860-038-0160 Transition Costs and Credits (1) Except as provided for in OAR 860-038-0080(6), each Oregon retail electricity consumer of an electric company will receive a transition credit or pay a transition charge equal to 100 percent of the net value of the Oregon share of all economic utility investments and all uneconomic utility investments of the electric company as determined pursuant to an auction, an administrative valuation, or an ongoing valuation. The transition charge or credit applicable to a retail electricity consumer may change to reflect the duration of the service option chosen by the consumer but will not change based on the supplier of the electricity services chosen by the consumer. (2) Once a Resource Plan is implemented, the Oregon cost-of-service consumers of an electric company will bear the entire revenue requirement of generating resources, or portions thereof, retained in that electric company’s Oregon revenue requirement for the purpose of serving those Oregon consumers. In addition, the electric company will: (a) Collect from its Oregon cost-of-service consumers the funds necessary to provide any transition credits related to such resources to its other Oregon consumers exclusive of incentive payments; or (b) Credit to its Oregon cost-of-service consumers the funds received from any transition charges related to such resources from its other Oregon consumers exclusive of incentive payments. (3) For purposes of determining transition costs and transition credits: (a) The value of generating resources determined through an auction conducted pursuant to OAR 860-038-0100 will equal the proceeds of such auction, less any reasonable costs of sale and any tax effects of the sale; (b) The value applicable to Oregon nonresidential consumers will be reduced for any incentives provided under the Resource Plan; (c) The net value of generating resources determined through an auction conducted pursuant to OAR 860-038-0100 will equal the Oregon residential and nonresidential respective values of generating resources minus the book value as recorded for regulatory purposes; (d) The value of generating resources determined through an administrative valuation conducted pursuant to a process to be specified by rule will equal the final valuation inclusive of any tax effects less allowed appraisal costs. The treatment of the tax effects of a potential future sale of an administratively valued asset will be addressed in a future rulemaking; (e) The value applicable to Oregon nonresidential consumers will be reduced for any incentives provided under the Resource Plan; and (f) The net value of generating resources determined through an administrative valuation conducted pursuant to a process to be specified by rule will equal the Oregon residential and nonresidential respective values of generating resources minus the book value as recorded for regulatory purposes. (4) For the Oregon share of: (a) Economic and uneconomic investments that are not resources; (b) Other regulatory assets; (c) Demand side management assets existing as of March 1, 2002; and (d) Retired or abandoned plant for which the Commission established cost recovery before July 23, 1999, transition costs or benefits will be allocated 100 percent to Oregon retail electricity consumers. (5) Each electric company must maintain records to properly record and amortize transition costs and transition credits using a transition balancing account. Any unamortized balance in the transition balancing account will accrue interest at the electric company’s Oregon authorized cost of capital. (6) The transition costs or transition benefits allocated to a customer class for a specific time period will be charged or credited to Oregon retail electricity consumers on a weather normalized equal cents per kilowatt-hour basis adjusted for losses. To the extent weather-normalized kilowatt-hour sales are not known, as of March 1, 2002, estimates will be used until relevant data are available. (7) The Commission will determine the period of payment or recovery of transition costs or transition credits, provided such period will not exceed 10 years. Statutory/Other Authority: ORS 183, 756 & 757 Statutes/Other Implemented: ORS 756.040 & 757.600 - 757.667 History: PUC 18-2002, f. & cert. ef. 10-17-02 PUC 11-2002, f. & cert. ef. 3-8-02 PUC 21-2001(Temp), f. & cert. ef. 9-11-01 thru 3-10-02 PUC 17-2000, f. & cert. ef. 9-29-00