OAR 860-038-0160
Transition Costs and Credits

(1)

Except as provided for in OAR 860-038-0080 (Resource Policies and Plans)(6), each Oregon retail electricity consumer of an electric company will receive a transition credit or pay a transition charge equal to 100 percent of the net value of the Oregon share of all economic utility investments and all uneconomic utility investments of the electric company as determined pursuant to an auction, an administrative valuation, or an ongoing valuation. The transition charge or credit applicable to a retail electricity consumer may change to reflect the duration of the service option chosen by the consumer but will not change based on the supplier of the electricity services chosen by the consumer.

(2)

Once a Resource Plan is implemented, the Oregon cost-of-service consumers of an electric company will bear the entire revenue requirement of generating resources, or portions thereof, retained in that electric company’s Oregon revenue requirement for the purpose of serving those Oregon consumers. In addition, the electric company will:

(a)

Collect from its Oregon cost-of-service consumers the funds necessary to provide any transition credits related to such resources to its other Oregon consumers exclusive of incentive payments; or

(b)

Credit to its Oregon cost-of-service consumers the funds received from any transition charges related to such resources from its other Oregon consumers exclusive of incentive payments.

(3)

For purposes of determining transition costs and transition credits:

(a)

The value of generating resources determined through an auction conducted pursuant to OAR 860-038-0100 (Auction Process) will equal the proceeds of such auction, less any reasonable costs of sale and any tax effects of the sale;

(b)

The value applicable to Oregon nonresidential consumers will be reduced for any incentives provided under the Resource Plan;

(c)

The net value of generating resources determined through an auction conducted pursuant to OAR 860-038-0100 (Auction Process) will equal the Oregon residential and nonresidential respective values of generating resources minus the book value as recorded for regulatory purposes;

(d)

The value of generating resources determined through an administrative valuation conducted pursuant to a process to be specified by rule will equal the final valuation inclusive of any tax effects less allowed appraisal costs. The treatment of the tax effects of a potential future sale of an administratively valued asset will be addressed in a future rulemaking;

(e)

The value applicable to Oregon nonresidential consumers will be reduced for any incentives provided under the Resource Plan; and

(f)

The net value of generating resources determined through an administrative valuation conducted pursuant to a process to be specified by rule will equal the Oregon residential and nonresidential respective values of generating resources minus the book value as recorded for regulatory purposes.

(4)

For the Oregon share of:

(a)

Economic and uneconomic investments that are not resources;

(b)

Other regulatory assets;

(c)

Demand side management assets existing as of March 1, 2002; and

(d)

Retired or abandoned plant for which the Commission established cost recovery before July 23, 1999, transition costs or benefits will be allocated 100 percent to Oregon retail electricity consumers.

(5)

Each electric company must maintain records to properly record and amortize transition costs and transition credits using a transition balancing account. Any unamortized balance in the transition balancing account will accrue interest at the electric company’s Oregon authorized cost of capital.

(6)

The transition costs or transition benefits allocated to a customer class for a specific time period will be charged or credited to Oregon retail electricity consumers on a weather normalized equal cents per kilowatt-hour basis adjusted for losses. To the extent weather-normalized kilowatt-hour sales are not known, as of March 1, 2002, estimates will be used until relevant data are available.

(7)

The Commission will determine the period of payment or recovery of transition costs or transition credits, provided such period will not exceed 10 years.

Source: Rule 860-038-0160 — Transition Costs and Credits, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=860-038-0160.

860–038–0001
Scope and Applicability of Rules 860–038–0005
Definitions for Direct Access Regulation 860–038–0080
Resource Policies and Plans 860–038–0100
Auction Process 860–038–0140
Ongoing Valuation 860–038–0160
Transition Costs and Credits 860–038–0200
Unbundling 860–038–0220
Portfolio Options 860–038–0240
Cost-of-Service Rate 860–038–0250
Nonresidential Standard Offer 860–038–0260
Direct Access 860–038–0275
Direct Access Annual Announcement and Election Period 860–038–0280
Default Supply 860–038–0300
Electric Company and Electricity Service Suppliers Labeling Requirements 860–038–0340
Electric Company Ancillary Services 860–038–0360
Electric Company Customer Metering Requirements 860–038–0380
Aggregation 860–038–0400
Electricity Service Supplier Certification Requirements 860–038–0410
Scheduling 860–038–0420
Electricity Service Supplier Consumer Protection 860–038–0445
Coordination of Supplier Changes and Billing 860–038–0450
Location of Underground Facilities 860–038–0460
Construction, Safety, and Reporting Standards for Electricity Service Suppliers 860–038–0470
Attachments to Poles and Conduits Owned by Public, Telecommunications, and Consumer-Owned Utilities 860–038–0480
Public Purposes 860–038–0500
Code of Conduct Purpose 860–038–0520
Electric Company Name and Logo 860–038–0560
Treatment of Competitors 860–038–0580
Prevention of Cross-subsidization Between Competitive Operations and Regulated Operations 860–038–0590
Transmission and Distribution Access 860–038–0600
Joint Marketing and Referral Arrangements 860–038–0620
Access to Books and Records 860–038–0640
Compliance Filings 860–038–0700
Definitions for New Large Load Direct Access Program 860–038–0710
Requirement to Enable a New Large Load Direct Access Program 860–038–0720
Nonresidential Standard Offer, Default Supply, and Return to Cost of Service 860–038–0730
New Large Load Eligibility Requirements 860–038–0740
New Large Load Program Enrollment and Rates 860–038–0750
De-Enrollment Due to Failure to Meet Load Standard 860–038–0760
Reporting
Last Updated

Jun. 8, 2021

Rule 860-038-0160’s source at or​.us