Oregon Administrative Rules › Chapter 860 - PUBLIC UTILITY COMMISSION › Division 22 - RATES › Section 860-022-0040 - Relating to City Fees, Taxes, and Other Assessments Imposed Upon Electric Companies, Gas Utilities, and Steam Heat Utilities

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The aggregate amount of all business or
			 occupation taxes, license, franchise or operating permit fees, or other similar
			 exactions or costs, excepting volumetric-based fees in section (3) of this
			 rule, imposed upon energy utilities by any city in Oregon for engaging in
			 business within such city or for use and occupancy of city streets and public
			 ways, which does not exceed 3 percent for gas utilities or 3.5 percent for
			 electric companies and steam heat utilities, applied to gross revenues as
			 defined herein, shall be allowed as operating expenses of such utilities for
			 rate-making purposes and shall not be itemized or billed separately. All other
			 costs not allowed as operating expenses shall be itemized or billed
			 separately.
(2) Except as otherwise
			 provided herein, "gross revenues" means revenues received from utility
			 operations within the city less related net uncollectibles. Gross revenues of
			 an energy utility shall include revenues from the use, rental, or lease of the
			 utility's operating facilities other than residential-type space and water
			 heating equipment. Gross revenues shall not include proceeds from the sale of
			 bonds, mortgage or other evidence of indebtedness, securities or stocks, sales
			 at wholesale by one utility to another when the utility purchasing the service
			 is not the ultimate customer, or revenue from joint pole use.
(3) Each electric company subject to
			 volumetric-based privilege taxes or fees shall determine for each city imposing
			 such volumetric charges a base volumetric rate for each customer class
			 calculated as 3.5 percent of the class 1999 gross operating revenues within the
			 city divided by the amount of electric energy in kilowatt-hours delivered to
			 the class in 1999. In cases where 1999 data is not available for a particular
			 city and/or class, the utility's total 1999 Oregon revenues and kilowatt-hour
			 deliveries for the customer class shall be used to calculate the base
			 volumetric rate. An amount equal to the base volumetric rates multiplied by the
			 corresponding amount of electric energy in kilowatt hours delivered in the
			 12-month period used to determine the electric company's revenue requirement
			 shall be allowed as operating expenses and shall not be itemized or billed
			 separately. The privilege tax shall be allocated across an electric company's
			 customer classes in the same proportional amounts as levied by cities against
			 the electric company.
(4) Permit
			 fees or similar charges for street opening, installations, construction, and
			 the like to the extent such fees or charges are reasonably related to the
			 city's costs for inspection, supervision, and regulation in exercising its
			 police powers, and the value of any utility services or use of facilities
			 provided on November 6, 1967, to a city without charge, shall not be considered
			 in computing the percentage levels set forth in sections (1) and (3) of this
			 rule. Any such services may be continued within the same category or type of
			 use. The value of any additional category of utility service or use of
			 facilities provided after November 6, 1967, to a city without charge shall be
			 considered in computing the percentage levels herein set forth.
(5) This rule shall not affect franchises
			 existing on November 6, 1967, granted by a city. Payments made or value of
			 service rendered by an energy utility under such franchises shall not be
			 itemized or billed separately. When compensation different from the percentage
			 levels in section (1) of this rule is specified in a franchise existing on
			 November 6, 1967, such compensation shall continue to be treated by the
			 affected utility as an operating expense during the balance of the term of such
			 franchise. Any tax, fee, or other exaction set forth in section (1) of this
			 rule, unilaterally imposed or increased by any city during the unexpired term
			 of a franchise existing on November 6, 1967, and containing a provision for
			 compensation for use and occupancy of streets and public ways, shall be charged
			 pro rata to local users as herein provided.
(6) Except as provided in section (5) of this
			 rule, to the extent any city tax, fee, or other exaction referred to in
			 sections (1) and (3) of this rule exceeds the percentage levels allowable as
			 operating expenses in sections (1) and (3) of this rule, such excess amount
			 shall be charged pro rata to energy customers within said city and shall be
			 separately stated on the regular billings to such customers.
(7) The percentage levels in sections (1) and
			 (3) of this rule may be changed if the Commission determines after such notice
			 and hearing, as required by law, that fair and reasonable compensation to a
			 city or all cities should be fixed at a different level or that by law or the
			 particular circumstances involved a different level should be
			 established.
(8) The amount allowed
			 as an operating expense may be described on customers' bills in a manner
			 determined by the energy utility.
Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS
				  756.040 &
				  757.600 -
				  757.667