OAR 860-036-1950
Removal of Rate Regulation
(1)
When a rate-regulated water utility is reorganized through the sale, merger, or transfer of the water system or the transfer of all the water utility’s customers to a non-jurisdictional entity, the rate-regulated water utility no longer meets the definition of a public utility under ORS 757.005 (Definition of public utility). Non-jurisdictional entities include municipal entities, quasi-municipal entities, or a non-rate regulated association that serves only its members.(2)
If the regulated water utility is reorganized into an association, association members retain their right to petition the Commission for rate regulation at any time under ORS 757.063 (Regulation of associations furnishing water upon petition) and OAR 860-036-1930 (Petition for Rate Regulation of Association by Members).(3)
A private buyer of a rate-regulated water utility serving fewer than 500 customers may petition the Commission to have rate regulation, but not service regulation, removed upon the close of the buyer’s purchase of the water utility if:(a)
The rate-regulated water utility is currently operating under a Commission-appointed regent; or(b)
A court has ordered the sale of the rate-regulated water system as part of the resolution of a complaint filed in court by the Oregon Health Authority Drinking Water Section.(4)
If the Commission grants removal of rate regulation per section (3) of this rule, customers retain their right to petition for rate regulation under ORS 757.061 (Regulation of water utilities) and ORS 757.063 (Regulation of associations furnishing water upon petition).
Source:
Rule 860-036-1950 — Removal of Rate Regulation, https://secure.sos.state.or.us/oard/view.action?ruleNumber=860-036-1950
.