Or. Admin. R. 860-022-0040 - Relating to City Fees, Taxes, and Other Assessments Imposed Upon Electric Companies, Gas Utilities, and Steam Heat Utilities
(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.
Notes
Stat. Auth.: ORS 183, 756 & 757
Stats. Implemented: ORS 756.040 & 757.600 - 757.667
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