Chapter 301
AN ACT
SB 838
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
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
(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
(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
(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)
(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
(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
(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
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
(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
(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
(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.
Approved by the Governor June 6, 2007
Filed in the office of Secretary of State June 6, 2007
Effective date June 6, 2007
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