Bill Text: OR HB2266 | 2013 | Regular Session | Enrolled


Bill Title: Relating to public utilities.

Spectrum: Unknown

Status: (Passed) 2013-05-13 - Chapter 96, (2013 Laws): Effective date January 1, 2014. [HB2266 Detail]

Download: Oregon-2013-HB2266-Enrolled.html


     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

                            Enrolled

                         House Bill 2266

Introduced and printed pursuant to House Rule 12.00. Presession
  filed (at the request of Governor John A. Kitzhaber, M.D., for
  Public Utility Commission)

                     CHAPTER ................

                             AN ACT

Relating to public utilities; creating new provisions; and
  amending ORS 757.061, 757.105 and 757.135.

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

                               { +
BUDGET FILINGS + }

  SECTION 1. ORS 757.105 is amended to read:
  757.105. (1) The Public Utility Commission has the right and
power of regulation, restriction and control over the budgets of
expenditures of public utilities, as to all items covering:
  (a) Proposed payment of salaries of executive officers;
  (b) Donations;
  (c) Political contributions and political advertising;
  (d) Expenditures for pensions or for a trust to provide
pensions for employees and officers;
  (e) Other expenditures and major contracts for the sale or
purchase of equipment; and
  (f) Any payment or contemplated payment to any person or
corporation having an affiliated interest for service, advice,
auditing, associating, sponsoring, engineering, managing,
operating, financing, legal or other services.
  (2) On or before   { - November 1 of each year - }   { + a date
prescribed by the commission by rule, + } each public utility
shall prepare a budget showing the amount of money which, in its
judgment, shall be needed during the ensuing year for covering
all such activities and expenditures, and file it with the
commission.
  (3) When any such budget has been filed with the commission,
the commission shall examine into and investigate the same and
unless rejected within 60 days thereafter, the proposed budget is
presumptively fair and reasonable and not contrary to public
interest.
  (4) Proposed expenditures for pensions or for a trust to
provide pensions for the employees and officers of such utility
whether for future service or past service or both, shall be
recognized as an operating expense if the trust fund is
irrevocably committed to the payment of pensions or benefits to
employees and if such pensions are reasonable and
nondiscriminatory. The commission may disallow as an operating

Enrolled House Bill 2266 (HB 2266-INTRO)                   Page 1

expense any expenditure for pension purposes in excess of the
amount necessary and proper to maintain an actuarially sound
retirement plan for the employees of the utility in Oregon.
  SECTION 2. ORS 757.135 is amended to read:
  757.135. (1) Except as provided in subsection (2) of this
section, the accounts required under ORS 757.120 and 757.125
shall be closed annually on December 31 and a balance sheet of
that date promptly taken therefrom. On or before   { - April 1
following - }   { + a date prescribed by the Public Utility
Commission by rule + }, such balance sheet, together with such
other information as the   { - Public Utility - }  commission
shall prescribe, verified by an officer of the public utility,
shall be filed with the commission.
  (2) If a public utility maintains its accounts and records on a
fiscal year basis, the accounts required by ORS 757.120 and
757.125 shall be closed annually on the last day of the fiscal
year and a balance sheet shall be promptly taken from those
accounts. On or before the first day of the fourth month
following the end of the public utility's fiscal year, the
balance sheet together with such information as the commission
shall prescribe must be verified by an officer of the public
utility and filed with the commission. The commission may require
that a public utility filing information at the time specified in
this subsection also file with the commission on a calendar year
basis such additional information as may be prescribed by the
commission.
  (3) The commission may examine and audit any account. Items
shall be allocated to the accounts in the manner prescribed by
the commission.
  SECTION 3.  { + The amendments to ORS 757.105 and 757.135 by
sections 1 and 2 of this 2013 Act apply to budgets and balance
sheet information required for fiscal years or calendar years
ending on or after the effective date of this 2013 Act. + }

                               { +
WATER UTILITY SERVICE REGULATION + }

  SECTION 4. ORS 757.061 is amended to read:
  757.061. (1) For the purposes of this section:
  (a) 'Rate regulation' means regulation under this chapter,
except for regulation under ORS 757.105 to 757.110.
  (b) 'Service regulation' means regulation under this chapter,
except for regulation under ORS 757.105 to 757.110, 757.140,
757.205 to 757.220,  { + 757.225, 757.245, + } 757.259,
 { + 757.355, + } 757.400 to 757.460,   { - 757.480 to - }
 { + 757.485, 757.490, + } 757.495 and 757.500.
  (2) Except as provided in this section, water utilities are not
subject to regulation under this chapter or required to pay the
fee provided for in ORS 756.310.
  (3) The following utilities are subject to rate regulation and
must pay the fee provided for in ORS 756.310:
  (a) A water utility that serves 500 or more customers.
  (b) A water utility that serves fewer than 500 customers, if
the water utility also provides wastewater services to the public
inside the boundaries of a city.
  (c) A water utility that serves fewer than 500 customers, if
the Public Utility Commission grants a petition from the water
utility requesting that the water utility be subject to rate
regulation.

Enrolled House Bill 2266 (HB 2266-INTRO)                   Page 2

  (d) A water utility that satisfies all of the following
conditions:
  (A) The water utility serves fewer than 500 customers;
  (B) The water utility proposes to charge a rate for water
service that exceeds the maximum rates established by the
commission under subsection (5) of this section; and
  (C) Twenty percent or more of the customers of the water
utility file a petition with the commission requesting that the
water utility be subject to rate regulation.
  (4) The following utilities are subject to service regulation
and must pay the fee provided for in ORS 756.310:
  (a) A water utility that serves fewer than 500 customers and
that is found by the commission, pursuant to an investigation
under ORS 756.515, to have provided inadequate or discriminatory
service at any time.
  (b) A water utility that serves fewer than 500 customers and
that at any time charges an average annual residential rate of
$24 per month or more.
  (5)(a) The commission shall adopt rules establishing maximum
rates for water utilities serving fewer than 500 customers for
the purpose of determining whether a petition may be filed under
subsection (3)(d)(C) of this section.
  (b) To encourage metered water systems for water utilities
serving fewer than 500 customers, the commission shall establish
a higher maximum rate for water utilities with metered water
systems than for water utilities with unmetered systems.
  (6) Not less than 60 days before a water utility that serves
fewer than 500 customers increases any rate to exceed any maximum
rate prescribed under subsection (5) of this section, the water
utility shall provide written notice to all of its customers
advising the customers of their right to file a petition under
subsection (3)(d)(C) of this section. The commission shall adopt
rules prescribing the content of the written notice.

                               { +
MISCELLANEOUS PROVISIONS + }

  SECTION 5.  { + The unit captions used in this 2013 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2013 Act. + }
                         ----------

Enrolled House Bill 2266 (HB 2266-INTRO)                   Page 3

Passed by House April 8, 2013

    .............................................................
                             Ramona J. Line, Chief Clerk of House

    .............................................................
                                     Tina Kotek, Speaker of House

Passed by Senate May 2, 2013

    .............................................................
                              Peter Courtney, President of Senate

Enrolled House Bill 2266 (HB 2266-INTRO)                   Page 4

Received by Governor:

......M.,............., 2013

Approved:

......M.,............., 2013

    .............................................................
                                         John Kitzhaber, Governor

Filed in Office of Secretary of State:

......M.,............., 2013

    .............................................................
                                   Kate Brown, Secretary of State

Enrolled House Bill 2266 (HB 2266-INTRO)                   Page 5
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