Utility Regulation Generally

ORS 757.355
Costs of property not presently providing utility service excluded from rate base

  • exception


Except as provided in subsection (2) of this section, a public utility may not, directly or indirectly, by any device, charge, demand, collect or receive from any customer rates that include the costs of construction, building, installation or real or personal property not presently used for providing utility service to the customer.


The Public Utility Commission may allow rates for a water utility that include the costs of a specific capital improvement if the water utility is required to use the additional revenues solely for the purpose of completing the capital improvement. [1979 c.3 §2; 2003 c.202 §2]

Notes of Decisions

"Presently used for providing utility service" refers to current use and therefore excludes both work in progress and retired property. Citizens' Utility Board v. Public Utility Commission, 154 Or App 702, 962 P2d 744 (1998)

Violation of this section did not occur when utility company obtained recovery of administrative costs of issuing refund to ratepayers because recovery of administrative costs does not constitute profit or return on investment; rather, administrative costs are expenses actually incurred by company. Utility Reform Project v. PUC, 277 Or App 325, 372 P3d 517 (2016)

Chapter 757

Notes of Decisions

Under regulatory scheme, Public Utility Commissioner has authority to promulgate rule limiting telephone company's liability for directory listing errors or omissions. Garrison v. Pacific NW Bell, 45 Or App 523, 608 P2d 1206 (1980)

Refund is proper exercise of Public Utility Commission's general powers if refund (1) is based only on information in existence at time of rate order for which refund is being made; (2) is not based on evaluation of public utility's actual expenses or revenues; and (3) is not effectuated by offsetting future rates. Gearhart v. Public Utility Commission, 255 Or App 58, 299 P3d 533 (2013), aff'd 356 Or 216, 339 P3d 904 (2014)

Atty. Gen. Opinions

Authority of Governor and Public Utility Commissioner to enter into binding agreements with respect to uniform curtailment plans, (1977) Vol 38, p 861


Last accessed
Jun. 26, 2021