice of the transfer, including the amount due under the prior account, the period when the balance was incurred, and the service address under which the bill was incurred; or the water utility may send a separate notice to the customer giving the same information as included in the transfer, but collecting the amount due separately from the customer's current account. If the bill is identified when a customer changes residences, the provisions of this rule apply.

(2) If the customer has an amount remaining on an existing time-payment agreement, the customer may enter into a new time-payment agreement to include the transfer.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.225
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98

Disconnection of Water Service

860-036-0205

Grounds for Disconnecting Water Utility Service

Water utility service may be disconnected:

(1) For failure to establish credit by:

(a) Failing to pay a deposit or make payments in accordance with the terms of a deposit payment arrangement (OAR 860-036-0045); or

(b) Providing false identification or verification of identity.

(2) When facilities provided are unsafe or do not comply with state and municipal codes governing service or the water utility's rules and regulations; or

(3) When the customer does not cooperate in providing reasonable access to the meter (OAR 860-036-0120) or necessary inspections of the premises. Necessary in this context means required by law or to determine if a health or safety hazard exists.

(4) When a customer requests the water utility to disconnect service or close an account (OAR 860-036-0210) or when a co-customer fails to reapply for service within 20 days after a joint account is closed by the other co-customer, so long as the water utility has provided a notice of pending disconnection.

(5) When dangerous or emergency conditions exist at the service premises (OAR 860-036-0215).

(6) For failure to pay Oregon tariffed rates, or applicable statement of rate charges, due for services rendered.

(7) For meter-tampering, diverting service, or other theft of service.

(8) When the Commission approves the disconnection of service.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.035, 757.225, 757.760
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98

860-036-0210

Voluntary Disconnection

(1) A customer who wishes to have service discontinued will provide the water utility a five-business-day notice in advance of the requested date of discontinuance of service. Until the water utility receives such notice, the customer shall be held responsible for all service rendered.

(2) A water utility is not required to implement seasonal water service rates.

(3) Nonseasonal water service rates are calculated based on continuous service throughout a 12-month period. A water utility is entitled to charge monthly base rates to any customer requesting disconnection and reconnection of water service during the same 12-month period prior to reconnection.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 18-2003, f. & cert. ef. 10-6-03

860-036-0215

Emergency Disconnection

A water utility may terminate service in emergencies endangering life or property without following the procedures set forth in OAR 860-036-0245. However, the water utility shall immediately thereafter notify the customer and the Commission. In such cases, when the necessity for emergency termination was through no fault of the customer, the water utility will not make a charge to restore service.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.035
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98

860-036-0220

Disconnection of Service on Weekends and Holidays

Water utility service shall not be disconnected for non-emergencies on a weekend or a state- or water utility-recognized holiday. Water utility service shall not be disconnected for non-emergencies on a Friday or the day before a state- or water utility-recognized holiday unless mutually agreed upon by the customer, the water utility, and the Commission's Consumer Services Division.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.760
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97

860-036-0225

Accounts Not Related to Residential Service

A water utility may not deny or disconnect residential service due to the failure to pay for nonresidential service, or to meet obligations in connection with nonresidential service.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97

860-036-0230

Disconnection of Water Service to Tenants

(1) If a water utility's records show that a residential billing address is different from the service address, the water utility must provide a duplicate of the five-day disconnect notice required under OAR 860-036-0245 to the occupants of the service address in the manner described in 860-036-0245(2) unless the water utility has evidence that the service address is occupied by the customer. Serving a notice addressed to "Tenants," as required in 860-036-0245, satisfies this requirement. The notice to occupants need not include the dollar amount owing.

(2) When a water utility's records show that a residence is a master-metered multi-unit dwelling (including rooming houses), the water utility must notify the Commission's Consumer Services Division at least five business days before disconnecting the service. The water utility will use reasonable efforts to notify occupants of the impending disconnection and alternatives available to them.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.760
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0235

Multilingual Disconnection Notice

(1) Except as provided in section (2) of this rule, all disconnect notices shall contain the following information translated into Spanish, Vietnamese, Cambodian, Laotian, and Russian (translations are available from the Consumer Services Division):

IMPORTANT NOTICE: Your water services will be shut off because of an unpaid balance on your account. You must act immediately to avoid shut-off. Important information about how you can avoid shut-off is printed in English in the enclosed notice. If you cannot understand English, please find someone to translate the notice. If translation assistance is unavailable, please contact (name) at (phone number) who will try to help you. Information on customer's rights and responsibilities printed in this language is also available by calling that number. YOU MUST ACT NOW TO AVOID SHUT-OFF.

(2) The Commission may grant a waiver of the multilingual notice requirement under OAR 860-036-0001(1), for a period not to exceed two calendar years, if the water utility shows that

(a) for a water utility with less than 50,000 customers, less than 5 percent of its Oregon customers would benefit from such notice, or

(b) for a water utility with 50,000 or more customers, less than 500 of its Oregon customers would benefit from such notice. The water utility may request a waiver of the multilingual notice every two years.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 6-2011, f. & cert. ef. 9-14-11

860-036-0240

Reconnection Fee

When a water utility service is disconnected pursuant to OAR 860-036-0245 or 860-036-0250, the water utility may charge the reconnection fee in its tariff or in its statement of rates.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.225
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 18-2003, f. & cert. ef. 10-6-03

860-036-0245

Disconnection Procedures for All Customers of Water Utility Services

(1) Involuntary termination of water utility service for all customers shall be under the provisions of this rule.

(2) Notice Requirements:

(a) At least five business days before a water utility disconnects service, a written disconnect notice must be provided to the customer to be disconnected;

(b) Before a water utility disconnects service due to a customer's failure to abide by a time-payment agreement, the water utility will provide the customer with a written 15-business-day disconnect notice and a written five-business-day disconnect notice;

(c) The disconnection notice shall inform the customer that service will be disconnected on or after a specific date and shall explain the alternatives. The specified date must conform to OAR 860-036-0220, disconnection of service on Fridays, weekends and holidays.

(3) The water utility may serve the notice of disconnection in person or send it by first class mail to the last known addresses of the customer and the customer's designated representative. Service is complete on the date of mailing or personal delivery. If notification is made by delivery to the residence, the water utility shall attempt personal contact. If personal contact cannot be made with the customer or an adult resident, the water utility shall leave the notice in a conspicuous place at the residence.

(4) When a written notice is given under these rules:

(a) The notice shall conform to the requirements of OAR 860-036-0235 concerning multilingual requirements and service on any designated representative; and

(b) The notice shall conform to the requirements of OAR 860-036-0230 if the water utility's records show that the billing address is different than the service address or that the premises is a master-metered multi-unit dwelling. The notice may be addressed to "Tenant." The envelope shall bear a bold notice stating, "Important notice regarding disconnection of utility service," or words to that effect.

(5) The notice shall be printed in bold face type and shall state in easy to understand language:

(a) The reason for the proposed disconnection;

(b) The amount to be paid to avoid disconnection;

(c) The earliest date for disconnection;

(d) An explanation of the time-payment agreement provisions of OAR 860-036-0125; and

(e) An explanation of the Commission's dispute resolution process and toll-free number.

(6) A notice of disconnection may not be sent prior to the due date for payment of a bill.

(7) At least five-business-days before the proposed disconnection date, the water utility must mail or deliver a written disconnection notice to the customer.

(8) A fee in an amount approved by the Commission may be charged whenever a water utility is required to visit a residential service address in order to serve a disconnection notice.

(9) On the day that the water utility expects to disconnect service and prior to disconnection, the water utility must make a good faith effort to personally contact the customer or an adult at the residence to be disconnected.

(a) If the contact is made, the water utility shall advise the person of the proposed disconnection; or

(b) If contact is not made, the water utility must leave a notice in a conspicuous place at the residence informing the customer that service has been, or is about to be, disconnected.

(10) Where personal contact is made by a water utility under this rule, and the circumstances are such that a reasonable person would conclude that the customer does not understand the consequences of disconnection, the water utility must:

(a) Notify the Department of Human Services and the Commission; and

(b) Delay the proposed disconnection date for five additional business days.

(11) When personal contact is made by the water utility under this rule, the representative of the water utility making contact shall be authorized to accept reasonable partial payment of the overdue balance in accordance with the time-payment provisions.

(12) A water utility must document its efforts to provide notice under this rule and shall make that documentation available to the customer and the Commission upon request.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.750, 757.755
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 18-2003, f. & cert. ef. 10-6-03

860-036-0250

Unapproved Diversion of Irrigation Water by Tampering with or Damaging Water Utility Equipment

(1) A customer may not tamper with or damage water utility equipment in order to divert irrigation water flow without written permission of the water utility.

(2) If the water utility's equipment is tampered with or damaged by a customer, it may take any of the following actions:

(a) Replace or repair the equipment and require the customer to reimburse the water utility for the actual reasonable cost to replace or repair.

(b) Require the customer to pay a reconnection fee in compliance with OAR 860-036-0240.

(c) Require the customer pay a deposit up to $250 for the restoration of irrigation service. The payment of this deposit will be made in compliance with OAR 860-036-0045(4) and OAR 860-036-0055(4).

(d) For repeat offenses, require the customer to pay an additional deposit of $250. Notwithstanding the requirements of OAR 860-036-0045, no installment payment plan will be available to the customer to restore services. Such additional deposits must be made immediately at the time irrigation service is restored.

(e) Refuse irrigation service to the customer pursuant to OAR 860-036-0080.

Stat. Auth.: ORS 183, 756 &ORS 757
Stats. Implemented: ORS 756.040, 757.105, 7757.120, 7757.125, 7757.135
Hist.: PUC 9-2003, f. & cert. ef. 5-15-03

Service Quality

860-036-0301

Quality of Water Service

(1) No water utility shall purposely or willfully provide substandard service or inadequate service where the water utility has the capacity to provide adequate service as determined by the Commission.

(2) The Commission may impose additional requirements notwithstanding that the water utility meets the standards set forth in OAR Division 036.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.020, & 757.250
Hist.: PUC 22-2001(Temp), f. & cert. ef. 9-26-01 thru 3-24-02; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0305

Maintenance and Repair of Plant and Equipment

(1) A water utility shall have and maintain its entire plant and system in such condition that it will furnish safe, adequate, and reasonably continuous service.

(2) A water utility shall inspect its plant, distribution system, and facilities in such manner and with such frequency as necessary to ensure a reasonably complete knowledge about the condition and adequacy of the entire system at all times.

(3) A water utility will keep maintenance and repair records consistent with the Commission's Guide for the Preservation of Records for Public Water Utilities, except when the Commission specifies a more complete record.

(4) A water utility shall flush dead end mains or other low flow portions of the distribution system as needed or at reasonable intervals to eliminate or minimize complaints from customers or applicants arising from an objectionable condition of water. A water utility must:

(a) Provide prior notification to the customers of all routine (nonemergency) flushings. The notice must include:

(A) The date, time, and approximate duration of the flushings; and

(B) A statement cautioning customers to avoid using water during flushing to prevent debris in the customers' service lines.

(b) Keep a record of the date, place, time, and duration of all routine and emergency flushings.

(5) A water utility shall inspect, exercise, and maintain valves and hydrants as necessary to ensure they are operable. A water utility shall keep records of all inspections, maintenance, repairs, and exercise of each valve and hydrant.

(6) A water utility shall make repairs and perform maintenance to its water system in a timely manner to prevent future damage to the water system; to reduce wear and tear on equipment and water plant; and to minimize customers' inconvenience, loss of water flow, low water pressure, or inadequate service.

(7) A water utility shall communicate with the customer(s) or person(s) reporting service problems, informing the customer(s) or person(s) of:

(a) The source or suspected source of the service problem;

(b) The expected date and time of the repair;

(c) The length of time the repair is expected to take; and

(d) The effect the repairs may have on the customer's service.

(8) All customers whose service is or may be affected by the service problemwill be notified by the water utility in the same manner as stated in section (7) of this rule.

(9) The water utility shall make repairs in a timely manner. In case of a dispute, the Commission will determine the reasonable amount of time necessary to make the repair. If the water utility repair is determined to have taken longer than reasonably necessary, the water utility shall provide affected customers with service credits according to OAR 860-036-0330.

(10) The water utility will restore the surrounding area disturbed during utility repairs, maintenance, construction, or installation to its previous or better condition. The customer has the burden of demonstrating that the area has not been restored to its previous or better condition.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.020
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 22-2001(Temp), f. & cert. ef. 9-26-01 thru 3-24-02; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2003, f. & cert. ef. 10-6-03

860-036-0310

Purity of Water Supply for Domestic Purposes

(1) A water utility delivering water for domestic purposes shall furnish a supply that shall at all times be free from bodily injurious physical elements and disease-producing bacteria. A water utility shall make such tests and take precautions as will ensure the constant purity of its water supply. A water utility shall keep a record of all such tests and reports.

(2) A water utility delivering water for domestic purposes shall furnish a supply that shall be reasonably free from elements that cause physical damage to customer's or applicant's property including but not limited to pipes, valves, appliances, and personal property. A water supply that causes such damage must be remedied within a reasonable time unless the conditions are such as to not reasonably justify the necessary investment. The water utility shall bear the burden of demonstrating that remedying the condition is not reasonably justified.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.005, 757.020
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order 74-307); PUC 13-1997, f. & cert. ef. 11-12-97; Renumbered from 860-023-0060; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0315

Adequate Water Pressure Required

(1) The standard for all water pressure is adequacy as determined by the Commission.

(2) As used in this rule, "customer" means an individual residential dwelling or commercial unit served by the water utility.

(3) Except as provided in section (7) of this rule, each water utility shall maintain pressure at a minimum of 20 pounds per square inch (psi) for health reasons to each customer at all times and not exceed a maximum of 125 psi. The 20 psi and 125 psi standards are not presumed to be adequate service and do not restrict the authority of the Commission to require improvements where water pressure or flow is inadequate.

(4) In general, 40 psi of water pressure in the water mains is usually adequate for the purposes of this rule. Adequate pressure may vary depending on each individual water system and its customers' circumstances. In the case of a dispute, the Commission will determine the appropriate water pressure for the water utility.

(5) Each water utility shall maintain pressure recording gauges in good operating condition, test periodically for accuracy, and replace when necessary.

(6) The Commission, either upon its own motion or upon customer complaints may investigate the operations and capacity of the water utility to provide adequate service. When necessary, the Commission may appoint a competent person or entity to monitor a water utility's water pressure at various points throughout the system and test the water utility's recording or measuring devices for accuracy.

(7) Each water utility may temporarily reduce or increase water pressure for fire flows, announced scheduled repairs, emergency repairs, and outages.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.005, 757.020, 757.250
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order 74-307); PUC 13-1997, f. & cert. ef. 11-12-97; Renumbered from 860-023-0065; PUC 22-2001(Temp), f. & cert. ef. 9-26-01 thru 3-24-02; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0320

Pressure Surveys

(1) Every water utility shall have permanently-placed pressure gauges located at various locations on main lines and/or distribution lines that are representative of the entire system's water pressures. A portable gauge in good working condition shall be available for checking pressure conditions in any part of the distribution area.

(2) Any customer may request the water utility to perform a water pressure test. Such test shall be made within 20 working days of the request at no cost to the customer. If a customer requests more than one pressure test within any 12-month period, a deposit to recover the reasonable cost of the additional test may be required of the customer. The deposit shall be returned if the pressure is not considered adequate according to OAR 860-036-0315.

(3) A customer or a designated representative shall have the right to be present at the water pressure test. The test shall be conducted at a mutually agreeable time during regular business hours.

(4) Pressure tests shall be performed as follows:

(a) For metered service, the pressure will be measured at a point adjacent to the meter on the customer service line.

(b) For non-metered service, the pressure will be measured at the customer service line or hose bibb or other reasonable point likely to best reflect the actual service pressure.

(5) The water utility shall provide a written report to the customer within 10 working days after completion of the pressure test showing the name of the customer, the date of the request, the address where tested, the actual test site(s), the date of the test, and the result of the test.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.005, 757.020, 757.250
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order 74-307); PUC 13-1997, f. & cert. ef. 11-12-97; Renumbered from 860-023-0070; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0325

Water Supply

(1) Every water utility shall exercise due diligence to furnish a continuous and adequate supply of water to its customers.

(2) If a water utility finds that it is necessary to conserve or restrict the customers' use of water, it must provide written notice to its customers and the Commission before such restriction becomes effective. Such notifications shall specify:

(a) The reason for the restriction;

(b) The nature and extent of the restriction, for example, on outdoor use of water, use by certain classes of customers, etc.;

(c) The date such restriction is to go into effect; and

(d) The probable date of termination of such restriction.

(3) The Commission may formally or informally investigate the water utility's conservation or water restriction plan either on its own motion or by customer complaint. During or after such investigation, the Commission may change or alter the water utility's water conservation or restriction plan as it deems necessary.

(4) During times of water shortage, the water utility shall equitably apportion its available water supply among its customers with due regard to public health and safety.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0335

Maps and Records

(1) A water utility shall keep on file current maps and records of the entire plant showing size, location, character, and date of installation of major plant items, including but not limited to main lines, distribution lines, pressure release valves, and shut-off valves.

(2) Upon request, a water utility shall file with the Commission maps as described above in section (1) of this rule. All maps and records filed with the Commission shall be in a form satisfactory to the Commission.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.020
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0340

Master Plan

A water utility that is required to develop and submit a master plan to the Oregon Health Division pursuant to OAR 333-061-0060(5) shall also submit a copy of such plan to the Commission. All amendments, changes, or updates to the plan shall also be provided to the Commission within a reasonable time period.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97

860-036-0345

Location of Underground Facilities

A water utility and its customers shall comply with requirements of OAR chapter 952 regarding the prevention of damage to underground facilities.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.542 - 757.562
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 12-1999, f. & cert. ef. 11-18-99; PUC 23-2001, f. & cert. ef. 10-11-01

860-036-0350

Construction, Safety, and Reporting Standards for Water Utilities

If a water utility engages in the management, operation, ownership, or control of gas pipelines or communication, signal, or electrical supply lines within Oregon, the water utility shall comply with the construction, safety, and reporting standards set forth in OAR chapter 860, division 024.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.020, 757.035, 757.039
Hist.: PUC 23-2001, f. & cert. ef. 10-11-01

860-036-0360

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, 759
Stats. Implemented: ORS 756.040, 757.270 - 757.290, 759.650 - 757.675
Hist.: PUC 23-2001, f. & cert. ef. 10-11-01

860-036-0365

Compliance Enforcement by Commission Appointment of Regent(s) to Operate and Manage a Water System

(1) In extreme circumstances when the water utility owner, operator, or representative demonstrates to the Commission's satisfaction an unwillingness or incapacity or refusal to effectively operate and manage the water system to provide safe and adequate service to its customers in compliance with Oregon statutes, rules, and standards, the Commission may appoint a regent(s) to operate and manage the water system. This procedure will be accomplished under an Interim Operating Agreement until long-term water provision can be ensured.

(2) The regent(s) appointed to operate, maintain, and repair the system must be a certified operator(s) or a qualified water utility(ies).

(3) The appointment of the regent(s) may also include responsibility for billing and collection, customer service, and administration of the system.

(4) If the Commission authorizes an operating account for receiving and dispersing funds by the regent(s), a Commission staff member will be a signator on such account to monitor all transactions.

(5) The regent will record all transactions in a general ledger and shall supply a copy of the ledger and bank statement to Commission staff member each month.

(6) At the end of the Interim Operating Agreement, Commission staff will make a final accounting of all monies received and transacted. Disbursement of surplus funds will be determined by the Commission.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040, 757.105, 757.120, 757.125, 757.135
Hist.: PUC 9-2003, f. & cert. ef. 5-15-03

860-036-0370

Expenditure of Fees Collected Under ORS 756.310 to Make Emergency Repairs

(1) The Commission may use up to $5,000 per biennium of the fees collected under ORS 756.310 to make emergency repairs for water utilities. The Commission may expend monies under the provisions of this rule if the Commission determines that:

(a) Customers of a utility are without service and are likely to remain without service for an unreasonable period of time;

(b) The utility is unwilling or unable to make emergency repairs, or cannot be found after reasonable effort; and

(c) Restoration of the service is necessary for the health and safety of the customers of the utility.

(2) The Commission shall promptly attempt to recover fees used under this rule from the utility providing water service. No interest shall accrue on the outstanding balance.

(3) The Commission may also recover penalties as provided in ORS 756.350 from the time the fees are expended.

Stat. Auth.: ORS 183, 756 & Ch. 202, OL 2003
Stats. Implemented: ORS 756.040 & Ch. 202, OL 2003
Hist.: PUC 24-2003(Temp), f. & cert. ef. 12-10-03 thur 6-7-04; PUC 7-2004, f. & cert. ef 4-9-04

860-036-0380

Commission-Assessed Civil Penalties for Noncompliance

(1) In addition to any other penalty provided by law, the Commission may impose a civil penalty not to exceed $500 for each violation of state statutes, Oregon administrative rules, or Commission orders related to water utilities.

(2) Prior to assessing civil penalties, the Commission may send a warning letter to the water utility by registered or certified mail. The warning letter must include, but not be limited to, the following:

(a) A statement that the water utility is in violation of state statutes, Oregon administrative rules, or Commission orders;

(b) The time allowed for correcting the violation(s); and

(c) A statement that, if the violations are not corrected within the time allowed, staff may make a recommendation to the Commission to assess civil penalties.

(3) The Commission must give notice of civil penalties by registered or certified mail to the water utility incurring the penalties. The notice must include, but is not limited to the following:

(a) The section of the statute, rule, or order violated;

(b) A concise statement of the violation(s) asserted or charged;

(c) A statement of the amount of civil penalties that may be assessed;

(d) A statement of the water utility's right to request a hearing within 20 calendar days of the date of service of the notice; and

(e) A statement of the authority and jurisdiction under which the hearing is to be held.

(4) Within 20 calendar days of the date of service of the notice, the water utility incurring the penalties may request a hearing. Such request must be in writing and shall state what actions, if any, have been made to correct the violation(s) stated in the notice. If the water utility does not request a hearing within the time allowed, or if the water utility requesting a hearing fails to appear, the Commission may issue a final order imposing the penalty.

(5) The Commission may require that penalties imposed under this rule be used for the benefit of the customers of water utilities affected by the violation(s).

Stat. Auth.: ORS 183, 756 & Ch. 202, OL 2003
Stats. Implemented: ORS 183.090, 756.040 & Ch. 202, OL 2003
Hist.: PUC 24-2003(Temp), f. & cert. ef. 12-10-03 thur 6-7-04; PUC 7-2004, f. & cert. ef 4-9-04

Changes in Regulatory Status

860-036-0405

Notice of Customer's Right to Petition for Full Rate Regulation

(1) At least 60 calendar days before a water utility serving less than 500 customers increases its rates or charges to a level that exceeds a threshold level established in OAR 860-036-0030, it must provide a written notice to all customers. The notice will inform the customers of the water utility’s proposed changes in its rates and charges and the customers’ right to file a petition with the Commission to initiate rate regulation of the water utility. At a minimum, the notice must include the following information:

(a) The date;

(b) The name, address, and telephone number of the water utility;

(c) A statement that the water utility intends to increase its water rates and charges;

(d) The current rates and charges to customers;

(e) The proposed rates and charges to customers;

(f) The date the proposed rates and charges are to become effective (minimum of 60 calendar days);

(g) The reasons the water utility is seeking the change in rates and charges;

(h) A statement informing customers of their right to petition the Commission to request rate regulation;

(i) A statement that all customers may submit petitions to the Commission for 45 calendar days from the date of the customer notice;

(j) A statement informing customers that if 20 percent or more of total customers file petitions, the water utility will be subject to rate regulation by the Commission;

(k) A statement that customer petitions should state the purpose for the petition and include each customer's name, address, and signature;

(l) A statement that customer petitions filed with the Commission requesting rate regulation may not be withdrawn or rescinded;

(m) A statement that the water utility must provide a complete customer list within 10 days of a request from any customer; and

(n) The Commission's toll-free telephone number and addresses shown in OAR 860-036-0025.

(2) At the same time the water utility sends notice to its customers, it must provide the Commission with a copy of the customer notice and a complete, current customer list including names and addresses.

Stat. Auth.: ORS 183, 757, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 14-1989, f. & cert. ef. 11-3-89 (Order No. 89-1464; PUC 13-1997, f. & cert. ef. 11-12-97; Renumbered from 860-022-0028; PUC 8-1999, f. & cert. ef. 10-18-99; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2003, f. & cert. ef. 10-6-03; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0410

Relating to Rate Regulation of Water Utility by Customer Petition

(1) As used in this section, "customer" means individual residential dwelling or commercial unit served by the water utility. Hotels, motels, and recreational vehicle (RV) parks shall be deemed one commercial customer, except those individuals who use such facilities as a primary residence shall also be counted as customers.

(2) Once a water utility has exceeded a threshold level, as defined in OAR 860-036-0030, and if the Commission did not receive a petition from 20 percent or more of the customers, the customers may submit a petition to the Commission at any time for full rate regulation. Petitioners must be current customers of the water utility. Such petitions are in effect for six months. Petitions older than six months must be resubmitted to the Commission.

(3) Petitions must be in writing, state the purpose of the petition, and include the customer's name, address, telephone number, and signature.

(4) Individual customer letters may be submitted in lieu of a petition.

(5) If 20 percent of customers petition the Commission, the water utility will be notified by the Commission, in writing, of its change in status to a rate-regulated water utility.

(6) The water utility must file appropriate tariffs pursuant to ORS 757.205 within 60 days after receiving notification from the Commission of its change in regulatory status.

(7) If the water utility fails to file appropriate tariffs within 60 days, the Commission may initiate a tariff filing proceeding on its own motion to establish rates.

(8) Customer petitions filed with the Commission requesting rate regulation of a water utility may not be withdrawn or rescinded.

(9) Existing nonpetitioned rates and charges will be deemed interim rates and may be subject to refund during the pendency of the tariff filing application. The period of refund will begin on the date of the notice requiring a tariff filing sent by the Commission, unless the date the water utility began serving 500 customers can be reasonably determined, and end on the issuance date of the Commission order establishing new rates. Refunds may be limited to those charges and fees, or a portion thereof, paid by customers determined by the Commission to be unreasonable, excessive, or not justified by the water utility's cost. At the discretion of the Commission, any such refund may include interest.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2003, f. & cert. ef. 10-6-03; PUC 7-2004, f. & cert. ef 4-9-04

860-036-0412

Request for Rate Regulation of an Association by Members

(1) For purposes of this rule, "association" means any association of individuals that furnishes water to members of the association, even if the association does not furnish water directly to or for the public. This rule does not apply to any cooperative formed under ORS Chapter 62 or to any public body as defined by ORS 174.109.

(2) Association members may submit a petition to the Commission at any time for regulation of a water system owned, operated, managed, or controlled by an association. Petitioners must be current members of the water association.

(3) Petitions must be in writing, state the purpose of the petition, and include the member's name, address, telephone number, and signature.

(4) The Commission will consider individual letters submitted by association members, which meet the criteria of subsection (3), as petitions for the purposes of calculating the 20 percent requirement.

(5) If 20 percent of association members petition the Commission, the Commission must issue an order notifying the association of its change in regulatory status to a regulated water utility.

(6) If required by the regulatory change, the association must file tariffs pursuant to ORS 757.205 within 60 days after receiving notification from the Commission of its change in regulatory status.

(7) If the association fails to file appropriate tariffs within 60 days, the Commission may initiate a tariff filing proceeding on its own motion to establish rates.

(8) Petitions filed with the Commission may not be withdrawn or rescinded and are valid for six months.

Stat. Auth.: ORS 183, 756 & Ch. 202, OL 2003
Stats. Implemented: ORS 756.040 & Ch. 202, OL 2003
Hist.: PUC 24-2003(Temp), f. & cert. ef. 12-10-03 thur 6-7-04; PUC 7-2004, f. & cert. ef 4-9-04

860-036-0415

Relating to Rate Regulation of Water Company by Customer Count

(1) As used in this section, "customer" means individual residential dwelling or commercial unit served by the water utility. Hotels, motels, and RV parks shall be counted as one commercial customer, except those individuals who use such facilities as a primary residence shall also be counted as customers. Multiple user units such as, but not limited to, apartment complexes, duplexes, triplexes, condominiums, and town houses shall be counted as the number of individual units within the building. For example, a duplex shall be counted as two customers and a 14-unit apartment complex shall be counted as 14 customers.

(2) The Commission may require a customer count as specified in this section from any water utility.

(3) If the Commission determines a water utility has a customer count of over 500 customers, it shall notify the water utility in writing of its change in regulatory status and require the water company to file tariffs with the Commission within 60 days pursuant to ORS 757.205.

(4) If the water utility fails to file appropriate tariffs within 60 days of notification, the Commission may initiate a tariff filing proceeding to establish rates for the water utility.

(5) Existing rates and charges will be deemed interim rates subject to refund during the pendency of the rate filing application. Refund may be limited to those charges and fees paid by customers determined by the Commission to be unreasonable, excessive, or not justified by the water utility's costs. At the discretion of the Commission, any such refund may include interest. The period of refund will begin on the date of the notice requiring a tariff filing sent by Commission staff, unless the date the water utility began serving 500 customers can be reasonably determined, and end on the issuance date of the Commission order establishing new rates.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0420

Request for Rate Regulation by a Water Utility

(1) Any water utility serving fewer than 500 customers may, at any time, file a petition with the Commission for full rate regulation of the water utility.

(2) When the water utility files the petition with the Commission requesting rate regulation, the water utility must also provide written notification to its customers. The water utility must provide the Commission with a copy of the notice. At a minimum, the notice must include the following information:

(a) Name, address, and telephone number of the water utility;

(b) Purpose of the notice;

(c) The reason(s) the water utility is seeking rate regulation;

(d) The Commission's toll-free telephone number, TTY number, and its mailing and location addresses. The information is available on the Commission website or by calling the Commission; and

(e) A statement informing customers that ORS 757.061 was amended in 2003 to allow water utilities to petition the Commission for rate regulation.

(3) Within 30 days after the water utility files its petition requesting rate regulation, the Commission must issue an order notifying the water utility of its change in regulatory status to a rate-regulated water utility.

(4) Within 60 days after the Commission notifies the water utility of its change in regulatory status, the water utility must file appropriate tariffs pursuant to ORS 757.205.

Stat. Auth.: ORS 183, 756 & Ch. 082, OL 2003
Stats. Implemented: ORS 756.040 & Ch. 202, OL 2003
Hist.: PUC 24-2003(Temp), f. & cert. ef. 12-10-03 thur 6-7-04; PUC 7-2004, f. & cert. ef 4-9-04

860-036-0425

Removal of Rate Regulation

(1) When a regulated water utility is reorganized into a municipality or quasi-municipal entity or association through the sale, merger, or transfer of the water system or the transfer of the water utility’s customers, the regulated water utility no longer meets the definition of a public utility per ORS 757.005. The Commission’s regulation and jurisdiction must be removed by Commission order. If the regulated water utility is reorganized into an association, association members retain their right to petition for rate regulation at any time per ORS 757.063 and OAR 860-036-0412.

(2) A potential buyer of a rate-regulated water utility serving fewer than 500 customers may petition the Commission to have rate regulation, but not service regulation, removed upon the close of the buyer’s purchase of the water utility if:

(a) The rate-regulated water utility is currently operating under a Commission-appointed regent; or

(b) A court has ordered the sale of the rate-regulated water system per a complaint filed in court by the Oregon Health Authority Drinking Water Program.

(3) If the Commission grants removal of rate regulation per section (2) of this rule, customers retain their right to petition for rate regulation per ORS 757.061.

Stat. Auth.: ORS Ch. 183 & 757
Stats. Implemented: ORS 757.005, 757.061 & 757.063
Hist.: PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

 

New Water Utilities

860-036-0505

Relating to New Water Utilities

(1) This rule applies to newly constructed water utilities that have not previously offered water service to the public during the past 12 months. This rule does not apply to remodeled, renamed, new additions to, or new ownership of, existing water supply systems.

(2) A new water utility may initially establish a monthly residential rate exceeding the threshold level established in OAR 860-036-0030 if it notifies each customer in writing at the time of connection, or earlier, of the customer's right to petition the Commission for rate regulation. The notice must comply with OAR 860-036-0405. All subsequent rate increases must comply with the requirements of OAR 860-036-0405.

(3) If the Commission receives petitions from 20 percent or more of the new water utility's customers requesting rate regulation, OAR 860-036-0410 applies.

(4) Customer count is calculated per OAR 860-036-0415. The 20 percent calculation of customers will be based upon the total number of customers existing in the month the Commission receives the petition. Petitions will carry over month to month and will be cumulative. Petitioners need not file petitions monthly in order to be counted for any particular month.

(5) Petitions are valid for six months, after which they must be resubmitted to the Commission.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.205
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 7-2004, f. & cert. ef 4-9-04; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

 

Tariffs

860-036-0605

Tariff Specifications

(1) This rule applies to rate-regulated water utilities.

(2) Form, requirements, and style of tariffs:

(a) A separate tariff must be filed for each service provided;

(b) All tariffs, including rates and rules and regulations, must be typed, single-sided on 8-1/2 inch by 11 inch pages so that changes can be made by reprinting and inserting a single page. If a tariff cannot fit on one page, use additional pages. Blank forms will be furnished by the Commission upon request;

(c) Each water utility must designate the initial tariff as PUC Oregon No. 1, and designate successive tariffs with the next number in consecutive numerical order;

(d) 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.;

(e) The tariffs must include a uniform title page and table of contents;

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

(g) Water utilities must file with the Commission an original of each tariff, rate schedule, revision, or supplement. The advice letter accompanying the tariffs must bear the signature of the issuing officer or water utility representative. Tariffs do not require a signature.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040 & 757.205
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2004, f. & cert. ef. 12-30-04; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0610

Tariff Contents

(1) This rule applies to rate-regulated water utilities.

(2) Tariffs must explicitly state the rates and charges for each type of service rendered, designating the area or district to which they apply.

(3) Water utility rules and regulations that in any manner affect the rates charged or to be charged or that define the extent or character of the service to be given must be included with each tariff filing.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.205
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0615

Tariff Changes Require 30-Calendar Day Notice to the Commission

(1) This rule applies to rate-regulated water utilities.

(2) Except as provided in OAR 860-036-0616, a water utility must file with the Commission all tariffs, rate schedules, revisions, or supplements containing any change in rates, charges, or rules and regulations at least 30 calendar days before the effective date of the changes. The Commission will reject tariffs or schedules not conforming to the rules in this Division.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040, 757.007 & 757.220
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2004, f. & cert. ef. 12-30-04; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0616

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

(1) This rule applies to rate-regulated water utilities.

(2) A water utility seeking authority to make tariffs or rate schedules effective on less than statutory notice must use a Commission approved application form. The application form is available upon request.

Stat. Auth.: ORS Ch. 183 & 757
Stats. Implemented: ORS 757.220
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 18-2004, f. & cert. ef. 12-30-04; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12, Renumbered from 860-036-0625

860-036-0620

Announcement to Customers of Tariff Changes

(1) This rule applies to rate-regulated water utilities as defined in ORS 757.005 and 757.061.

(2) Within 15 days of filing new or revised tariff schedules with the Commission that constitute a general rate revision, a water utility shall inform its customers of the filing. A "general rate revision" is a filing by a water utility that affects all or most of the water utility's rate schedules. "General rate revision" does not include changes in an automatic adjustment clause under ORS 757.210(1) or similar changes in one rate schedule, such as for an amortization, that affect other rate schedules.

(3) A water utility filing a general rate revision shall inform its customers of its filing by:

(a) Insertion of a display announcement, not less than a three column standard advertising unit (SAU) by 10 inch advertisement, at least once in a newspaper of general circulation in the communities served by the water utility; or

(b) An announcement inserted in the water utility's regular billing to its customers; or

(c) An announcement mailed to each customer.

(4) At a minimum, the announcement must include the following information:

(a) The approximate current and proposed average monthly rate for each customer class expressed in dollar terms;

(b) A brief statement of the reasons why the change is sought;

(c) Notification that copies of the water utility's application, testimony, and exhibits are available at its main office;

(d) The mailing address and telephone number customers may use to contact the water utility to receive additional information about the filing;

(e) The water utility's office mailing address and office telephone number;

(f) The Commission's toll-free telephone number (1-800-522-2404; TTY 711) and mailing address (PUBLIC UTILITY COMMISSION OF OREGON, ADMINISTRATIVE HEARINGS DIVISION, P.O. BOX 2148, SALEM OR 97308-2148) where customers may request to receive notice of the time and place of any hearing on the matter;

(g) A statement that the purpose of the announcement is to provide customers with general information regarding the water utility's proposed tariffs and the effect the tariff filing may have on the customers; and

(h) A statement that "the calculations and statements contained in the water utility's announcement and filing are not binding on the Commission."

(5) At least seven business days prior to sending the announcement to the customers, the water utility must provide the Commission with a draft copy of the announcement referred to in sections (2), (3), and (4) of this rule.

(6) Within 20 days of issuance of the announcement, the water utility shall file an affidavit with the Commission that notice has been given and include a copy of the announcement .

(7) The Commission may waive the requirements of this rule upon a showing by the water utility that the announcement 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 water utility.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2003, f. & cert. ef. 10-6-03

860-036-0625 [Renumbered to 860-036-0616]

860-036-0630

Requirements for Filing Tariffs or Schedules Changing Rates

This rule applies to rate-regulated water utilities as defined in ORS 757.005 and 757.061.

(1) A water utility may make tariff changes by filing an entirely new tariff or by filing revised sheets that shall refer to the sheets of the tariffs currently on file with the Commission. Additions to the tariff on file may be made by filing additional sheets.

(2) Each water 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 existing rates, charges, 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
Stats. Implemented: ORS 756.040, 757.205
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0635

Requirements for Filing Tariffs or Schedules Increasing Rates

This rule applies to rate-regulated water utilities as defined in ORS 757.005 and 757.061:

(1) Each water utility filing tariffs or schedules that increase rates must submit, in addition to requirements of OAR 860-036-0630, the following information:

(a) For each separate schedule, the total number of customers affected, the total annual revenue derived under the existing schedule, and the amount of estimated annual revenue the water utility expects to derive from the application of the proposed schedule;

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

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

(2) Additional information may be required to be filed either prior to acceptance by the Commission of the tendered filing or at any stage in the proceeding.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.205
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0640

Tariff Changes Effective with Service Rendered

(1) This rule applies to rate-regulated water utilities.

(2) All tariff changes must be made applicable with “service rendered” on and after the effective date of the changes, unless otherwise ordered by the Commission. As used in this rule, service rendered means units of water consumed, basic service provided, or likewise as the context requires.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.007, 757.220
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0645

Notice to Interested Persons of Tariffs Filed Under ORS 757.205

(1) This rule applies to rate-regulated water utilities as defined in ORS 757.005 and 757.061.

(2) This rule applies to any tariff filing that is filed under ORS 757.205.

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

(4) The Commission must notify all persons on the notice list referred to in section (3) of this rule of any applicable tariff filing. The notice will be given within ten days of any tariff filing under section (2) of this rule that complies with OAR 860-036-0605 through 860-036-0635.

(5) The notice must include the following information:

(a) Name of the filing water utility;

(b) Subject;

(c) Filing date;

(d) Effective date;

(e) Date of the Commission's public meeting when the tariff will be considered; and

(f) Customer classes affected.

(6) The Commission may periodically delete names of persons from the notice list who do not demonstrate a continued interest in receiving the notices set forth in section (3) of this rule. No person's name may be deleted from the list without 20 days' notice before deletion.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040 & 757.230
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2004, f. & cert. ef. 12-30-04

Financial Transactions

860-036-0705

Form and Filing of Applications

(1) This rule applies to rate-regulated water utilities.

(2) The Commission will furnish to applicants information from the records on file to assist in a full presentation of material facts required by OAR 860-036-0710 to 860-036-0735.

(3) When any document required to be filed under these rules has already been filed with the Commission, it is sufficient if the application makes reference to the filing and the capacity in which it was filed.

(4) Where the words "none" or "not applicable" truly and completely state the fact, they should be used in answering the requirement of any particular section of this rule.

(5) The Commission may require additional information when it appears to be pertinent in a particular case.

(6) Whenever these rules require the filing of financial statements, they must be prepared as of the latest date available. The Income Statement must be for the most recent 12-month period.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 756.105
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0708

Approval Requirements for the Termination of Water Service, Abandonment, or Disposal of a Water Utility

(1) In this rule, the term "water utility" refers to any water utility regardless of whether it is currently under Commission jurisdiction, authority, or regulation.

(2) All water utilities must apply to and obtain approval from the Commission before terminating, abandoning, or disposing of a water system. The water utility must submit a letter requesting Commission approval of the specific action it is seeking. At a minimum, the letter must include:

(a) The date;

(b) The name, address, and telephone number of the water utility;

(c) A statement indicating the action for which the applicant is seeking approval of the Commission;

(d) The reasons for the abandonment, termination, or disposal;

(e) The proposed effective date of the abandonment, termination, or disposal;

(f) A description of the customers' alternative water service options and estimated, average customer cost for each option;

(g) The contact information for each affected customer. At a minimum, the list will include each customer's name, mailing address, and service address (if different); and

(h) Any other pertinent information.

(3) The water utility must provide each customer with a notice regarding its filing with the Commission. The notice must be delivered within seven calendar days of the date the water utility files its application with the Commission.

(a) At a minimum, the notice must include the information required in section (2) of this rule and the Commission’s Consumer Services Section's toll-free telephone number and addresses as shown in OAR 860-036-0025.

(b) The water utility may deliver the notice by personal contact at the premises or by US Mail. If the notice is delivered by to the premises, the water utility must attempt personal contact with the customer or an adult resident at the premises. If personal contact cannot be made, the water utility must leave the notice in a conspicuous place at the premises and mail a copy of the notice to the last known mailing addresses of the customer and the customer’s designated representative.

(c) If the water utility's records show that the billing address is different from the service address or that the premises is a master-metered multi-unit dwelling, the notice may be addressed to "Tenant." The envelope must bear a bold notice stating, "Important notice regarding water utility service," or words to that effect.

(d) If notice is delivered by US Mail, the notice must be delivered to the customer's last known address. Notice is effective on the day after the date of the US postal service postmark or postage metering.

Stat. Auth.: ORS Ch. 183 & 756
Stats. Implemented: ORS 756.040
Hist.: PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0710

Notice and Approval Requirements Relating to the Sale, Transfer, or Merger of a Water Utility

(1) Any rate-regulated water utility seeking to sell, transfer, or merge must apply to and obtain approval of the transaction from the Commission prior to such transaction. Application requirements are found in OAR 860-036-0715.

(2) All water utilities must provide notice of a proposed sale, transfer, or merger to their customers and a copy to the Commission no less than 60 calendar days prior to the closing date of the transaction. The notice must include the following information:

(a) The name, address, and telephone number of the water utility;

(b) The purpose of notice;

(c) The proposed closing date of the transaction;

(d) The proposed effective date of sale (minimum of 60 calendar days);

(e) The name, address, and telephone number of potential buyer;

(f) The reasons for sale;

(g) The effect of sale upon customers; and

(h) The Commission's Consumer Services Section toll-free telephone number and addresses as shown in OAR 860-036-0025.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.480
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2003, f. & cert. ef. 10-6-03; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0715

Applications for Authority to Sell, Lease, Assign, Mortgage, Merge, Consolidate, or Encumber its Property, or to Acquire Stock, Bonds, or Property of Another Public Utility

(1) Requirements of this rule apply to rate-regulated water utilities seeking authority under ORS 757.480 and 757.485. Every applicant must, at a minimum, use the application form available from the Commission and provide all required information. At its discretion, the Commission may require further information.

(2) If the owner of the water utility or water utility property to be sold fails to file the application form with the Commission, the purchaser may file the application form.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.480, 757.485
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0716

Acquisition Adjustments

(1) A rate-regulated water utility may petition the Commission for approval of an acquisition adjustment in rates for acquiring a water system when the benefits of the acquisition outweigh the increase to customers' rates resulting from an acquisition adjustment.

(2) The Commission will consider the merits of the utility's petition based on the benefit to the customers being acquired and the public interest on a case-by-case basis.

(3) The approval and determination of an acquisition adjustment is at the sole discretion of the Commission.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040, 757.105, 757.120, 757.125, 757.135
Hist.: PUC 9-2003, f. & cert. ef. 5-15-03

860-036-0720

Application by a Water Utility for Authority to Issue Stocks, Bonds, Notes, or Other Securities

Application by a Water Utility for Authority to Issue Stocks, Bonds, Notes, or Other Securities:

(1) This rule applies to rate-regulated water utilities seeking authority under ORS 757.495, 757.405 to 757.435 inclusive, 757.445, and 757.450. Every applicant shall set forth in this application to the Commission, in the manner and form and in the order indicated, the following information:

(a) The applicant's exact name and the address of its principal business office;

(b) The state in which incorporated, the date of incorporation, and the other states in which authorized to transact water utility business;

(c) The name and address of the person authorized, on behalf of applicant, to receive notices and communications in respect to the application;

(d) The names, titles, and addresses of the principal officers of the applicant;

(e) A description of the general character of the business done and to be done, and a designation of the territories served. A map showing the territories served is desirable;

(f) A statement, as of the date of the balance sheet submitted with the application, showing for each class and series of capital stock: brief description; amount authorized (face value and number of shares); amount outstanding (exclusive of any amount held in the treasury), held amount as reacquired securities; amount pledged by applicant; amount owned by affiliated interests, and amount held in any fund;

(g) A statement, as of the date of the balance sheet submitted with the application, showing for each class and series of long-term debt or notes: brief description (amount, interest rate and maturity); amount authorized; amount outstanding (exclusive of any amount held in the treasury); amount held as reacquired securities; amount pledged by applicant; amount held by affiliated interests; and amount in sinking and other funds;

(h) A full description of the securities proposed to be issued, showing: kind and nature of securities or liabilities; amount (face value and number of shares); interest or dividend rate, if any; date of issue and date of maturity; and voting privileges, if any;

(i) A reasonably detailed and precise description of the proposed transaction, including a statement of the reasons why it is desired to consummate the transaction and the anticipated effect thereof. If the transaction is part of a general program, describe the program and its relation to the proposed transaction. Such description shall include, but is not limited to, the following:

(A) A description of the proposed method of issuing and selling the securities;

(B) A statement of whether such securities are to be issued pro rata to existing holders of the applicant's securities or issued pursuant to any preemptive right or in connection with any liquidation or reorganization;

(C) A statement showing why it is in applicant's interest to issue securities in the manner proposed and the reason(s) why it selected the proposed method of sale; and

(D) A statement that exemption from the competitive bidding requirements of any federal or other state regulatory body has or has not been requested or obtained, and a copy of the action taken thereon when available.

(j) The name and address of any person receiving or entitled to a fee for service (other than attorneys, accountants, and similar technical services) in connection with the negotiation or consummation of the issuance or sale of securities, or for services in securing underwriters, sellers, or purchasers of securities, other than fees included in any competitive bid; the amount of each such fee, and facts showing the necessity for the services and that the fee does not exceed the customary fee for such services in arm's-length transactions and is reasonable in the light of the cost of rendering the service and any other relevant factors;

(k) A statement showing both in total amount and per unit the price to the public, underwriting commissions and net proceeds to the applicant. Supply also the information (estimated if necessary) required in section (4) of this rule. If the securities are to be issued directly for property, then a full description of the property to be acquired, its location, its original cost (if known) by accounts, with the identification of the person from whom the property is to be acquired, must be furnished. If original cost is not known, an estimate of original cost based, to the extent possible, upon records or data of the seller and applicant or their predecessors must be furnished, with a full explanation of how such estimate has been made, and a description and statement of the present custody of all existing pertinent data and records. A statement showing the cost of all additions and betterments and retirements, from the date of the original cost, should also be furnished;

(l) The purposes for which the securities are to be issued. Specific information will be submitted with each filing for the issuance of bonds, stocks, or securities:

(A) Construction, completion, extension, or improvement of facilities. A description of such facilities and the cost thereof;

(B) Reimbursement of the applicant's treasury for expenditures against which securities have not been issued. A statement giving a general description of such expenditures, the amounts and accounts to which charged, the associated credits, if any, and the periods during which the expenditures were made;

(C) Refunding or discharging of obligations. A description of the obligations to be refunded or discharged, including the character, principal amounts discount or premium applicable thereto, date of issue and date of maturity, purposes to which the proceeds were applied and all other material facts concerning such obligations; and

(D) Improvement or maintenance of service. A description of the type of expenditure and the estimated cost in reasonable detail;

(m) A statement as to whether or not any application, registration statement, etc., with respect to the transaction or any part thereof, is required to be filed with any federal or other state regulatory body;

(n) The facts relied upon by the applicant to show that the issue:

(A) Is for some lawful object within the corporate purposes of the applicant;

(B) Is compatible with the public interest;

(C) Is necessary or appropriate for or consistent with the proper performance by the applicant of service as a water utility;

(D) Will not impair its ability to perform that service;

(E) Is reasonably necessary or appropriate for such purposes; and

(F) If filed under ORS 757.495, is fair, reasonable, and not contrary to the public interest;

(o) A brief statement of all rights to be a corporation, franchises, permits, and contracts for consolidation, merger, or lease included as assets of the applicant or any predecessor thereof; the amounts actually paid as consideration therefore, respectively; and the facts relied upon to show the issuance of the securities for which approval is requested will not result in the capitalization of the right to be a corporation or of any franchise, permit, or contract for consolidation, merger, or lease in excess of the amount (exclusive of any tax or annual charge) actually paid as the consideration for such right, franchise, permit, or contract; and

(p) If filed under ORS 757.490 or 757.495:

(A) Provide a statement describing the relationship between the water utility and the affiliated interest as defined in ORS 757.015 or 757.490:

(i) Set forth the amount, kind, and ratio to total voting securities held, if applicable;

(ii) List all officers and directors of the affiliated interest who are also officers and/or directors of the applicant; and

(iii) State the pecuniary interest of any officer or director in compliance with ORS 757.490(1).

(B) State the reasons, in detail, relied upon by the water utility for entering into the proposed transaction and the benefits, if any, the customers of the water utility and the general public will derive from the transaction.

(2) Required Exhibits. There shall be filed with the application as part thereof the following exhibits:

(a) EXHIBIT A. A copy of the applicant's charter or articles of incorporation with amendments to date;

(b) EXHIBIT B. A copy of the bylaws with amendments to date;

(c) EXHIBIT C. A copy of each resolution of directors authorizing the issue in respect to which the application is made and, if approval of stockholders has been obtained, copies of the stockholder resolutions should also be furnished;

(d) EXHIBIT D. A copy of the mortgage, indenture, or other agreement under which it is proposed to issue the securities, and a copy of any mortgage, indenture, or other agreement securing other funded obligations of the applicant;

(e) EXHIBIT E. Copies of balance sheets showing booked amounts, adjustments to record the proposed transaction and pro forma, with supporting fixed capital or plant schedules in conformity with the form in the annual report that the applicant is required to file with the Commission;

(f) EXHIBIT F. A statement of all known contingent liabilities, except minor items such as damage claims and similar items involving relatively small amounts, as of the date of the application;

(g) EXHIBIT G. Copies of comparative income statements showing recorded results of operations, adjustments to record the proposed transaction and pro forma in conformity with the form in the annual report that the applicant is required to file with the Commission;

(h) EXHIBIT H. A copy of an analysis of surplus for the period covered by the income statements referred to in Exhibit G;

(i) EXHIBIT I. A copy of the registration statement proper, if any, and financial exhibits made a part thereof, filed with the Securities and Exchange Commission;

(j) EXHIBIT J. A copy of the proposed and of the published invitation of proposals for the purchase of underwriting of the securities to be issued; of each proposal received; and of each contract, underwriting, and other arrangement entered into for the sale or marketing of the securities. When a contract or underwriting is not in final form so as to permit filing, a preliminary draft or a summary identifying parties thereto and setting forth the principal terms thereof, may be filed pending filing of the conformed copy in the form executed by final amendment to the application;

(k) EXHIBIT K. Copies of the stock certificates, notes, or other evidences of indebtedness proposed to be issued;

(l) An application for a water utility to loan its funds to an affiliated interest, in addition to Exhibits A through K, shall also include the following:

(A) EXHIBIT L. Copies of all proposed or existing contracts or agreements entered into by the parties to the transaction;

(B) EXHIBIT M. The amount of money the applicant desires to loan to the affiliated interest, terms of said loan, rate of interest, method of repayment, security given, if any, and if said loan is to be an open account or evidenced by a promissory note; and

(C) EXHIBIT N. The use to which funds derived from this loan are to be put by the affiliated interest; and

(m) An application for a water utility to give credit on its books or otherwise by:

(A) Advancing cash through an open or loan account, in addition to EXHIBITS A through K, shall also include the following:

(i) EXHIBIT L. Copies of all proposed or existing contracts or agreements entered into by the parties to the transaction;

(ii) EXHIBIT M. The amount of cash the applicant proposes to receive, the rate of interest it will pay, and the date and method of repayment; and

(iii) EXHIBIT N. A definite statement of purpose for which the advance will be used.

(B) Payments by the affiliated interest of amounts owed, in addition to EXHIBITS A through K, shall include the following:

(i) EXHIBIT L. Copies of all proposed or existing contracts or agreements entered into by the parties to the transaction; and

(ii) EXHIBIT M. The amount that the affiliated interest proposes to pay on the water utility's behalf, with a description of the obligation, how the funds will be used, and how incurred.

(C) Credits or open accounts a water utility proposes to give to an affiliated interest, in addition to EXHIBITS A through K, shall include the following:

(i) EXHIBIT L. Copies of all proposed or existing contracts or agreements entered into by the parties to the transaction; and

(ii) EXHIBIT M. The amount and a description of each item for which the water utility proposes to give credit through its loan or open account.

(3) The following form of application may be filed by all water utilities with annual revenues of less than $100,000 seeking authority to issue promissory notes maturing more than one year after date of issue or renewal and unsecured notes on motor vehicles in the principal amount of less than $10,000. In the instances when this provision is proper, the requirements of sections (1) and (2) of this rule do not apply. The Commission may require compliance with sections (1) and (2) of this rule if the Commission deems it necessary in a particular case. [Form not included. See ED. NOTE.]

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

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 756.105, 757.405 - 757.450, 757.495
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0725

Applications for Authority to Guarantee Indebtedness

(1) The requirements of this rule apply to rate-regulated water utilities seeking authority under ORS 757.440. Every applicant shall set forth in its application to the Commission, in the manner and form indicated, the following information that should, to the extent possible, be furnished for each person, firm, or corporation involved:

(a) The information required by OAR 860-036-0720(1)(a) to (g) inclusive;

(b) A full description of the securities for which applicant proposes to assume obligation or liability as guarantor, endorser, surety, or otherwise;

(c) The amount of other securities of said person, firm, or corporation now held, owned, or controlled by the applicant;

(d) A statement as to whether or not any application, with respect to the transaction or any part thereof, is required to be filed with any federal or other state regulatory body;

(e) The reasons, in detail, why it is in applicant's interest to guarantee such securities;

(f) The reasons, in detail, why it is necessary for applicant to guarantee such securities; and

(g) The facts relied upon by the applicant to show the assumption is:

(A) For some lawful object within the applicant's corporate purposes and compatible with the public interest;

(B) Necessary or appropriate for or consistent with the applicant's proper performance of service as a water utility;

(C) Will not impair its ability to perform that service; and

(D) Reasonably necessary or required for such purposes.

(2) Required Exhibits. There shall be filed with the application as part thereof the following exhibits:

(a) EXHIBIT A. A copy of the applicant's charter or articles of incorporation with amendments to date;

(b) EXHIBIT B. A copy of the bylaws with amendments to date;

(c) EXHIBIT C. Copies of all resolutions of directors authorizing the assumption in respect to which the application is made and, if stockholders' approval has been obtained, a copy of the stockholders' resolution should also be furnished;

(d) EXHIBIT D. A copy of any mortgage, indenture, or other agreement securing any security that it proposes to guarantee; also, a copy of any mortgage, indenture, or other agreement securing applicant's funded obligations;

(e) EXHIBIT E. Balance sheets with supporting fixed capital or plant schedules in conformity with the form set forth in the annual report that applicant is required to file with the Commission;

(f) EXHIBIT F. A statement of all known contingent liabilities, except minor items such as damage claims and similar items involving relatively small amounts at the date of the application;

(g) EXHIBIT G. Comparative income statements in conformity with the form set forth in the annual report that applicant is required to file with the Commission;

(h) EXHIBIT H. An analysis of surplus for the period covered by the income statements referred to in Exhibit G; and

(i) EXHIBIT I. A statement showing the present market value or other basis of determining the value of the securities to be guaranteed.

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

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.440
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0730

Applications for Approval of Transactions Between Affiliated Interests

(1) Except as provided in section (3) of this rule, this rule applies to all rate-regulated water utilities seeking authority under ORS 757.490 and 757.495. An application for financing to an affiliated interest shall be made under OAR 860-036-0720.

(2) Every applicant shall set forth in its application to the Commission, in the manner and form indicated, the following information:

(a) The applicant's exact name and the address of its principal business office;

(b) The name and address of the person authorized, on the water utility's behalf, to receive notices, inquiries, and communications regarding the information;

(c) A statement describing the relationship between the water utility and the contracting entity as defined by ORS 757.015 and 757.490;

(d) The amount, kind, and ratio to total voting securities held, if applicable;

(e) A list of all officers and directors of the affiliated interest who are also officers or directors of the applicant;

(f) The pecuniary interest, directly or indirectly, of any officer or director who is a party to the contract;

(g) A description of the goods or services to be provided, the cost incurred in providing each of the goods or services, the market value of the goods or services if different from the costs, and the method or methods proposed for pricing those goods or services;

(h) An estimate of the amount the water utility will pay annually for the goods or services and the accounts in which it will record the charges;

(i) The reasons, in detail, relied upon by the water utility for procuring the proposed goods or services from the affiliate and benefits, if any, utility customers and the general public will derive from the provision of goods or services;

(j) A description of the procurement process and the reasons, in pertinent detail appropriate to the complexity of the procurement, relied upon by the water utility for procuring the proposed goods or services without a competitive procurement process, if such a process is not used;

(k) Transfer prices in contracts or agreements for the procurement of goods or services under competitive procurement shall be presumed to be the market value, subject to evaluation of the procurement process;

(l) A copy of the proposed contract or agreement between the water utility and the contracting entity; and

(m) Copies of all resolutions of directors authorizing the proposed transactions and, if stockholders' approval has been obtained, copies of the resolutions approved by the stockholders.

(3) This rule shall not apply to water utilities seeking to purchase or contracting to purchase, directly or indirectly, from any person or corporation having an affiliated interest as defined in ORS 757.015 or any corporation defined in ORS 757.490(1):

(a) Any service provided under a rate or schedule of rates filed with the Commission under ORS 757.210; or

(b) Any service provided under a rate or schedule of rates that:

(A) Has been filed with an agency charged with the regulation of utilities;

(B) Has been approved as just and reasonable or in compliance with another comparable standard; and

(C) Is available to a broad class of customers.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.005 - 757.495
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0735

Information Required for Water Utility Goods or Services Provided to Affiliated Interests

(1) Except as provided in section (4) of this rule, this rule applies to rate-regulated water utilities seeking to provide, or contracting to provide, directly or indirectly, to any person or corporation having an affiliated interest as defined in ORS 757.015 or any corporation defined in ORS 757.490(1), service, advice, auditing, accounting, sponsoring, engineering, managing, operating, financing, legal, or other services, or entering revenues or credits therefore on its books. This rule does not apply to transactions subject to ORS 757.490 or 757.495 and OAR 860-036-0030.

(2) A water utility's failure to submit this required information shall not limit the Commission's authority to recognize or impute revenues to the water utility pursuant to such contract in any rate valuation or other hearing or proceeding.

(3) For transactions provided in section (1) of this rule, every rate-regulated water utility shall submit to the Commission, in the manner and form indicated, the following information:

(a) Its exact name and the address of its principal business office;

(b) The name of the person authorized on the water utility's behalf to receive notices, inquiries, and communications regarding the information;

(c) A statement describing the relationship between the water utility and the other contracting entity as defined by ORS 757.015 or ORS 757.490;

(d) The pecuniary interest, directly or indirectly, of any officer or director who is a party to the contract;

(e) A description of the goods or services to be provided, the costs incurred in providing those goods or services, the market value of the goods or services if different from the costs, and the method or methods proposed for pricing those goods or services;

(f) An estimate of the amount the water utility will receive annually for the goods or services and the accounts in which it will record the payments;

(g) The reasons relied upon by the water utility for providing the proposed goods or services and the benefits, if any, water utility customers and the general public will derive from the provision of goods or services;

(h) A copy of the contract or agreement between the water utility and the contracting entity that is the subject of this filing; and

(i) Copies of all resolutions of directors of the water utility authorizing the proposed transactions and, if approval of the water utility's stockholders was obtained, copies of the resolutions approved by the stockholders.

(4) This rule shall not apply to water utilities seeking to provide or contracting to provide, directly or indirectly, to any person or corporation having an affiliated interest as defined in ORS 757.015 or any corporation defined in ORS 757.490(1):

(a) Any service provided under a rate or schedule of rates filed with the Commission under ORS 757.210; or

(b) Any service provided under a rate or schedule of rates that:

(A) Has been filed with an agency charged with the regulation of water utilities;

(B) Has been approved as just and reasonable or in compliance with another comparable standard; and

(C) Is available to a broad class of customers.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.005 - 757.490
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0737

Timeliness of Applications Made Under OAR 860-036-0730 and Filings Made Under OAR 860-036-0735

(1) This rule applies to rate-regulated water utilities.

(2) An application made under OAR 860-036-0730 and a filing made under OAR 860-036-0735 must occur no later than 90 calendar days after the execution of the contract giving rise to the application or filing. The contract is deemed to be executed on the date the parties sign a written contract or on the date the parties begin to transact business under the contract, whichever date is earlier.

Stat. Auth.: ORS 183, 756
Stats. Implemented: ORS 756.040
Hist.: PUC 3-1999, f. & cert. ef. 8-10-99; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0738

Applications for Waiver of Requirements Under OARs 860-036-0730 and 860-036-0735

The Commission will not waive the requirements of OARs 860-036-0730 or 860-036-0735 for any transactions exceeding 01 percent of the previous calendar year’s Oregon utility operating revenues unless the transaction or transactions can be demonstrated in advance to be fair and reasonable and not contrary to the public interest.

Stat. Auth.: ORS 183 & 756
Stats. Implemented: ORS 756.040
Hist.: PUC 3-1999, f. & cert. ef. 8-10-99; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 6-2011, f. & cert. ef. 9-14-11

860-036-0739

Allocation of Costs by a Water Utility

(1) This rule applies to rate-regulated water utilities.

(2) As used in this rule:

(a) "Affiliate" means a corporation or person who has an affiliated interest, as defined in ORS 757.015, with a water utility;

(b) "Affiliate transaction" means a transfer of assets, a sale of supplies, or a sale of services between accounts for regulated activities of a water utility and accounts for nonregulated activities of a separate entity that is either an affiliated interest or another company in which the water utility owns a controlling interest. The term also means a transfer of assets, a sale of supplies, or a sale of services between accounts for the regulated and nonregulated activities of a single water utility;

(c) "Asset" means any tangible or intangible property of a water utility or other right, entitlement, business opportunity, or other thing of value to which a water utility holds claim that is recorded or should be recorded as a capital expenditure in the water utility's financial statements. All water utility tangible or intangible property, rights, entitlements, business opportunities and things of value should be considered assets, services, or supplies;

(d) "Cost" means fully distributed cost, including the water utility's authorized rate of return and all overheads;

(e) "Fair market value" means the potential sales price that could be obtained by selling an asset in an arm's-length transaction to a nonaffiliated entity, as determined by commonly accepted valuation principles;

(f) "Market rate" means the lowest price that is available from nonaffiliated suppliers for comparable services or supplies;

(g) "Net book value" means original cost less accumulated depreciation;

(h) "Nonregulated activity" means an activity that is not a regulated activity of the water utility as defined in subsection (1)(i) of this rule;

(i) "Regulated activity" means a Commission regulated activity that is provided by a water utility directly or indirectly relating to the general operations of the water utility such as production, transmission, delivery, or furnishing of water unless the Commission has determined the activity to be exempt from regulation;

(j) "Services" means labor-related activities including, but not limited to advice, auditing, accounting, sponsoring, engineering, managing, operating, financing, and legal. All water utility tangible or intangible property, rights, entitlements, business opportunities, and things of value should be considered assets, services, or supplies; and

(k) "Supplies" means any tangible or intangible property of a water utility or other thing of value to which a water utility holds claim that is recorded or should be recorded as an operating expense in the water utility's financial statements. All water utility tangible or intangible property, rights, entitlements, business opportunities, and things of value should be considered assets, services, or supplies.

(3) For purposes of this rule, regulated and nonregulated activities of a water utility must be accounted for per the Uniform System of Accounts for Water Utilities published by the National Association of Regulatory Utility Commissioners as modified by the Commission.

(4) When a water utility is conducting an affiliate interest transaction, as defined in this rule, the water utility must use the following cost allocation methods:

(a) When an asset is transferred to a water utility from an affiliate, the transfer must be recorded in the water utility's accounts at the lower of net book value or fair market value;

(b) When an asset is transferred from a water utility to an affiliate, the transfer must be recorded in the water utility's accounts at the tariff rate if an appropriate tariff is on file with the Commission. If no tariff is applicable, proceeds from the transfer shall be recorded in the water utility's accounts at the higher of net book value or fair market value;

(c) When an asset is transferred from a water utility to an affiliate at a fair market value that is greater than net book value, the difference is considered a gain to the water utility. The water utility must record the gain so the Commission can determine the proper disposition of the gain in a subsequent rate proceeding.

(d) When services or supplies are sold by a water utility to an affiliate, sales must be recorded in the water utility's accounts at rates per the tariff, if an applicable tariff is on file with the Commission. Rates per the tariff must be established whenever possible. If services or supplies are not sold per a tariff, sales must be recorded in the water utility's accounts at the water utility's cost or the market rate, whichever is higher.

(e) When services or supplies are sold to a water utility by an affiliate, sales must be recorded in the water utility's accounts at the affiliate's cost or the market rate, whichever is lower. The affiliate's cost must be calculated using the water utility's most recently authorized rate of return.

(f) Income taxes must be calculated for the water utility on a standalone basis for both ratemaking purposes and regulatory reporting. When income taxes are determined on a consolidated basis, the water utility shall record income tax expense as if it were determined for the water utility separately for all time periods.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040, 757.490 & 757.495
Hist.: PUC 7-2004, f. & cert. ef 4-9-04; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

 

Special Contracts

860-036-0740

Special Contracts

(1) This rule applies to rate-regulated water utilities.

(2) Special contracts with certain customers prescribing and providing rates, services, and practices not covered by or permitted in the utility’s general tariffs, schedules, and rules are in legal effect tariffs and are subject to supervision, regulation, and control as such.

(3) All special contracts designating service to be furnished at rates other than those shown in tariffs currently on file with the Commission must be classified as rate schedules. True and certified copies must be filed subject to review and approval per OAR 860-036-0605 through 860-036-0645.

(4) A special contract must be filed with the Commission not less than 30 calendar days prior to the proposed effective date of the contract and become effective according to its terms the thirty-first day from the date of its filing unless earlier approved, suspended, or rejected by the Commission.

(5) Each special contract filed with the Commission must be accompanied by documentation necessary to show that the terms are fair, just, and reasonable to the remaining customers, including but not limited to:

(a) A statement summarizing the basis of the terms of the contract and an explanation of the deviation from the tariffs on file;

(b) An explanation of all cost computations involved; and

(c) A statement indicating the basis for use of a contract rather than a filed tariff for the specific service involved.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.007
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

 

Fees, Taxes, and Other Assessments

860-036-0745

Relating to City Fees, Taxes, and Other Assessments

(1) This rule applies to rate-regulated water utilities.

(2) The aggregate amount of all business or occupation taxes, licenses, franchise or operating permit fees, or other similar exactions imposed upon water 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 3.5 percent, applied to gross revenues as defined herein, is allowed as operating expenses of such water utilities for rate-making purposes and must not be itemized or billed separately.

(3) Except as otherwise provided, "gross revenues" means revenues received from water utility operations within the city less related net uncollectibles. Gross revenues do 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 water utility purchasing the service is not the ultimate customer.

(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 water utility services or use of facilities provided on November 6, 1967, to a city without charge, will not be considered in computing the percentage levels established in this rule. These services may be continued within the same category or type of use. The value of any additional category of water utility service or use of facilities provided after November 6, 1967, to a city without charge is considered in computing the percentage levels established in this rule.

(5) This rule does not affect franchises existing on November 6, 1967, granted by a city. Payments made or value of service rendered by a water utility under such franchises will not be itemized or billed separately. When compensation different from the percentage levels in section (2) of this rule is specified in a franchise existing on November 6, 1967, the compensation continues to be treated by the affected water utility as an operating expense during the balance of the term of such franchise. Any tax, fee, or other exaction in section (2) 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, must be charged pro rata to local users.

(6) Except as provided in section (5) of this rule, to the extent any city tax, fee, or other exaction referred to in section (2) of this rule exceeds the percentage levels allowable as operating expenses in section (2) of this rule, the excess amount must be charged pro rata to water utility customers within said city and must be separately stated on the regular billings to the customers.

(7) The percentage levels in section (2) of this rule may be changed if the Commission determines after 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 water utility.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 14-2003, f. & cert. ef. 7-24-03; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0750

Relating to Local Government Fees, Taxes, and Other Assessments

(1) This rule applies to rate-regulated water utilities.

(2) If any county in Oregon, other than a city-county, imposes upon a water utility any new taxes or license, franchise, or operating permit fees, or increases any taxes or fees, the water utility required to pay the taxes or fees must collect from its customers within the county imposing the taxes or fees the amount of the taxes or fees, or the amount of increase in the taxes or fees. However, if the taxes or fees cover the operations of a water utility in only a portion of a county, then the affected water utility must recover the amount of the taxes or fees or increase in the amount from customers in the portion of the county that 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.

(3) The amount collected from each water utility customer per section (2) of this rule must be separately stated and identified in all customer billings.

(4) 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
Stats. Implemented: ORS 756.040 & 757.110
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 6-2011, f. & cert. ef. 9-14-11; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

 

Accounting Records

860-036-0755

Accounting for Director's Fees

This rule applies to rate-regulated water utilities as defined in ORS 757.005 and 757.061: Directors' fees paid by a rate-regulated water utility to members of its board of directors, who are also paid as officers of the utility, shall not be recognized as a charge to operating expenses in Oregon.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.110
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0756

Accounting for Contributions in Aid of Construction (CIAC)

(1) This rule applies to rate-regulated water utilities.

(2) Each water utility must provide an accounting of CIAC upon Commission request. CIAC accounting must include contributions in any form including contributed utility plant. CIAC record keeping must identify the contributed plant, original date of installation, and original cost.

(3) Each water utility must keep a record as described in section (2) of this rule and record CIAC on a separate plant and depreciation schedule.

(4) As of November 2002, CIAC and its resulting depreciation will be excluded from water utility ratemaking. CIAC will be separated from utility plant and accounted for and depreciated on a separate schedule outside the ratemaking process.

(5) In cases where previous CIAC depreciation was included in rates and removing it all at once would cause irreparable harm to the water utility, the Commission may systematically remove CIAC from rates over a period of time. The schedule for removal of CIAC from rates must be approved by the Commission.

Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040, 757.120, 757.125, 757.135
Hist.: PUC 9-2003, f. & cert. ef. 5-15-03; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0757

Accounting for Construction Work In Progress (CWIP)

(1) This rule applies to rate-regulated water utilities.

(2) The Commission may allow into rates the costs of a specific capital improvement project in progress if:

(a) The water utility uses the additional revenues solely for the purpose of completing the capital improvement project;

(b) The water utility demonstrates that its access to capital is limited and it is in the public interest to provide funding for the capitol improvement through rates; and

(c) The costs are approved through tariffs filed with the Commission.

Stat. Auth.: ORS 183, 756, 757& Ch. 202, OL 2003
Stats. Implemented: ORS 756.040, 757.355 & Ch. 202, OL 2003
Hist.: PUC 24-2003(Temp), f. & cert. ef. 12-10-03 thru 6-7-04; PUC 7-2004, f. & cert. ef 4-9-04; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0760

Preservation and Destruction of Records

The Regulations to Govern the Preservation of Records of Electric, Gas and Water Utilities, April 1974, revised May 1985, published by the National Association of Regulatory Utility Commissioners is hereby adopted as modified and prescribed by the Commission for all water utilities with the following exceptions:

(1) Operations and Maintenance, Records of Auxiliary, and other Operations. The Commission prescribes that records of operations other than water utility operations be retained for the same periods as prescribed for similar records pertaining to water utility operations;

(2) Revenue Accounting and Collecting. The Commission prescribes that contracts and card files or other records thereof with customers for water utility service be retained for one year after the expiration or cancellation of the agreement.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.105
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00

860-036-0765

Uniform System of Accounts for Water Utilities -- Class A, B, and C

(1) Class A. The Uniform System of Accounts for Class A Water Utilities, 1996, published by the National Association of Regulatory Utility Commissioners, is hereby adopted and prescribed by the Commission for all Class A Water Utilities.

(2) Class B. The Uniform System of Accounts for Class B Water Utilities, 1996, published by the National Association of Regulatory Utility Commissioners, is hereby adopted and prescribed by the Commission for all Class B Water Utilities.

(3) Class C. The Uniform System of Accounts for Class C Water Utilities, 1996, published by the National Association of Regulatory Utility Commissioners, is hereby adopted and prescribed by the Commission for all Class C Water Utilities.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 757.105, 757.120, 757.125, 757.135
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 177, f. 12-2-76, ef. 1-1-77 (Order No. 76-832); PUC 5-1985, f. & ef. 4-24-85 (Order No. 85-355); PUC 3-1992, f. & cert. ef. 2-14-92 (Order No. 92-246); PUC 13-1997, f. & cert. ef. 11-12-97; Renumbered from 860-027-0060

Annual Reports

860-036-0805

Budget of Expenditures

This rule applies to rate-regulated water utilities as defined in ORS 757.005 and 757.061: Each rate-regulated water utility operating within Oregon and having gross operating revenues of $50,000 or more per annum is required to file with the Commission on or before the first day of November of each year, a copy of its proposed Budget of Expenditures, on forms approved by the Commission.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 756.105, 757.105
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02

860-036-0810

New Construction Budget

This rule applies to rate-regulated water utilities as defined in ORS 757.005 and ORS 757.061: Each rate-regulated water utility operating within Oregon and having gross operating revenues of $50,000 or more per annum is required to file annually on or before December 31, on forms approved by the Commission, information on new construction, extensions, and additions to the property of the water utility.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 756.105, 757.105
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 15-1998, f. & cert. ef. 8-27-98; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 12-2002, f. & cert. ef. 3-12-02

860-036-0815

Annual Results of Operations Reports

By April 1 of each year, all rate-regulated water utilities must submit a financial Results of Operations annual report for the preceding calendar year using the most current form approved by the Commission.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 756.105, 757.120, 757.125, 757.135
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2001, f. & cert. ef. 3-21-01; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

860-036-0816

Annual Affiliated Interest Report

(1) By June 1 of each year, all rate-regulated water utilities having an affiliated interest transaction occurring during the period from January 1 through December 31 of the immediately preceding year must file an Affiliated Interest Report with the Commission. The report consists of a letter listing the names of the parties to the transactions and the dollar amounts of the transactions.

(2) As used in this rule, "affiliated interest transactions" means transactions between affiliated interests as defined by ORS 757.015.

Stat. Auth.: ORS Ch. 183, 756, & 757
Stats. Implemented: ORS 756.105
Hist.: PUC 13-2011, f. 12-29-11, cert. ef. 1-1-12

 

860-036-0820

Use of Deferred Accounting as It Applies to Rate-Regulated Water Utilities

This rule applies to rate-regulated water utilities as defined in ORS 757.005 and 757.061.

(1) As used in this rule:

(a) "Deferred Accounting" means the recording in a balance sheet account, with Commission authorization under ORS 757.259, of a current expense or revenue associated with current service for later reflection in rates;

(b) "Amortization" means the inclusion in rates of an amount that has been deferred under ORS 757.259 and is designed to eliminate, over time, the balance in an authorized deferred account. Amortization does not include the normal positive and negative fluctuations in a balancing account.

(2) Expiration: Any authorization to use a deferred account shall expire 12 months from the date the deferral is authorized to begin. If a deferral under ORS 757.259 is reauthorized, the reauthorization shall expire 12 months from the date the reauthorization becomes effective.

(3) Contents of Application: Application for deferred accounting, by a water utility, a ratepayer, or other applicant shall include:

(a) A description of the water utility expense or revenue for which deferred accounting is requested;

(b) The reason(s) deferred accounting is being requested and a reference to the section(s) of ORS 757.259 under which deferral can be authorized;

(c) The account proposed for recording of the amounts to be deferred and the account that will be used for recording the amounts in the absence of approval of deferred accounting;

(d) An estimate of the amounts to be recorded in the deferred account for the 12-month period subsequent to the application; and

(e) A copy of the notice of application for deferred accounting and list of persons served with the notice.

(4) Reauthorization: Application for reauthorization to use a deferred account shall be made not more than 60 days prior to the expiration of the previous authorization for the deferral. Application for reauthorization shall include the requirements set forth in subsections (4)(a) through (4)(e) of this rule and, in addition, the following information:

(a) A description and explanation of the entries in the deferred account to the date of the application for reauthorization; and

(b) The reason(s) for continuation of deferred accounting.

(5) Exceptions: Authorization under ORS 757.259 to use a deferred account is necessary only to add amounts to an account, not to retain an existing account balance and not to amortize amounts that have been entered in an account under an authorization by the Commission. Interest, once authorized to accrue on unamortized balances in an account, may be added to the account without further authorization by the Commission, even though authorization to add other amounts to an account has expired.

(6) Notice of Application: The applicant shall serve a notice of application upon all persons who were parties in the water utility's last general rate case. If the applicant is other than a rate-regulated water utility, the applicant shall serve a copy of the application upon the affected water utility. A notice of application shall include:

(a) A statement that the applicant has applied to the Commission for authorization to use deferred accounting; or for an order requiring that deferred accounting be used by a rate-regulated water utility;

(b) A description of the water utility expense or revenue for which deferred accounting is requested;

(c) The manner in which an interested person can obtain a copy of the application;

(d) A statement that any person may submit to the Commission written comment on the application by the date set forth in the notice, which date can be no sooner than 25 days from the date of the application; and

(e) A statement that the granting of the application will not authorize a change in rates, but will permit the Commission to consider allowing such deferred amounts in rates in a subsequent proceeding.

(7) Public Meetings: Unless otherwise ordered by the Commission, applications for use of deferred accounting will be considered at the Commission's public meetings.

(8) Reply comments: Within 10 days of the due date for comments on the application from interested persons, the applicant and the water utility, if the water utility is not the applicant, may file reply comments with the Commission. Those comments shall be served on persons who have filed the initial comments on the application.

(9) Amortization: Amortization in rates of a deferred amount shall only be allowed in a proceeding, whether initiated by the water utility or another party. The Commission may authorize amortization of such amounts only for utility expenses or revenues for which the Commission previously has authorized deferred accounting. Upon request for amortization of a deferred account, the water utility shall provide the Commission with its financial results for a 12-month period or for multiple 12-month periods to allow the Commission to perform an earnings review. The period selected for the earnings review will encompass all or part of the period during which the deferral took place or must be reasonably representative of the period of deferral. Unless authorized by the Commission to do otherwise:

(a) A water utility shall request that amortizations of deferred accounts commence no later than one year from the date that deferrals cease for that particular account; and

(b) In the case of ongoing balancing accounts, the water utility shall request amortization at least annually, unless amortization of the balancing account is then in effect.

Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS 756.040, 756.105, 757.259
Hist.: PUC 13-1997, f. & cert. ef. 11-12-97; PUC 8-2002, f. & cert. ef. 2-26-02

Service Territory Allocation

860-036-0900

Service Territory Allocation

(1) For purposes of service territory allocation OAR 860-036-0900 through 860-036-0930:

(a) "Allocated territory" means an approved area with boundaries set out in a Commission order granting an application for the allocation of service territory.

(b) "Community water supply system" means a water source and distribution system, whether publicly or privately owned, that serves more than three residences or other users to whom water is provided for public consumption, including but not limited to schools, farm labor camps, industrial establishments, recreational facilities, restaurants, motels, mobile home parks, or group care homes.

(c) "Utility service" means service provided by a water utility as defined in subsection (1)(d) of this rule, any equipment, plant, or facility for the distribution of water to users through a connected and interrelated distribution system. "Utility service" does not include service provided through or by the use of any equipment, plant, or facilities solely for the production and sale of water to other water utilities.

(d) "Water utility" as used in OAR 860-036-0900 through 860-036-0930 means any water system that meets the definition of a water utility in ORS 758.300.

(2) The requirements of this rule apply to all water utilities.

(3) A water utility providing water service may make application to the Commission, on forms provided by the Commission, for an order designating the territory it serves adequately and exclusively as its exclusive service territory.

(4) The Commission shall recognize the exclusive service territory of a water utility that has an existing franchise as of October 23, 1999, with a municipality. A water utility may apply to the Commission to designate exclusive service territory area other than that identified in the franchise agreement, if the water utility is currently providing adequate and exclusive service to areas identified in the franchise agreement.

Stat. Auth.: ORS 183, 756, 757 & 758

Stats. Implemented: ORS 758.300-758.320 & Ch. 202, OL 2003

Hist.: PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00; PUC 8-2002, f. & cert. ef. 2-26-02; PUC 18-2003, f. & cert. ef. 10-6-03; PUC 24-2003(Temp), f. & cert. ef. 12-10-03 thur 6-7-04; PUC 7-2004, f. & cert. ef 4-9-04

860-036-0905

Original Application Requirements

(1) A completed application requesting an exclusive service territory for area the water utility is currently serving shall include the following:

(a) The water utility's complete name, address, and telephone number;

(b) The nature of the water utility's business organization, that is, corporation, partnership, limited partnership, sole proprietorship, association, etc.;

(c) The name(s) and address(es) of all corporate officers, directors, partners, or any other person(s) owning an interest in the water utility;

(d) A statement showing the financial and technical ability of the applicant to provide service to the current territory;

(e) A detailed map or maps of the water system showing the existing lines and facilities;

(f) A detailed map or maps identifying the boundaries of the water utility's current service territory marked with a fine-tipped RED pen. The map must identify the map source and the date of the map in the upper left corner of the map. Appropriate maps may include: a GIS map, city or county map, tax lot map, plat map, or telephone book map. The map must be of sufficient scale and detail to identify the utility's current service territory boundaries and enable correlation with a written description of such territory;

(g) A complete and accurate written description of the water utility's current service territory. The description may be a legal description or may reference township, range, and section; interstates, state roads, and local streets; rivers, streams, and major bodies of water; and recorded plats or lots, tracts, or other recorded instruments identifying permanent fixtures references;

(h) Evidence that the water utility owns the land upon which the water utility facilities are located, or a copy of an agreement that provides for the continued use of the land, such as an easement or 99-year lease;

(i) A schedule showing the number of customers currently served, by class and meter size, as well as the number of customers projected to be served when the current service territory is fully occupied; and

(j) The name and address of the nearest municipality, county, any known planning councils, any known governmental authorities having concern with the application, and all known water utilities and community water supply systems in the general area of the current service territory.

(2) The application may also include any adjacent territory that the water utility plans to serve within six months following the date of the application:

(a) If another water utility or community water supply system is not serving such territory; and

(b) If the applicant demonstrates that it is more economical and feasible to serve the area by an extension of the applicant's existing facilities than by an extension of the facilities of another water utility or community water supply system. Application requirements for expanded service territory are contained in OAR 860-036-0915.

(3) Within 15 days of making its proposed service territory filing pursuant to OAR 860-036-0906, a water utility must provide written notice to its customers by mail or hand delivery. The notice shall include the following information:

(a) Name, address, and telephone number of water utility;

(b) The purpose of the notice;

(c) An accurate and detailed written description of the territory applied for;

(d) Filing date;

(e) A statement that customers may file a protest with the Commission's Administrative Hearings Division; and

(f) The Commission's toll-free telephone number, TTY number, and mailing and location addresses.

(4) The water utility's application to the Commission must include a copy of the notice to customers and a customer mailing list.

(5) In reviewing a completed application for current exclusive service territory, the Commission shall consider the applicant's ability to provide adequate and exclusive service to its existing customers which may include but is not limited to, financial resources, technical ability, customer service history, physical facilities, system capacity, revenue and cost studies, and system compliance with the Oregon Health Division's water rules and regulations.

Stat. Auth.: ORS 183, 756, 757 & 758
Stats. Implemented: ORS 758.300-758.320
Hist.: PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00; PUC 13-2002, f. & cert. ef. 3-26-02; PUC 18-2003, f. & cert. ef. 10-6-03; PUC 24-2003(Temp), f. & cert. ef. 12-10-03 thur 6-7-04; PUC 7-2004, f. & cert. ef 4-9-04

860-036-0910

Commission Notice and Procedure

(1) Within 30 days of receipt of a completed service territory application, the Commission shall give written notice to any municipality, county, planning council, and governmental authority known to have a concern with the application, and to all known water utilities and community water supply systems in the areas adjacent to the proposed area described in the application.

(2) The Commission shall publish notice of the filing in a newspaper or newspapers of general circulation in the proposed territory at least once weekly for two consecutive weeks.

(3) Any objections to the application must be filed with the Commission no later than 30 days after the last date that the notice was mailed or published, whichever is later.

(4) The Commission may, on its own motion, hold a hearing on the application; however, the Commission must hold a hearing on the application if a customer of the water utility requests a hearing on the application within 30 days after the final publication of notice as required in section (2) of this rule.

(5) If a hearing is scheduled, the Commission shall give notice of the hearing, setting the time, date, and place of hearing. If the hearing is by reason of a customer's request, the Commission shall give notice of the hearing within 30 days after the request is received by the Commission. The hearing shall be held at a place within or conveniently accessible to the area described in the application.

(6) The Commission shall enter an order granting or denying an application for an exclusive service territory under OAR 860-036-0900. The Commission may grant an application subject to such conditions and limitations as the Commission deems appropriate.

(7) The applicable provisions of ORS 756.500 through 756.610 shall govern the conduct of hearings under this section and any appeal of the Commission's order.

Stat. Auth.: ORS 183, 756, 757 & 758
Stats. Implemented: ORS 758.300-758.320
Hist.: PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00; PUC 24-2003(Temp), f. & cert. ef. 12-10-03 thur 6-7-04; PUC 7-2004, f. & cert. ef 4-9-04

860-036-0915

Filing an Application to Expand Exclusive Service Territory

(1) A water utility may apply to expand its service territory to serve an area not currently being provided water service. It shall file an expanded service territory application with the Commission.

(2) Upon application by the water utility or by the Commission's own motion, an approved service territory may be expanded to include unserved areas.

(3) In reviewing a completed application for an expanded exclusive service territory, the Commission shall consider the applicant's ability to adequately and exclusively provide service to the expanded territory, which may include but is not limited to, financial resources, technical ability, physical facilities, customer demand, system capacity, revenue and cost studies, regional planning, environmental impact, customer service history, impact on existing customers, compliance with the Oregon Health Division's water rules and regulations, economic and feasibility studies, and availability of alternate service.

(4) Notice and hearing of the proposed expansion shall be given as provided in OAR 860-036-0910.

(5) The application must include:

(a) The water utility's complete name and address;

(b) The nature of the utility's business organization, that is, corporation, partnership, limited partnership, sole proprietorship, association, etc.;

(c) The name and address of any other water utility or community water supply system that could potentially provide water service within the proposed expanded territory;

(d) The name and address of all corporate officers, directors, partners, or any other person owning an interest in the utility;

(e) The name and address of the nearest municipality, county, any known planning councils, any known governmental authorities that may have a concern with the application, and all known water utilities and community water supply systems in the general area of the proposed expanded service territory;

(f) A map identifying the boundaries of the proposed expanded service territory (currently unserved) marked with a fine-tipped BLUE pen. Appropriate maps may include: a GIS map, city or county map, tax lot map, plat map, or telephone book map. The map must be of sufficient scale and detail to identify the expanded service territory boundaries and enable correlation with the description of the proposed expanded territory;

(g) A complete and accurate written description of the proposed expanded territory. The description may reference township, range, and section; interstates, state roads, and local streets; rivers, streams, and major bodies of water; and recorded plats or lots, tracts, or other recorded instruments identifying permanent fixtures references;

(h) The total projected number of customers to be served in the proposed expanded territory by meter size and customer class, that is, single family homes, mobile homes, duplexes, golf course clubhouse, commercial, etc.;

(i) The estimated date applicant plans to begin providing service to customers in the proposed expanded territory;

(j) The estimated flat rate or base and usage rate structure to be utilized, unless an alternative rate structure is supported by the applicant and authorized by the Commission;

(k) A cost study including customer growth projections supporting the proposed water service rates and charges;

(l) A schedule showing by account the projected operating expenses of the water system to serve the expanded service territory when 100 percent of the system is being utilized;

(m) A schedule showing the projected capital structure including the methods of financing the construction and operation of the utility until the utility reaches 100 percent of the design capacity of the system;

(n) A statement describing the need for water service in the proposed expanded service territory;

(o) Evidence demonstrating adequate existing or proposed capacities of the system and facilities to serve the proposed expanded territory in terms of estimated average daily customer demand, customer peak demand, and daily pumping capacity per water source in gallons or cubic feet. If development will be in phases, separate this information by phases;

(p) A written description of the type of water treatment required, if necessary;

(q) A schedule showing the projected cost of the proposed system(s) by accounts. If the system is to be built in phases, show information for each phase individually;

(r) A list of all entities, including affiliates, upon which the applicant is relying to provide funding to the water utility for capital improvement, and an explanation of the manner and amount of such funding, including their financial statements and a copy of all contracts or agreements with the utility. This requirement shall not apply to any person or entity holding less than 10 percent ownership interest in the utility;

(s) Financial statements demonstrating applicant's financial capability to provide service;

(t) A statement showing applicant's technical ability or capacity to procure technical skill necessary to provide service;

(u) A statement describing any impact the expansion of service territory may have on existing customers.

Stat. Auth.: ORS 183, 756, 757 & 758
Stats. Implemented: ORS 758.300-758.320
Hist.: PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00; PUC 24-2003(Temp), f. & cert. ef. 12-10-03 thur 6-7-04; PUC 7-2004, f. & cert. ef 4-9-04

860-036-0920

Reduction of Approved Service Territory Boundaries Procedure

(1) Upon petition by the water utility or a customer of the utility for an order, or by the Commission on its own motion, an approved service territory may be reduced upon a showing that the water utility is not providing adequate service to its customers or does not have the capacity to serve the designated exclusive service territory.

(2) Notice and procedure of the proposed decrease of an approved service territory shall be given as provided in ORS 860-036-0910.

Stat. Auth.: ORS 183, 756, 757, 758
Stats. Implemented: ORS 758.300 - 758.320
Hist.: PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00

860-036-0925

Transfer of Approved Service Territory

(1) Except as provided in paragraph (6) of this rule, the rights acquired by an approved service territory may be transferred only with the approval of the Commission after a finding that the assignment or transfer is in the public interest.

(2) Service territory approved by Commission order shall not be altered solely as the result of a change in ownership or form of ownership.

(3) Upon the death of an applicant under an approved service territory, the executor or administrator shall continue operating the water utility for transferring such rights for a period not to exceed two years.

(4) Applicants must submit to the Commission an application to transfer an approved service territory. The application shall include:

(a) The application requirements as provided in OAR 860-036-0915;

(b) Evidence demonstrating that the transfer of the service territory is in the public interest.

(5) Notice and procedure of the proposed transfer shall be given as provided in ORS 860-036-0910.

(6) Commission approval is not required if at least 75 percent of the affected customers agree to the proposed transfer.

Stat. Auth.: ORS 183, 756, 757, 758
Stats. Implemented: ORS 758.300 - 758.320
Hist.: PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00; PUC 13-2002, f. & cert. ef. 3-26-02

860-036-0930

Exclusive Obligation

(1) The approved service territory of a water utility shall be exclusive. A water utility or community water supply system shall not provide water utility service within the approved exclusive service territory of another water utility without the express approval of the Commission.

(2) A water utility shall serve only customers within its approved exclusive service territory and shall serve all applicants for service within such territory. The water utility may refuse service only as provided in OAR 860-036-0080.

Stat. Auth.: ORS 183, 756, 757, 758
Stats. Implemented: ORS 758.300 - 758.320
Hist.: PUC 9-1999(Temp), f. 10-22-99, cert. ef. 10-23-99 thru 4-19-00; PUC 6-2000, f. 4-18-00, cert. ef. 4-20-00; PUC 13-2002, f. & cert. ef. 3-26-02

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