Or. Admin. R. 860-038-0240 - Cost-of-Service Rate

(1) After March 1, 2002, an electric company must provide a cost-of-service rate option to cost-of-service consumers. Only one cost-of-service rate option may be offered by schedule to each class of consumers.
(2) Unless a new residential or small nonresidential consumer elects otherwise, the electric company will serve the consumer under the cost-of-service option.
(3) An electric company must develop cost-of-service rates as follows:
(a) The cost-of service rates must be based on the unbundled costs identified through the application of OAR 860-038-0200;
(b) The cost-of-service rates for any class of consumer must be based on the unbundled costs to serve that class;
(c) The cost-of-service rates must include any additional electric company costs that are incurred when a consumer chooses to be served under the cost-of-service rate option;
(d) The cost-of-service rates must exclude electric company costs that are avoided when a consumer chooses to be served under the cost-of-service rate option;
(e) An electric company may impose nonrecurring charges to recover the administrative costs of changing suppliers or rate options; and
(f) Rates must be established so that costs associated with the development or offering of rate options are assigned to the retail electricity consumers eligible to choose such rate options.
(4) An electric company must separately state in its tariffs transition charges or credits and the rates associated with the revenue requirement of retained resources and purchases assigned to residential and small nonresidential consumers.
(5) An electric company must separately identify in its tariffs other credits or charges such as the credit associated with power supply contracts with the Bonneville Power Administration.
(6) The electric company must design its cost-of-service rate for nonresidential consumers and one-time charges associated with returning to a cost-of-service rate so that residential consumers served under a cost-of-service rate are not assigned costs associated with other classes of consumers switching between direct access or standard offer and the cost-of-service rate. The electric company may limit switching through enrollment periods or by requiring minimum terms of service.


Or. Admin. R. 860-038-0240
PUC 17-2000, f. & cert. ef. 9-29-00; PUC 21-2001(Temp), f. & cert. ef. 9-11-01 thru 3-10-02; PUC 11-2002, f. & cert. ef. 3-8-02; PUC 18-2002, f. & cert. ef. 10-17-02

Stat. Auth.: ORS 183, 756 & 757

Stats. Implemented: ORS 756.040 & 757.600 - 757.667

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