Oregon Public Utility Commission

Rule Rule 860-150-0300
Mechanisms for Recovery of Prudently Incurred Costs by Large Natural Gas Utilities


(1) A large natural gas utility may make a filing, consistent with the requirements of OAR 860-022-0070 (Procedures and Standards for Reviewing Gas Utility Rates in the Context of the Purchased Gas Adjustment Mechanism) and other applicable rules of the Commission, seeking to pass through prudently incurred costs associated with the purchase of RNG to meet the annual targets for a large natural gas utility established in ORS 757.396 (Participating large natural gas utilities), excluding qualified investments, by means of its purchased gas adjustment mechanism. Such costs may also include the utility’s cost of registration for the RTC tracking system described in OAR 860-150-0050 (Environmental Attributes and Renewable Thermal Certificates), transaction costs for any RTCs acquired in association with the purchase of RNG from another entity, and transaction costs incurred to retire the RTCs associated with gas delivered to retail utility customers.
(2) In filings, annual earnings reviews, and quarterly updates associated with the purchased gas adjustment mechanism, a large natural gas utility must clearly identify costs of purchased RNG and the costs associated with RTCs described in section (1) of this rule.
(3) A large natural gas utility filing new or revised tariff schedules that constitute a general rate revision may seek to recover prudently incurred costs associated with qualified investments in its filing.
(4) A large natural gas utility may file a request that the Commission establish an automatic adjustment clause for recovery of prudent costs associated with qualified investments that meet criteria to be established by the Commission.
(5) If the Commission establishes an automatic adjustment clause pursuant to section (4), any rate adjustments made through this clause since the natural gas utility’s most recent general rate revision may be incorporated in the natural gas utility’s next general rate revision, as appropriate.
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Last accessed
Jun. 8, 2021