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PUBLIC UTILITY COMMISSION

 

DIVISION 27
BUDGETS, FINANCE, ACCOUNTING AND ANNUAL REPORTS
Budget Filings

860-027-0000
Applicability of Division 27
(1) The rules contained in this
Division apply to energy utilities and large telecommunications utilities, as defined
in OAR 860-027-0001.
(2) Upon request or its own
motion, the Commission may waive any of the Division 027 rules for good cause shown.
A request for waiver must be made in writing, unless otherwise allowed by the Commission.
Stat. Auth.: ORS 183, 756, 757
& 759

Stats. Implemented: ORS 756.040,
759.030, 759.040 & 759.045

Hist.: PUC 6-1993, f. &
cert. ef. 2-19-93 (Order No. 93-185); PUC 3-1995, f. & cert. ef. 6-19-95 (Order
No. 95-516); PUC 2-1996, f. & cert. ef. 4-18-96 (Order No. 96-102); PUC 14-1997,
f. & cert. ef. 11-20-97; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 14-2000,
f. & cert. ef. 8-23-00; PUC 11-2001, f. & cert. ef. 4-18-01; PUC 6-2011,
f. & cert. ef. 9-14-11
860-027-0001
Definitions for Utility Budgets, Finance, Accounting, and Annual Reports
For purposes of this Division, except when a different scope is explicitly stated:
(1) "Energy utility" means a public utility as defined in ORS 757.005 except a water utility or wastewater utility. An energy utility can be an "electric company," "gas utility," or "steam heat utility."
(2) "Large telecommunications utility" means any telecommunications utility, as defined in ORS 759.005, that is not partially exempt from regulation under 759.040.
(3) "Utility" means all energy utilities and telecommunications utilities, as defined in sections (1) and (2) of this rule.
Stat. Auth.: ORS 183, 756, 757 & 759

Stats. Implemented: ORS 756.040 & 759.005

Hist.: PUC 2-1996, f. & cert. ef. 4-18-96 (Order No. 96-102); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 7-2005, f. & cert. ef. 11-30-05
860-027-0005
Utilities Required to File Reports
Each energy utility operating within
Oregon and having gross operating revenues of $50,000 or more per annum is required
to file with the Commission on or before March 31 of each year, a copy of its proposed
Budget of Expenditures, on forms approved by the Commission.
Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.105
& 757.105
Hist.: PUC 164, f. 4-18-74,
ef. 5-11-74 (Order No. 74-307); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001,
f. & cert. ef. 6-21-01; PUC 12-2007, f. & cert. ef. 10-31-07; PUC 4-2014,
f. & cert. ef. 5-28-14
860-027-0015
New Construction
Budget
Each energy utility operating within
Oregon is required to file annually on or before March 31 on forms approved by the
Commission information on new construction, extensions, and additions to the utility’s
property.
Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.105
& 757.105
Hist.: PUC 164, f. 4-18-74,
ef. 5-11-74 (Order No. 74-307); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001,
f. & cert. ef. 6-21-01; PUC 12-2002, f. & cert. ef. 3-12-02; PUC 2-2013,
f. & cert. ef. 3-21-13; PUC 4-2014, f. & cert. ef. 5-28-14
860-027-0016
Accounting for Director's Fees
Directors' fees paid by an energy or large telecommunications utility to members of its board of directors, who are also paid as officers of the energy or large telecommunications utility, shall not be recognized as a charge to operating expenses in Oregon.
Stat. Auth.: ORS 183, ORS 756, ORS 757 & ORS 759

Stats. Implemented: ORS 757.110 & ORS 759.115

Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01

Finance
Formal Applications for Authority to Sell, Lease, Merge, Assign, and Mortgage

Public Utility Property; Issue Securities, Guarantee Indebtedness, Purchase Securities and

Property of Utilities and Enter into Transactions with Affiliated Interests

860-027-0020
Form and Filing of Applications
(1) The Commission will furnish such information from the records on file as will assist in a full presentation of material facts for the following application forms.
(2) When any document required to be filed under these rules has heretofore been filed with the Commission, it shall be sufficient if the application makes reference to such filing and the capacity in which it was filed.
(3) Where the words "none" or "not applicable" truly and completely state the fact, they should be used in answering the requirement of any particular section of this rule.
(4) The Commission may require additional information when it appears to be pertinent in a particular case.
(5) Whenever these rules require the energy or large telecommunications utility to file financial statements, they shall be prepared as of the latest date available. The Income Statement shall be for the most recent 12-month period.
[ED. NOTE: Forms referenced in this rule are available from the agency.]
Stat. Auth.: ORS 183 & ORS 756

Stats. Implemented: ORS 756.105

Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01
860-027-0025
Applications for Authority to Sell, Lease, Assign, Mortgage, Merge, Consolidate or Otherwise Dispose of or Encumber its Property, or to Acquire Stock, Bonds, or Property of Another Utility
(1) The requirements of this rule will apply to any energy or large telecommunications utility seeking authority under ORS 757.480, ORS 757.485, ORS 759.375, and ORS 759.380. Every applicant shall set forth in its application to the Commission, in the manner and form indicated, the following information, which should, to the extent possible, be furnished for each person, firm, or corporation involved.
(a) The exact name and address of the utility's principal business office;
(b) The state in which incorporated, the date of incorporation, and the other states in which authorized to transact utility operations;
(c) Name and address of the person on behalf of applicant authorized to receive notices and communications in respect to the applications;
(d) The names, titles, and addresses of the principal officers;
(e) A description of the general character of the business done and to be done, and a designation of the territories served, by counties and states;
(f) A statement, as of the date of the balance sheet submitted with the application, showing for each class and series of capital stock: brief description; the amount authorized (face value and number of shares); the amount outstanding (exclusive of any amount held in the treasury); amount held as reacquired securities; amount pledged; amount owned by affiliated interests; and amount held in any fund;
(g) A statement, as of the date of the balance sheet submitted with the application, showing for each class and series of long-term debt and notes: brief description (amount, interest rate and maturity); amount authorized; amount outstanding (exclusive of any amount held in the treasury); amount held as reacquired securities; amount pledged; amount held by affiliated interests; and amount in sinking and other funds;
(h) Whether the application is for disposition of facilities by sale, lease, or otherwise, a merger or consolidation of facilities, or for mortgaging or encumbering its property, or for the acquisition of stock, bonds, or property of another utility, also a description of the consideration, if any, and the method of arriving at the amount thereof;
(i) A statement and general description of facilities to be disposed of, consolidated, merged, or acquired from another utility, giving a description of their present use and of their proposed use after disposition, consolidation, merger, or acquisition. State whether the proposed disposition of facilities or plan for consolidation, merger, or acquisition includes all the operating facilities of the parties to the transaction;
(j) A statement by primary account of the cost of the facilities and applicable depreciation reserve involved in the sale, lease, or other disposition, merger or consolidation, or acquisition of property of another utility. If original cost is not known, an estimate of original cost based, to the extent possible, upon records or data of the applicant or its predecessors must be furnished, a full explanation of the manner in which such estimate has been made, and a statement indicating where all existing data and records may be found;
(k) A statement as to whether or not any application with respect to the transaction or any part thereof, is required to be filed with any federal or other state regulatory body;
(l) The facts relied upon by applicants to show that the proposed sale, lease, assignment, or consolidation of facilities, mortgage or encumbrance of property, or acquisition of stock, bonds, or property of another utility will be consistent with the public interest;
(m) The reasons, in detail, relied upon by each applicant, or party to the application, for entering into the proposed sale, lease, assignment, merger, or consolidation of facilities, mortgage or encumbrance of property, acquisition of stock, bonds, or property of another utility, and the benefits, if any, to be derived by the customers of the applicants and the public;
(n) The amount of stock, bonds, or other securities, now owned, held or controlled by applicant, of the utility from which stock or bonds are proposed to be acquired; and
(o) A brief statement of franchises held, showing date of expiration if not perpetual, or, in case of transfer, that transferee has the necessary franchises.
(2) Required Exhibits. There shall be filed with the application as part thereof the following exhibits:
(a) EXHIBIT A. A copy of the charter or articles of incorporation with amendments to date;
(b) EXHIBIT B. A copy of the bylaws with amendments to date;
(c) EXHIBIT C. Copies of all resolutions of directors authorizing the proposed disposition, merger, or consolidation of facilities, mortgage or encumbrance of property, acquisition of stock, bonds, or property of another utility, in respect to which the application is made and, if approval of stockholders has been obtained, copies of the resolutions of the stockholders should also be furnished;
(d) EXHIBIT D. Copies of all mortgages, trust, deeds, or indentures, securing any obligation of each party to the transaction;
(e) EXHIBIT E. Balance sheets showing booked amounts, adjustments to record the proposed transaction and pro forma, with supporting fixed capital or plant schedules in conformity with the forms in the annual report, which applicant(s) is required, or will be required, to file with the Commission;
(f) EXHIBIT F. A statement of all known contingent liabilities, except minor items such as damage claims and similar items involving relatively small amounts, as of the date of the application;
(g) EXHIBIT G. Comparative income statements showing recorded results of operations, adjustments to record the proposed transaction and pro forma, in conformity with the form in the annual report which applicant(s) is required, or will be required, to file with the Commission;
(h) EXHIBIT H. An analysis of surplus for the period covered by the income statements referred to in Exhibit G;
(i) EXHIBIT I. A copy of each contract in respect to the sale, lease or other proposed disposition, merger or consolidation of facilities, acquisition of stock, bonds, or property of another utility, as the case may be, with copies of all other written instruments entered into or proposed to be entered into by the parties to the transaction pertaining thereto;
(j) EXHIBIT J. A copy of each proposed journal entry to be used to record the transaction upon each applicant's books; and
(k) EXHIBIT K. A copy of each supporting schedule showing the benefits, if any, which each applicant relies upon to support the facts as required by subsection (1)(l) of this rule and the reasons as required by subsection (1)(m) of this rule.
(3) Utilities may use the following form in lieu of filing under sections (1) and (2) of this rule when permitted to do so by the Commission: [Form not included. See ED. NOTE.]
[ED. NOTE: Forms & Exhibits referenced are available from the agency.]
Stat. Auth.: ORS 183, ORS 756, ORS 757 & ORS 759

Stats. Implemented: ORS 756.105, ORS 757.480, ORS 757.485, ORS 759.375 & ORS 759.380

Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 8-1995, f. & cert. ef. 8-30-95 (Order No. 95-858); PUC 13-1997, f. & cert. ef. 11-12-97; PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01
860-027-0030
Application by an Energy or Large Telecommunications Utility for Authority to Issue Stocks, Bonds, Notes, or Other Securities
(1) The requirements of this rule will apply to any energy or large telecommunications utility seeking authority under ORS 757.495, ORS 757.405 through 757.435, ORS 757.445, ORS 757.450, ORS 759.390, ORS 759.305 through 759.345, ORS 759.355, and ORS 759.360. Every applicant shall set forth in this application to the Commission, in the manner and form and in the order indicated, the following information:
(a) The applicant's exact name and the address of its principal business office;
(b) The state in which incorporated, the date of incorporation, and the other states in which authorized to transact utility business;
(c) Name and address of person authorized, on behalf of applicant, to receive notices and communications in respect to application;
(d) The names, titles and addresses of the principal officers of the applicant;
(e) A description of the general character of the business done and to be done, and a designation of the territories served. A map showing the territories served is desirable;
(f) A statement, as of the date of the balance sheet submitted with the application, showing for each class and series of capital stock: brief description; the amount authorized (face value and number of shares); the amount outstanding (exclusive of any amount held in the treasury), held amount as reacquired securities; amount pledged by applicant; amount owned by affiliated interests, and amount held in any fund;
(g) A statement, as of the date of the balance sheet submitted with the application, showing for each class and series of long-term debt or notes: brief description (amount, interest rate and maturity); amount authorized; amount outstanding (exclusive of any amount held in the treasury); amount held as reacquired securities; amount pledged by applicant; amount held by affiliated interests; and amount in sinking and other funds;
(h) A full description of the securities proposed to be issued, showing: kind and nature of securities or liabilities; amount (face value and number of shares); interest or dividend rate, if any; date of issue and date of maturity; and voting privileges, if any;
(i) A reasonably detailed and precise description of the proposed transaction, including a statement of the reasons why it is desired to consummate the transaction and the anticipated effect thereof. If the transaction is part of a general program, describe the program and its relation to the proposed transaction. Such description shall include, but is not limited to, the following:
(A) A description of the proposed method of issuing and selling the securities;
(B) A statement of whether such securities are to be issued pro rata to existing holders of the applicant's securities or issued pursuant to any preemptive right or in connection with any liquidation or reorganization;
(C) A statement showing why it is in applicant's interest to issue securities in the manner proposed and the reason(s) why it selected the proposed method of sale; and
(D) A statement that exemption from the competitive bidding requirements of any federal or other state regulatory body has or has not been requested or obtained, and a copy of the action taken thereon when available.
(j) The name and address of any person receiving or entitled to a fee for service (other than attorneys, accountants and similar technical services) in connection with the negotiation or consummation of the issuance or sale of securities, or for services in securing underwriters, sellers or purchasers of securities, other than fees included in any competitive bid; the amount of each such fee, and facts showing the necessity for the services and that the fee does not exceed the customary fee for such services in arm's-length transactions and is reasonable in the light of the cost of rendering the service and any other relevant factors;
(k) A statement showing both in total amount and per unit the price to the public, underwriting commissions and net proceeds to the applicant. Supply also the information (estimated if necessary) required in section (4) of this rule. If the securities are to be issued directly for property, then a full description of the property to be acquired, its location, its original cost (if known) by accounts, with the identification of the person from whom the property is to be acquired, must be furnished. If original cost is not known, an estimate of original cost based, to the extent possible, upon records or data of the seller and applicant or their predecessors must be furnished, with a full explanation of how such estimate has been made, and a description and statement of the present custody of all existing pertinent data and records. A statement showing the cost of all additions and betterments and retirements, from the date of the original cost, should also be furnished;
(l) Purposes for which the securities are to be issued. Specific information will be submitted with each filing for the issuance of bonds, stocks or securities:
(A) Construction, completion, extension or improvement of facilities. A description of such facilities and the cost thereof;
(B) Reimbursement of the applicant's treasury for expenditures against which securities have not been issued. A statement giving a general description of such expenditures, the amounts and accounts to which charged, the associated credits, if any, and the periods during which the expenditures were made;
(C) Refunding or discharging of obligations. A description of the obligations to be refunded or discharged, including the character, principal amounts discount or premium applicable thereto, date of issue and date of maturity, purposes to which the proceeds were applied and all other material facts concerning such obligations; and
(D) Improvement or maintenance of service. A description of the type of expenditure and the estimated cost in reasonable detail;
(m) A statement as to whether or not any application, registration statement, etc., with respect to the transaction or any part thereof, is required to be filed with any federal or other state regulatory body;
(n) The facts relied upon by the applicant to show that the issue:
(A) Is for some lawful object within the corporate purposes of the applicant;
(B) Is compatible with the public interest;
(C) Is necessary or appropriate for or consistent with the proper performance by the applicant of service as a utility;
(D) Will not impair its ability to perform that service;
(E) Is reasonably necessary or appropriate for such purposes; and
(F) If filed under ORS 757.495, is fair and reasonable and not contrary to public interest;
(o) A brief statement of all rights to be a corporation, franchises, permits and contracts for consolidation, merger or lease included as assets of the applicant or any predecessor thereof, the amounts actually paid as consideration therefore, respectively, and the facts relied upon to show the issuance of the securities for which approval is requested will not result in the capitalization of the right to be a corporation or of any franchise, permit or contract for consolidation, merger or lease in excess of the amount (exclusive of any tax or annual charge) actually paid as the consideration for such right, franchise, permit or contract; and
(p) If filed under ORS 757.490, ORS 757.495, ORS 759.385, or ORS 759.390:
(A) A statement describing the relationship between the utility and the affiliated interest as defined in ORS 757.015, ORS 757.490, ORS 759.010, or ORS 759.385:
(i) Set forth the amount, kind and ratio to total voting securities held, if applicable;
(ii) A list of all officers and directors of the affiliated interest who are also officers and/or directors of the applicant; and
(iii) State the pecuniary interest of any officer or director in compliance with ORS 757.490(1) or ORS 759.385(1).
(B) The reasons, in detail, relied upon by the utility for entering into the proposed transaction and the benefits, if any customers of the utility and the general public will derive from the transaction.
(2) Required Exhibits. There shall be filed with the application as part thereof the following exhibits:
(a) EXHIBIT A. A copy of the applicant's charter or articles of incorporation with amendments to date;
(b) EXHIBIT B. A copy of the bylaws with amendments to date;
(c) EXHIBIT C. A copy of each resolution of directors authorizing the issue in respect to which the application is made and, if approval of stockholders has been obtained, copies of the stockholder resolutions should also be furnished;
(d) EXHIBIT D. A copy of mortgage, indenture, or other agreement under which it is proposed to issue the securities, also a copy of any mortgage, indenture, or other agreement securing other funded obligations of the applicant;
(e) EXHIBIT E. Balance sheets showing booked amounts, adjustments to record the proposed transaction and pro forma, with supporting fixed capital or plant schedules in conformity with the form in the annual report which applicant is required to file with the Commission;
(f) EXHIBIT F. A statement of all known contingent liabilities, except minor items such as damage claims and similar items involving relatively small amounts, as of the date of the application;
(g) EXHIBIT G. Comparative income statements showing recorded results of operations, adjustments to record the proposed transaction and pro forma in conformity with the form in the annual report which applicant is required to file with the Commission;
(h) EXHIBIT H. An analysis of surplus for the period covered by the income statements referred to in Exhibit G;
(i) EXHIBIT I. A copy of registration statement proper, if any, and financial exhibits made a part thereof, filed with the Securities and Exchange Commission;
(j) EXHIBIT J. A copy of the proposed and of the published invitation of proposals for the purchase of underwriting of the securities to be issued; of each proposal received; and of each contract, underwriting, and other arrangement entered into for the sale or marketing of the securities. When a contract or underwriting is not in final form so as to permit filing, a preliminary draft or a summary identifying parties thereto and setting forth the principal terms thereof, may be filed pending filing of conformed copy in the form executed by final amendment to the application;
(k) EXHIBIT K. Copies of the stock certificates, notes, or other evidences of indebtedness proposed to be issued;
(l) Application for a utility to loan its funds to an affiliated interest, in addition to Exhibits A through K, shall also include the following:
(A) EXHIBIT L. Copies of all proposed or existing contracts or agreements entered into by the parties to the transaction;
(B) EXHIBIT M. The amount of money which the applicant desires to loan to the affiliated interest, the terms of said loan, rate of interest, method of repayment, security given, if any, and if said loan is to be an open account or evidenced by a promissory note; and
(C) EXHIBIT N. The use to which funds derived from this loan are to be put by the affiliated interest; and
(m) An application for a utility to give credit on its books or otherwise by:
(A) Advancing cash through an open or loan account, in addition to EXHIBITS A through K, shall also include the following:
(i) EXHIBIT L. Copies of all proposed or existing contracts or agreements entered into by the parties to the transaction;
(ii) EXHIBIT M. The amount of cash which the applicant proposes to receive, the rate of interest it will pay, the date and method of repayment; and
(iii) EXHIBIT N. A definite statement of purpose for which the advance will be used.
(B) Payments by the affiliated interest of amounts owed, in addition to EXHIBITS A through K, shall include the following:
(i) EXHIBIT L. Copies of all proposed or existing contracts or agreements entered into by the parties to the transaction; and
(ii) EXHIBIT M. The amount which the affiliated interest proposes to pay on the utility's behalf, with a description of the obligation, how the funds will be used and how incurred.
(C) Credits or open accounts a utility proposes to give to an affiliated interest, in addition to EXHIBITS A through K, shall include the following:
(i) EXHIBIT L. Copies of all proposed or existing contracts or agreements entered into by the parties to the transaction; and
(ii) EXHIBIT M. The amount and a description of each item for which the utility proposes to give credit through its loan or open account.
(3) The following form of application may be filed by all utilities with annual revenues of less than $100,000 seeking authority to issue promissory notes maturing more than one year after date of issue or renewal and unsecured notes on motor vehicles in the principal amount of less than $10,000. In the instances when this provision is proper, the requirements of sections (1) and (2) of this rule do not apply. The Commission may require compliance with sections (1) and (2) of this rule if the Commission deems it necessary in a particular case. [Form not included. See ED. NOTE.]
[ED. NOTE: Forms referenced are available from the agency.]
Stat. Auth.: ORS 183, ORS 756, ORS 757 & ORS 759

Stats. Implemented: ORS 756.105, ORS 757.405 - ORS 757.435, ORS 757.445, ORS 757.450, ORS 759.305 - ORS 759.320, ORS 759.360 & ORS 759.375

Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 21-1990, f. & cert. ef. 12-31-90 (Order No. 90-1904); PUC 8-1995, f. & cert. ef. 8-30-95 (Order No. 95-858); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01
860-027-0031
When the Commission May Reregulate Financings of Exempt Telecommunications Utilities
If any bond rating made by Standard and Poor's, Moody's, or Fitch for a large telecommunications utility exempt under ORS 759.315(5) from the requirements of ORS 759.310 and 759.315(2) falls below "A," the Commission may find that reregulation of the large telecommunications utility under ORS 759.310 and 759.315(2) is necessary to prevent the impairment of service to customers.
Stat. Auth.: ORS 183.335, ORS 756.060 & ORS 759

Stats. Implemented: ORS 759.040 & ORS 759.045

Hist.: PUC 8-1994, f. & cert. ef. 4-15-94 (Order No. 94-555); PUC 16-2001, f. & cert. ef. 6-21-01; PUC 27-2001, f. & cert. ef. 12-28-01
860-027-0032
Information Required Concerning Financings of Exempt Large Telecommunications Utilities
(1) Any large telecommunications utility exempt under ORS 759.315(5) from the requirements of ORS 759.310 and ORS 759.315(2) shall, within 30 days of issuing securities, provide to the Commission, in writing, the following information:
(a) The type of security involved in the issuance;
(b) The amount of securities involved in the issuance; and
(c) A description of the terms of the issuance.
(2) Any large telecommunications utility exempt under ORS 759.315(5) from the requirements of ORS 759.310 and ORS 759.315(2) shall, within 90 days of issuing securities, provide to the Commission, in writing, the information required by OAR 860-027-0030(4).
(3) Any large telecommunications utility exempt under ORS 759.315(5) from the requirements of ORS 759.310 and ORS 759.315(2) shall maintain its records in a manner which allows the Commission to determine whether the terms of any issuance of securities are reasonable.
Stat. Auth.: ORS 183, ORS 756 & ORS 759

Stats. Implemented: ORS 759.045, ORS 759.310 & ORS 759.315

Hist.: PUC 8-1994, f. & cert. ef. 4-15-94 (Order No. 94-555); PUC 16-2001, f. & cert. ef. 6-21-01
860-027-0035
Applications by a Utility for Authority to Guarantee Indebtedness
(1) The requirements of this rule will apply to any energy or large telecommunications utility seeking authority under ORS 757.440 and 759.350. Every applicant shall set forth in its application to the Commission, in the manner and form indicated, the following information which should, to the extent possible, be furnished for each person, firm, or corporation involved:
(a) The information required by OAR 860-027-0030(1)(a) to (g) inclusive;
(b) A full description of the securities for which applicant proposes to assume obligation or liability as guarantor, endorser, surety or otherwise;
(c) The amount of other securities of said person, firm or corporation now held, owned or controlled by the applicant;
(d) A statement as to whether or not any application with respect to the transaction or any part thereof is required to be filed with any federal or other state regulatory body;
(e) The reasons, in detail, why it is in applicant's interest to guarantee such securities;
(f) The reasons, in detail, why it is necessary for applicant to guarantee such securities; and
(g) The facts relied upon by the applicant to show the assumption is:
(A) For some lawful object within the applicant's corporate purposes and compatible with the public interest;
(B) Necessary or appropriate for or consistent with the applicant's proper performance of service as a public or telecommunications utility;
(C) Will not impair its ability to perform that service; and
(D) Reasonably necessary or required for such purposes.
(2) Required Exhibits. There shall be filed with the application as part thereof the following exhibits:
(a) EXHIBIT A. A copy of the applicant's charter or articles of incorporation with amendments to date;
(b) EXHIBIT B. A copy of the bylaws with amendments to date;
(c) EXHIBIT C. Copies of all resolutions of directors authorizing the assumption in respect to which the application is made and, if stockholders' approval has been obtained, a copy of the stockholders' resolution should also be furnished;
(d) EXHIBIT D. A copy of any mortgage, indenture, or other agreement securing any security which it proposes to guarantee; also, a copy of any mortgage, indenture, or other agreement securing applicant's funded obligations;
(e) EXHIBIT E. Balance sheets with supporting fixed capital or plant schedules in conformity with the form set forth in the annual report which applicant is required to file with the Commission;
(f) EXHIBIT F. A statement of all known contingent liabilities, except minor items such as damage claims and similar items involving relatively small amounts at the date of the application;
(g) EXHIBIT G. Comparative income statements in conformity with the form set forth in the annual report which applicant is required to file with the Commission;
(h) EXHIBIT H. An analysis of surplus for the period covered by the income statements referred to in Exhibit G; and
(i) EXHIBIT I. A statement showing the present market value or other basis of determining the value of the securities to be guaranteed.
[ED. NOTE: Exhibits referenced are available from the agency.]
Stat. Auth.: ORS 183, 756, 757 & 759

Stats. Implemented: ORS 757.440 & 759.335

Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 16-2001, f. & cert. ef. 6-21-01
860-027-0040
Applications for Approval of Transactions Between Affiliated Interests
(1) Except as provided in sections (3) and (4) of this rule, the requirements of this rule will apply to any energy or large telecommunications utility seeking authority under ORS 757.490, ORS 757.495, ORS 759.385, and ORS 759.390. An application for financing to an affiliated interest shall be made under OAR 860-027-0030.
(2) Every applicant shall set forth in its application to the Commission, in the manner and form indicated, the following information:
(a) The applicant's exact name and the address of its principal business office;
(b) The name and address of the person authorized, on the utility's behalf, to receive notices, inquiries, and communications regarding the information;
(c) A statement describing the relationship between the utility and the contracting entity as defined by ORS 757.015, ORS 757.490, ORS 759.010, or ORS 759.385;
(d) The amount, kind, and ratio to total voting securities held, if applicable;
(e) A list of all officers and directors of the affiliated interest who are also officers or directors of the applicant;
(f) The pecuniary interest, directly or indirectly, of any officer or director who is a party to the contract;
(g) A description of the goods or services to be provided, the cost incurred in providing each of the goods or services, the market value of the goods or services if different from the costs, and the method or methods proposed for pricing those goods or services;
(h) An estimate of the amount the utility will pay annually for the goods or services and the accounts in which it will record the charges;
(i) The reasons, in detail, relied upon by the utility for procuring the proposed goods or services from the affiliate and benefits, if any, utility customers and the general public will derive from the provision of goods or services;
(j) A description of the procurement process and the reasons, in pertinent detail appropriate to the complexity of the procurement, relied upon by the utility for procuring the proposed goods or services without a competitive procurement process, if such a process is not used;
(k) Transfer prices in contracts or agreements for the procurement of goods or services under competitive procurement shall be presumed to be the market value, subject to evaluation of the procurement process;
(l) A copy of the proposed contract or agreement between the utility and the contracting entity; and
(m) Copies of all resolutions of directors authorizing the proposed transactions and, if stockholders' approval has been obtained, copies of the resolutions approved by the stockholders.
(3) This rule shall not apply to utilities seeking to purchase or contracting to purchase, directly or indirectly, from any person or corporation having an affiliated interest as defined in ORS 757.015 or 759.010 or any corporation defined in 757.490(1) or 759.385(1):
(a) Any service provided under a rate or schedule of rates filed with the Commission under ORS 757.210 or ORS 759.180; or
(b) Any service provided under a rate or schedule of rates which:
(A) Has been filed with an agency charged with the regulation of utilities,
(B) Has been approved as just and reasonable or in compliance with another comparable standard, and
(C) Is available to a broad class of customers.
(4) This rule shall not apply to telecommunications utilities electing price cap regulation under ORS 759.405 and 759.410.
Stat. Auth.: ORS 183, ORS 756, ORS 757 & ORS 759

Stats. Implemented: ORS 756.040, ORS 757.005, ORS 757.015, ORS 757.490, ORS 757.495, ORS 759.005, ORS 759.010, ORS 759.385 & ORS 759.390

Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 21-1990, f. & cert. ef. 12-31-90 (Order No. 90-1904); PUC 21-1990-A, f. 10-11-91, cert. ef. 12-31-90 (Order No. 90-1904); PUC 15-1994, f. & cert. ef. 12-28-94 (Order No. 94-1953); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 8-2001, f. & cert. ef. 3-21-01; PUC 18-2001, f. & cert. ef.6-21-01
860-027-0041
Information Required for Utility Goods or Services Provided to Affiliated Interests
(1) Except as provided in section (4) of this rule, this rule applies to any energy or large telecommunications seeking to provide or contracting to provide, directly or indirectly, to any person or corporation having an affiliated interest as defined in ORS 757.015 or 759.010 or any corporation defined in 757.490(1) or 759.385(1), service, advice, auditing, accounting, sponsoring, engineering, managing, operating, financing, legal, or other services, or enter revenues or credits therefore on its books. This rule does not apply to transactions subject to 757.490, 757.495, 759.385, or 759.390 and OAR 860-027-0040.
(2) An energy or large telecommunications utility's failure to submit this required information shall not limit the Commission's authority to recognize or impute revenues to the utility pursuant to such contract in any rate valuation or other hearing or proceeding.
(3) For transactions provided in section (1) of this rule, every energy or large telecommunications utility shall submit to the Commission, in the manner and form indicated, the following information:
(a) Its exact name and the address of its principal business office;
(b) The name of the person authorized on the energy or large telecommunications utility's behalf to receive notices, inquiries, and communications regarding the information;
(c) A statement describing the relationship between the energy or large telecommunications utility and the other contracting entity as defined by ORS 757.015, ORS 757.490, ORS 759.010, or ORS 759.385;
(d) The pecuniary interest, directly or indirectly, of any officer or director who is a party to the contract;
(e) A description of the goods or services to be provided, the costs incurred in providing those goods or services, the market value of the goods or services if different from the costs, and the method or methods proposed for pricing those goods or services;
(f) An estimate of the amount the energy or large telecommunications utility will receive annually for the goods or services and the accounts in which it will record the payments;
(g) The reasons relied upon by the energy or large telecommunications utility for providing the proposed goods or services and the benefits, if any, utility customers and the general public will derive from the provision of goods or services;
(h) A copy of the contract or agreement between the energy or large telecommunications utility and the contracting entity that is the subject of this filing; and
(i) Copies of all resolutions of directors of the energy or large telecommunications utility authorizing the proposed transactions and, if approval of the utility's stockholders was obtained, copies of the resolutions approved by the stockholders.
(4) This rule shall not apply to energy or large telecommunications utilities seeking to provide or contracting to provide, directly or indirectly, to any person or corporation having an affiliated interest as defined in ORS 757.015 or ORS 759.010 or any corporation defined in ORS 757.490(1) or ORS 759.385(1):
(a) Any service provided under a rate or schedule of rates filed with the Commission under ORS 757.210 or ORS 759.180; or
(b) Any service provided under a rate or schedule of rates which:
(A) Has been filed with an agency charged with the regulation of energy or large telecommunications utilities;
(B) Has been approved as just and reasonable or in compliance with another comparable standard; and
(C) Is available to a broad class of customers.
Stat. Auth.: ORS 183, ORS 756, ORS 757 & ORS 759

Stats. Implemented: ORS 756.040, ORS 757.005, ORS 757.015, ORS 757.490, ORS 759.005 & ORS 759.385

Hist.: PUC 21-1990, f. & cert. ef. 12-31-90 (Order No. 90-1904); PUC 21-1990-A, f. 10-11-91, cert. ef. 12-31-90 (Order No. 90-1904); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 18-2001, f. & cert. ef. 6-21-01
860-027-0042
Timeliness of Application Made Under OAR 860-027-0040 and Filings Made Under OAR 860-027-0041
Applications made under OAR 860-027-0040 and filings made under OAR 860-027-0041 shall occur no later than 90 days after the execution of the contract giving rise to the application or filing. The contract shall be deemed to be executed on the date the parties sign a written contract or on the date the parties begin to transact business under the contract, whichever date is earlier.
Stat. Auth.: ORS 183, ORS 756, ORS 757 & ORS 759

Stats. Implemented: ORS 756.040, ORS 757.005, ORS 757.015, ORS 757.490, ORS 757.495, ORS 759.005, ORS 759.010, ORS 759.385 & ORS 759.390

Hist.: PUC 21-1990, f. & cert. ef. 12-31-90 (Order No. 90-1904); PUC 9-1998, f. & cert. ef. 4-28-98
860-027-0043
Application for Waiver of Requirements Under OARs 860-027-0040 and 860-027-0041
The Commission will not waive
the requirements of OAR 860-027-0040 or 860-027-0041 for any transactions exceeding
0.1 percent of the previous calendar year’s Oregon utility operating revenues
unless the transaction or transactions can be demonstrated in advance to be fair
and reasonable and not contrary to the public interest.
Stat. Auth.: ORS 183, 756 &
757

Stats. Implemented: ORS 756.040,
757.005, 757.015, 757.490 & 757.495

Hist.: PUC 21-1990, f. &
cert. ef. 12-31-90 (Order No. 90-1904); PUC 21-1990-A, f. 10-11-91, cert. ef. 12-31-90
(Order No. 90-1904); PUC 12-1992, f. & cert. ef. 7-8-92 (Order No. 92-963);
PUC 9-1998, f. & cert. ef. 4-28-98; PUC 6-2011, f. & cert. ef. 9-14-11
860-027-0044
Application for Waiver Requirements by Large Telecommunications Utilities Under OARs 860-027-0040 and 860-027-0041
The Commission will not grant
a request by a large telecommunications utility for a waiver of OAR 860-027-0040
or 860-027-0041 for any transactions that:
(1)Are subject to ORS 759.385(4),
759.390(7) or 759.394; or
(2) Exceed 0.1 percent of the
previous calendar year’s Oregon utility operating revenues.
Stat. Auth.: ORS 183, 756 &
759

Stats. Implemented: ORS 756.040,
759.005, 759.010, 759.385 & 759.390

Hist.: PUC 12-1992, f. &
cert. ef. 7-8-92 (Order No. 92-963); PUC 9-1998, f. & cert. ef. 4-28-98; PUC
16-2001, f. & cert. ef. 6-21-01; PUC 6-2011, f. & cert. ef. 9-14-11

Uniform System of Accounts

860-027-0045
Uniform System of Accounts for Electric Utilities -- Major and Nonmajor
(1) The Uniform System of Accounts prescribed
for Public Utilities and Licensees, Part 101, Chapter 1, 18 Code of Federal Regulations
(April 1, 2013, edition) is hereby adopted and prescribed by the Commission for
each electric company.
(2) Each electric company
having multistate operations must maintain records in such detail that the cost
of property located in and business done in Oregon in accordance with geographic
boundaries can be readily ascertained.
(3) Each electric company
having multistate operations must file annually its Oregon allocated results of
operations using allocation methods acceptable to the Commission. The results of
operations report must be filed with the Commission on or before May 1 of each year.
Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.105,
757.120, 757.125 & 757.135
Hist.: PUC 164, f. 4-18-74,
ef. 5-11-74 (Order No. 74-307); PUC 5-1985, f. & ef. 4-24-85 (Order No. 85-355);
PUC 3-1992, f. & cert. ef. 2-14-92 (Order No. 92-246); PUC 9-2001, f. &
cert. ef. 3-21-01; PUC 19-2001, f. & cert. ef. 6-21-01; PUC 7-2005, f. &
cert. ef. 11-30-05; PUC 4-2014, f. & cert. ef. 5-28-14
860-027-0048
Allocation of Costs by an Energy Utility
(1) As used in this rule:
(a) "Affiliate" means a corporation or person who has an affiliated interest, as defined in ORS 757.015, with an energy utility;
(b) "Approved rates" means rates established by the Commission or FERC;
(c) "Asset" means any tangible or intangible property of an energy utility or other right, entitlement, business opportunity, or other thing of value to which an energy utility holds claim that is recorded or should be recorded as a capital expenditure in the energy utility's financial statements. All energy utility tangible or intangible property, rights, entitlements, business opportunities, and things of value should be considered an asset, a service, or supplies;
(d) "Commission" means the Public Utility Commission of Oregon;
(e) "Cost" means fully distributed cost, including the energy utility's authorized rate of return and all overheads;
(f) "Energy utility" is that defined in OAR 860-027-0001(1);
(g) "Fair market value" means the potential sales price that could be obtained by selling an asset in an arm's-length transaction to a nonaffiliated entity, as determined by commonly accepted valuation principles;
(h) "FERC" means the Federal Energy Regulatory Commission;
(i) "Market rate" means the lowest price that is available from nonaffiliated suppliers for comparable services or supplies;
(j) "Net book value" means original cost less accumulated depreciation;
(k) "Nonregulated activity" means an activity that is not a regulated activity of the energy utility as defined in subsection (1)(l) of this rule;
(l) "Regulated activity" means a Commission regulated activity that is provided by an energy utility directly or indirectly relating to the general operations of the energy utility such as production, transmission, delivery, or furnishing of heat, light, or power unless the Commission has determined the activity to be exempt from regulation;
(m) "Services" means labor-related activities including, but not limited to advice, auditing, accounting, sponsoring, engineering, managing, operating, financing, and legal. All energy utility tangible or intangible property, rights, entitlements, business opportunities, and things of value should be considered an asset, a service, or supplies; and
(n) "Supplies" means any tangible or intangible property of an energy utility or other thing of value to which an energy utility holds claim that is recorded or should be recorded as an operating expense in the energy utility's financial statements. All energy utility tangible or intangible property, rights, entitlements, business opportunities, and things of value should be considered an asset, a service, or supplies.
(2) Regulated and nonregulated activities of an energy utility shall be accounted for in accordance with OARs 860-027-0045, 860-027-0055, or 860-027-0065, as appropriate.
(3) The energy utility shall use the following cost allocation methods when transferring assets or supplies, or providing or receiving services between regulated and nonregulated activities:
(a) When an asset is transferred to regulated accounts from nonregulated accounts, the transfer shall be recorded in regulated accounts at the lower of net book value or fair market value.
(b) When an asset is transferred from regulated accounts to nonregulated accounts, the transfer shall be recorded in regulated accounts at the approved rate if an appropriate rate is on file with the Commission or with FERC. If no approved rate is applicable, proceeds from the transfer shall be recorded in regulated accounts at the higher of net book value or fair market value.
(c) When an asset is transferred from regulated accounts to nonregulated accounts at a fair market value that is greater than net book value, the difference shall be a gain to the regulated activity. The energy utility shall record the gain so the Commission can determine the proper disposition of the gain in a subsequent rate proceeding.
(d) When services or supplies are transferred or provided by a regulated activity to a nonregulated activity, transfers shall be recorded in regulated revenue accounts at the approved rate if an applicable rate is on file with the Commission or with FERC. If services or supplies are not transferred or provided pursuant to an approved rate, transfers shall be recorded in regulated accounts at the energy utility's cost or the market rate, whichever is higher. Approved rates shall be established as appropriate.
(e) When services or supplies (except for generation) are transferred or provided to a regulated activity by a nonregulated activity, transfers shall be recorded in regulated accounts at the nonregulated activity's cost or the market rate, whichever is lower. The nonregulated activity's cost shall be calculated using the energy utility's most recently authorized rate of return.
(f) For generation, when services or supplies are transferred or provided to a regulated activity by a nonregulated activity, transfers shall be recorded in regulated accounts at the market rate.
(g) Income taxes shall be calculated for the regulated activity on a standalone basis for both ratemaking purposes and regulatory reporting. When income taxes are determined on a consolidated basis, the regulated activity shall record income tax expense as if it were determined for the regulated activity separately for all time periods.
(4) The energy utility shall use the following cost allocation methods when transferring assets or supplies or providing or receiving services involving its affiliates:
(a) When an asset is transferred to an energy utility from an affiliate, the transfer shall be recorded in the energy utility's accounts at the lower of net book value or fair market value.
(b) When an asset is transferred from an energy utility to an affiliate, the transfer shall be recorded in the energy utility's accounts at the approved rate if an appropriate rate is on file with the Commission or with FERC. If no approved rate is applicable, proceeds from the transfer shall be recorded in the energy utility's accounts at the higher of net book value or fair market value.
(c) When an asset is transferred from an energy utility's accounts to an affiliate at a fair market value that is greater than net book value, the difference shall be a gain to the energy utility. The energy utility shall record the gain so the Commission can determine the proper disposition of the gain in a subsequent rate proceeding.
(d) When services or supplies are sold by an energy utility to an affiliate, sales shall be recorded in the energy utility's revenue accounts at the approved rate if an applicable rate is on file with the Commission or with FERC. If services or supplies are not sold pursuant to an approved rate, sales shall be recorded in the energy utility's accounts at the energy utility's cost or the market rate, whichever is higher. Approved rates shall be established as appropriate.
(e) When services or supplies (except for generation) are sold to an energy utility by an affiliate, sales shall be recorded in the energy utility's accounts at the approved rate if an applicable rate is on file with the Commission or with FERC. If services or supplies (except for generation) are not sold pursuant to an approved rate, sales shall be recorded in the energy utility's accounts at the affiliate's cost or the market rate, whichever is lower.
(f) For generation, when services or supplies are sold to an energy utility by an affiliate, sales shall be recorded in regulated accounts at the market rate.
(g) When services or supplies are sold to an energy utility by an affiliate under contract, the transfer price shall be based upon the tariff or terms of the contract approved by the Commission Order under ORS 757.495.
(h) Income taxes shall be calculated for the energy utility on a standalone basis for both ratemaking purposes and regulatory reporting. When income taxes are determined on a consolidated basis, the energy utility shall record income tax expense as if it were determined for the energy utility separately for all time periods.
(5) Each energy utility shall maintain a current cost allocation manual on file with the Commission. The cost allocation manual shall contain the following:
(a) A description of each of the energy utility's nonregulated activities and affiliates (or a referral to such a description already on file with the Commission);
(b) A chart showing the energy utility's nonregulated activities and affiliates (or a referral to such a chart already on file with the Commission); and
(c) A detailed description of the methods used by the energy utility to allocate costs to nonregulated activities and affiliates including the method used by the energy utility to calculate costs that are applied to sales or transfers with nonregulated activities and transactions with affiliates.
(6) The energy utility must file its initial cost allocation manual within 180 days of the effective date of this rule. The cost allocation manual shall also be filed annually as an appendix to the Affiliated Interest Report required under OAR 860-027-0100.
(7) When an energy utility proposes any change to cost allocation methods in the cost allocation manual previously filed with the Commission, the utility shall file the proposed change with the Commission no less than 45 days before the effective date of the change. The changes shall go into effect unless rejected by the Commission before the effective date of the change.
Stat. Auth.: ORS 183, 756 & 757

Stats. Implemented: ORS 756.040, 757.490 & 757.495

Hist.: PUC 25-2003, f. & cert. ef. 12-11-03
860-027-0050
Uniform System of Accounts for Large Telecommunications Utilities
(1) The Uniform
System of Accounts for Telecommunications Companies, Part 32, adopted by the Federal
Communications Commission (FCC) on February 6, 2002, is hereby adopted and prescribed
for all large telecommunications utilities except as modified for intrastate purposes
in sections (2) through (5) of this rule.
(2) A large
telecommunications utility may follow Class B accounting except when Class A accounting
is needed to complete intrastate depreciation and jurisdictional separation studies,
to provide the details requested in annual reports under OAR 860-027-0070, and to
comply with other Oregon rules and statutes.
(3) The allocation
rules in Part 32, Section 32.27, are replaced by OAR 860-027-0052(3).
(4) For construction
work in progress and property held for future use, each large telecommunications
utility shall maintain subsidiary records consistent with ORS 759.285.
(5) Each
large telecommunications utility shall maintain subsidiary records sufficient to
separately identify the following deferred taxes, universal service fund collection,
revenues, and expenses:
(a) Federal
and state net noncurrent deferred operating income taxes (Account 4340).
(b) Federal
universal service fund collection (Account 5081).
(c) Federal
universal service fund contribution (Account 6540).
(d) State
universal service fund collection and contribution (Account 4010).
(e) Interstate
and intrastate switched access revenue (Account 5082).
(f) Interstate
and intrastate special access revenue (Account 5083).
(g) Miscellaneous
Revenues (Account 5200):
(A) Directory
revenues, including amounts derived from alphabetical and classified sections of
directories and fees paid by other entities for the right to publish the large telecommunications
utility's directories; the classified section of the directories; the sale of new
telephone directories whether they are the large telecommunications utility's own
directories or directories purchased from others; additional and boldface listings,
marginal displays, inserts, and other advertisements in the alphabetical sections
of the telephone directories; and unlisted and nonpublished telephone numbers;
(B) Interstate
and intrastate carrier billing and collection revenues derived from the provision
to other telecommunications providers for services such as message recording, billing,
collection, billing analysis, and billing information services, whether rendered
under tariff or contractual arrangements; and
(C) Miscellaneous
revenue other than directory or carrier billing and collection revenues.
(h) Distributions
from the federal USF and the Oregon USF.
(i) Depreciation
expenses related to telecommunications plant in service, depreciation expense related
to property held for future use, and amortization expense.
[Publications: Publications
referenced are available from the agency.]
Stat. Auth.:
ORS 183, 756 & 759

Stats. Implemented:
ORS 756.105, 759.120, 759.125 & 759.130

Hist.: PUC
164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 8-1981, f. & ef. 9-8-81
(Order No. 81-626); PUC 5-1985, f. & ef. 4-24-85 (Order No. 85-355); PUC 13-1987,
f. & ef. 11 -16-87 (Order No. 87-1176); PUC 17-1989, f. & cert. ef. 12-14-89
(Order No. 89-1508/89-1672); PUC 6-1998, f. & cert. ef. 3-13-98; PUC 3-2000,
f. & cert. ef. 2-9-00; PUC 9-2000, f. & cert. ef. 5-26-00; PUC 16-2000,
f. & cert. ef. 9-12-00; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 16-2001,
f. & cert. ef. 6-21-01; PUC 14-2002, f. & cert. ef. 3-26-02; PUC 8-2010,
f. & cert. ef. 12-20-10; PUC 3-2013, f. & cert. ef. 5-17-13
860-027-0052
Allocation of Costs by a Large Telecommunications Utility
(1) As used in this rule:
(a) "Affiliate Transaction" means a transfer of assets, a sale of supplies, or a sale of services between accounts for regulated activities of a large telecommunications utility and accounts for nonregulated activities of a separate entity that is either an affiliated interest or another company in which the large telecommunications utility owns a controlling interest. The term also means a transfer of assets, a sale of supplies, or a sale of services between accounts for the regulated and nonregulated activities of a single large telecommunications utility;
(b) "Asset" means any tangible or intangible property of a large telecommunications utility or other right, entitlement, business opportunity, or other thing of value to which a large telecommunications utility holds claim;
(c) "Cost" means fully distributed cost, including the large telecommunications utility's authorized rate of return and all overheads;
(d) "Fair Market Value" means the potential sales price that could be obtained by selling an asset in an arm's-length transaction to a nonaffiliated entity, as determined by commonly accepted valuation principles;
(e) "Market Rate" means the lowest price that is available from nonaffiliated suppliers for comparable services or supplies;
(f) "Net Book Value" means original cost less accumulated depreciation; and
(g) "Nonregulated Service" means a service that is not a telecommunications service as defined by ORS 759.005(2)(g), or a service that the Commission has determined to be exempt from regulation.
(2) A large telecommunications utility that provides both regulated and nonregulated intrastate service shall:
(a) Allocate intrastate investments, expenses, and revenues between regulated activities and nonregulated activities according to principles, procedures, and accounting requirements, which the Federal Communications Commission (FCC) adopted December 23, 1986, and amended on reconsideration September 17, 1987, in CC Docket No. 86-111, except as otherwise provided in this rule;
(b) Part 64, Subpart I, Allocation of Costs, adopted by the Federal Communications Commission on October 11, 2001, is hereby adopted and prescribed.
(3) A large telecommunications utility, which is subject to price caps under ORS 759.405, may account for its regulated and nonregulated intrastate activities in accordance with FCC Part 32, Section 32.27. For all other large telecommunications utilities, Section 32.27 is replaced as follows for intrastate purposes:
(a) When an asset is transferred to regulated accounts from nonregulated accounts:
(A) If the asset has an original cost of more than $100,000, the transfer shall be recorded in regulated accounts at the lower of net book value or fair market value.
(B) If the asset has an original cost of $100,000 or less, the transfer shall be recorded in compliance with Section 32.27.
(b) When an asset is transferred from regulated accounts to nonregulated accounts:
(A) If the asset has an original cost of more than $100,000, the transfer shall be recorded in regulated accounts at the tariff or price-listed rate if an appropriate tariff or price list is on file with the Commission. If no tariff or price list is applicable, proceeds from the transfer shall be recorded in regulated accounts at the higher of net book value or fair market value.
(B) If the asset has an original cost of $100,000 or less, the transfer shall be recorded in compliance with Section 32.27.
(c) When an asset is transferred from a regulated account to a nonregulated account at a fair market value that is greater than net book value, the difference shall be considered a gain to the regulated activity. The large telecommunications utility shall record the gain so the Commission can determine the proper disposition of the gain in a subsequent rate proceeding.
(d) When services or supplies are sold by a regulated activity to a nonregulated activity:
(A) If the annual value exceeds $100,000, sales shall be recorded in regulated revenue accounts at tariffed or price-listed rates if an applicable tariff or price list is on file with the Commission. Tariffed or price-listed rates shall be established whenever possible. If services or supplies are not sold pursuant to a tariff or price list, sales shall be recorded in regulated revenue accounts at the large telecommunications utility's cost.
(B) If the annual value is $100,000 or less, the sales shall be recorded in compliance with Section 32.27.
(e) When services or supplies are sold to a regulated activity by a nonregulated activity:
(A) If the annual value exceeds $100,000, sales shall be recorded in regulated accounts at the nonregulated activity's cost or the market rate, whichever is lower. The nonregulated activity's cost shall be calculated using the large telecommunications utility's most recently authorized rate of return.
(B) If the annual value is $100,000 or less, the sales shall be recorded in compliance with Section 32.27.
(f) Income taxes shall be allocated among the regulated activities of the large telecommunications utility, its nonregulated divisions, and members of an affiliated group. When income taxes are determined on a consolidated basis, the large telecommunications utility shall record income tax expense as if it were determined for the large telecommunications utility separately for all time periods.
(4) If a large telecommunications utility:
(a) Is subject to ORS 759.100 through 759.115 and provides both regulated and nonregulated intrastate service, the utility shall maintain a current intrastate cost allocation manual on file with the Commission. If the FCC requires the large telecommunications utility to file an interstate cost allocation manual, the utility shall also maintain a current copy of its interstate manual with the Commission.
(b) Is subject to price caps under ORS 759.405, the large telecommunications utility is not required to file an intrastate cost allocation manual with the Commission. A large telecommunications utility that is subject to price caps must file a copy of its annual 254(k) compliance filing and make information available to the Commission as needed to review the utility's intrastate cost allocations to ensure that services included in the definition of universal service bear no more than a reasonable share of the joint and common costs of facilities used to provide those services.
(5) An intrastate cost allocation manual, if required under subsection (4) of this rule, shall contain the following:
(a) A description of each of the large telecommunications utility's nonregulated intrastate activities;
(b) A list of all intrastate activities to which the large telecommunications utility now accords incidental accounting treatment, and the justification for treating each as incidental;
(c) A chart showing the large telecommunications utility's affiliates;
(d) A statement identifying affiliates that engage in or will engage in transactions with the large telecommunications utility for the purpose of providing nonregulated intrastate service and describing the nature, terms, and frequency of such transactions; and
(e) A detailed specification of the cost categories to which amounts in each account and subaccount of Part 32 will be assigned, and a detailed specification of the basis on which each cost category will be apportioned between regulated and nonregulated activities.
(6) Unless specifically allowed by the Commission, a cost allocation manual cannot be used to satisfy any other reporting requirement established by the Commission.
(7) The initial cost allocation manual filed by a large telecommunications utility pursuant to this rule must be filed with the Commission no less than 90 days before the manual's effective date. The manual shall go into effect unless rejected by the Commission before the manual's effective date.
(8) When a large telecommunications utility proposes any change to a cost allocation manual previously filed with the Commission, the utility shall file the proposed change with the Commission no less than 45 days before the effective date of the change. The changes shall go into effect unless rejected by the Commission before the effective date of the change.
(9) After the Commission has issued an order to exempt from regulation a telecommunications service provided by a large telecommunications utility that is subject to ORS 759.100 through 759.115, the affected utility shall file with the Commission either an initial cost allocation manual or a change to its previously filed manual.
(10) A large telecommunications utility that is required to file annual independent cost allocation audits with the FCC shall at the same time file copies of the annual audits with the Commission.
[Publications: Publications referenced are available from the agency.]
Stat. Auth.: ORS 183, ORS 756 & ORS 759

Stats. Implemented: ORS 756.105, ORS 759.120, ORS 759.125 & ORS 759.130

Hist.: PUC 24-1985, f. & ef. 12-12-85 (Order No. 85-1172); PUC 15-1988, f. & cert. ef. 9-7-88 (Order No. 88-954); PUC 8-1995, f. & cert. ef. 8-30-95 (Order No. 95-858); PUC 9-1998, f. & cert. ef. 4-28-98; PUC 10-2000, f. & cert. ef. 5-26-00; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 24-2002, f. & cert. ef. 12-20-02
860-027-0055
Uniform System of Accounts for Gas Utilities -- Major and Nonmajor
(1) The Uniform System of Accounts prescribed for Natural Gas Companies, Part 201, Chapter 1, 18 Code of Federal Regulations (April 1, 2001, edition) is hereby adopted and prescribed by the Commission for each gas utility.
(2) Each gas utility having multistate operations shall maintain records in such detail that the cost of property located in and business done in Oregon can be readily ascertained.
(3) Each gas utility having multistate operations shall file annually with the Commission, on or before April 1 of the ensuing year, its Oregon allocated results of operations for the calendar year reported, on the basis of allocation methods acceptable to the Commission.
[Publications: Publications referenced are available from the agency.]
Stat. Auth.: ORS 183, ORS 756 & ORS 757

Stats. Implemented: ORS 756.105, ORS 757.120, ORS 757.125 & ORS 757.135

Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 5-l985, f. & ef. 4-24-85 (Order No. 85-355); PUC 3-1992, f. & cert. ef. 2-14-92 (Order No. 92-246); PUC 9-2001, f. & cert. ef. 3-21-01; PUC 19-2001, f. & cert. ef. 6-21-01
860-027-0065
Uniform System of Accounts for Steam Heat Utilities – Class A, B, and C
The Uniform System of Accounts for Public Utilities and Licensees, Part 101, Chapter 1, 18 Code of Federal Regulations (April 1, 2001, edition) is hereby adopted and prescribed by the Commission for each steam heat utility.
[Publications: Publications referenced are available from the agency.]
Stat. Auth.: ORS 183, ORS 756 & ORS 757

Stats. Implemented: ORS 756.105, ORS 757.120, ORS 757.125 & ORS 757.135

Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 9-2001, f. & cert. ef. 3-21-01; PUC 19-2001, f. & cert. ef. 6-21-01

Annual Reports

860-027-0070
Annual Report Requirements for Electric, Large Telecommunications, Gas, and Steam Heat Utilities
(1) Annual Reports must be submitted
by electric, gas, and steam heat utilities. The report must be submitted on or before
May 1, using the most current forms approved by the Commission. For energy utilities,
the annual reports include but are not limited to the FERC 1 (including the Oregon
Supplement) or the FERC 2 (including the Oregon Supplement), and the Results of
Operations.
(2) Annual Reports will be
submitted by large telecommunications utilities. The report Form O for the previous
calendar year shall be submitted on or before April 1, using the most current forms
approved by the Commission. The report Form I for the previous calendar year shall
be submitted on or before October 31 using the most current forms approved by the
Commission.
[ED. NOTE: Forms referenced are available
from the Agency.]
Stat. Auth.: ORS 183, 756,
757 & 759
Stats. Implemented: ORS 756.040,
756.105, 757.120, 757.125, 757.135 & 759.225
Hist.: PUC 164, f. 4-18-74,
ef. 5-11-74 (Order No. 74-307); PUC 9-1985, f. & ef. 6-25-85 (Order No. 85-574);
PUC 3-1995, f. & cert. ef. 6-19-95 (Order No. 95-516); PUC 13-1997, f. &
cert. ef. 11-12-97; PUC 2-1998, f. & cert. ef. 2-24-98; PUC 3-1999, f. &
cert. ef. 8-10-99; PUC 19-2000, f. & cert. ef. 12-28-00; PUC 16-2001, f. &
cert. ef. 6-21-01; PUC 4-2014, f. & cert. ef. 5-28-14
860-027-0100
Reporting of Affiliated Transactions
(1) On forms approved and provided by the Commission:
(a) By June 1, all energy utilities shall file with the Commission a report of all affiliated interest, intercompany, and intracompany transactions which occurred during the period from January 1 through December 31 of the immediately preceding year.
(b) By April 1, all large telecommunications utilities shall file with the Commission a report of all affiliated interest contracts executed during the period from January 1 through December 31 of the immediately preceding year. The list shall consist of the names of the parties to the contracts, the dollar amounts of the contracts, and the dates of execution of the contracts.
(2) As used in this rule, "affiliated interest transactions" mean transactions between affiliated interests as defined by ORS 757.015 and ORS 759.010.
Stat. Auth.: ORS 183, ORS 756, ORS 757, & ORS 759

Stats. Implemented: ORS 756.040, ORS 757.005, ORS 757.015, ORS 757.490, ORS 757.495, ORS 759.005, ORS 759.010, ORS 759.385 -- ORS 759.393

Hist.: PUC 10-1987, f. & ef. 10-8-87 (Order No. 87-898); PUC 12-1997, f. & cert. ef. 10-30-97; PUC 9-1998, f. & cert. ef. 4-28-98; PUC 8-2001, f. & cert. ef. 3-21-01; PUC 18-2001, f. & cert. ef. 6-21-01
860-027-0120
Preservation and Destruction of Records
(1) Electric Companies. Preservation of Records of Public Utilities and Licensees, Part 125, Chapter 1, 18 Code of Federal Regulations (April 1, 2001, edition) is hereby adopted and prescribed by the Commission for each electric company with the following exception: Corporate and General, Organizational documents -- An electric company shall retain minute books of stockholders', directors', and directors' committee meetings for twenty-five years.
(2) Gas Utilities. The Preservation of Records of Public Utilities and Licensees, Part 225, Chapter 1, 18 Code of Federal Regulations (April 1, 2001, edition) is hereby adopted and prescribed by the Commission for each gas utility with the following exception: Corporate and General, Organizational documents -- A gas utility shall retain minute books of stockholders', directors', and directors' committee meetings for twenty-five years.
(3) Steam Heat Utilities. The Preservation of Records of Public Utilities and Licensees, Part 125, Chapter 1, 18 Code of Federal Regulations (April 1, 2001, edition) is hereby adopted and prescribed by the Commission for each steam heat utility with the following exception: Corporate and General, Organizational documents -- A steam heat utility shall retain minute books of stockholders', directors', and directors' committee meetings for twenty-five years.
(4) Large telecommunications Utilities. The Regulations to Govern the Preservation of Records of Communication Common Carriers, Part 42, 47 Code of Federal Regulations Chapter 1 (October 1, 2003, edition) is hereby adopted and prescribed by the Commission for each large telecommunications utility.
[Publications: Publications referenced are available from the agency.]
Stat. Auth.: ORS 183, 756, 757 & 759

Stats. Implemented: ORS 756.040 & 756.105

Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 12-1985, f. & ef. 8-20-85 (Order No. 85-751); PUC 15-1986, f. & ef. 11-10-86 (Order No. 86-1144); PUC 13-1997, f. & cert. ef. 11-12-97; PUC 1-1998, f. & cert. ef. 1-12-98; PUC 8-2000, f. & cert. ef. 5-26-00; PUC-19-2001, f. & cert. ef. 6-21-01; Renumbered from 860-028-0010; PUC 15-2004, f. & cert. ef. 10-28-04; PUC 7-2005, f. & cert. ef. 11-30-05
860-027-0175
Energy Utility Reporting Requirements Relating to Major Shareholders
(1) As used in this rule:
(a) "Beneficial owner(ship)” has the meaning defined in 17 CFR § 240.13d-3 (April 1, 2009).
(b) "Board member” means a member of the board of directors of an energy utility or the board of directors of an entity or person authorized by the Commission to exercise substantial influence over an energy utility.
(c) “Major shareholder” means a person that is a beneficial owner, directly or indirectly, of five percent or more of an energy utility. In the event a person is a beneficial owner of shares of a parent of an energy utility, the person may also be an indirect beneficial owner of the energy utility. Indirect beneficial ownership of an energy utility is calculated by multiplying the person’s percentage of beneficial ownership of the parent by the parent(s)’s percentage of beneficial ownership of the energy utility.
(d) “Person” has the meaning set forth in ORS 756.010(5).
(e) “Schedule 13D” means the statement filed with the Securities and Exchange Commission, as required by 17 C.F.R. 240.13d-1 (April 1, 2009), and containing the information required by 17 C.F.R. 240.13d-101 (April 1, 2009).
(f) “Schedule 13G” means the statement filed with the Securities and Exchange Commission, as required by 17 C.F.R. 240.13d-1 (April 1, 2009), and containing the information required by 17 C.F.R. 240.13d-102 (April 1, 2009).
(g) “Securities and Exchange Commission” means the federal agency created under Section 4 of the 1934 Securities Exchange Act, as codified at 15 U.S.C. 78d (January 5, 2009).
(h) “Tender offer” means an offer to purchase the equity securities of an energy utility, or the solicitation of an offer to sell the equity securities of an energy utility, that would constitute a tender offer, or a request or invitation for tender, for the purpose of Section 14(d) of the Securities Exchange Act of 1934, as codified at 15 U.S.C. 78n(d) (February 1, 2010).
(2) An energy utility must submit a written report to the Commission by March 1 of each calendar year.
(a) The report must list the energy utility’s major shareholders and their respective percentages of beneficial ownership of the energy utility and parent(s), to the extent such information is then known to management of the energy utility; or, if there are no major shareholders, the report must state that there are none.
(b) Information in the report must be current as of December 31 of the previous year or a more recent date if so specified by the energy utility in the report.
(3) In addition to the March 1 report, within 10 business days after the energy utility acquires actual knowledge of the existence and identity of a major shareholder, the energy utility must submit a written report to the Commission that identifies the major shareholder and lists the shareholder’s percentage of beneficial ownership of the energy utility and parent(s). The energy utility may rely on information in Schedule 13D or Schedule 13G filings with the Securities and Exchange Commission. The report must include copies of Schedule 13D or Schedule 13G filings made with the Securities and Exchange Commission by the listed major shareholders, when copies have not been provided previously to the Commission.
(4) Each energy utility must report to the Commission within 10 business days after the energy utility acquires actual knowledge of the existence of a Schedule 13D filing made with the Securities and Exchange Commission by a major shareholder with respect to beneficial ownership or intended beneficial ownership of the energy utility or parent(s).
(5) Each energy utility must file with the Commission a detailed report describing any of the following actions taken by, or on behalf of, a major shareholder within 10 business days after the energy utility acquires actual knowledge of the action:
(a) A request to insert in the proxy statement of the energy utility or a parent of the energy utility:
(A) The major shareholder’s nominee for election to the board of directors of the energy utility or parent of the energy utility, or
(B) A proposal that could materially affect the policies or actions of the energy utility;
(b) The initiation of an independent solicitation of proxies to vote for:
(A) The major shareholder’s nominee for election to the board of directors of the energy utility or a parent of the energy utility, or
(B) A proposal that could materially affect the policies or actions of the energy utility;
(c) The initiation of a withhold or “vote no” campaign against any existing member of the board of directors of the energy utility or parent of the energy utility;
(d) The placement on the ballot used at a meeting of the shareholders of the energy utility or a parent of the energy utility, :
(A) The major shareholder’s nominee for election to the board of directors of the energy utility or such parent, or
(B) A proposal that could materially affect the policies or actions of the energy utility;
(e) The expression of an intent to take any of the actions set forth in sections (5)(a) through (5)(d), if the energy utility does not comply with a request by the major shareholder;
(f) The expression of an intent to buy or sell shares of the energy utility or a parent if the energy utility does not comply with a request by the major shareholder that would materially affect the policies or actions of the energy utility;
(g) The initiation of a tender offer with respect to the energy utility or parent;
(h) Any other expression by a major shareholder of intent to:
(A) Take an action that could materially affect the policies or actions of the energy utility if the energy utility does not comply with a request from the major shareholder, or
(B) Provide an inducement to the energy utility for complying with a request by the major shareholder that could materially affect the policies or actions of the energy utility; and
(i) An action or event that would require a major shareholder to make a 13D filing with the Securities and Exchange Commission.
(6) Each board member is required to report to the Chief Executive Officer or President of the energy utility any action of a major shareholder described in section (5) of this rule within five business days after the board member acquires actual knowledge of such action.
(7) The energy utility, directly or indirectly through a parent, must notify each board member in writing, at least once every 12 months, of the reporting obligations described in section (6) of this rule. The energy utility must maintain at its corporate office, copies of these notices for a period two years from the date of such notice, and must produce such notices to the Commission within five business days of a request by the Commission.
(8) An energy utility is not required to provide a report to the Commission for:
(a) A request made by a major shareholder, or the representative of a major shareholder, in the capacity of a shareholder, for information normally available to shareholders of the energy utility or a parent; or
(b) A request made by the major shareholder, or the representative of a major shareholder, in the capacity of a customer of the energy utility, regarding utility service.
(9) Unless expressly provided in a Commission order, this rule does not apply to any actions otherwise reportable by the energy utility or a parent or its respective board members under section (5) where the major shareholder has been authorized to exert control or influence by a Commission order entered under ORS 757.511.
(10) The energy utility must identify a report submitted to the Commission under this rule as a report filed under OAR 860-027-0175. The energy utility must describe the basis for a request that the report, or any portion thereof, be treated as containing information not subject to public disclosure, as required by OAR 860-001-0070. The Commission will review the report and determine if a filing by the major shareholder under ORS 757.511 is required.
Stat. Auth.: ORS 756.040, 757.511

Stats. Implemented: ORS 757.511

Hist.: PUC 7-2010, f. & cert. ef. 12-2-10
860-027-0200
Energy Utility Acquisition
In addition to the information
required by ORS 757.511, any person filing an application pursuant to that statute,
shall also provide:
(1) The information required
by OAR 860-027-0030(1)(a) through (d), inclusive;
(2) A schedule detailing the
existing capital structure of the energy utility to be acquired, as well as a pro
forma utility capital structure as of 12 months after the acquisition is to be completed;
(3) An explanation of how the
bond ratings and capital costs of the acquired utility will be affected by the acquisition;
(4) A description of existing
and planned nonutility businesses which are or will become affiliated interests
of the acquired utility under ORS 757.015, and a description of the organizational
structure under which the applicant intends to operate its businesses;
(5) A description of the method
by which management, personnel, property, income, losses, costs, and expenses (including
tax-related expense) will be allocated by the applicant between its utility and
nonutility operations (if applicable);
(6) A description of any planned
changes that may have a significant impact upon the policy, management, operations,
or rates of the energy utility;
(7) A description of any plans
to cause the energy utility to sell, exchange, pledge, or otherwise transfer its
assets;
(8) A copy of any existing or
proposed agreement between the energy utility and any businesses which will become
affiliated interests of the acquired utility under ORS 757.015; and
(9) A motion for a general protective
order or modified protective order under OAR 860-001-0080, if necessary for the
release of information under sections (1) through (8) of this rule.
Stat. Auth.: ORS 183, 756, 757
& 759

Stats. Implemented: ORS 756.105
& 757.511

Hist.: PUC 6-1986, f. &
ef. 7-22-86 (Order No. 86-731); PUC 12-1997, f. & cert. ef. 10-30-97; PUC 16-2001,
f. & cert. ef. 6-21-01; PUC 4-2012, f. & cert. ef. 4-17-12
860-027-0300
Use of Deferred Accounting by Energy and Large Telecommunications Utilities
(1) As used in this rule:
(a) "Amortization" means
the inclusion in rates of an amount which has been deferred under ORS 757.259 or
759.200 and which is designed to eliminate, over time, the balance in an authorized
deferred account. Amortization does not include the normal positive and negative
fluctuations in a balancing account;
(b) "Deferred Accounting"
means recording the following in a balance sheet account, with Commission authorization
for later reflection in rates:
(A) Electric companies, gas
utilities, and steam heat utilities: a current expense or revenue associated with
current service, as allowed by ORS 757.259; or
(B) Large telecommunications
utilities: an amount allowed by ORS 759.200.
(2) Expiration: Any authorization
to use a deferred account expires 12 months from the date the deferral is authorized
to begin. If a deferral under ORS 757.259 or 759.200 is reauthorized, the reauthorization
expires 12 months from the date the reauthorization becomes effective.
(3) Contents of Application:
An application for deferred accounting, by an energy or large telecommunications
utility or a customer, must include:
(a) A description of the
utility expense or revenue for which deferred accounting is requested;
(b) The reason(s) deferred
accounting is being requested and a reference to the section(s) of ORS 757.259 or
759.200 under which deferral may be authorized;
(c) The account proposed
for recording of the amounts to be deferred and the account which would be used
for recording the amounts in the absence of approval of deferred accounting;
(d) An estimate of the amounts
to be recorded in the deferred account for the 12-month period subsequent to the
application; and
(e) A copy of the notice
of application for deferred accounting and list of persons served with the notice.
(4) Reauthorization: An application
for reauthorization to use a deferred account must be made not more than 60 days
prior to the expiration of the previous authorization for the deferral. An application
for reauthorization must include the requirements set forth in subsections (3)(a)
through (3)(e) of this rule and the following information:
(a) A description and explanation
of the entries in the deferred account to the date of the application for reauthorization;
and
(b) The reason(s) for continuation
of deferred accounting.
(5) Exceptions: Authorization
under ORS 757.259 or 759.200 to use a deferred account is necessary only to add
amounts to an account, not to retain an existing account balance and not to amortize
amounts which have been entered in an account under an authorization by the Commission.
Interest, once authorized to accrue on unamortized balances in an account, may be
added to the account without further authorization by the Commission, even though
authorization to add other amounts to an account has expired.
(6) Notice of Application:
The applicant must serve a notice of application upon all persons who were parties
in the energy or large telecommunications utility's last general rate case. If the
applicant is other than an energy or large telecommunications utility, the applicant
must serve a copy of the application upon the affected utility. A notice of application
must include:
(a) A statement that the
applicant has applied to the Commission for authorization to use deferred accounting;
or for an order requiring that deferred accounting be used by an energy or large
telecommunications utility;
(b) A description of the
utility expense or revenue for which deferred accounting is requested;
(c) The manner in which a
person can obtain a copy of the application;
(d) A statement that any
person may submit to the Commission written comment on the application by the date
set forth in the notice, which date may be no sooner than 25 days from the date
of the application; and
(e) A statement that the
granting of the application will not authorize a change in rates, but will permit
the Commission to consider allowing such deferred amounts in rates in a subsequent
proceeding.
(7) Public Meetings: Unless
otherwise ordered by the Commission, applications for use of deferred accounting
will be considered at the Commission's public meetings.
(8) Reply Comments: Within
ten days after the due date for comments, the applicant, and the energy or large
telecommunications utility if the utility is not the applicant, may file reply comments
with the Commission. Filing dates for reply comments are calculated and enforced
per OAR 860-001-0150.
(9) Amortization: Amortization
in rates of a deferred amount is allowed only as authorized by the Commission. The
Commission may authorize amortization of such amounts only for utility expenses
or revenues for which the Commission previously has authorized deferred accounting.
Upon request for amortization of a deferred account, the energy or large telecommunications
utility must provide the Commission with its financial results for a 12-month period
or for multiple 12-month periods to allow the Commission to perform an earnings
review. The period selected for the earnings review will encompass all or part of
the period during which the deferral took place or must be reasonably representative
of the deferral period. Unless authorized by the Commission to do otherwise:
(a) An energy utility may
request that amortizations of deferred accounts commence no later than one year
from the date that deferrals cease for that particular account; and
(b) In the case of ongoing
balancing accounts, the energy utility may request amortization at least annually,
unless amortization of the balancing account is then in effect; or
(c) A large telecommunications
utility may request amortization of deferred accounts as soon as practical after
the deferrals cease but no later than in its next rate proceeding.
(10) An electric company
customer may prepay under ORS 757.259(11) all or a portion of its obligation of
deferred power supply expense. The obligation must be calculated as the customer's
pro rata share of the utility's total energy usage within the state of Oregon during
2001, multiplied by the unrecovered deferral balance at the time of prepayment.
When such customer has prepaid its obligation in full, the customer may no longer
be charged the power supply adjustment related to the deferral.
Stat. Auth.: ORS 183, 756, 757 &
759
Stats. Implemented: ORS 756.040,
756.105, 757.259 & 759.200
Hist.: PUC 11-1988, f. &
cert. ef. 6-9-88 (Order No. 88-597); PUC 2-1990, f. & cert. ef. 3-2-90 (Order
No. 90-235); PUC 12-1997, f. & cert. ef. 10-30-97; PUC 4-1998, f. & cert.
ef. 2-24-98; PUC 16-2001, f. & cert. ef. 6-21-01; PUC 6-2004(Temp), f. &
cert. ef. 3-24-04 thru 9-20-04; PUC 14-2004, f. & cert. ef. 9-7-04; PUC 7-2005,
f. & cert. ef. 11-30-05; PUC 1-2015, f. & cert. ef. 3-3-15
860-027-0310
Cost-Effective Conservation Resources
(1) As used in this rule:
(a) "Conservation" means any reduction in electric power or natural gas consumption as the result of increases in efficiency of energy use, production, or distribution. Conservation also includes cost-effective fuel switching;
(b) "Fuel switching" means any substitution of one type of energy or fuel for another; and
(c) "Cost-effective" has the meaning given that term in OAR 860-030-0010. However, the cost-effective level for fuel switching shall not include the 10 percent cost advantage specified in OAR 860-030-0010(6)(b).
(2) The Commission encourages energy utilities to acquire cost-effective conservation resources. Energy utilities may apply for Commission approval of programs designed to promote the acquisition of cost-effective conservation resources. Programs in this context consist of accounting and rate-making mechanisms designed to provide an energy utility with incentives, to remove disincentives, or to acquire such resources. The Commission adopts the following policies for evaluating programs proposed by energy utilities:
(a) Incentive:
(A) Least-Cost Resources: Acquisition of least-cost resources should be the energy utility's most profitable course of action. An energy utility should have an incentive to acquire all least-cost resources, but it should not have an incentive to pursue conservation past the point at which it is no longer cost-effective. An energy utility should not be expected to pursue a course of action that involves an identifiable and sustained loss of profits. The most important criterion for evaluating an incentive program is its effect on the energy utility's resource acquisition strategy. Incentive programs under which the energy utility can earn higher profits by acquiring resources which are not least-cost resources need not be considered, no matter how well they may suit the other criteria.
(B) Cost Minimization: An energy utility should have the incentive to acquire any resource at the minimum total cost. The set of incentives given the energy utility should not merely influence the choice of which resource to acquire, but the manner of its acquisition as well.
(C) Strategic Manipulation: An energy utility should not have incentives to manipulate the program strategically.
(b) Predictability: Program impacts should be predictable to all participants.
(c) Simplicity:
(A) Administration: The program should be as simple as possible to administer, consistent with the need to determine actual results.
(B) Implementation: The program should be understandable to affected parties.
(d) Impact:
(A) Balance: Risks and rewards should be distributed fairly between stockholders and customers. Fair treatment of these groups relative to each other may require a balancing of rewards with penalties; if shareholders are rewarded for good performance, they should also be penalized for poor performance.
(B) Cross-subsidization: Cross-subsidization of participants by nonparticipants should be minimized.
(C) Rate pressure: Incentive programs should be as consistent as possible with the Commission objective of promoting rate stability.
(e) Tradeoffs: In developing cost-effective conservation programs, energy utilities may balance the emphasis given to each policy listed above. Greater focus on one policy may come at the expense of another policy, if the whole proposal is reasonable.
Stat. Auth.: ORS 183, ORS 756 & ORS 757

Stats. Implemented: ORS 756.040 & ORS 757.262

Hist.: PUC 14-1993(Temp), f. & cert. ef. 8-6-93 (Order No. 93-1105; PUC 2-1994, f. & cert. ef. 1-14-94 (Order No. 94-075); PUC 9-1998, f. & cert. ef. 4-28-98
860-027-0350
Depreciation Study Requirements
for Energy Utilities
(1) As used in this rule, a “depreciation
study” means a study by an energy utility sufficient to allow the Commission
to determine the proper and adequate rates of depreciation of the several classes
of property of the public utility.
(2) Each energy utility must
file a new depreciation study with the Commission no less frequently than once every
five years.
Stat. Auth.: ORS. 183, 756, 757

Stats. Implemented: ORS 756.040,
756.105, 757.140

Hist.: PUC 3-2015, f. &
cert. ef. 8-11-15
 
Integrated Resource Planning Guidelines for Energy Utilities
860-027-0400
Integrated Resource Plan Filing, Review, and Update
(1) Scope and Applicability: This rule applies to investor-owned energy utilities. Upon application by an entity subject to this rule and for good cause shown, the Commission may relieve it of any obligation under this rule.
(2) As used in this rule, “Integrated Resource Plan” or “IRP” means the energy utility’s written plan satisfying the requirements of Commission Order Nos. 07-002, 07-047 and 08-339, detailing its determination of future long-term resource needs, its analysis of the expected costs and associated risks of the alternatives to meet those needs, and its action plan to select the best portfolio of resources to meet those needs.
(3) An energy utility must file an IRP within two years of its previous IRP acknowledgment order or as otherwise directed by the Commission. If the energy utility does not intend to take any significant resource action for at least two years after its next IRP is due, the energy utility may request an extension of its filing date from the Commission.
(4) The energy utility must present the results of its filed IRP to the Commission at a public meeting prior to the deadline for written public comment.
(5) Commission staff and parties must file their comments and recommendations within six months of IRP filing.
(6) The Commission must consider comments and recommendations on an energy utility’s IRP at a public meeting before issuing an order on acknowledgment. The Commission may provide the energy utility an opportunity to revise the IRP before issuing an acknowledgment order.
(7) The Commission may provide direction to an energy utility regarding any additional analyses or actions that the energy utility should undertake in its next IRP.
(8) Each energy utility must submit an annual update on its most recently acknowledged IRP. The update is due on or before the acknowledgment order anniversary date. The energy utility must summarize the annual update at a Commission public meeting. The energy utility may request acknowledgment of changes, identified in its update, to the IRP action plan. The annual update is an informational filing that:
(a) Describes what actions the energy utility has taken to implement the action plan to select best portfolio of resources contained in its acknowledged IRP;
(b) Provides an assessment of what has changed since the acknowledgment order that affects the action plan to select best portfolio of resources, including changes in such factors as load, expiration of resource contracts, supply-side and demand-side resource acquisitions, resource costs, and transmission availability; and
(c) Justifies any deviations from the action plan contained in its acknowledged IRP.
(9) As soon as an energy utility anticipates a significant deviation from its acknowledged IRP, it must file an update with the Commission, unless the energy utility is within six months of filing its next IRP. This update must meet the requirements set forth in section (8) of this rule.
(10) If the energy utility requests Commission acknowledgement of its proposed changes to the action plan contained in its acknowledged IRP:
(a) The energy utility must file its proposed changes with the Commission and present the results of its proposed changes to the Commission at a public meeting prior to the deadline for written public comment;
(b) Commission staff and parties must file any comments and recommendations with the Commission and present such comments and recommendations to the Commission at a public meeting within six months of the energy utility’s filing of its request for acknowledgement of proposed changes;
(c) The Commission may provide direction to an energy utility regarding any additional analyses or actions that the utility should undertake in its next IRP.
Stat. Auth.: ORS 183, 756.040 & 757.262

Stats. Implemented: ORS 756.040 & 757.262

Hist.: PUC 1-2009, f. & cert. ef. 2-5-09

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