Oregon State Archives

Oregon Bulletin

February 1, 2012

Public Utility Commission
Chapter 860

Rule Caption: In the Matter of Updating Rules about Water Regulation including Changes Required by SB 142.

Adm. Order No.: PUC 13-2011

Filed with Sec. of State: 12-29-2011

Certified to be Effective: 1-1-12

Notice Publication Date: 10-1-2011

Rules Adopted: 860-036-0425, 860-036-0708, 860-036-0816

Rules Amended: 860-036-0001, 860-036-0010, 860-036-0015, 860-036-0030, 860-036-0040, 860-036-0050, 860-036-0060, 860-036-0065, 860-036-0097, 860-036-0130, 860-036-0405, 860-036-0505, 860-036-0605, 860-036-0610, 860-036-0615, 860-036-0640, 860-036-0705, 860-036-0710, 860-036-0715, 860-036-0737, 860-036-0739, 860-036-0740, 860-036-0745, 860-036-0750, 860-036-0756, 860-036-0757, 860-036-0815

Rules Repealed: 860-036-0407

Rules Ren. & Amend: 860-036-0625 to 860-036-0616

Subject: The Public Utility Commission of Oregon adopted rule modifications to its Chapter 860, Division 036 rules governing water utility regulation to bring the rules into compliance with changes required by Senate Bill 142, passed by the Oregon Legislative Assembly in its 2011 regular session. First, the residential rate triggering Commission oversight of a water utility is raised from $18 per month to $24 per month, to reflect inflation and the increased cost of providing safe drinking water. Second, the categories of water utilities regulated by the Commission are simplified to two categories, rate regulated and service regulated, and the regulatory responsibilities for each category are clarified. In these rules, the requirements with which water utilities in Oregon must comply, the regulatory requirements for service regulated utilities, and the heightened requirements for rate regulated utilities are described.

Rules Coordinator: Diane Davis—(503) 378-4372

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

860-036-0010

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. 1-1-12

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.

Stat. Auth.: ORS 183, 756 & 757

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

860-036-0040

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

860-036-0050

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. 1-1-12

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

860-036-0097

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

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

860-036-0405

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

860-036-0425

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

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

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

860-036-0640

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

860-036-0705

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

860-036-0737

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

860-036-0739

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

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

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

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

860-036-0815

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

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2011.

2.) Copyright 2012 Oregon Secretary of State: Terms and Conditions of Use