Oregon Administrative Rules › Chapter 860 - PUBLIC UTILITY COMMISSION › Division 37 - WASTEWATER SERVICE REGULATION FOR JOINT WATER/WASTEWATER UTILITIES › Section 860-037-0547 - Allocation of Costs by a Wastewater Utility

Current through Register Vol. 63, No. 7, July 1, 2024
(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 a wastewater
			 utility;
(b) "Affiliate
			 transaction" means a transfer of assets, a sale of supplies, or a sale of
			 services between accounts for regulated activities of a wastewater utility and
			 accounts for nonregulated activities of a separate entity that is either an
			 affiliated interest or another company in which the wastewater 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 wastewater utility;
(c) "Asset" means any tangible or intangible
			 property of a wastewater utility or other right, entitlement, business
			 opportunity, or other thing of value to which a wastewater utility holds claim
			 that is recorded or should be recorded as a capital expenditure in the
			 wastewater utility's financial statements. All wastewater utility tangible or
			 intangible property, rights, entitlements, business opportunities, and things
			 of value should be considered assets, services or supplies;
(d) "Cost" means fully distributed cost,
			 including the wastewater utility's authorized rate of return and all
			 overheads;
(e) "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;
(f) "Market rate" means the lowest price that
			 is available from nonaffiliated suppliers for comparable services or
			 supplies;
(g) "Net book value"
			 means original cost less accumulated depreciation;
(h) "Nonregulated activity" means an activity
			 that is not a regulated activity of the wastewater utility as defined in
			 subsection (1)(i) of this rule;
(i)
			 "Regulated activity" means a Commission regulated activity that is provided by
			 a wastewater utility directly or indirectly relating to the general operations
			 of the wastewater utility such as production, transmission, delivery, or
			 furnishing of water, and the provision of wastewater services to the public
			 inside the boundaries of a city unless the Commission has determined the
			 activity to be exempt from regulation;
(j) "Services" means labor-related activities
			 including, but not limited to advice, auditing, accounting, sponsoring,
			 engineering, managing, operating, financing, and legal. All wastewater utility
			 tangible or intangible property, rights, entitlements, business opportunities,
			 and things of value should be considered assets, services, or supplies;
			 and
(k) "Supplies" means any
			 tangible or intangible property of a wastewater utility or other thing of value
			 to which a wastewater utility holds claim that is recorded or should be
			 recorded as an operating expense in the wastewater utility's financial
			 statements. All wastewater utility tangible or intangible property, rights,
			 entitlements, business opportunities and things of value should be considered
			 assets, services, or supplies.