(1) Except as provided in this section, an electric company shall provide all retail electricity consumers that are connected to the electric company’s distribution system with a regulated, cost-of-service rate option.

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(2)(a) The Public Utility Commission by order may waive the requirement in subsection (1) of this section for any retail electricity consumer other than residential electricity consumers and small commercial electricity consumers.

(b) Prior to ordering a waiver under this subsection, the commission may conduct such studies as the commission deems necessary and shall provide notice and opportunity for public comment and hearings regarding the proposed waiver.

(c) The commission may order a waiver under this subsection if the commission finds, based on the evidentiary record developed through the conducted studies, public comment and hearings, that a market exists in which retail electricity consumers subject to the waiver are able to:

(A) Purchase supplies of electricity adequate to meet the needs of the retail electricity consumers;

(B) Obtain multiple offers for electricity supplies within a reasonable period of time;

(C) Obtain reliable supplies of electricity; and

(D) Purchase electricity at prices that are not unduly volatile and that are just and reasonable.

(3) Each electric company shall provide each retail electricity consumer that is connected to its distribution system and whose electricity demand at any point of delivery is less than 30 kilowatts a portfolio of rate options. The portfolio of rate options shall include at least the following options:

(a) A rate that reflects significant new renewable energy resources;

(b) A market-based rate; and

(c) If the commission finds, through public comment and hearing or through market research conducted by the electric company, that demand is sufficient to justify the rate, a rate option for electricity associated with a specific renewable energy resource, including solar photovoltaic energy.

(4) The commission shall regulate the cost-of-service rate option under subsection (1) of this section and the portfolio of rate options under this section. The commission:

(a) Shall reasonably ensure that the costs, risks and benefits of serving each option are reflected in the rates for each option, and such rates may include a monthly flat rate or charge in addition to usage.

(b) May prohibit or otherwise limit the use of a cost-of-service rate by retail electricity consumers who have been served through direct access.

(c) May limit switching among the portfolio of rate options and the cost-of-service rate.

(5)(a) As used in this subsection, ‘government’ means a city, county, irrigation district, ditch improvement district, water control district, or government of a federally recognized Indian tribe in Oregon.

(b) An electric company may file, as part of a portfolio of rate options required under this section and if agreed to in coordination with one or more governments to meet adopted renewable and nonemitting energy goals, a program of rates or charges that reflect the cost of an electric company program to serve retail electricity consumers within the boundaries of those governments with electricity:

(A) Derived from new or existing renewable energy resources or nonemitting energy resources, including supply and demand-side resources; or

(B) Paired with unbundled renewable energy certificates, as defined in ORS § 469A.005, from new or existing renewable energy resources.

(c) The commission may approve a rate or charge under this subsection if:

(A) The government attests that the coordination required under paragraph (b) of this subsection occurred and the electric company includes the attestation in the filing for a program of rates or charges;

(B) The government enacts or adopts an ordinance, charter provision, resolution or other regulation requiring that retail electricity consumers within the boundaries of the government must, as determined during the coordination required by paragraph (b) of this subsection and conducted in accordance with this paragraph, be served with renewable energy resources or nonemitting energy resources, including at the option of the government, resources such as:

(i) Energy from community-based resources, including solar photovoltaic, storage, microgrids, irrigation district-owned projects, in-pipe hydroelectric, or micro-hydroelectric, that provide community cobenefits, such as:

(I) Community stability;

(II) Community reinvestment;

(III) Ownership by a nonprofit organization or renewable energy cooperative that represents an environmental justice community;

(IV) Ownership by the government;

(V) Disaster resiliency;

(VI) Water savings;

(VII) Species protection;

(VIII) Direct cost savings to customers; or

(IX) Local economic development and jobs; and

(ii) Renewable and nonemitting energy resources acquired through government specified procurement criteria which may include goals for local or diverse ownership;

(C) The ordinance, charter provision, resolution or other regulation specifies that:

(i) All eligible retail electricity consumers served within the boundaries of the government are placed on the rate schedule by the electric company, upon commission approval, but have an opportunity to decline to be served by the rate option; and

(ii) Retail electricity consumers within the boundaries of the government that are connected to the distribution system and whose electricity demand at any point of delivery is greater than 30 kilowatts may choose to be placed on the rate schedule, if the electric company determines that electricity demand at the consumer’s point of delivery is greater than 30 kilowatts because of additional demand resulting from electrification of transportation or other services, including electric vehicle charging stations, after September 25, 2021;

(D) The ordinance, charter provision, resolution or other regulation includes protections, such as subsidies or bill payment assistance, for low-income retail electricity consumers affected by the rates or charges and provides that these protections are paid for solely by retail electricity consumers within the boundaries of the government;

(E) The electric company has included in the program provisions to minimize the shifting of costs from retail electricity consumers to other customers who do not participate;

(F) The ordinance, charter provision, resolution or other regulation sets forth the duration of the program; and

(G) The electric company utilizes commission-approved procurement processes, to the extent those processes apply, and the procurement criteria agreed to with the government in subparagraph (B)(ii) of this paragraph.

(d) After the electric company receives approval to serve retail electricity consumers within the boundaries of the government according to the program of rates or charges adopted pursuant to this subsection, the electric company must:

(A) Prior to commencing the program, receive acknowledgement from the government to proceed with the program as approved by the commission and, if the government declines to proceed, shall file to suspend the rates and charges under the program;

(B) Include information on its monthly bills to participating retail electricity consumers identifying the program’s cost;

(C) Provide notice to participating retail electricity consumers of any change in rate for participation in the program; and

(D) Provide an annual report to the commission and participating governments summarizing the program activities in the prior calendar year.

(e) The commission shall allow the electric company, for purposes of the new or existing renewable energy resources or nonemitting energy resources that serve the program of rates or charges adopted pursuant to this subsection:

(A) To own the facilities or use power purchase agreements.

(B) To recover part or all of the costs associated with the resources that serve the program, including costs associated with resources described in subparagraph (A) of this paragraph, from all retail electricity consumers not served by an electricity service supplier, if:

(i) The electric company can demonstrate that above-market or incremental costs of those resources have been paid for by program participants;

(ii) An integrated resource plan conducted by the electric company shows an energy or capacity need and the company demonstrates that such resources are capable of meeting that need, in whole or in part;

(iii) The electric company will use the resources to meet a renewable portfolio standard imposed by ORS § 469A.052;

(iv) The resources help the electric company comply with ORS § 469A.410; or

(v) All customers will otherwise benefit from inclusion of the costs in rates collected from all customers.

(C) To collect moneys from participating retail electricity consumers in excess of the cost of service and defer revenues or costs associated with the program for the purposes of making future investments in resources or renewable energy certificates to serve program participants and for the purposes of protecting nonparticipating retail electricity consumers should the government end its participation in the program.

(D) To recover the costs associated with the resources that serve the program, including costs associated with resources described in subparagraph (A) of this paragraph, from retail electricity consumers within the boundaries of the government other than those served by electricity service suppliers, if the government ends its participation in the program and the costs are not otherwise recoverable under subparagraph (B) of this paragraph.

(6) Nothing in subsection (3) of this section prohibits an electric company from providing retail electricity consumers that are connected to its distribution system and whose electricity demand at any point of delivery is greater than 30 kilowatts a portfolio of rate options.

(7) Notwithstanding the exemption to ORS § 757.600 to 757.691 provided by ORS § 757.601 (3), an electric company serving fewer than 25,000 customers in this state may propose a program for approval by the commission if the program meets the criteria specified in this section. [1999 c.865 § 4; 2001 c.819 § 2; 2015 c.556 § 1; 2021 c.508 § 20]

[1961 c.691 § 2; 1971 c.655 § 97; renumbered 758.400]

[Formerly 758.040; renumbered 165.475]