DIVISION 22
RATES
860-022-0000
Applicability of Division 022
The rules contained in this Division apply to energy utilities and large telecommunications utilities, as defined in OAR 860-022-0001.
Stat. Auth.: ORS 183,
756, 757 & 759
Stats. Implemented: ORS 756.040, 759.030, 759.040& 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC
14-1997, f. & cert. ef. 11-20-97; PUC 3-1999, f. & cert. ef.
8-10-99; PUC 14-2000, f. & cert. ef. 8-23-00; PUC 4-2001, f.
& cert. ef. 1-24-01; PUC 11-2001, f. & cert. ef. 4-18-01
860-022-0001
Definitions for Utility Rates
For purposes of this Division, except when a different scope is explicitly stated:
(1) "Consumer-owned utility" has the meaning given to the term under ORS 757.270(2).
(2) "Energy utility" means a public utility as defined in ORS 757.005 except a water utility or wastewater utility. An energy utility can be an "electric company," "gas utility," or "steam heat utility."
(3) "Large telecommunications utility" means any telecommunications utility, as defined in ORS 759.005 that is not partially exempt from regulation under 759.040.
(4) "Non-energy attributes" means the environmental, economic, and social benefits of generation from renewable energy facilities. These attributes are normally transacted in the form of Tradable Renewable Certificates.
(5) "Utility" means all energy utilities and large telecommunications utilities, as defined in sections (2) and (3) of this rule.
Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040 & 759.005
Hist.: PUC 2-1996, f. & cert. ef. 4-18-96 (Order No. 96-102); PUC
9-1998, f. & cert. ef. 4-28-98; PUC 4-2001, f. & cert. ef.
1-24-01; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 7-2005, f.
& cert. ef. 11-30-05
860-022-0003
Through Service
"Through service" means an Oregon intrastate telecommunications service the provision of which involves the facilities, equipment, or services of two or more telecommunications utilities and/or cooperatives. Examples of "through services" may include, but are not limited to, intrastate toll/access service, extended area service, and E 9-1-1 service. Whether a service is a "through service" is determined on a case-by-case basis.
Stat. Auth.: ORS 183 &
759
Stats. Implemented: ORS 759.220
Hist.: PUC 3-1998, f. & cert. ef. 2-24-98
860-022-0005
Tariff Specifications for Energy Utilities and Large Telecommunications Utilities
(1) Form and style of tariffs:
(a) All tariffs must be in loose-leaf form so changes can be made by reprinting and inserting a single leaf;
(b) Each energy or large telecommunications utility must designate the initial tariff as PUC Oregon No. 1, and designate successive tariffs with the next number in consecutive numerical order. Supplemental information not otherwise provided by the tariff must be inserted in the most appropriate location and denoted by the previous sheet numbers plus a letter, for example, 3A, 3B, etc. Revisions to tariffs must be denoted by 1st Revised Sheet No. 3, 2nd Revised Sheet No. 3, etc.;
(c) The title page should be uniform. Rates, rules, and regulations must be written only on one side of a sheet. If a single sheet is insufficient, two or more pages should be used; and
(d) Separate tariffs must be filed for electric, telecommunications, telegraph, gas, heat, or for any other service entered.
(2) Size of tariffs and copies required:
(a) Tariffs and supplements thereto must be prepared using a readable font that, when printed, will fit on an 8-1/2 x 11 inch page; and
(b) Energy and large telecommunication utilities must file with the Commission an original of each tariff, rate schedule, revision, or supplement. The utility must supplement the filing with an exact copy of the tariff in electronic form as required in OAR 860-013-0036. The advice letter accompanying the tariffs must bear the signature of the issuing officer or utility representative. The tariffs do not require a signature.
Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 757.205
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 176,
f. 11-17-76, ef. 12-1-76 (Order No. 76-806); PUC 15-1987, f. &
ef. 12-3-87 (Order No. 87-1185); PUC 8-1995, f. & cert. ef.
8-30-95 (Order No. 95-858); PUC 9-1998, f. & cert. ef. 4-28-98;
PUC 16-2001, f. & cert. ef. 6-21-01; PUC 18-2004, f. & cert.
ef. 12-30-04
860-022-0010
Tariff Contents for Energy Utilities and Large Telecommunications Utilities
(1) The tariffs of each energy utility and large telecommunications utility must explicitly state the utility rates and charges for each class of service rendered, designating the area or district to which they apply.
(2) The energy or large telecommunications utility's rules and regulations that in any manner affect the rates charged or to be charged or define the extent or character of the service to be given shall be included with each tariff.
Stat. Auth.: ORS 183,
756, 757 & 759
Stats. Implemented: ORS 757.205 & 759.175
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC
9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef.
6-21-01
860-022-0015
Tariff Changes by Energy Utilities and Large Telecommunications Utilities Require 30 Days' Notice to the Commission
Except as hereinafter provided in this Division, energy utilities and large telecommunications utilities must file with the Commission all tariffs, rate schedules, or supplements thereto containing any change in rates, tolls, charges, rules, or regulations at least 30 days before the effective date of such changes. The Commission will reject tariffs or schedules not conforming with the rules in this Division.
Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 757.007, 757.220 & 759.190
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 176,
f. 11-17-76, ef. 12-1-76 (Order No. 76-806); PUC 9-1998, f. &
cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01; PUC
18-2004, f. & cert. ef. 12-30-04
860-022-0017
Announcement of Utility Tariff Changes
(1) Within 15 days of filing with the Commission new or revised tariff schedules which constitute a general rate revision, an energy or large telecommunications utility shall inform its customers of the filing. A "general rate revision" is a filing by an energy or large telecommunications utility which affects all or most of a utility's rate schedules. "General rate revision" excludes changes in an automatic adjustment clause under ORS 757.210(1), changes in the credit reflected on certain electric company rate schedules relating to Section 5(c) of the Pacific Northwest Electric Power Planning and Conservation Act of 1980, or similar changes in one rate schedule, such as for an amortization, that affects other rate schedules.
(2) The energy or large telecommunications utility shall inform its customers by:
(a) Inserting a display announcement, not less than a three column standard advertising unit (SAU) by ten-inch advertisement, at least once in a newspaper of general circulation in the communities served by the energy or large telecommunications utility;
(b) Inserting an announcement in the energy or large telecommunications utility's regular billing to its customers; or
(c) Mailing an announcement to each customer.
(3) The energy or large telecommunications utility's announcement shall include:
(a) The approximate annualized amount of the proposed total change, expressed both in dollar and in percentage terms; and the approximate amount of the proposed change for an average residential customer's monthly bill, expressed in dollar terms;
(b) A brief statement of the reasons why the energy or large telecommunications utility seeks the change;
(c) A statement that copies of the energy or large telecommunications utility's testimony and exhibits are available for inspection at its main and district offices;
(d) The mailing address and telephone number of the energy or large telecommunications utility's office that customers may contact for additional information about the filing;
(e) The mailing address and toll-free telephone number of the Commission to which requests to receive notice of the time and place of any hearing on the matter may be directed; and
(f) A statement that the purpose of the announcement is to provide the energy or large telecommunications utility's customers with general information about the utility's proposals and their effects on its customers, but that the calculations and statements contained in the announcement are not binding on the Commission.
(4) Within 20 days of issuing the announcement, the energy or large telecommunications utility shall file an affidavit that notice has been given and a copy of the notice.
(5) An energy or large telecommunications utility may submit to the Commission, and request approval of, a list of the newspapers of general circulation in the communities served by the utility. The utility may revise the list by written request to the Commission.
(6) The Commission may waive the requirements of this rule upon a showing by the energy or large telecommunications utility that the notice required by this rule has been given with respect to a particular general rate revision, and upon a further showing that additional notice with respect to that rate revision would be duplicative, confusing to customers, and burdensome to the utility.
Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 757.205 - 757.220 & 759.175 - 759.190
Hist.: PUC 1-1985, f. & ef. 2-1-85 (Order No. 85-075); PUC
11-1990(Temp), f. & cert. ef. 6-21-90 (Order No. 90-968); PUC
22-1990, f. & cert. ef. 12-31-90 (Order No. 90-1917); PUC 2-1993,
f. & cert. ef. 1-8-93 (Order No. 92-1793 & 93-035); PUC
9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef.
6-21-01; PUC 7-2005, f. & cert. ef. 11-30-05
860-022-0020
Applications to Make Tariffs or Rate Schedules Effective on Less Than Statutory Notice
An energy or large telecommunications utility seeking authority to make tariffs or rate schedules effective on less than statutory notice must use application forms approved by the Commission.
[ED. NOTE: Forms referenced are available from the agency.]
Stat. Auth.: ORS 183, 756 & 757, 759
Stats. Implemented: ORS 757.220, 759.190
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC
16-2001, f. & cert. ef. 6-21-01; PUC 18-2004, f. & cert. ef.
12-30-04
860-022-0025
Requirements for Filing Tariffs or Schedules Changing Rates
(1) An energy or large telecommunications utility may make tariff changes by filing an entirely new tariff or by filing revised sheets which shall refer to the tariff sheets on file. Additions to the tariff on file may be made by filing additional sheets.
(2) Each energy or large telecommunications utility filing tariffs or schedules changing existing tariffs or schedules shall submit therewith the following information:
(a) A statement plainly indicating the increase, decrease, or other change thereby made in existin g rates, charges, tolls, or rules and regulations;
(b) A statement setting forth the number of customers affected by the proposed change and the resulting change in annual revenue; and
(c) A detailed statement setting forth the reasons or grounds relied upon in support of the proposed change.
Stat. Auth.: ORS 183,
756, 757 & 759
Stats. Implemented: ORS 757.205, 757.061 & 759.175
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC
9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef.
6-21-01
860-022-0026
Requests to Abandon, Exempt from Regulation, or Price-List Regulated Telecommunications Services
A large telecommunications utility is subject to the requirements set forth in OAR 860-032-0020, 860-032-0023, 860-032-0025, and 860-032-0035.
Stat. Auth.: ORS 183,
756 & 759
Stats. Implemented: ORS 756.040, 759.020, 759.030,
759.035, 759.050, 759.190 & 759.195
Hist.: PUC 15-2001, f. & cert. ef. 6-21-01
860-022-0030
Requirements for Filing Tariffs or Schedules Naming Increased Rates
(1) Each energy or large telecommunications utility filing tariffs or schedules which name increased rates shall submit therewith, in addition to requirements of OAR 860-022-0025, the following information:
(a) A statement setting forth for each separate schedule the total number of customers affected, the total annual revenue derived under the existing schedule, and the amount of estimated revenue which will be derived from applying the proposed schedule;
(b) A statement setting forth for each separate schedule the average monthly use and resulting bills under both the existing rates and the proposed rates for characteristic customers, which will fairly represent the application of the proposed tariff or schedules; and
(c) A detailed statement setting forth the reasons or grounds relied upon in support of the proposed increase.
(2) Additional information from the energy or large telecommunications may be required to be filed either before the Commission's acceptance of the tendered filing or at any stage in the proceeding.
Stat. Auth.: ORS 183,
756, 757 & 759
Stats. Implemented: ORS 757.205 & 759.175
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC
9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef.
6-21-01
860-022-0032
Tariff Changes Effective With Service Rendered by an Energy or Large Telecommunications Utility
An energy or large telecommunications utility shall make all tariff changes applicable with service rendered on and after the effective date of the changes, unless the Commission by order provides otherwise. As used in this rule, "service rendered" means units of energy consumed, toll calls connected, basic service provided, or likewise as the context requires
Stat. Auth.: ORS 183,
756, 757 & 759
Stats. Implemented: ORS 757.007, 757.220 & 759.190
Hist.: PUC 176, f. 11-17-76, ef. 12-1-76 (Order No. 76-806); PUC
13-1997, f. & cert. ef. 11-12-97; PUC 16-2001, f. & cert. ef.
6-21-01
860-022-0035
Special Contracts
(1) Energy and telecommunications utilities within Oregon entering into special contracts with certain customers prescribing and providing rates, services, and practices not covered by or permitted in the general tariffs, schedules, and rules filed by such utilities are in legal effect tariffs and are subject to supervision, regulation, and control as such.
(2) All special agreements designating service to be furnished at rates other than those shown in tariffs now on file in the Commission's office shall be classified as rate schedules. True and certified copies shall be filed subject to review and approval pursuant to the requirements of OARs 860-022-0005 through 860-022-0030.
Stat. Auth.: ORS 183,
756 & 757
Stats. Implemented: ORS 757.007 & 759.250
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC
9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef.
6-21-01
860-022-0038
Notice to Interested Persons of Tariffs Filed Under ORS 757.205 or 759.175
(1) This rule applies to any tariff filed by an energy utility under ORS 757.205 or by a telecommunications utility under ORS 759.175.
(2) Any person who requests of the Commission, in writing, to be notified of utility tariff filings covered under section (1) of this rule must be included on a notice list.
(3) The Commission must notify all persons on the notice list referred to in section (2) of this rule of any applicable tariff filing. The notice will be given within ten days of any tariff filing under section (1) of this rule that complies with OARs 860-022-0025 through 860-022-0035.
(4) The Commission may periodically delete persons' names from the notice list who do not demonstrate a continued interest in receiving the notices in section (2) of this rule. No person's name may be deleted from the list without 20 days' notice before deletion.
(5) The notice must include the following information:
(a) Name of the filing utility;
(b) Subject;
(c) Advice number;
(d) Filing date;
(e) Effective date;
(f) Date of the public meeting when the tariff will be considered (when the information is available);
(g) Customer classes affected, if readily ascertainable from the utility's advice letter; and
(h) Whether the tariff schedule is primarily related to price competition or a service alternative, if readily ascertainable from the utility's advice letter.
Stat. Auth.: ORS 183, 756 & 757, 759
Stats. Implemented: ORS 757.205, 757.230, 759.175 & 759.210
Hist.: PUC 16-1988, f. & cert. ef. 10-21-88 (Order No. 88-1216);
PUC 12-1997, f. & cert. ef. 10-30-97; PUC 9-1998, f. & cert.
ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 18-2004, f.
& cert. ef. 12-30-04
860-022-0040
Relating to City Fees, Taxes, and Other Assessments Imposed Upon Electric Companies, Gas Utilities, and Steam Heat Utilities
(1) The aggregate amount of all business or occupation taxes, license, franchise or operating permit fees, or other similar exactions or costs, excepting volumetric-based fees in section (3) of this rule, imposed upon energy utilities by any city in Oregon for engaging in business within such city or for use and occupancy of city streets and public ways, which does not exceed 3 percent for gas utilities or 3.5 percent for electric companies and steam heat utilities, applied to gross revenues as defined herein, shall be allowed as operating expenses of such utilities for rate-making purposes and shall not be itemized or billed separately. All other costs not allowed as operating expenses shall be itemized or billed separately.
(2) Except as otherwise provided herein, "gross revenues" means revenues received from utility operations within the city less related net uncollectibles. Gross revenues of an energy utility shall include revenues from the use, rental, or lease of the utility's operating facilities other than residential-type space and water heating equipment. Gross revenues shall not include proceeds from the sale of bonds, mortgage or other evidence of indebtedness, securities or stocks, sales at wholesale by one utility to another when the utility purchasing the service is not the ultimate customer, or revenue from joint pole use.
(3) Each electric company subject to volumetric-based privilege taxes or fees shall determine for each city imposing such volumetric charges a base volumetric rate for each customer class calculated as 3.5 percent of the class 1999 gross operating revenues within the city divided by the amount of electric energy in kilowatt-hours delivered to the class in 1999. In cases where 1999 data is not available for a particular city and/or class, the utility's total 1999 Oregon revenues and kilowatt-hour deliveries for the customer class shall be used to calculate the base volumetric rate. An amount equal to the base volumetric rates multiplied by the corresponding amount of electric energy in kilowatt hours delivered in the 12-month period used to determine the electric company's revenue requirement shall be allowed as operating expenses and shall not be itemized or billed separately. The privilege tax shall be allocated across an electric company's customer classes in the same proportional amounts as levied by cities against the electric company.
(4) Permit fees or similar charges for street opening, installations, construction, and the like to the extent such fees or charges are reasonably related to the city's costs for inspection, supervision, and regulation in exercising its police powers, and the value of any utility services or use of facilities provided on November 6, 1967, to a city without charge, shall not be considered in computing the percentage levels set forth in sections (1) and (3) of this rule. Any such services may be continued within the same category or type of use. The value of any additional category of utility service or use of facilities provided after November 6, 1967, to a city without charge shall be considered in computing the percentage levels herein set forth.
(5) This rule shall not affect franchises existing on November 6, 1967, granted by a city. Payments made or value of service rendered by an energy utility under such franchises shall not be itemized or billed separately. When compensation different from the percentage levels in section (1) of this rule is specified in a franchise existing on November 6, 1967, such compensation shall continue to be treated by the affected utility as an operating expense during the balance of the term of such franchise. Any tax, fee, or other exaction set forth in section (1) of this rule, unilaterally imposed or increased by any city during the unexpired term of a franchise existing on November 6, 1967, and containing a provision for compensation for use and occupancy of streets and public ways, shall be charged pro rata to local users as herein provided.
(6) Except as provided in section (5) of this rule, to the extent any city tax, fee, or other exaction referred to in sections (1) and (3) of this rule exceeds the percentage levels allowable as operating expenses in sections (1) and (3) of this rule, such excess amount shall be charged pro rata to energy customers within said city and shall be separately stated on the regular billings to such customers.
(7) The percentage levels in sections (1) and (3) of this rule may be changed if the Commission determines after such notice and hearing, as required by law, that fair and reasonable compensation to a city or all cities should be fixed at a different level or that by law or the particular circumstances involved a different level should be established.
(8) The amount allowed as an operating expense may be described on customers' bills in a manner determined by the energy utility.
Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040 & 757.600 - 757.667
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC
3-1990, f. & cert. ef. 4-6-90 (Order No. 90-417); PUC
14-1990, f. & cert. ef. 7-11-90 (Order No. 90-1031); PUC 7-1998,
f. & cert. ef. 4-8-98; PUC 3-1999, f. & cert. ef. 8-10-99;
PUC 17-2000, f. & cert. ef. 9-29-00; PUC 16-2001, f. & cert.
ef. 6-21-01; PUC 15-2002, f. & cert. ef. 6-14-02; PUC 14-2003, f.
& cert. ef. 7-24-03; PUC 7-2005, f. & cert. ef. 11-30-05
860-022-0041
Annual Tax Reports and Automatic Adjustment Clauses Relating to Utility Taxes
(1) This rule applies to regulated investor-owned utilities that provided electric or natural gas service to an average of 50,000 or more customers in Oregon in 2003, or to any successors in interest of those utilities that continue to be regulated investor-owned utilities.
(2) As used in this rule:
(a) "Affiliated group" has the meaning given to "affiliated group" in ORS 757.268(13)(a);
(b) "Deferred taxes" for purposes of the utility means the total deferred tax expense of regulated operations that relate to the year being reported in the utility's results of operations report or tax returns, excluding deferred taxes related to the establishment of a regulatory receivable or payable account for any rate adjustment imposed under ORS 757.268, in the year the deferred tax is established but not thereafter, to eliminate the iterative tax effect of the rate adjustment;
(c) "Income" means taxable income as determined by the applicable taxing authority, except that income means regulatory taxable income when reporting or computing the stand-alone tax liability resulting from a utility's regulated operations;
(d) "Income tax losses" means the negative taxable income of an entity in the federal taxpayer or unity group, excluding the current deduction of tax depreciation on public utility property and federal investment tax credits related to public utility property;
(e) "IRC" means Internal Revenue Code;
(f) "Investment" means capital outlays for utility property necessary or useful in providing regulated service to customers;
(g) "Iterative tax effect" means the tax effect of a rate adjustment for taxes related to ORS 757.267 or 757.268 in the tax reporting period that includes the rate adjustment;
(h) "Local taxes collected" means the total amount collected by the utility from customers under the local tax line-item of customers' bills calculated on a separate city or county basis;
(i) "Pre-tax income" means the utility's net revenues before income taxes and interest expense, as determined by the Commission in a general rate proceeding;
(j) "Properly attributed" means the share of taxes paid that is apportioned to the regulated operations of the utility as calculated in section (3), subject to subsections (4)(a), (4)(b), (4)(g) and (4)(h), of this rule;
(k) "Public utility property" means property as defined by the Code of Federal Regulations, Title 26, Section 168(i)(10);
(l) "Regulated operations of the utility" has the meaning given to "regulated operations of the utility" in ORS 757.268(13)(c);
(m) "Results of operations report" means the utility's annual results of operations report filed with the Commission;
(n) "Revenue" means utility retail revenues received from ratepayers in Oregon, excluding supplemental schedules or other revenues not included in the utility's revenue requirement and adjusted for any rate adjustment imposed under this rule;
(o) "Revenue requirement" means the total revenue the Commission authorizes a utility an opportunity to recover in rates pursuant to a general rate proceeding or other general rate revision, including an annual automatic adjustment clause under ORS 757.210;
(p) "Stand-alone tax liability" means the amount of income tax liability calculated using a pro forma tax return and revenues and expenses in the utility's results of operations report for the year, except using zero depreciation expense for public utility property, excluding any tax effects from investment tax credits, and calculating interest expense in the manner used by the Commission in establishing rates;
(q) "System regulated operations" means those activities of the utility, in Oregon and other jurisdictions, that are subject to rate regulation by any state commission;
(r) "Tax" has the meaning given to "tax" in ORS 757.268(13)(d);
(s) "Taxes authorized to be collected in rates" means:
(A) The following for federal and state income taxes calculated by multiplying the following three values:
(i) The revenue the utility collects, as reported in the utility's results of operations report;
(ii) The ratio of the net revenues from regulated operations of the utility to gross revenues from regulated operations of the utility, calculated using the pre-tax income and revenue the Commission authorized in establishing rates and revenue requirement; and
(iii) The effective tax rate used by the Commission in establishing rates for the time period covered by the tax report as set forth in the most recent general rate order or other order that establishes an effective tax rate, calculated as the ratio of total income tax expense in revenue requirement to pre-tax income;
(B) For purposes of paragraph (2)(s)(A) of this rule, when the Commission has authorized a change during the tax year for gross revenues, net revenues or effective tax rate, the amount of taxes authorized to be collected in rates will be calculated using a weighted average of months in effect;
(t) "Taxes paid" has the meaning given to "taxes paid" in ORS 757.268(13)(f);
(u) "Taxpayer" means the utility, the affiliated group or the unitary group that files income tax returns with units of government;
(v) "Tax report" means the tax filing each utility must file with the Commission annually, on or before October 15 following the year for which the filing is being made, pursuant to ORS 757.268;
(w) "Unitary group" means the utility or the group of corporations of which the utility is a member that files a consolidated state income tax return; and
(x) "Units of government" means federal, state, and local taxing authorities.
(3) The amount of income taxes paid that is properly attributed to regulated operations of the utility is calculated as follows:
(a) The amount of federal income taxes paid to units of government that is properly attributed to the regulated operations of the utility is the product of the values in paragraphs (3)(a)(A) and (B), subject to subsection (3)(b) of this rule:
(A) The total amount of federal income taxes paid by the federal taxpayer, to which is added:
(i) The current tax benefit, at the statutory federal income tax rate, of tax depreciation on public utility property;
(ii) The tax benefits associated with federal investment tax credits related to public utility property; and
(iii) Imputed tax benefits on charitable contributions and IRC section 45 renewable electricity production tax credits of the affiliated group, except those tax benefits or credits associated with regulated operations of the utility; and
(B) The average of the ratios calculated for the utility's gross plant, wages and salaries and sales, using amounts allocated to regulated operations of the utility as set forth in the utility's results of operations report in the numerator and amounts for the federal taxpayer in the denominator;
(b) The amount of federal income taxes paid that is properly attributed to the regulated operations of the utility under subsection (3)(a) of this rule shall not be less than the amount of the federal stand-alone tax liability calculated for the regulated operations of the utility, reduced by the product of:
(A) The imputed negative tax associated with all federal income tax losses of entities in the utility's federal taxpayer group; and
(B) The average of the ratios for the utility's gross plant, wages and salaries and sales, using amounts allocated to the regulated operations of the utility as set forth in the utility's results of operations report in the numerator and amounts for the system regulated operations in the denominator;
(c) The total amount of state income taxes paid to units of government that is properly attributed to the regulated operations of the utility is the product of the values in paragraphs (3)(c)(A) and (B), subject to paragraphs (3)(c)(C) and (D) and subsection (3)(d) of this rule:
(A) The total amount of Oregon income taxes paid by the Oregon unitary group taxpayer, to which is added:
(i) The current tax benefit, at the state statutory rate, of tax depreciation on public utility property; and
(ii) Imputed Oregon tax benefits on charitable contributions of the unitary group, except those tax benefits associated with regulated operations of the utility; and
(B) The average of the ratios calculated for the utility's gross plant, wages and salaries and sales using amounts allocated to regulated operations of the utility as set forth in the utility's results of operations report in the numerator and amounts for the unitary group taxpayer in Oregon, adjusted to reflect amounts allocated to regulated operations of the utility, in the denominator;
(C) If a utility's taxes collected in rates reflect non-Oregon state income taxes, the utility must make a one-time permanent election in its October 15, 2006, tax report filing, or in the case of a change of the majority ownership of the utility's voting shares pursuant to ORS 757.511, in the first tax report filing that includes a tax reporting period reflecting the new ownership, to either:
(i) Multiply the total amount of Oregon income taxes paid in paragraph (3)(c)(A) of this rule before adjustments by the ratio calculated as the state income tax rate used by the Commission in establishing rates divided by the Oregon statutory tax rate set forth in ORS 317.061; or
(ii) Calculate the total state taxes paid using the formula set forth in paragraphs (3)(c)(A) and (B) of this rule on a state by state basis, apportioned to Oregon by multiplying the total state taxes paid by the average of the ratios calculated for gross plant, wages and salaries and sales using amounts allocated to the regulated operations of the utility in the numerator and amounts for the system regulated operations in the denominator;
(D) When Oregon income tax attributable to system regulated operations is 100 percent allocated to Oregon in setting rates, 100 percent of the Oregon income tax of system regulated operations must be attributed to the regulated operations of the utility;
(d) The amount of state income taxes paid that is properly attributed to the regulated utility operations of the utility under subsection (3)(c) of this rule must not be less than:
(A) For a utility for which Oregon state income taxes are the only state income taxes included in rates, the amount of the Oregon state stand-alone tax liability calculated for the regulated operations of the utility, minus the imputed negative tax associated with all Oregon state income tax losses of entities in the utility's unitary group; or
(B) For a utility for which non-Oregon state income taxes are included in rates, the product of:
(i) The sum of the state stand-alone tax liability calculated for the applicable system regulated operations in each state in which the utility is a member of a unitary group, minus the sum of the imputed negative tax associated with all state income tax losses of entities in the utility's unitary group in each state; and
(ii) The average of the ratios calculated for gross plant, wages and salaries and sales using amounts allocated to the regulated operations of the utility in the numerator and amounts for the system regulated operations in the denominator;
(e) The amount of local income taxes paid to units of government that is properly attributed to the regulated operations of a utility is the product of the values in paragraphs (3)(e)(A) and (B) of this rule for each local taxing authority in Oregon:
(A) The total amount of income taxes paid by the taxpayer to the local taxing authority, as adjusted to include the imputed effect on local income taxes of:
(i) The current tax benefit of tax depreciation on public utility property; and
(ii) Imputed tax benefits on charitable contributions of the taxpayer except those associated with regulated operations of the utility; and
(B) The ratio calculated using the method for apportioning taxable income used by the local taxing authority, with the amount for the regulated operations of the utility in the local taxing authority in the numerator and the amount for the taxpayer in the local taxing authority in the denominator.
(4) On or before October 15 of each year, each utility must file a tax report with the Commission. The tax report must contain the following applicable information for each of the three preceding fiscal years:
(a) The amount of federal and state income taxes paid to units of government by the taxpayer, as adjusted pursuant to subparagraphs (3)(a)(A)(i), (ii) and (iii) of this rule;
(b) The amount of the utility's federal and state income taxes paid that is incurred as a result of income generated by the regulated operations of the utility, where:
(A) The amount of federal income taxes paid is equal to the federal stand-alone tax liability calculated for the regulated operations of the utility;
(B) For a utility for which Oregon state income taxes are the only state income taxes included in rates, the utility's state income taxes paid is the Oregon state stand-alone tax liability calculated for the regulated operations of the utility; and
(C) For a utility for which non-Oregon state income taxes are included in rates, the amount of state income taxes paid is the product of:
(i) The sum of the state stand-alone tax liability calculated for the applicable system regulated operations in each state in which the utility is a member of a unitary group; and
(ii) The ratio calculated as the income of the regulated operations of the utility divided by the income of the system regulated operations;
(c) The amount of federal and state income taxes paid to units of government by the taxpayer that is properly attributed to the regulated operations of the utility, as calculated in section (3) of this rule;
(d) The lowest of the amounts in subsections (4)(a), (4)(b) and (4)(c) of this rule, after making adjustments in paragraphs (4)(d)(A), (4)(d)(B), (4)(d)(C), (4)(d)(D), and (4)(d)(E), but no less than the deferred taxes related to depreciation of public utility property for regulated operations of the utility, except the deferred tax amount must be reduced by any tax refunds recognized in the reporting period and allocated to the regulated operations of the utility:
(A) The items defined in subsection (2)(t) of this rule;
(B) A reduction equal to the current tax benefit related to tax depreciation of public utility property for regulated operations of the utility;
(C) A reduction equal to the tax benefit related to federal investment tax credits recognized by the Commission in establishing rates;
(D) An increase equal to the tax benefit of Oregon business energy tax credits, including those credits transferred pursuant to ORS 469.206 and 469.208, of the unitary group, excluding those credits covered by 757.268(13)(f)(B); and
(E) Elimination of the iterative tax effect to the extent such iterative tax effect has not been eliminated by paragraph (4)(d)(A) of this rule;
(e) The amount of federal and state income taxes authorized to be collected in rates;
(f) The amount of the difference between the amounts in subsections (4)(d) and (4)(e) of this rule;
(g) The amount of local income taxes paid to units of government by the taxpayer, calculated for each local taxing authority, and to which is added the imputed effect on local income taxes of the amount in subparagraph (3)(e)(A)(i) of this rule;
(h) The amount of local income taxes paid to units of government by the taxpayer that is incurred as a result of income generated by the regulated operations of the utility, calculated as the stand-alone tax liability in each local taxing authority;
(i) The amount of local income taxes paid to units of government by the taxpayer that is properly attributed to the regulated operations of the utility, as calculated in section (3) of this rule for each local taxing authority;
(j) The lowest of the amounts in subsections (4)(g), (4)(h) and (4)(i) of this rule, calculated for each local taxing authority, after making adjustments for:
(A) The items defined in subsection (2)(t) of this rule; and
(B) A reduction equal to the local tax effect of the current tax benefit related to tax depreciation of public utility property for regulated operations of the utility; and
(C) Elimination of the iterative tax effect to the extent such iterative tax effect has not been eliminated by paragraph (4)(j)(A) of this rule;
(k) The amount of local income taxes collected from Oregon customers, calculated for each local taxing authority;
(l) The amount of the difference between the amounts in subsection (4)(j) and (4)(k) of this rule, calculated for each local taxing authority;
(m) The proposed surcharge or surcredit rate adjustments for each customer rate schedule to charge or refund customers the amount of the differences in subsections (4)(f) and (4)(l) of this rule;
(n) If the utility claims the minimum taxes paid amount set by subsections (3)(b) and (3)(d) of this rule, the total federal and state income tax losses in the utility's affiliated and unitary groups associated with the imputed negative tax claimed; and
(o) Any adjustments, in addition to the adjustments required in section (3) and subsections (4)(a) through (4)(n) of this rule, that the utility proposes to avoid probable violations of federal tax normalization requirements.
(5) In calculating the amount of taxes paid under sections (3) and (4) of this rule:
(a) "Taxes paid" must be allocated to each tax year employed by the utility for reporting its tax liability in the following manner:
(A) For any tax return prepared for the preceding tax year and filed on or before the date the tax report is due for such tax year, the utility must allocate each reported tax liability to the tax year for which such return is filed;
(B) For each tax liability or tax adjustment shown on an amended tax return or made as a result of a tax audit, that is filed, paid or received after the date the tax report is due for the applicable tax year, the utility must allocate the tax liability or tax adjustment to the tax year that is recognized by the utility for accounting purposes;
(C) Taxes paid must include any interest paid to or interest received from units of government with respect to tax liabilities;
(b) When a utility's fiscal year or parent changes, and a partial year consolidated federal income tax return is filed during the year, taxes paid must be calculated in the manner defined by ORS 314.355 and OAR 150-314.355. For purposes of this rule, the amount of taxes paid must reflect a weighted average of the months in effect related to each tax return filing.
(6) The utility must explain the method used for calculating the amounts in this rule and provide copies of all workpapers and documents supporting the calculations.
(7) The Commission will establish an ongoing docket for each of the October 15 tax report filings. Upon signing a protective order prepared by the Commission, any intervenor may have access to all such tax report filings, subject to the terms of the protective order;
(a) Within 20 days following the tax report filings, an Administrative Law Judge will conduct a conference and adopt a schedule;
(b) Within 180 days of the tax report filings, the Commission will issue an order that contains the following findings:
(A) Whether the taxes authorized to be collected in rates for any of the three preceding fiscal years differs by $100,000 or more from the amount of taxes paid to units of government that is properly attributed to the regulated operations of the utility;
(B) For the preceding fiscal year, the difference between the amount of federal and state income taxes paid to units of government by the taxpayer that is properly attributed to the regulated operations of the utility and the amount of taxes authorized to be collected in rates;
(C) For the preceding fiscal year, the difference between the amount of local income taxes paid to units of government by the taxpayer that is properly attributed to the regulated operations of the utility and the amount of local taxes collected in rates; and
(c) Any other finding or determination necessary to implement the automatic adjustment clause.
(8) Upon entry of an order finding a difference of $100,000 or more in section (7) of this rule, the utility must file an amended tariff, to be effective each June 1 unless otherwise authorized by the Commission, to implement a rate adjustment applying to taxes paid to units of government and collected from ratepayers for each fiscal year beginning on or after January 1, 2006;
(a) The utility must establish a balancing account and automatic adjustment clause tariff to recover or refund the difference determined by the Commission in paragraph (7)(b)(B) of this rule through a surcharge or surcredit rate adjustment;
(b) A utility that is assessed a local income tax must establish a separate balancing account and automatic adjustment clause tariff for each local taxing authority assessing such tax. The utility must apply a surcharge or surcredit on the bills of customers within the local taxing authority assessing the tax. The amount of the surcharge or surcredit must be calculated to recover or refund the difference determined by the Commission in paragraph (7)(b)(C) of this rule;
(c) Any rate adjustment must be calculated to amortize the difference determined by the Commission in paragraphs (7)(b)(B) and (7)(b)(C) of this rule over a period authorized by the Commission;
(d) Any rate adjustment must be allocated by customer rate schedule according to equal percentage of margin for natural gas utilities and equal cents per kilowatt-hour for electric utilities, unless otherwise authorized by the Commission;
(e) Each balancing account must accrue interest at the Commission-authorized rate for deferred accounts. For purposes of calculating interest, the amount of the difference calculated in this section of the rule will be deemed to be added to the balancing account on July 1 of the tax year;
(f) The automatic adjustment clause must not operate in a manner that allocates to customers any portion of the benefits of deferred taxes resulting from accelerated depreciation or other tax treatment of utility investment or regulated affiliate investment required to ensure compliance with the normalization method of accounting or any other requirements of federal tax law;
(g) On or before December 31, 2006, each utility must seek a Private Letter Ruling from the Internal Revenue Service on whether the utility's compliance with ORS 757.268 or this rule would cause the utility to fail to comply with any provision of federal tax law, including normalization requirements. Each utility must file a draft of its Private Letter Ruling Request with the Commission on or before November 15, 2006. While a utility's request for a Private Letter Ruling is pending, or a related Revenue Ruling is pending, no rate adjustment will be implemented, but interest will accrue according to subsection (8)(e) of this rule on the amount of any rate adjustment determined by the Commission pursuant to paragraphs (7)(b)(B) and (7)(b)(C) of this rule.
(9) No later than 30 days following the Commission's findings in section (7) of this rule, any person may petition to terminate the automatic adjustment clause on the basis that it would result in a material adverse effect on customers. In the event of a filing under this section, the applicable rate adjustment will not be implemented until the Commission makes its determination. If the Commission denies the request to terminate the rate adjustment, interest will accrue according to subsection (8)(e) of this rule on the final amount of the rate adjustment.
Stat.
Auth.: ORS 183, 756, 757 & 759
Stats.
Implemented: ORS 756.040, 756.060, 757.267 & 757.268
Hist.:
PUC 8-2006, f. & cert. ef. 9-18-06; PUC 11-2007, f. & cert. ef. 9-18-07;
PUC 4-2009(Temp), f. & cert. ef. 4-15-09 thru 10-9-09; PUC 11-2009, f. &
cert. ef. 10-2-09
860-022-0042
Relating to City Privilege Taxes, Fees, and Other Assessments Imposed Upon a Large Telecommunications Utility
(1) The aggregate amount of all privilege taxes and fees and other assessments imposed upon a large telecommunications utility by any city in Oregon for engaging in business within such city or for use and occupancy of city streets and public ways, whether applied to regulated revenues, net income, or other bases, shall be allowed as operating expenses of the large telecommunications utility for rate-making purposes, subject to sections (2) through (4) of this rule.
(2) As used in this rule:
(a) "Fees and other assessments" means business or occupation taxes or licenses; franchise or operating permit fees; sales, use, net income, gross receipts, and payroll taxes, levies, or charges; and other similar exactions imposed by cities, other than ad valorem taxes, upon revenues or income received from regulated telecommunications services by a large telecommunications utility;
(b) "Local access revenues" means those revenues derived from exchange access services within the city, as defined in ORS 401.710, less related net uncollectibles;
(c) "Privilege taxes" means taxes levied and collected by cities from a large telecommunications utility for use and occupancy of city streets, alleys, or highways, as provided under ORS 221.515;
(d) "Regulated revenues" means those revenues derived from regulated telecommunications services within the city less related net uncollectibles. Regulated revenues include, but are not limited to, local access revenues.
(3) Separate fees for street opening, installations, construction, and maintenance of fixtures or facilities to the extent such fees or charges are reasonably related to the city's costs for inspection, supervision, and regulation in the exercise of its police powers shall be allowed as operating expenses of a large telecommunications utility for rate-making purposes. Such fees shall not be deducted in computing the percentage level set forth in section (4) of this rule.
(4) The aggregate amount of all privilege taxes and fees and other assessments imposed upon a large telecommunications utility by a city, which does not exceed 4 percent of local access revenues, shall be allowed as operating expenses for rate-making purposes and shall not be itemized or billed separately. All privilege taxes and fees and other assessments in excess of 4 percent of local access revenues shall be charged pro rata to users of local access services within the city, and the aggregate excess amount shall be separately itemized on customers' bills or billed separately.
(5) The amount allowed as an operating expense may be described on customers' bills in a manner determined by the large telecommunications utility.
Stat. Auth.: ORS 183,
756 & 759
Stats. Implemented: ORS 759.105
Hist.: PUC 14-1990, f. & cert. ef. 7-11-90 (Order No. 90-1031);
PUC 7-1998, f. & cert. ef. 4-8-98; PUC 16-2001, f. & cert.
ef. 6-21-01; PUC 14-2003, f. & cert. ef. 7-24-03
860-022-0045
Relating to Local Government Fees, Taxes, and Other Assessments Imposed Upon an Energy or Large Telecommunications Utility
(1) If any county in Oregon, other than a city-county, imposes upon an energy or large telecommunications utility any new taxes or license, franchise, or operating permit fees, or increases any such taxes or fees, the utility required to pay such taxes or fees shall collect from its customers within the county imposing such taxes or fees the amount of the taxes or fees, or the amount of increase in such taxes or fees. However, if the taxes or fees cover the operations of an energy or large telecommunications utility in only a portion of a county, then the affected utility shall recover the amount of the taxes or fees or increase in the amount thereof from customers in the portion of the county which is subject to the taxes or fees. "Taxes," as used in this rule, means sales, use, net income, gross receipts, payroll, business or occupation taxes, levies, fees, or charges other than ad valorem taxes.
(2) The amount collected from each utility customer pursuant to section (1) of this rule shall be separately stated and identified in all customer billings.
(3) This rule applies to new or increased taxes imposed on and after December 16, 1971, including new or increased taxes imposed retroactively after that date.
(4) If any county, energy or large telecommunications utility, or customer affected by this rule deems the rule's application in any instance to be unjust or unreasonable, it may apply for a waiver of this rule by petition to the Commission, setting forth the reasons why the rule should not apply.
Stat. Auth.: ORS 183,
756, 757 & 759
Stats. Implemented: ORS 757.110 & 759.115
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC
7-1998, f. & cert. ef. 4-8-98; PUC 16-2001, f. & cert. ef.
6-21-01
860-022-0046
Forced Conversion of Electric and Communication Facilities
(1) As used in this rule:
(a) "Convert," "converting," or "conversion" means the removal of overhead electric or communication facilities and the replacement of those facilities with underground electric or communication facilities at the same or different locations;
(b) "Conversion cost" means the difference in cost between constructing an underground system and retaining the existing overhead system. This difference is generally equal to the cost of all necessary excavating, road crossings, trenching, backfilling, raceways, ducts, vaults, transformer pads, other devices peculiar to underground service, and "overhead retirement costs." However, if the conversion is required in conjunction with a public project which would necessitate the relocation of the electric company's or large telecommunications utility's facilities at the utility's expense, "conversion costs" shall not include any "overhead retirement costs;"
(c) "Electric or communication facilities" means any works or improvements used or useful in providing electric or communication service, including but not limited to poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, cross-arms, braces, transformers, insulators, cutouts, switches, capacitors, meters, communication circuits, appliances, attachments and appurtenances, and all related facilities required for the acceptance of electric or communication services. However:
(A) "Electric facilities" excludes any facilities used or intended to be used for the transmission of electric energy at nominal voltage in excess of 35,000 volts;
(B) "Communication facilities" excludes facilities used or intended to be used for the transmission of intelligence by microwave or radio apparatus cabinets or outdoor public telephones;
(C) "Electric or communication facilities" excludes any electric or communication facilities owned or used by or provided for a railroad or pipeline and located upon or above the right-of-way of the railroad or pipeline.
(d) "Local government" includes cities; counties; authorities and agencies created pursuant to ORS Chapters 456 and 457; special districts of the type described in 198.010, 198.180; and all other political subdivisions of Oregon;
(e) "Overhead electric or communication facilities" means electric or communication facilities located above the surface of the ground;
(f) "Overhead retirement cost" means the original cost, less depreciation, less salvage value, plus removal costs, of existing overhead distribution facilities no longer used or useful by reason of the conversion;
(g) "Underground electric or communication facilities" means electric or communication facilities located below the surface of the ground exclusive of those facilities such as substations, transformers, pull boxes, service terminals, pedestal terminals, splice closures, apparatus cabinets, and similar facilities which normally are above the surface in areas where electric company or large telecommunications utility facilities are underground in accordance with standard underground practices.
(2) This rule does not apply if the total conversion cost incurred by the electric company or large telecommunications utility during one calendar year does not exceed five-one hundredths of 1 percent (.05 percent) of the utility's annual revenues derived from customers residing within the boundaries of the local government.
(3) When a local government requires an energy or large telecommunications utility to convert electric or telecommunications facilities at the utility's expense, the utility shall collect the conversion costs from customers located within the boundaries of the local government.
(4) The local government may direct the electric company or large telecommunications utility to collect conversion costs from only a portion of the customers located within the boundaries of the local government.
(5) Conversion costs incurred by the electric company or large telecommunications utility shall be accumulated in a separate account in the electric company or large telecommunications utility's books. Interest shall accrue from the date the electric company or large telecommunications utility incurs the cost. The rate of such interest shall be equal to the effective cost of the senior security issue which most recently preceded the incurrence of the cost.
(6) The electric company or large telecommunications utility shall collect the conversion costs and interest over a reasonable period of time subject to the Commission's approval. However, the pay-back period shall not exceed the depreciable life of the facilities. Collection shall begin as soon as practical after the end of the year in which the conversion costs are incurred.
(7) The conversion cost to be recovered from each customer shall be calculated by applying a uniform percentage to each customer's total monthly bill for service rendered within the boundaries of the local government. The amount collected shall be separately stated and identified on each bill.
(8) This rule applies to conversions upon which construction began on or after August 13, 1984.
Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040
Hist.: PUC 17-1984, f. & ef. 8-14-84 (Order No. 84-615); PUC
20-1984, f. & ef. 9-19-84 (Order No. 84-737); PUC 2-1993, f.
& cert. ef. 1-8-93 (Order No. 92-1793 & 93-035); PUC 9-1998,
f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01;
PUC 7-2005, f. & cert. ef. 11-30-05
860-022-0065
Attachments to Poles and Conduits Owned by Public, Telecommunications, and Consumer-Owned Utilities
Pole and conduit attachments shall comply with the rules set forth in OAR chapter 860, division 028.
Stat. Auth.: ORS 183,
756, 757, 758 & 759
Stats. Implemented: ORS 757.035, 757.542 - 757.562,
758.215, 759.045 & 759.650 - 759.675
Hist.: PUC 23-2001, f. & cert. ef. 10-11-01
860-022-0070
Procedures and Standards for Reviewing Gas Utility Rates in the Context of the Purchased Gas Adjustment Mechanism
(1) The purpose of sections (1) through (7) of this rule is to ensure that earnings of a natural gas utility local distribution company ("gas utility" or "LDC") with a purchased gas adjustment ("PGA") mechanism are not excessive prior to passing through prudently incurred base gas cost changes in rates through a mechanism which is fair to all parties and efficient to administer. For purposes of this rule, earnings are excessive only if a gas utility does not share with its customers past revenues related to earnings that exceed an earnings threshold determined by the Commission.
(2) Prudently incurred base gas cost changes will be included in rates through tracking filings, subject to the Commission's review of gas cost purchasing practices at the time of those filings.
(3) A separate, simplified earnings review will be conducted on an annual basis independent of and in advance of the PGA filings. The purpose of such an earnings review is to determine whether the gas utility's earnings are above an earnings threshold so as to require some sharing of revenue with customers before passing through base gas cost changes. The purpose is not to make a forward-looking, permanent change in rates.
(4) In an earnings review conducted under this rule, it is reasonable for PGA base gas cost changes to be passed through into rates if, in circumstances when the gas utility's earnings in the prior year were above an earnings threshold determined in section (5) of this rule, revenue representing a percentage of earnings in that year above that earnings threshold is shared with customers.
(5) The standards to be applied in an earnings review under this rule for each LDC are as follows:
(a) Test year: The test year for the earnings review will be the calendar year immediately prior to the year in which the PGA filing is made, unless otherwise specified by the Commission.
(b) Normalization and adjustments: The test year results will be adjusted with a predetermined list of rate-making adjustments equivalent to those applied in the gas utility's most recent general rate proceeding.
(c) Earnings threshold: There will be no revenue sharing required for years when a gas utility's return on equity from utility operations in Oregon is lower than the earnings threshold determined by the Commission for each LDC. Neither this value nor any of the components implied in establishing it will be precedential in a general rate case involving any Oregon public utility. The Commission will update the value for the earnings threshold annually for each LDC, pursuant to a mechanism established by order of the Commission for each LDC, to reflect changes in conditions in the capital markets. Upon a showing of good cause, the Commission may consider other relevant factors in addition to changes in conditions in the capital markets.
(d) Sharing percentage: The amount of revenue in a test year representing a specified percentage of the earnings above the earnings threshold will be shared with customers. The Commission by order will determine the sharing percentage for each LDC.
(e) Deferral and amortization: Any revenue determined for the gas utility for a test year under section 5(d) of this rule will be deferred as of December 31 of the test year. The balance in the deferred account will accrue interest from that date at the LDC's rate of return on rate base determined in its last general rate case. Interest will continue to accrue at this rate during the amortization period, which will begin on the date of the next PGA rate change and extend for twelve months. The Commission by order will determine the method for allocating amounts to be amortized among customer classes.
(6) Each LDC will file test year results of operations by May 1. Any person may request to be placed on a list to receive all such earnings review filings at the time they are submitted to the Commission or may request a copy of individual filings. Any person wishing to participate as a party shall so notify the Commission and other parties via letter. Commission staff will complete its review and distribute summary conclusions by June 10 to all parties. Staff will present the results of the earnings review at the first regular public meeting in July; alternatively, if issues are unresolved among all parties, a settlement conference including all parties will be conducted. By August 1, the parties will file position statements with the Commission on unresolved issues, if needed. The Commission will issue its decision on unresolved issues, if any, by August 15. Unless otherwise directed by the Commission, each LDC will file its annual gas cost tracking filing by August 31, including amortization of credit amounts in the deferred account, if any, resulting from the earnings review.
Stat.
Auth.: ORS 183 & 757
Stats.
Implemented: ORS 757.210 & 757.259
Hist.:
PUC 1-1999, f. & cert. ef. 4-21-99; PUC 5-2003, f. & cert. ef. 4-14-03;
PUC 1-2007, f. & cert. ef. 1-23-07; PUC 2-2009, f. & cert. ef. 3-25-09
860-022-0075
Ownership of Non-Energy Attributes of Generation from Renewable Energy Facilities
(1) This rule applies to non-energy attributes associated with energy generated and sold under an applicable contract, as identified in section (2) of this rule, that is executed on or after the effective date of this rule.
(2) Unless otherwise agreed to by separate contract, the owner of the renewable energy facility retains ownership of the non-energy attributes associated with electricity the facility generates and sells to an electric company pursuant to:
(a) The provisions of a net metering tariff;
(b) An Oregon contract with the electric company entered into pursuant to Section 210 of the Public Utility Regulatory Policies Act of 1978; or
(c) Another retail power production tariff.
Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040, 757.205, 757.210
Hist.: PUC 7-2005, f. & cert. ef. 11-30-05
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