(1) It is the policy of the State of Oregon to encourage the financing of certain costs and expenses by public utilities at the lowest, reasonable and prudent cost to public utility customers, including, but not limited to, rate recovery expenditures.

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

(2) To carry out the policy described in subsection (1) of this section, the State of Oregon and all public bodies, as defined in ORS § 174.109:

(a) Acknowledge that owners of rate recovery assets, bondholders and financing parties require certainty with respect to the owners’, bondholders’ and financing parties’ rights to enter into financing transactions that offer the lowest reasonable and prudent cost; and

(b) Pledge and agree with public utilities, assignees, bondholders and financing parties not to reduce, alter or impair, in a manner that is adverse to the public utilities, assignees, bondholders or financing parties:

(A) Rate recovery assets;

(B) Rate recovery bonds or the security for rate recovery bonds; or

(C) Rate recovery charges or the collection of rate recovery charges.

(3) The pledge and agreement described under subsection (2)(b) of this section includes the pledge and agreement not to reduce, alter or impair rate recovery assets, rate recovery bonds or the security for rate recovery bonds, or rate recovery charges or the collection of rate recovery charges by taking any of the following actions:

(a) Altering the provisions of this section or ORS § 757.457, 757.461 or 757.463 to the extent that those provisions authorize the Public Utility Commission to issue financing orders that:

(A) Create rate recovery assets;

(B) Establish rate recovery charges that may not be avoided by public utility customers, as described under ORS § 757.461 (4); or

(C) Provide rights and remedies to public utilities, assignees, bondholders and financing parties;

(b) Impairing the rights or remedies of public utilities, assignees, bondholders or financing parties that are created under this section and ORS § 757.457, 757.461 and 757.463 or by a financing order, including reducing the amount of or impairing the collection of rate recovery charges until all principal, interest, premium and other amounts due on the rate recovery bonds and financing costs have been paid in full and except as provided under ORS § 757.461; or

(c) Taking any action listed under ORS § 757.461 (5)(b).

(4) A public utility or financing subsidiary that issues rate recovery bonds may include the pledge and provisions of this section in the bonds and related documentation. [2023 c.529 § 3 (enacted in lieu of 757.455)]

[1995 c.539 § 2; repealed by 2023 c.529 § 5 (757.463 enacted in lieu of 757.460)]