74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3152-3
C-Engrossed
Senate Bill 838
Ordered by the House May 18
Including Senate Amendments dated April 6 and House Amendments
dated May 9 and May 18
Sponsored by Senator AVAKIAN; Senators ATKINSON, BATES, BROWN,
BURDICK, CARTER, COURTNEY, DEVLIN, GORDLY, METSGER, MONNES
ANDERSON, MONROE, MORRISETTE, PROZANSKI, STARR, WALKER,
WESTLUND, Representative DINGFELDER (at the request of Governor
Theodore R. Kulongoski)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Establishes renewable portfolio standard for electric utilities
and electricity service suppliers. Specifies renewable energy
sources that can be used to generate electricity for purposes of
complying with standard. Provides exemptions from compliance with
standard.
Directs State Department of Energy to establish system of
renewable energy certificates. Specifies renewable energy
certificates that may be used to comply with renewable portfolio
standard.
Establishes compliance requirements for renewable portfolio
standards. Allows use of alternative compliance payments. Allows
Public Utility Commission to impose penalty against electric
company or electricity service supplier that fails to comply with
standard.
Requires that utilities offer green power rate.
Extends required collection of public purpose charge to January
1, 2026.
Modifies laws relating to people's utility districts.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to electricity; creating new provisions; amending ORS
261.010, 261.030, 261.050, 261.235, 261.250, 261.253, 261.305,
261.335, 261.348, 261.355, 262.005, 262.015, 262.075, 757.612
and 757.687; and declaring an emergency.
Whereas the Legislative Assembly finds that it is in the
interest of the state to promote research and development of new
renewable energy sources in Oregon; and
Whereas the Legislative Assembly finds that it is necessary for
Oregon's electric utilities to decrease their reliance on fossil
fuels for electricity generation and to increase their use of
renewable energy sources; and
Whereas this 2007 Act may be cited as the Oregon Renewable
Energy Act; and
Whereas the Oregon Renewable Energy Act provides a
comprehensive renewable energy policy for Oregon, enabling
industry, government and all Oregonians to accelerate the
transition to a more reliable and more affordable energy system;
now, therefore,
Be It Enacted by the People of the State of Oregon:
{ +
DEFINITIONS + }
SECTION 1. { + Definitions. As used in sections 1 to 24 of
this 2007 Act:
(1) 'Banked renewable energy certificate' means a bundled or
unbundled renewable energy certificate that is not used by an
electric utility or electricity service supplier to comply with a
renewable portfolio standard in a calendar year and that is
carried forward for the purpose of compliance with a renewable
portfolio standard in a subsequent year.
(2) 'BPA electricity' means electricity provided by the
Bonneville Power Administration, including all electricity from
the Federal Columbia River Power System hydroelectric projects
and other electricity acquired by the Bonneville Power
Administration by contract.
(3) 'Bundled renewable energy certificate' means a renewable
energy certificate for qualifying electricity that is acquired:
(a) By an electric utility or electricity service supplier by a
trade, purchase or other transfer of electricity that includes
the certificate that was issued for the electricity; or
(b) By an electric utility by generation of the electricity for
which the certificate was issued.
(4) 'Compliance year' means the calendar year for which the
electric utility or electricity service supplier seeks to
establish compliance with the renewable portfolio standard
applicable to the utility or supplier in the compliance report
submitted under section 19 of this 2007 Act.
(5) 'Consumer-owned utility' means a municipal electric
utility, a people's utility district organized under ORS chapter
261 that sells electricity or an electric cooperative organized
under ORS chapter 62.
(6) 'Electric company' has the meaning given that term in ORS
757.600.
(7) 'Electric utility' has the meaning given that term in ORS
757.600.
(8) 'Electricity service supplier' has the meaning given that
term in ORS 757.600.
(9) 'Qualifying electricity' means electricity described in
section 2 of this 2007 Act.
(10) 'Renewable energy source' means a source of electricity
described in section 4 of this 2007 Act.
(11) 'Retail electricity consumer' means a retail electricity
consumer, as defined in ORS 757.600, that is located in Oregon.
(12) 'Unbundled renewable energy certificate' means a renewable
energy certificate for qualifying electricity that is acquired by
an electric utility or electricity service supplier by trade,
purchase or other transfer without acquiring the electricity for
which the certificate was issued. + }
{ +
QUALIFYING ELECTRICITY + }
SECTION 2. { + Qualifying electricity. (1) Except as provided
in this section, and subject to section 15 of this 2007 Act,
electricity generated from a renewable energy source may be used
to comply with a renewable portfolio standard only if the
facility that generates the electricity meets the requirements of
section 3 of this 2007 Act.
(2) Any electricity that the Bonneville Power Administration
has designated as environmentally preferred power, or has given a
similar designation for electricity generated from a renewable
resource, may be used to comply with a renewable portfolio
standard.
(3) The Legislative Assembly finds that hydroelectric energy is
an important renewable energy source and electricity from
hydroelectric generators may be used to comply with a renewable
portfolio standard as provided in sections 1 to 24 of this 2007
Act. + }
SECTION 3. { + Qualifying electricity; age of generating
facility. (1) Except as provided in this section, electricity may
be used to comply with a renewable portfolio standard only if the
electricity is generated by a facility that becomes operational
on or after January 1, 1995.
(2) Electricity from a generating facility, other than a
hydroelectric facility, that became operational before January 1,
1995, may be used to comply with a renewable portfolio standard
if the electricity is attributable to capacity or efficiency
upgrades made on or after January 1, 1995.
(3) Electricity from a hydroelectric facility that became
operational before January 1, 1995, may be used to comply with a
renewable portfolio standard if the electricity is attributable
to efficiency upgrades made on or after January 1, 1995. If an
efficiency upgrade is made to a Bonneville Power Administration
facility, only that portion of the electricity generation
attributable to Oregon's share of the electricity may be used to
comply with a renewable portfolio standard.
(4) Subject to the limit imposed by section 4 (5) of this 2007
Act, electricity from a hydroelectric facility that is owned by
an electric utility and that became operational before January 1,
1995, may be used to comply with a renewable portfolio standard
if the facility is certified as a low-impact hydroelectric
facility on or after January 1, 1995, by a national certification
organization recognized by the State Department of Energy by
rule. + }
SECTION 4. { + Renewable energy sources. (1) Electricity
generated utilizing the following types of energy may be used to
comply with a renewable portfolio standard:
(a) Wind energy.
(b) Solar photovoltaic and solar thermal energy.
(c) Wave, tidal and ocean thermal energy.
(d) Geothermal energy.
(2) Except as provided in subsection (3) of this section,
electricity generated from biomass and biomass byproducts may be
used to comply with a renewable portfolio standard, including but
not limited to electricity generated from:
(a) Organic human or animal waste;
(b) Spent pulping liquor;
(c) Forest or rangeland woody debris from harvesting or
thinning conducted to improve forest or rangeland ecological
health and to reduce uncharacteristic stand replacing wildfire
risk;
(d) Wood material from hardwood timber grown on land described
in ORS 321.267 (3);
(e) Agricultural residues;
(f) Dedicated energy crops; and
(g) Landfill gas or biogas produced from organic matter,
wastewater, anaerobic digesters or municipal solid waste.
(3) Electricity generated from the direct combustion of biomass
may not be used to comply with a renewable portfolio standard if
any of the biomass combusted to generate the electricity
includes:
(a) Municipal solid waste; or
(b) Wood that has been treated with chemical preservatives such
as creosote, pentachlorophenol or chromated copper arsenate.
(4) Electricity generated by a hydroelectric facility may be
used to comply with a renewable portfolio standard only if:
(a) The facility is located outside any protected area
designated by the Pacific Northwest Electric Power and
Conservation Planning Council as of July 23, 1999, or any area
protected under the federal Wild and Scenic Rivers Act, Public
Law 90-542, or the Oregon Scenic Waterways Act, ORS 390.805 to
390.925; or
(b) The electricity is attributable to efficiency upgrades made
to the facility on or after January 1, 1995.
(5) Up to 50 average megawatts of electricity per year
generated by an electric utility from certified low-impact
hydroelectric facilities described in section 3 (4) of this 2007
Act may be used to comply with a renewable portfolio standard,
without regard to the number of certified facilities operated by
the electric utility or the generating capacity of those
facilities. A hydroelectric facility described in this subsection
is not subject to the requirements of subsection (4) of this
section.
(6) Electricity generated from hydrogen gas derived from any
source of energy described in subsections (1) to (5) of this
section may be used to comply with a renewable portfolio
standard.
(7) If electricity generation employs multiple energy sources,
that portion of the electricity generated that is attributable to
energy sources described in subsections (1) to (6) of this
section may be used to comply with a renewable portfolio
standard.
(8) The State Department of Energy by rule may approve energy
sources other than those described in this section that may be
used to comply with a renewable portfolio standard. The
department may not approve petroleum, natural gas, coal or
nuclear fission as an energy source that may be used to comply
with a renewable portfolio standard. + }
{ +
RENEWABLE PORTFOLIO STANDARDS + }
SECTION 5. { + Applicable standard. (1) Electric utilities
must comply with the applicable renewable portfolio standard
described in section 6 or 7 of this 2007 Act.
(2) Electricity service suppliers must comply with the
renewable portfolio standard established under section 9 of this
2007 Act. + }
SECTION 6. { + Large utility renewable portfolio standard.
(1) The large utility renewable portfolio standard imposes the
following requirements on an electric utility that makes sales of
electricity to retail electricity consumers in an amount that
equals three percent or more of all electricity sold to retail
electricity consumers:
(a) At least five percent of the electricity sold by the
utility to retail electricity consumers in each of the calendar
years 2011, 2012, 2013 and 2014 must be qualifying electricity;
(b) At least 15 percent of the electricity sold by the utility
to retail electricity consumers in each of the calendar years
2015, 2016, 2017, 2018 and 2019 must be qualifying electricity;
(c) At least 20 percent of the electricity sold by the utility
to retail electricity consumers in each of the calendar years
2020, 2021, 2022, 2023 and 2024 must be qualifying electricity;
and
(d) At least 25 percent of the electricity sold by the utility
to retail electricity consumers in calendar year 2025 and
subsequent calendar years must be qualifying electricity.
(2) If, on the effective date of this 2007 Act, an electric
utility makes sales of electricity to retail electricity
consumers in an amount that equals less than three percent of all
electricity sold to retail electricity consumers, but in any
three consecutive calendar years thereafter makes sales of
electricity to retail electricity consumers in amounts that
average three percent or more of all electricity sold to retail
electricity consumers, the utility is subject to the renewable
portfolio standard described in subsection (3) of this section.
The utility becomes subject to the standard described in
subsection (3) of this section in the calendar year following the
three-year period during which the utility makes sales of
electricity to retail electricity consumers in amounts that
average three percent or more of all electricity sold to retail
electricity consumers.
(3) An electric utility described in subsection (2) of this
section must comply with the following renewable portfolio
standard:
(a) Beginning in the fourth calendar year after the calendar
year in which the utility becomes subject to the standard
described in this subsection, at least five percent of the
electricity sold by the utility to retail electricity consumers
in a calendar year must be qualifying electricity;
(b) Beginning in the 10th calendar year after the calendar year
in which the utility becomes subject to the standard described in
this subsection, at least 15 percent of the electricity sold by
the utility to retail electricity consumers in a calendar year
must be qualifying electricity;
(c) Beginning in the 15th calendar year after the calendar year
in which the utility becomes subject to the standard described in
this subsection, at least 20 percent of the electricity sold by
the utility to retail electricity consumers in a calendar year
must be qualifying electricity; and
(d) Beginning in the 20th calendar year after the calendar year
in which the utility becomes subject to the standard described in
this subsection, at least 25 percent of the electricity sold by
the utility to retail electricity consumers in a calendar year
must be qualifying electricity. + }
SECTION 7. { + Small electric utilities. (1) Except as
provided in this section, an electric utility that makes sales of
electricity to retail electricity consumers in an amount that
equals less than three percent of all electricity sold to retail
electricity consumers is not subject to sections 1 to 24 of this
2007 Act.
(2) Beginning in calendar year 2025, at least five percent of
the electricity sold to retail electricity consumers in a
calendar year by an electric utility must be qualifying
electricity if the electric utility makes sales of electricity to
retail electricity consumers in an amount that equals less than
one and one-half percent of all electricity sold to retail
electricity consumers.
(3) Beginning in calendar year 2025, at least 10 percent of the
electricity sold to retail electricity consumers in a calendar
year by an electric utility must be qualifying electricity if the
electric utility makes sales of electricity to retail electricity
consumers in an amount that equals or is more than one and
one-half percent, and less than three percent, of all electricity
sold to retail electricity consumers.
(4) The exemption provided by subsection (1) of this section
terminates if an electric utility, or a joint operating entity
that includes the utility as a member, acquires electricity from
an electricity generating facility that uses coal as an energy
source or makes an investment on or after the effective date of
this 2007 Act in an electricity generating facility that uses
coal as an energy source. This subsection does not apply to:
(a) A wholesale market purchase by an electric utility for
which the energy source for the electricity is not known;
(b) BPA electricity;
(c) Acquisition of electricity under a contract entered into
before the effective date of this 2007 Act;
(d) A renewal or replacement contract for a contract for
purchase of electricity described in paragraph (c) of this
subsection;
(e) A purchase of electricity if the electricity is included in
a contract for the purchase of qualifying electricity and is
necessary to shape, firm or integrate the qualifying electricity;
(f) Electricity provided to an electric utility under a
contract for the acquisition of an interest in an electricity
generating facility that was entered into by the utility before
the effective date of this 2007 Act or entered into before the
effective date of this 2007 Act by an electric cooperative
organized under ORS chapter 62 of which the electric utility is a
member, without regard to whether the electricity is being used
to serve the load of the electric utility on the effective date
of this 2007 Act; or
(g) Investments in an electricity generating facility that uses
coal as an energy source if the investments are for the purpose
of improving the facility's pollution mitigation equipment or the
facility's efficiency or are necessary to comply with
requirements or standards imposed by governmental entities.
(5) The exemption provided by subsection (1) of this section
terminates for a consumer-owned utility if at any time after the
effective date of this 2007 Act the utility acquires service
territory of an electric company without the consent of the
electric company.
(6) Beginning in the calendar year following the year in which
an electric utility's exemption terminates under subsection (4)
or (5) of this section, the utility is subject to the renewable
portfolio standard described in section 6 (3) of this 2007 Act
and related provisions of sections 1 to 24 of this 2007 Act.
(7) The provisions of this section do not affect the
requirement that electric utilities offer a green power rate
under section 23 of this 2007 Act. + }
SECTION 8. { + Exemptions from compliance with renewable
portfolio standard. (1) Electric utilities are not required to
comply with the renewable portfolio standards described in
sections 6 and 7 of this 2007 Act to the extent that:
(a) Compliance with the standard would require the utility to
acquire electricity in excess of the utility's projected load
requirements in any calendar year; and
(b) Acquiring the additional electricity would require the
utility to substitute qualifying electricity for electricity
derived from an energy source other than coal, natural gas or
petroleum.
(2)(a) Electric utilities are not required to comply with a
renewable portfolio standard to the extent that compliance would
require the utility to substitute qualifying electricity for
electricity available to the utility under contracts for
electricity from dams that are owned by Washington public utility
districts and are located between the Grand Coulee Dam and the
Columbia River's junction with the Snake River. The provisions of
this subsection apply only to contracts entered into before the
effective date of this 2007 Act and to renewal or replacement
contracts for contracts entered into before the effective date of
this 2007 Act.
(b) If a contract described in paragraph (a) of this subsection
expires and is not renewed or replaced, the utility must comply,
in the calendar year following the expiration of the contract,
with the renewable portfolio standard applicable to the utility.
(3) A consumer-owned utility is not required to comply with a
renewable portfolio standard to the extent that compliance would
require the utility to reduce the utility's purchases of the
lowest priced electricity from the Bonneville Power
Administration pursuant to section 5 of the Pacific Northwest
Electric Power Planning and Conservation Act of 1980, P.L.
96-501, as in effect on the effective date of this 2007 Act. The
exemption provided by this subsection applies only to firm
commitments for BPA electricity that the Bonneville Power
Administration has assured will be available to a utility to meet
agreed portions of the utility's load requirements for a defined
period of time. + }
SECTION 9. { + Renewable portfolio standard for electricity
service suppliers. An electricity service supplier must meet the
requirements of the renewable portfolio standards that are
applicable to the electric utilities that serve the territories
in which the electricity service supplier sells electricity to
retail electricity consumers. The Public Utility Commission shall
establish procedures for implementation of the renewable
portfolio standards for electricity service suppliers that sell
electricity in the service territory of an electric company. If
an electricity service supplier sells electricity in territories
served by more than one electric company, the commission may
provide for an aggregate standard based on the amount of
electricity sold by the electricity service supplier in each
territory. Pursuant to ORS 757.676, a consumer-owned utility may
establish procedures for the implementation of the renewable
portfolio standards for electricity service suppliers that sell
electricity in the territory served by the consumer-owned
utility. + }
SECTION 10. { + Manner of complying with renewable portfolio
standards. (1) Except as provided in subsection (2) of this
section, an electric utility or electricity service supplier must
comply with the renewable portfolio standard applicable to the
utility or supplier in each calendar year by:
(a) Using bundled renewable energy certificates issued or
acquired during the compliance year;
(b) Subject to the limitations described in sections 16 and 17
of this 2007 Act, using unbundled or banked renewable energy
certificates; or
(c) Making alternative compliance payments as described in
section 20 of this 2007 Act.
(2) Bundled or unbundled renewable energy certificates that are
issued or acquired by an electric utility or electricity service
supplier on or before March 31 in a calendar year may be used by
the utility or supplier to comply with the renewable portfolio
standard applicable to the utility or supplier for the preceding
calendar year. + }
SECTION 11. { + Implementation plan for electric companies;
annual reports. (1) An electric company that is subject to a
renewable portfolio standard shall develop an implementation plan
for meeting the requirements of the standard and file the plan
with the Public Utility Commission. Implementation plans must be
revised and updated at least once every two years.
(2) An implementation plan must at a minimum contain:
(a) Annual targets for acquisition and use of qualifying
electricity; and
(b) The estimated cost of meeting the annual targets, including
the cost of transmission, the cost of firming, shaping and
integrating qualifying electricity, the cost of alternative
compliance payments and the cost of acquiring renewable energy
certificates.
(3) The commission shall acknowledge the implementation plan no
later than six months after the plan is filed with the
commission. The commission may acknowledge the plan subject to
conditions specified by the commission.
(4) The commission shall adopt rules:
(a) Establishing requirements for the content of implementation
plans;
(b) Establishing the procedure for acknowledgement of
implementation plans under this section, including provisions for
public comment; and
(c) Providing for the integration of the implementation plan
with the integrated resource planning guidelines established by
the commission and in effect on the effective date of this 2007
Act.
(5) The implementation plan filed under this section may
include procedures that will be used by the electric company to
determine whether the costs of constructing a facility that
generates electricity from a renewable energy source, or the
costs of acquiring bundled or unbundled renewable energy
certificates, are consistent with the standards of the commission
relating to least-cost, least-risk planning for acquisition of
resources. + }
SECTION 11a. { + An electric company shall develop and file
with the Public Utility Commission an initial implementation plan
under section 11 of this 2007 Act no later than January 1,
2010. + }
{ +
COST LIMITATION + }
SECTION 12. { + Limits on cost of compliance with renewable
portfolio standard. (1) Electric utilities are not required to
comply with a renewable portfolio standard during a compliance
year to the extent that the incremental cost of compliance, the
cost of unbundled renewable energy certificates and the cost of
alternative compliance payments under section 20 of this 2007 Act
exceeds four percent of the utility's annual revenue requirement
for the compliance year.
(2) For each electric company, the Public Utility Commission
shall establish the annual revenue requirement for a compliance
year no later than January 1 of the compliance year. The
governing body of a consumer-owned utility shall establish the
annual revenue requirement for the consumer-owned utility.
(3) The annual revenue requirement for an electric utility
shall be calculated based only on the operations of the utility
relating to electricity. The annual revenue requirement does not
include any amount expended by the utility for energy efficiency
programs for customers of the utility or for low income energy
assistance, the incremental cost of compliance with a renewable
portfolio standard, the cost of unbundled renewable energy
certificates or the cost of alternative compliance payments under
section 20 of this 2007 Act. The annual revenue requirement does
include:
(a) All operating expenses of the utility during the compliance
year, including depreciation and taxes; and
(b) For electric companies, an amount equal to the total rate
base of the company for the compliance year multiplied by the
rate of return established by the commission for debt and equity
of the company.
(4) For the purposes of this section, the incremental cost of
compliance with a renewable portfolio standard is the difference
between the levelized annual delivered cost of the qualifying
electricity and the levelized annual delivered cost of an
equivalent amount of reasonably available electricity that is not
qualifying electricity. For the purpose of this subsection, the
commission or governing body of a consumer-owned utility shall
use the net present value of delivered cost, including:
(a) Capital, operating and maintenance costs of generating
facilities;
(b) Financing costs attributable to capital, operating and
maintenance expenditures for generating facilities;
(c) Transmission and substation costs;
(d) Load following and ancillary services costs; and
(e) Costs associated with using other assets, physical or
financial, to integrate, firm or shape renewable energy sources
on a firm annual basis to meet retail electricity needs.
(5) For the purposes of this section, the governing body of a
consumer-owned utility may include in the incremental cost of
compliance with a renewable portfolio standard all expenses
associated with research, development and demonstration projects
related to the generation of qualifying electricity by the
consumer-owned utility.
(6) The commission shall establish limits on the incremental
cost of compliance with the renewable portfolio standard for
electricity service suppliers under section 9 of this 2007 Act
that are the equivalent of the cost limits applicable to the
electric companies that serve the territories in which the
electricity service supplier sells electricity to retail
electricity consumers. If an electricity service supplier sells
electricity in territories served by more than one electric
company, the commission may provide for an aggregate cost limit
based on the amount of electricity sold by the electricity
service supplier in each territory. Pursuant to ORS 757.676, a
consumer-owned utility may establish limits on the cost of
compliance with the renewable portfolio standard for electricity
service suppliers that sell electricity in the territory served
by the consumer-owned utility. + }
SECTION 12a. { + The Public Utility Commission shall establish
the methodology for determining the annual revenue requirement of
an electric company for purposes of section 12 of this 2007 Act
no later than July 1, 2008. + }
{ +
COST RECOVERY + }
SECTION 13. { + Cost recovery by electric companies. (1)
Except as provided in section 20 (5) of this 2007 Act, all
prudently incurred costs associated with compliance with a
renewable portfolio standard are recoverable in the rates of an
electric company, including interconnection costs, costs
associated with using physical or financial assets to integrate,
firm or shape renewable energy sources on a firm annual basis to
meet retail electricity needs and other costs associated with
transmission and delivery of qualifying electricity to retail
electricity consumers.
(2) Costs associated with compliance with a renewable portfolio
standard are not an above-market cost for the purposes of ORS
757.600 to 757.687.
(3) The Public Utility Commission shall establish an automatic
adjustment clause as defined in ORS 757.210 or another method
that allows timely recovery of costs prudently incurred by an
electric company to construct or otherwise acquire facilities
that generate electricity from renewable energy sources and for
associated electricity transmission. Notwithstanding any other
provision of law, upon the request of any interested person the
commission shall conduct a proceeding to establish the terms of
the automatic adjustment clause or other method for timely
recovery of costs. The commission shall provide parties to the
proceeding with the procedural rights described in ORS 756.500 to
756.610, including but not limited to the opportunity to develop
an evidentiary record, conduct discovery, introduce evidence,
conduct cross-examination and submit written briefs and oral
argument. The commission shall issue a written order with
findings on the evidentiary record developed in the proceeding.
(4) An electric company must file with the commission for
approval of a proposed rate change to recover costs under the
terms of an automatic adjustment clause or other method for
timely recovery of costs established under subsection (3) of this
section. Notwithstanding any other provision of law, upon the
request of any interested person the commission shall conduct a
proceeding to determine whether to approve a proposed change in
rates under the automatic adjustment clause or other method for
timely recovery of costs. The commission shall provide parties to
the proceeding with the procedural rights described in ORS
756.500 to 756.610, including but not limited to the opportunity
to develop an evidentiary record, conduct discovery, introduce
evidence, conduct cross-examination and submit written briefs and
oral argument. The commission shall issue a written order with
findings on the evidentiary record developed in the proceeding. A
filing made under this subsection is subject to the commission's
authority under ORS 757.215 to suspend a rate, or schedule of
rates, for investigation. + }
SECTION 13a. { + The Public Utility Commission shall establish
the automatic adjustment clause or another method for timely
recovery of costs as required by section 13 (3) of this 2007 Act
no later than January 1, 2008. The clause or method shall apply
to all prudently incurred costs described in section 13 (3) of
this 2007 Act incurred by an electric company since the date of
the company's last general rate case that was decided by the
commission before the effective date of this 2007 Act. + }
{ +
RENEWABLE ENERGY CERTIFICATES + }
SECTION 14. { + Renewable energy certificates system. (1) The
State Department of Energy shall establish a system of renewable
energy certificates that can be used by an electric utility or
electricity service supplier to establish compliance with the
applicable renewable portfolio standard. The department shall
consult with the Public Utility Commission before establishing a
system of renewable energy certificates under this section. The
department may allow use of renewable energy certificates that
are issued, monitored, accounted for or transferred by or through
a regional system or trading program, including but not limited
to the Western Renewable Energy Generation Information System.
The system established by the department shall allow issuance,
transfer and use of renewable energy certificates in electronic
form.
(2) The validity of a bundled renewable energy certificate for
purposes of compliance with the applicable renewable portfolio
standard is not affected by the substitution of any other
electricity for the qualifying electricity at any point after the
time of generation. + }
SECTION 15. { + Renewable energy certificates that may be
used to comply with standards. (1) A bundled renewable energy
certificate may be used to comply with a renewable portfolio
standard if:
(a) The facility that generates the qualifying electricity for
which the certificate is issued is located in the United States
and within the geographic boundary of the Western Electricity
Coordinating Council; and
(b) The qualifying electricity for which the certificate is
issued is delivered to the Bonneville Power Administration, to
the transmission system of an electric utility or to another
delivery point designated by an electric utility for the purpose
of subsequent delivery to the electric utility.
(2) An unbundled renewable energy certificate may be used to
comply with a renewable portfolio standard if the facility that
generates the qualifying electricity for which the certificate is
issued is located within the geographic boundary of the Western
Electricity Coordinating Council.
(3) Renewable energy certificates issued for any electricity
that the Bonneville Power Administration has designated as
environmentally preferred power, or has given a similar
designation for electricity generated from a renewable resource,
may be used to comply with a renewable portfolio standard without
regard to the location of the generating facility. + }
SECTION 16. { + Use, transfer and banking of certificates.
(1) Renewable energy certificates may be traded, sold or
otherwise transferred.
(2) Renewable energy certificates that are not used by an
electric utility or electricity service supplier to comply with a
renewable portfolio standard in a calendar year may be banked and
carried forward indefinitely for the purpose of complying with a
renewable portfolio standard in a subsequent year. For the
purpose of complying with a renewable portfolio standard in any
calendar year:
(a) Banked renewable energy certificates must be used, up to
the limit imposed by section 17 of this 2007 Act, before other
certificates are used; and
(b) Banked renewable energy certificates with the oldest
issuance date must be used to comply with the standard before
banked renewable energy certificates with more recent issuance
dates are used.
(3) An electric utility or electricity service supplier is
responsible for demonstrating that a renewable energy certificate
used to comply with a renewable portfolio standard is derived
from a renewable energy source and that the utility or supplier
has not used, traded, sold or otherwise transferred the
certificate.
(4) The same renewable energy certificate may be used by an
electric utility or electricity service supplier to comply with a
federal renewable portfolio standard and a renewable portfolio
standard established under sections 1 to 24 of this 2007 Act. An
electric utility or electricity service supplier that uses a
renewable energy certificate to comply with a renewable portfolio
standard imposed by any other state may not use the same
certificate to comply with a renewable portfolio standard
established under sections 1 to 24 of this 2007 Act. + }
SECTION 17. { + Limitations on use of unbundled certificates
to meet renewable portfolio standard. (1) Except as otherwise
provided in this section, unbundled renewable energy
certificates, including banked unbundled renewable energy
certificates, may not be used to meet more than 20 percent of the
requirements of the large utility renewable portfolio standard
described in section 6 of this 2007 Act for any compliance year.
(2) The limitation imposed by subsection (1) of this section
does not apply to renewable energy certificates issued for
electricity generated in Oregon from a renewable energy source by
a net metering facility as defined in ORS 757.300, or another
generating facility that is not directly connected to a
distribution or transmission system.
(3) The limitation imposed by subsection (1) of this section
does not apply to renewable energy certificates issued for
electricity generated in Oregon by a qualifying facility under
ORS 758.505 to 758.555.
(4) The limitation imposed by subsection (1) of this section
does not apply to an electricity service supplier. + }
SECTION 17a. { + Notwithstanding section 17 (1) of this 2007
Act, for compliance years before 2020, a consumer-owned utility
subject to the large utility renewable portfolio standard
described in section 6 of this 2007 Act may use unbundled
renewable energy certificates, including banked unbundled
renewable energy certificates, to meet up to 50 percent of the
requirements of the standard. + }
SECTION 18. { + Multistate electric companies. The Public
Utility Commission by rule shall establish a process for
allocating the use of renewable energy certificates by an
electric company that makes sales of electricity to retail
customers in more than one state. + }
{ +
COMPLIANCE REPORTS + }
SECTION 19. { + Compliance reports. (1) Each electric utility
and electricity service supplier that is subject to a renewable
portfolio standard shall make an annual compliance report for the
purpose of detailing compliance, or failure to comply, with the
renewable portfolio standard applicable in the compliance year.
An electric company or electricity service supplier shall make
the report to the Public Utility Commission. A consumer-owned
utility shall make the report to the members or customers of the
utility.
(2) The commission shall review each compliance report filed
under this section by an electric company or electricity service
supplier for the purposes of determining whether the company or
supplier has complied with the renewable portfolio standard
applicable to the company or supplier and the manner in which the
company or supplier has complied. In reviewing the reports, the
commission shall consider:
(a) The relative amounts of renewable energy certificates and
other payments used by the company or supplier to meet the
applicable renewable portfolio standard, including:
(A) Bundled renewable energy certificates;
(B) Unbundled renewable energy certificates;
(C) Banked renewable energy certificates; and
(D) Alternative compliance payments under section 20 of this
2007 Act.
(b) The timing of electricity purchases.
(c) The market prices for electricity purchases and unbundled
renewable energy certificates.
(d) Whether the actions taken by the company or supplier are
contributing to long term development of generating capacity
using renewable energy sources.
(e) The effect of the actions taken by the company or supplier
on the rates payable by retail electricity consumers.
(f) Good faith forecasting differences associated with the
projected number of retail electricity consumers served and the
availability of electricity from renewable energy sources.
(g) For electric companies, consistency with the implementation
plan filed under section 11 of this 2007 Act, as acknowledged by
the commission.
(h) Any other factors deemed reasonable by the commission.
(3) The commission by rule may establish requirements for
compliance reports submitted by an electric company or
electricity service supplier. + }
{ +
ALTERNATIVE COMPLIANCE PAYMENTS + }
SECTION 20. { + Electric companies; electricity service
suppliers. (1) The Public Utility Commission shall establish an
alternative compliance rate for each compliance year for each
electric company or electricity service supplier that is subject
to a renewable portfolio standard. The rate shall be expressed in
dollars per megawatt-hour.
(2) The commission shall establish an alternative compliance
rate based on the cost of qualifying electricity, contracts that
the electric company or electricity service supplier has acquired
for future delivery of qualifying electricity and the number of
unbundled renewable energy certificates that the company or
supplier anticipates using in the compliance year to meet the
renewable portfolio standard applicable to the company or
supplier. The commission shall also consider any determinations
made under section 19 of this 2007 Act in reviewing the
compliance report made by the electric company or electricity
service supplier for the previous compliance year. In
establishing an alternative compliance rate, the commission shall
set the rate to provide adequate incentive for the electric
company or electricity service supplier to purchase or generate
qualifying electricity in lieu of using alternative compliance
payments to meet the renewable portfolio standard applicable to
the company or supplier.
(3) An electric company or electricity service supplier may
elect to use, or may be required by the commission to use,
alternative compliance payments to comply with the renewable
portfolio standard applicable to the company or supplier. Any
election by an electric company or electricity service supplier
to use alternative compliance payments is subject to review by
the commission under section 19 of this 2007 Act. An electric
company or electricity service supplier may not be required to
make alternative compliance payments that would result in the
company or supplier exceeding the cost limitation established
under section 12 of this 2007 Act.
(4) The commission shall determine for each electric company
the extent to which alternative compliance payments may be
recovered in the rates of the company. Each electric company
shall deposit any amounts recovered in the rates of the company
for alternative compliance payments in a holding account
established by the company. Amounts in the holding account shall
accrue interest at the rate of return authorized by the
commission for the electric company.
(5) Amounts in holding accounts established under subsection
(4) of this section may be expended by an electric company only
for costs of acquiring new generating capacity from renewable
energy sources, investments in efficiency upgrades to electricity
generating facilities owned by the company and energy
conservation programs within the company's service area. The
commission must approve expenditures by an electric company from
a holding account established under subsection (4) of this
section. Amounts that are collected from customers and spent by
an electric company under this subsection may not be included in
the company's rate base.
(6) The commission shall require electricity service suppliers
to establish holding accounts and make payments to those accounts
on a substantially similar basis as provided for electric
companies. The commission must approve expenditures by an
electricity service supplier from a holding account established
under this subsection. The commission may approve expenditures
only for energy conservation programs for customers of the
electricity service supplier. + }
SECTION 20a. { + The Public Utility Commission shall establish
initial alternative compliance rates as required by section 20 of
this 2007 Act no later than July 1, 2009. + }
SECTION 21. { + Consumer-owned utilities. The governing body
of a consumer-owned utility shall establish an alternative
compliance rate for the utility. To the extent possible, the
alternative compliance rate shall be determined by the governing
body of the consumer-owned utility in a manner similar to that
used by the Public Utility Commission in establishing alternative
compliance rates under section 20 of this 2007 Act. Amounts
collected as alternative compliance payments by a consumer-owned
utility may be used for the purposes specified in section 20 (5)
of this 2007 Act and for the purpose of paying expenses
associated with research, development and demonstration projects
related to the generation of qualifying electricity by the
utility. + }
{ +
PENALTY + }
SECTION 22. { + Penalty. If an electric company or
electricity service supplier that is subject to a renewable
portfolio standard under sections 1 to 24 of this 2007 Act fails
to comply with the standard in the manner provided by sections 1
to 24 of this 2007 Act, the Public Utility Commission may impose
a penalty against the company or supplier in an amount determined
by the commission. A penalty under this section is in addition
to any alternative compliance payment required or elected under
section 20 of this 2007 Act. Moneys paid for penalties under this
section shall be transmitted by the commission to the
nongovernmental entity receiving moneys under ORS 757.612 (3)(d)
and may be used only for the purposes specified in ORS 757.612
(1). + }
{ +
GREEN POWER RATE + }
SECTION 23. { + Green power rate. (1) Electric utilities
shall allow retail electricity consumers to elect a green power
rate. A significant portion of the electricity purchased or
generated by a utility that is attributable to moneys paid by
retail electricity consumers who elect the green power rate must
be qualifying electricity, and the utility must inform consumers
of the sources of the electricity purchased or generated by the
utility that is attributable to moneys paid by consumers who
elect the green power rate. The green power rate shall reasonably
reflect the costs of the electricity purchased or generated by
the utility that is attributable to moneys paid by retail
electricity consumers who elect the green power rate. All
prudently incurred costs associated with the green power rate are
recoverable in a green power rate offered by an electric company.
(2) Any qualifying electricity procured by an electric utility
to provide electricity under a green power rate under subsection
(1) of this section or ORS 757.603 (2)(a) may not be used by the
utility to comply with the requirements of a renewable portfolio
standard.
(3) The provisions of subsection (1) of this section do not
apply to electric companies that are subject to ORS 757.603
(2)(a).
(4) An electric utility may comply with the requirements of
subsection (1) of this section by contracting with a third-party
provider. + }
{ +
COMMUNITY-BASED RENEWABLE ENERGY PROJECTS + }
SECTION 24. { + Goal for community-based renewable energy
projects. The Legislative Assembly finds that community-based
renewable energy projects are an essential element of Oregon's
energy future, and declares that it is the goal of the State of
Oregon that by 2025 at least eight percent of Oregon's retail
electrical load comes from small-scale renewable energy projects
with a generating capacity of 20 megawatts or less. All agencies
of the executive department as defined in ORS 174.112 shall
establish policies and procedures promoting the goal declared in
this section. + }
{ +
JOB IMPACT STUDY + }
SECTION 25. { + Job impact study. (1) The State Department of
Energy shall periodically conduct a study to evaluate the impact
of sections 1 to 24 of this 2007 Act on jobs in this state. The
study shall assess the number of new jobs created in the
renewable energy sector in this state and the average wage rates
and the provision of health care and other benefits for those
jobs. In addition, the study shall investigate the extent to
which workforce training opportunities are being provided to
employees to prepare the employees for jobs in the renewable
energy sector.
(2) The department shall conduct the first study under this
section not later than two years after the effective date of this
2007 Act. + }
SECTION 26. { + Section 25 of this 2007 Act is repealed
January 2, 2026. + }
{ +
PUBLIC PURPOSE CHARGE + }
SECTION 27. ORS 757.612 is amended to read:
757.612. (1) There is established an annual public purpose
expenditure standard for electric companies to fund new
cost-effective local energy conservation, new market
transformation efforts, the above-market costs of new renewable
energy resources and new low-income weatherization. The public
purpose expenditure standard shall be funded by the public
purpose charge described in subsection (2) of this section.
(2)(a) Beginning on the date an electric company offers direct
access to its retail electricity consumers, except residential
electricity consumers, the electric company shall collect a
public purpose charge from all of the retail electricity
consumers located within its service area { - for a period of
10 years - } { + until January 1, 2026 + }. Except as provided
in paragraph (b) of this subsection, the public purpose charge
shall be equal to three percent of the total revenues collected
by the electric company or electricity service supplier from its
retail electricity consumers for electricity services,
distribution, ancillary services, metering and billing,
transition charges and other types of costs included in electric
rates on July 23, 1999.
(b) For an aluminum plant that averages more than 100 average
megawatts of electricity use per year, beginning on March 1,
2002, the electric company whose territory abuts the greatest
percentage of the site of the aluminum plant shall collect from
the aluminum company a public purpose charge equal to one percent
of the total revenue from the sale of electricity services to the
aluminum plant from any source.
(3)(a) The Public Utility Commission shall establish rules
implementing the provisions of this section relating to electric
companies.
(b) Subject to paragraph (e) of this subsection, funds
collected by an electric company through public purpose charges
shall be allocated as follows:
(A) Sixty-three percent for new cost-effective conservation and
new market transformation.
(B) Nineteen percent for the above-market costs of { - new
renewable energy resources - } { + constructing and operating
new renewable energy resources with a nominal electric generating
capacity, as defined in ORS 469.300, of 20 megawatts or less + }.
(C) Thirteen percent for new low-income weatherization.
(D) Five percent shall be transferred to the Housing and
Community Services Department Revolving Account created under ORS
456.574 and used for the purpose of providing grants as described
in ORS 458.625 (2). Moneys deposited in the account under this
subparagraph are continuously appropriated to the Housing and
Community Services Department for the purposes of ORS 458.625
(2). Interest on moneys deposited in the account under this
subparagraph shall accrue to the account.
(c) The costs of administering subsections (1) to (6) of this
section for an electric company shall be paid out of the funds
collected through public purpose charges. The commission may
require that an electric company direct funds collected through
public purpose charges to the state agencies responsible for
implementing subsections (1) to (6) of this section in order to
pay the costs of administering such responsibilities.
(d) The commission shall direct the manner in which public
purpose charges are collected and spent by an electric company
and may require an electric company to expend funds through
competitive bids or other means designed to encourage
competition, except that funds dedicated for low-income
weatherization shall be directed to the Housing and Community
Services Department as provided in subsection (7) of this
section. The commission may also direct that funds collected by
an electric company through public purpose charges be paid to a
nongovernmental entity for investment in public purposes
described in subsection (1) of this section. Notwithstanding any
other provision of this subsection, at least 80 percent of the
funds allocated for conservation shall be spent within the
service area of the electric company that collected the funds.
(e)(A) The first 10 percent of the funds collected annually by
an electric company under subsection (2) of this section shall be
distributed to education service districts, as described in ORS
334.010, that are located in the service territory of the
electric company. The funds shall be distributed to individual
education service districts according to the weighted average
daily membership (ADMw) of the component school districts of the
education service district for the prior fiscal year as
calculated under ORS 327.013. The commission shall establish by
rule a methodology for distributing a proportionate share of
funds under this paragraph to education service districts that
are only partially located in the service territory of the
electric company.
(B) An education service district that receives funds under
this paragraph shall use the funds first to pay for energy audits
for school districts located within the education service
district. An education service district may not expend additional
funds received under this paragraph on a school district facility
until an energy audit has been completed for that school
district. To the extent practicable, an education service
district shall coordinate with the State Department of Energy and
incorporate federal funding in complying with this paragraph.
Following completion of an energy audit for an individual school
district, the education service district may expend funds
received under this paragraph to implement the energy audit. Once
an energy audit has been conducted and completely implemented for
each school district within the education service district, the
education service district may expend funds received under this
paragraph for any of the following purposes:
(i) Conducting energy audits. A school district shall conduct
an energy audit prior to expending funds on any other purpose
authorized under this paragraph unless the school district has
performed an energy audit within the three years immediately
prior to receiving the funds.
(ii) Weatherization and upgrading the energy efficiency of
school district facilities.
(iii) Energy conservation education programs.
(iv) Purchasing electricity from environmentally focused
sources and investing in renewable energy resources.
(f) The commission may { + not + } establish a different
public purpose charge than the public purpose charge
{ - otherwise - } described in subsection (2) of this section
{ - for an individual retail electricity consumer or any class
of retail electricity consumers located within the service area
of an electric company, provided that a retail electricity
consumer with a load greater than one average megawatt is not
required to pay a public purpose charge in excess of three
percent of its total cost of electricity services - } .
{ - (g) The commission shall remove from the rates of each
electric company any costs for public purposes described in
subsection (1) of this section that are included in rates. A rate
adjustment under this paragraph shall be effective on the date
that the electric company begins collecting public purpose
charges. - }
(4) An electric company that satisfies its obligations under
this section shall have no further obligation to invest in
conservation, new market transformation { - , new renewable
energy resources - } or new low-income weatherization or to
provide a commercial energy conservation services program and is
not subject to ORS 469.631 to 469.645 { - , - } { + and + }
469.860 to 469.900 { - and 758.505 to 758.555 - } .
(5)(a) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year
shall receive a credit against public purpose charges billed by
an electric company for that site. The amount of the credit shall
be equal to the total amount of qualifying expenditures for new
energy conservation, not to exceed 68 percent of the annual
public purpose charges, and the above-market costs of purchases
of new renewable energy resources incurred by the retail
electricity consumer, not to exceed 19 percent of the annual
public purpose charges, less administration costs incurred under
this subsection. The credit may not exceed, on an annual basis,
the lesser of:
(A) The amount of the retail electricity consumer's qualifying
expenditures; or
(B) The portion of the public purpose charge billed to the
retail electricity consumer that is dedicated to new energy
conservation, new market transformation or the above-market costs
of new renewable energy resources.
(b) To obtain a credit under this subsection, a retail
electricity consumer shall file with the State Department of
Energy a description of the proposed conservation project or new
renewable energy resource and a declaration that the retail
electricity consumer plans to incur the qualifying expenditure.
The State Department of Energy shall issue a notice of
precertification within 30 days of receipt of the filing, if such
filing is consistent with this subsection. The credit may be
taken after a retail electricity consumer provides a letter from
a certified public accountant to the State Department of Energy
verifying that the precertified qualifying expenditure has been
made.
(c) Credits earned by a retail electricity consumer as a result
of qualifying expenditures that are not used in one year may be
carried forward for use in subsequent years.
(d)(A) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year may
request that the State Department of Energy hire an independent
auditor to assess the potential for conservation investments at
the site. If the independent auditor determines there is no
available conservation measure at the site that would have a
simple payback of one to 10 years, the retail electricity
consumer shall be relieved of 54 percent of its payment
obligation for public purpose charges related to the site. If the
independent auditor determines that there are potential
conservation measures available at the site, the retail
electricity consumer shall be entitled to a credit against public
purpose charges related to the site equal to 54 percent of the
public purpose charges less the estimated cost of available
conservation measures.
(B) A retail electricity consumer shall be entitled each year
to the credit described in this subsection unless a subsequent
independent audit determines that new conservation investment
opportunities are available. The State Department of Energy may
require that a new independent audit be performed on the site to
determine whether new conservation measures are available,
provided that the independent audits shall occur no more than
once every two years.
(C) The retail electricity consumer shall pay the cost of the
independent audits described in this subsection.
(6) Electric utilities and retail electricity consumers shall
receive a fair and reasonable credit for the public purpose
expenditures of their energy suppliers. The State Department of
Energy shall adopt rules to determine eligible expenditures and
the methodology by which such credits are accounted for and used.
The rules also shall adopt methods to account for eligible public
purpose expenditures made through consortia or collaborative
projects.
(7)(a) In addition to the public purpose charge provided under
subsection (2) of this section, beginning on October 1, 2001, an
electric company shall collect funds for low-income electric bill
payment assistance in an amount determined under paragraph (b) of
this subsection.
(b) The total amount collected for low-income electric bill
payment assistance under this section shall be $10 million per
year. The commission shall determine each electric company's
proportionate share of the total amount. The commission shall
determine the amount to be collected from a retail electricity
consumer, except that a retail electricity consumer is not
required to pay more than $500 per month per site for low-income
electric bill payment assistance.
(c) Funds collected by the low-income electric bill payment
assistance charge shall be paid into the Housing and Community
Services Department Revolving Account created under ORS 456.574.
Moneys deposited in the account under this paragraph are
continuously appropriated to the Housing and Community Services
Department for the purpose of funding low-income electric bill
payment assistance. Interest earned on moneys deposited in the
account under this paragraph shall accrue to the account. The
department's cost of administering this subsection shall be paid
out of funds collected by the low-income electric bill payment
assistance charge. Moneys deposited in the account under this
paragraph shall be expended solely for low-income electric bill
payment assistance. Funds collected from an electric company
shall be expended in the service area of the electric company
from which the funds are collected.
(d) The Housing and Community Services Department, in
consultation with the federal Advisory Committee on Energy, shall
determine the manner in which funds collected under this
subsection will be allocated by the department to energy
assistance program providers for the purpose of providing
low-income bill payment and crisis assistance, including programs
that effectively reduce service disconnections and related costs
to retail electricity consumers and electric utilities. Priority
assistance shall be directed to low-income electricity consumers
who are in danger of having their electricity service
disconnected.
(e) Notwithstanding ORS 293.140, interest on moneys deposited
in the Housing and Community Services Department Revolving
Account under this subsection shall accrue to the account and may
be used to provide heating bill payment and crisis assistance to
electricity consumers whose primary source of heat is not
electricity.
(f) Notwithstanding ORS 757.310, the commission may allow an
electric company to provide reduced rates or other payment or
crisis assistance or low-income program assistance to a
low-income household eligible for assistance under the federal
Low Income Home Energy Assistance Act of 1981, as amended and in
effect on July 23, 1999.
(8) For purposes of this section, 'retail electricity
consumers' includes any direct service industrial consumer that
purchases electricity without purchasing distribution services
from the electric utility.
SECTION 28. { + The amendments to ORS 757.612 (3)(b)(B) by
section 27 of this 2007 Act become operative on January 1,
2008. + }
SECTION 29. ORS 757.687 is amended to read:
757.687. (1) Beginning on the date a consumer-owned utility
provides direct access to any class of retail electric consumers,
the consumer-owned utility shall collect from that consumer class
a nonbypassable public purpose charge { - for a period of 10
years - } { + until January 1, 2026 + }. Except as provided in
subsection (8) of this section, the amount of the public purpose
charge shall be sufficient to produce revenue of not less than
three percent of the total revenue collected by the
consumer-owned utility from its retail electricity consumers for
electricity services, distribution, ancillary services, metering
and billing, transition charges and any other costs included in
rates as of July 23, 1999, except that the consumer-owned utility
may exclude from the calculation of such costs any cost related
to the public purposes described in subsection (5) of this
section. If a consumer-owned utility has fewer than 17 consumers
per mile of distribution line, the amount of the public purpose
charge shall be sufficient to produce revenue not less than three
percent of the total revenue from the sale of electricity
services in the utility's service area to the consumer class that
is provided direct access, or the utility's consumer class
percentage share of state total electricity sales multiplied by
three percent of total statewide retail electric revenue,
whichever is less.
(2) Except as provided in subsection (9) of this section, the
governing body of a consumer-owned utility shall determine the
manner of collecting and expending funds for public purposes
required by law to be assessed against and paid by the retail
electric consumers of the utility. A determination by the
governing body shall include:
(a) The manner for collecting public purpose charges;
(b) Public purpose programs upon which revenue from the charges
may be expended; and
(c) The allocation of expenditures for each program.
(3) Beginning on the same date two years after July 23, 1999, a
consumer-owned utility shall report annually to the State
Department of Energy created under ORS 469.030 on the public
purpose charges paid to the utility by its retail electric
consumers and the public purposes on which the revenue was
expended.
(4) A consumer-owned utility may comply with the public purpose
requirements of this section by participating in collaborative
efforts with other consumer-owned utilities located in this
state.
(5) Funds assessed and paid by, and credits or other financial
assistance issued or extended to, retail electric consumers for
purposes of this section may, in the discretion of the governing
body of the consumer-owned utility, be expended to fund programs
for energy conservation, renewable resources or low-income energy
services otherwise required by the laws of this state, adopted by
the governing body pursuant to the National Energy Conservation
Policy Act (Public Law 95-619, as amended November 10, 1981), or
conducted by the utility pursuant to agreement with the
Bonneville Power Administration under the Pacific Northwest
Electric Power Planning and Conservation Act (Public Law 96-501).
All such funds expended, credits issued and incremental costs
incurred in connection with the performance of a consumer-owned
utility's obligations under this section shall be credited toward
the utility's public purpose funding obligation under this
section.
(6) A consumer-owned utility also may credit toward its funding
obligations under this section any incremental costs incurred by
the utility for capital expenditures made to reduce its
distribution system energy losses, existing biomass gas and waste
to energy systems, existing hydroelectric generation projects
using fish attraction water, for new energy conservation and
renewable resource funding costs included in its wholesale power
supplier's charges and for electric power generated by renewable
or cogeneration resources pursuant to requirements of the Public
Utilities Regulatory Policy Act of 1978 (Public Law 95-617), to
the extent that such costs exceed the average cost of the
utility's other electric power resources.
(7) A consumer-owned utility also may credit toward its public
purpose funding obligations under this section any costs incurred
in complying with ORS 469.649 to 469.659.
(8) Beginning on March 1, 2002, a consumer-owned utility whose
territory abuts the greatest percentage of the site of an
aluminum plant that averages more than 100 megawatts of
electricity use per year shall collect from the aluminum company
a public purpose charge equal to one percent of the total revenue
from the sale of electricity services to the aluminum plant from
any source.
(9)(a) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year
shall receive a credit against public purpose charges billed by a
consumer-owned utility for that site. The amount of the credit
shall be equal to the total amount of qualifying expenditures for
new energy conservation, not to exceed 68 percent of the annual
public purpose charges, and the above-market costs of purchases
of new renewable energy resources incurred by the retail
electricity consumer, less administration costs incurred under
this subsection. The credit shall not exceed, on an annual basis,
the lesser of:
(A) The amount of the retail electricity consumer's qualifying
expenditures; or
(B) The portion of the public purpose charge billed to the
retail electricity consumer that is dedicated to new energy
conservation, new market transformation or the above-market costs
of new renewable resources.
(b) To obtain a credit under this subsection, a retail
electricity consumer shall file with the department a description
of the proposed conservation project, new market transformation
or new renewable energy resource and a declaration that the
retail electricity consumer plans to incur the qualifying
expenditure. The department shall issue a notice of
precertification within 30 days of receipt of the filing, if such
filing is consistent with this subsection. Notice shall be issued
to the retail electricity consumer and the appropriate
consumer-owned utility. The credit may be taken after a retail
electricity consumer provides a letter from a certified public
accountant to the department verifying that the precertified
qualifying expenditure has been made.
(c) Credits earned by a retail electricity consumer as a result
of qualifying expenditures that are not used in one year may be
carried forward for use in subsequent years.
(d)(A) A retail electricity consumer that uses more than one
average megawatt of electricity at any site in the prior year may
request that the department hire an independent auditor to assess
the potential for conservation measures at the site. If the
independent auditor determines there is no available conservation
measure at the site that would have a simple payback of one to 10
years, the retail electricity consumer shall be relieved of 54
percent of its payment obligation for public purpose charges
related to the site. If the auditor determines that there are
potential conservation measures available at the site, the retail
electricity consumer shall be entitled to a credit against public
purpose charges related to the site equal to 54 percent of the
public purpose charges less the estimated cost of available
conservation measures.
(B) A retail electricity consumer shall be entitled each year
to the credit described in this paragraph unless a subsequent
audit determines that new conservation investment opportunities
are available. The department may require that a new audit be
performed on the site to determine whether new conservation
measures are available, provided that the audits occur no more
than once every two years.
(C) The retail electricity consumer shall pay the cost of the
audits described in this subsection.
(10) A retail electricity consumer with a load greater than one
average megawatt shall not be required to pay a public purpose
charge in excess of three percent of the consumer's total cost of
electricity services unless the charge is established in an
agreement between the consumer and the consumer-owned utility.
(11) Beginning on March 1, 2002, a consumer-owned utility shall
have in operation a bill assistance program for households that
qualify for federal low-income energy assistance in the
consumer-owned utility's service area. A consumer-owned utility
shall report annually to the Housing and Community Services
Department detailing the utility's program and program
expenditures.
(12) A consumer-owned utility may require an electricity
service supplier to provide information necessary to ensure
compliance with this section. The consumer-owned utility shall
ensure the privacy and protection of any proprietary information
provided.
{ +
PEOPLE'S UTILITY DISTRICTS + }
SECTION 30. ORS 261.010 is amended to read:
261.010. As used in this chapter, unless otherwise required by
the context:
(1) 'Affected territory' means that territory proposed to be
formed into, annexed to or consolidated with a district.
(2) 'Board of directors,' 'directors' or 'board' means the
governing body of a people's utility district, elected and
functioning under the provisions of this chapter.
(3) 'County governing body' means either the county court or
board of county commissioners and, if the affected territory is
composed of portions of two or more counties, the governing body
of that county having the greatest portion of the assessed value
of all taxable property within the affected territory, as shown
by the most recent assessment roll of the counties.
(4) 'Electors' petition' means a petition addressed to the
county governing body and filed with the county clerk, containing
the signatures of electors registered in the affected territory,
equal to not less than three percent of the total number of votes
cast for all candidates for Governor within the affected
territory at the most recent election at which a candidate for
Governor was elected to a full term, setting forth and
particularly describing the boundaries of the parcel of
territory, separate parcels of territory, city and district, or
any of them, referred to therein, and requesting the county
governing body to call an election to be held within the
boundaries of the parcel of territory, separate parcels of
territory, city and district, or any of them, for the formation
of a district, the annexation of a parcel of territory or a city
to a district, or the consolidation of two or more districts.
(5) 'Electric cooperative' means a cooperative corporation
owning and operating an electric distribution system.
(6) 'Initial utility system' means a complete operating utility
system, including energy efficiency measures and installations
within the district or proposed district, capable of supplying
the consumers required to be served by the district at the time
of acquisition or construction with all of their existing water
or electrical energy needs.
(7) 'Parcel of territory' means a portion of unincorporated
territory, or an area in a city comprised of less than the entire
city.
(8) 'People's utility district' or 'district' means an
incorporated people's utility district, created under the
provisions of this chapter.
(9) 'Replacement value of unreimbursed investment' means
original cost new less depreciation of capitalized energy
efficiency measures and installations in the premises of
customers of an investor owned utility.
(10) 'Separate parcel of territory' means unincorporated
territory that is not contiguous to other territory that is a
part of a district or that is described in a petition filed with
the county clerk in pursuance of the provisions of this chapter,
but when a proposed district includes territory in more than one
county, the contiguous territory in each such county shall be
considered as a separate parcel of territory. When a proposed
district includes any area in a city comprised of less than the
entire city, that area shall be considered as a separate parcel
of territory.
(11) 'Utility' means a plant, works or other property used for
development, generation, storage, distribution or transmission of
{ - electric energy produced from resources including, but not
limited to, hydroelectric, pump storage, wave, tidal, wind, solid
waste, wood, straw or other fiber, coal or other thermal
generation, geothermal or solar resources - }
{ + electricity + }, or development or transmission of water for
domestic or municipal purposes, { - waterpower or electric
energy, - } but transmission of water shall not include water
for irrigation or reclamation purposes, except as secondary to
and when used in conjunction with a hydroelectric plant.
SECTION 31. ORS 261.030 is amended to read:
261.030. Nothing contained in this chapter authorizes or
empowers the board of directors of any people's utility district
to interfere with or exercise any control over any existing
utility owned and operated by any electric cooperative or city in
the district unless by consent of the governing body of the
electric cooperative or of the city council or the governing body
of the plant owned by a city, when the control of the plant is
vested in a governing body other than the city council or
governing body of the city. However a district may participate
fully with electric cooperatives and utilities owned by cities
{ + in common facilities under ORS 261.235 to 261.255 and + } in
the formation and operation of joint operating agencies { - for
electric power - } under ORS chapter 262.
SECTION 32. ORS 261.050 is amended to read:
261.050. { + (1) + } All property, real and personal, owned,
used, operated or controlled by any people's utility district, in
or for the production, transmission, distribution or furnishing
of
{ - electric power or energy - } { + electricity + } or
electric service for or to the public, shall be assessed and
taxed in the same manner and for the same purposes, and the
district and the directors and officers thereof shall be subject
to the same requirements, as are provided by law in respect to
assessment and taxation of similar property owned, used, operated
or controlled by private corporations or individuals for the
purpose of furnishing
{ - electric power or energy - } { + electricity + } or
electric service to the public.
{ + (2) If a people's utility district owns property jointly
with a tax-exempt governmental or municipal entity, only that
portion of the property, or that proportion of the property
rights, directly owned, used, operated or controlled by the
people's utility district shall be assessed and taxed pursuant to
subsection (1) of this section. + }
SECTION 33. ORS 261.235 is amended to read:
261.235. As used in ORS 261.235 to 261.255, unless the context
requires otherwise:
(1) 'City' means a city organized under the law of California,
Idaho, Montana, Nevada, Oregon or Washington and owning and
operating an electric light and power system.
(2) 'Common facilities' means any { - works and facilities
necessary or incidental to - } { + property used for + } the
generation, transmission, distribution or marketing of
{ - electric power - } { + electricity + } and related goods
and { - commodities - } { + services that are owned or
operated jointly by a people's utility district organized under
this chapter and at least one other city, district or electric
cooperative + }.
(3) 'District' means a people's utility district organized
under this chapter or a similar public utility district organized
under the law of California, Idaho, Montana, Nevada or
Washington.
(4) 'Electric cooperative' means a cooperative corporation
organized under the law of California, Idaho, Montana, Nevada,
Oregon or Washington and owning and operating an electric
distribution system.
SECTION 34. { + Section 35 of this 2007 Act is added to and
made a part of ORS 261.235 to 261.255. + }
SECTION 35. { + A people's utility district may become a
member of an electric cooperative, or of a limited liability
company, for the purposes of planning, financing, constructing,
acquiring, operating, owning or maintaining property used for the
generation and associated transmission of electricity within or
outside this state. A district may not become a stockholder in,
or lend the credit of the district to, an electric cooperative or
a limited liability company. If a district becomes a member of an
electric cooperative or of a limited liability company, the
district may not exercise the power of eminent domain for the
benefit of the electric cooperative or limited liability
company. + }
SECTION 36. ORS 261.250 is amended to read:
261.250. (1) In carrying out the powers granted in ORS
261.245 { + and section 35 of this 2007 Act + }, a district of
this state
{ - shall be - } { + is + } liable only for its own acts with
regard to the planning, financing, construction, acquisition,
operation, ownership or maintenance of common facilities. No
moneys or other contributions supplied by a district of this
state for the planning, financing, construction, acquisition,
operation or maintenance of common facilities shall be credited
or applied otherwise to the account of any other participant in
the common facilities.
(2) A district shall not exercise its power of eminent domain
to acquire a then existing thermal power plant or any part
thereof.
SECTION 37. ORS 261.253 is amended to read:
261.253. (1) { - No - } { + A + } public contract entered
into by a noninvestor-owned electric utility { - shall - }
{ + may not + } contain a clause or condition that imposes an
unconditional and unlimited financial obligation on the electric
utility that is party to the contract unless the terms and
conditions of the contract are subject to approval and are
approved by the electors of the people's utility district or city
that owns the electric utility.
(2) Nothing in subsection (1) of this section is intended to
affect provisions of law requiring approval of electors for any
particular type of public contract that are in effect on October
15, 1983, or that are later enacted.
(3) Nothing in subsection (1) of this section is intended to
conflict with ORS 279C.650 to 279C.670.
{ + (4) This section does not apply to a public contract
executed in connection with:
(a) The acquisition of renewable energy certificates;
(b) The acquisition, construction, improvement or equipping of,
or the financing of any interest in, a renewable energy facility;
or
(c) The acquisition or financing of any interest in electrical
capacity needed to shape, firm or integrate electricity from a
renewable energy facility. + }
{ - (4) - } { + (5) + } As used in this section:
(a) 'Public contract' includes a contract, note, general
obligation bond or revenue bond by which the people's utility
district or city or any subdivision of any of them is obligated
to pay for or finance the acquisition of goods, services,
materials, real property or any interest therein, improvement,
betterments or additions from any funds, including receipts from
rates or charges assessed to or collected from its customers.
(b) 'Unconditional and unlimited financial obligation ' means a
public contract containing a provision that the people's utility
district or city that is party to the contract is obligated to
make payments required by the contract whether or not the project
to be undertaken thereunder is undertaken, completed, operable or
operating notwithstanding the suspension, interruption,
interference, reduction or curtailment of the output or product
of the project.
SECTION 38. ORS 261.305 is amended to read:
261.305. People's utility districts shall have power:
(1) To have perpetual succession.
(2) To adopt a seal and alter it at pleasure.
(3) To sue and be sued, to plead and be impleaded.
(4) To acquire and hold, including by lease-purchase agreement,
real and other property necessary or incident to the business of
the districts, within or without, or partly within or partly
without, the district, and to sell or dispose of that property;
to acquire, develop and otherwise provide for a supply of water
for domestic and municipal purposes, waterpower and electric
energy, or electric energy generated from any utility, and to
distribute, sell and otherwise dispose of water, waterpower and
electric energy, within or without the territory of such
districts.
{ + (5) To acquire, own, trade, sell or otherwise transfer
renewable energy certificates. + }
{ - (5) - } { + (6) + } To exercise the power of eminent
domain for the purpose of acquiring any property, within or
without the district, necessary for the carrying out of the
provisions of this chapter.
{ - (6) - } { + (7) + } To borrow money and incur
indebtedness; to issue, sell and assume evidences of
indebtedness; to refund and retire any indebtedness that may
exist against or be assumed by the district or that may exist
against the revenues of the district and to pledge any part of
its revenues. Except as provided in ORS 261.355 and 261.380, no
revenue or general obligation bonds shall be issued or sold
without the approval of the electors. The board of directors may
borrow from banks or other financial institutions { - , on notes
payable within 12 months, - } such sums as the board of
directors deems necessary or advisable { - ; however, the
amounts so borrowed, together with the principal amounts of other
like borrowings then outstanding and unpaid, shall not exceed the
amount that the board of directors estimates as the district's
net income (determined in accordance with the system of accounts
maintained by the board pursuant to ORS 261.470) for the 12 full
calendar months following the date of the proposed borrowing,
adjusted by adding to the net income an amount equal to the
estimated charges to depreciation for the 12-month period - } .
No indebtedness shall be incurred or assumed except { - on
account of - } { + for + } the development, purchase and
operation of { - a utility - } { + electric utility facilities
or for the purchase of electricity, electrical capacity or
renewable energy certificates + }.
{ - (7) To enter into rental or lease-purchase agreements to
rent, lease or acquire real or personal property, or both,
required for district purposes. Except when approved by a
majority of the electors of the district voting on the question,
a people's utility district shall not enter into rental or
leasing agreements when the annual aggregate amount of payment
for any and all property directly related to a single transaction
exceeds 10 percent of the revenues of the district in the
preceding fiscal year. - }
{ + (8) To exercise the powers otherwise granted to districts
by ORS 271.390. + }
{ - (8) - } { + (9) + } To levy and collect, or cause to be
levied and collected, subject to constitutional limitations,
taxes for the purpose of carrying on the operations and paying
the obligations of the district as provided in this chapter.
{ - (9) - } { + (10) + } To make contracts, to employ labor
and professional staff, to set wages in conformance with ORS
261.345, to set salaries and provide compensation for services
rendered by employees and by directors, to provide for life
insurance, hospitalization, disability, health and welfare and
retirement plans for employees, and to do all things necessary
and convenient for full exercise of the powers herein granted.
The provision for life insurance, hospitalization, disability,
health and welfare and retirement plans for employees shall be in
addition to any other authority of people's utility districts to
participate in those plans and shall not repeal or modify any
statutes except those that may be in conflict with the provision
for life insurance, hospitalization, disability, health and
welfare and retirement plans.
{ - (10) - } { + (11) + } To enter into contracts with
{ + any person, any public or private corporation, + } the
United States Government,
{ - with - } the State of Oregon, or with any other state,
municipality or utility district, and with any department of any
of these, for carrying out any provisions of this chapter.
{ - (11) - } { + (12) + } To enter into agreements with the
State of Oregon or with any local governmental unit, utility,
special district or private or public corporation for the purpose
of promoting economic growth and the expansion or addition of
business and industry within the territory of the people's
utility district. Before spending district funds under such an
agreement, the board of directors shall enter on the written
records of the district a brief statement that clearly indicates
the purpose and amount of any proposed expenditure under the
agreement.
{ - (12) - } { + (13) + } To fix, maintain and collect
rates and charges for any water, waterpower, { - electric
energy - } { + electricity + } or other commodity or service
furnished, developed or sold by the district.
{ - (13) - } { + (14) + } To construct works across or
along any street or public highway, or over any lands which are
property of this state, or any subdivision thereof, and to have
the same rights and privileges appertaining thereto as have been
or may be granted to cities within the state, and to construct
its works across and along any stream of water or watercourse.
Any works across or along any state highway shall be constructed
only with the permission of the Department of Transportation. Any
works across or along any county highway shall be constructed
only with the permission of the appropriate county court. Any
works across or along any city street shall be constructed only
with the permission of the city governing body and upon
compliance with applicable city regulations and payment of any
fees called for under applicable franchise agreements,
intergovernmental agreements under ORS chapter 190 or contracts
providing for payment of such fees. The district shall restore
any such street or highway to its former state as near as may be,
and shall not use the same in a manner unnecessarily to impair
its usefulness.
{ - (14) - } { + (15) + } To elect a board of five
directors to manage its affairs.
{ - (15) - } { + (16) + } To enter into franchise
agreements with cities and pay fees under negotiated franchise
agreements, intergovernmental agreements under ORS chapter 190
and contracts providing for the payment of such fees.
{ - (16) - } { + (17) + } To take any other actions
necessary or convenient for the proper exercise of the powers
granted to a district by this chapter and by section 12, Article
XI of the Oregon Constitution.
SECTION 39. ORS 261.335 is amended to read:
261.335. { + (1) Except as provided in subsection (2) of this
section, + } people's utility districts are subject to the public
contracting and purchasing requirements of ORS 279.835 to
279.855, 279C.005, 279C.100 to 279C.125 and 279C.300 to 279C.470
and ORS chapters 279A and 279B, except ORS 279A.140 and 279A.250
to 279A.290.
{ + (2) The public contracting and purchasing requirements of
ORS 279.835 to 279.855, 279C.005, 279C.100 to 279C.125 and
279C.300 to 279C.470 and ORS chapters 279A and 279B do not apply
to contracts entered into by districts for the acquisition,
construction, improvement or equipping of a renewable energy
facility or for the purchase or sale of electricity, electrical
capacity or renewable energy certificates. + }
SECTION 40. ORS 261.348 is amended to read:
261.348. { + (1) + } Notwithstanding any other law, people's
utility districts and municipal electric utilities may enter into
transactions with other persons or entities for the production,
supply or delivery of electricity on an economic, dependable and
cost-effective basis, including financial products contracts and
other service contracts that reduce the risk of economic losses
in the transactions. This { - section - } { + subsection + }
does not authorize any transaction that:
{ - (1) - } { + (a) + } Constitutes the investment of
surplus funds for the purpose of receiving interest or other
earnings from the investment; or
{ - (2) - } { + (b) + } Is intended or useful for any
purpose other than the production, supply or delivery of
electricity on a cost-effective basis.
{ + (2) Nothing in subsection (1) of this section prohibits a
people's utility district or a municipal electric utility from
entering into any transaction for the acquisition, construction,
improvement or equipping of a renewable energy facility or for
the purchase or sale of electricity, electrical capacity or
renewable energy certificates. + }
SECTION 41. ORS 261.355 is amended to read:
261.355. (1) For the purpose of carrying into effect the powers
granted in this chapter, any district may issue and sell revenue
bonds, when authorized by a majority of its electors voting at
any primary election, general election or special election.
(2) All revenue bonds issued and sold under this chapter shall
be so conditioned as to be paid solely from that portion of the
revenues derived { - from - } { + by + } the district
{ - by - } { + from + } the sale of water, waterpower and
{ - electric energy - } { + electricity + }, or any of them,
or any other service, commodity or facility which may be
produced, used or furnished in connection therewith, remaining
after paying from those revenues all expenses of operation and
maintenance, including taxes.
(3) Notwithstanding subsection (1) of this section and subject
to subsection (4) of this section, any district may, by a duly
adopted resolution of its board, issue and sell revenue bonds for
the purpose of { + financing + } betterments and extensions
{ - within the existing boundaries - } of the district,
{ + including renewable energy facilities or the purchase or
sale of electricity, electrical capacity or renewable energy
certificates, + }but the amount { + of revenue bonds + } so
issued shall be limited to the reasonable value of the
betterments and extensions plus an amount not to exceed 10
percent thereof for administrative purposes. Revenue bonds shall
not be issued and sold for the purpose of acquiring an initial
utility system or acquiring property or facilities owned by
another entity that provides electric utility service
{ + unless: + }
{ + (a) The acquisition is a voluntary transaction between
the district and the other entity that provides electric utility
service; or
(b) + } { - without first obtaining the affirmative vote
of - } The electors within the district { + have approved
issuance of the bonds by a vote + }.
(4) Not later than the 30th day prior to a board meeting at
which adoption of a resolution under subsection (3) of this
section will be considered, the district shall:
(a) Provide for and give public notice, reasonably calculated
to give actual notice to interested persons including news media
which have requested notice, of the time and place of the meeting
and of the intent of the board to consider and possibly adopt the
resolution; and
(b) Mail to its customers notice of the time and place of the
meeting and of the intent of the board to consider and possibly
adopt the resolution.
(5) { + Except as provided in subsection (3)(a) of this
section, + } any authorizing resolution adopted for the purposes
of subsection (3) of this section shall provide that electors
residing within the district may file a petition with the
district asking to have the question of whether to issue such
bonds referred to a vote.
(6) If within 60 days after adoption of a resolution under
subsection (3) of this section the district receives petitions
containing valid signatures of not fewer than five percent of the
electors of the district, the question of issuing the bonds shall
be placed on the ballot at the next date on which a district
election may be held under ORS 255.345 (1).
(7) When petitions containing the number of signatures required
under subsection (6) of this section are filed with the district
within 60 days after adoption of a resolution under subsection
(3) of this section, revenue bonds shall not be sold until the
resolution is approved by a majority of the electors of the
district voting on the resolution.
(8) Any district issuing revenue bonds may pledge that part of
the revenue which the district may derive from its operations as
security for payment of principal and interest thereon remaining
after payment from such revenues of all expenses of operation and
maintenance, including taxes, and consistent with the other
provisions of this chapter.
(9) Prior to any district board taking formal action to issue
and sell any revenue bonds, the board shall have on file with the
secretary of the district a certificate executed by a qualified
engineer that the net annual revenues of the district, including
the property to be acquired or constructed with the proceeds of
the bonds, shall be sufficient to pay the maximum amount that
will be due in any one fiscal year for both principal of and
interest on both the bonds then proposed to be issued and all
bonds of the district then outstanding.
(10) { + Except as provided in subsection (3)(a) of this
section, + } the district shall order an election for the
authorization of revenue bonds to finance the acquisition or
construction of an initial utility system, including the
replacement value of the unreimbursed investment of an investor
owned utility in energy efficiency measures and installations
within the proposed district, as early as practicable under ORS
255.345 after filing the certificate required under subsection
(9) of this section. An election under this subsection shall be
held no more than twice in any one calendar year for any
district. In even-numbered years no election shall be held on any
other date than the date of the primary election or general
election.
SECTION 42. ORS 262.005 is amended to read:
262.005. As used in ORS 262.015 to 262.105, unless the context
requires otherwise:
(1) 'Electric cooperative' means a cooperative corporation
owning and operating an electric distribution system.
(2) 'Joint operating agency' means an agency organized by three
or more cities or people's utility districts under the laws of
this state for the purposes and according to ORS 262.005 to
262.105.
(3) 'Privately owned electric utility company' means an
electric utility operated for profit and subject to regulation by
the Public Utility Commission of Oregon or the equivalent officer
or commission of any other state.
(4) 'Utility properties' means { - plants, systems and
facilities, and any enlargement or extension thereof, used for or
incidental to the generation and transmission of electric power
and energy, - } { + a plant, works or other property used for
development, generation, storage, distribution or transmission of
electricity. + } { - provided, however, that it shall not
mean - } { + 'Utility properties' does not include + }
facilities for uranium refining, processing or reprocessing.
SECTION 43. ORS 262.015 is amended to read:
262.015. (1) Any three or more cities or people's utility
districts or combinations thereof, organized under the laws of
this state, may form a joint operating agency to plan, acquire,
construct, own, operate and otherwise promote the development of
utility properties { - in this state - } for the
generation { + , + } { - and - } transmission { + and
marketing + } of { - electric power and energy - }
{ + electricity, electrical capacity or renewable energy
certificates + }.
(2) A joint operating agency may participate with other
publicly owned utilities, including other joint operating
agencies, or with electric cooperatives, or with privately owned
electric utility companies, or with any combination thereof, for
any purpose set forth in subsection (1) of this section, whether
such agencies or utilities are organized or incorporated under
the laws of this state or any other jurisdiction. However, no
joint operating agency may act alone or as the managing
participant to acquire, construct, own or operate utility
properties { - , nor may a joint operating agency own more than
50 percent of any utility property, except combustion
turbines - } .
(3) Joint operating agencies, cities, people's utility
districts and privately owned utilities, or combinations thereof,
may participate in joint ownership of { - thermal generation
and transmission - } { + common + } facilities in accordance
with ORS 225.450 to 225.490 or 261.235 to 261.255.
SECTION 44. ORS 262.075 is amended to read:
262.075. (1) Each joint operating agency shall be a political
subdivision of the State of Oregon, and shall be a municipal
corporation with the right to sue and be sued in its own name.
Except as otherwise provided, a joint operating agency shall have
all the powers, rights, privileges and exemptions conferred on
people's utility districts.
(2) A joint operating agency shall have the power to acquire,
hold, sell and dispose of real and other property, within or
without this state, which the board of directors in its
discretion finds reasonably necessary or incident to the
generation { + , + } { - and - } transmission { + and
marketing + } of { - electric power and energy - }
{ + electricity, electrical capacity or renewable energy
certificates + }. However, such an agency shall not acquire or
operate any facilities for the distribution of { - electric
energy - } { + electricity + }.
(3) A joint operating agency shall have the power of eminent
domain which it may exercise for the purpose of acquiring
property; however, a joint operating agency shall not condemn any
properties owned by a publicly or privately owned utility which
are being used for the generation or transmission of
{ - electric energy or power - } { + electricity + } or are
being developed for such purposes with due diligence, except to
acquire a right of way to cross such properties in a manner which
will not interfere with the use thereof by the owner.
(4) A joint operating agency shall have the power to enter into
contracts, leases and other undertakings considered necessary or
proper by its board, including but not limited to contracts for
any term relating to the purchase, sale, interchange, assignment,
allocation, transfer or wheeling of power with the Government of
the United States, or any agency thereof, and with any other
municipal corporation or privately owned utility, or any
combination thereof, within or without the state, and may
purchase, deliver or receive power anywhere.
(5) A joint operating agency shall have the power to borrow
money and incur indebtedness, to issue, sell and assume evidences
of indebtedness, to refund and retire any indebtedness that may
exist against the agency or its revenues, and to pledge any part
of its revenues. A joint operating agency may borrow from banks
or other financial institutions such sums on such terms as the
board considers necessary or advisable. A joint operating agency
may also issue, sell and assume bond anticipation notes,
refunding bond anticipation notes, or their equivalent, which
shall bear such date or dates, mature at such time or times, be
in such denominations and in such form, be payable in such
medium, at such place or places, and be subject to such terms of
redemption, as the board considers necessary or advisable. The
issuance and sale of revenue obligations by a joint operating
agency shall be governed by ORS 262.085.
(6) The joint operating agency may apply for, accept, receive
and expend appropriations, grants, loans, gifts, bequests and
devises in carrying out its functions as provided by law.
{ +
COST RECOVERY FOR CONSERVATION MEASURES + }
SECTION 45. { + Section 46 of this 2007 Act is added to and
made a part of ORS 757.600 to 757.687. + }
SECTION 46. { + (1) In addition to the public purpose charge
established by ORS 757.612, the Public Utility Commission may
authorize an electric company to include in its rates the costs
of funding or implementing cost-effective energy conservation
measures implemented on or after the effective date of this 2007
Act. The costs may include amounts for weatherization programs
that conserve energy.
(2) The commission shall ensure that a retail electricity
consumer with a load greater than one average megawatt:
(a) Is not required to pay an amount that is more than three
percent of the consumer's total cost of electricity service for
the public purpose charge under ORS 757.612 and any amounts
included in rates under this section; and
(b) Does not receive any direct benefit from energy
conservation measures if the costs of the measures are included
in rates under this section. + }
{ +
MISCELLANEOUS + }
SECTION 47. { + The unit and section captions used in this
2007 Act are provided only for the convenience of the reader and
do not become part of the statutory law of this state or express
any legislative intent in the enactment of this 2007 Act. + }
SECTION 48. { + This 2007 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2007 Act takes effect on
its passage. + }
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