Oregon Utility Rights of Way and Territory Allocation; Cogeneration
ORS 758.525
Avoided cost schedules; filing; requirement to purchase energy from qualifying facilities


At least once every two years each electric utility shall prepare, publish and file with the Public Utility Commission a schedule of avoided costs equaling the utility’s forecasted incremental cost of electric resources over at least the next 20 years. Prices contained in the schedules filed by public utilities shall be reviewed and approved by the commission.


An electric utility shall offer to purchase energy or energy and capacity whether delivered directly or indirectly from a qualifying facility. Except as provided in subsection (3) of this section, the price for such a purchase shall not be less than the utility’s avoided costs. At the option of the qualifying facility, exercised before beginning delivery of the energy or energy and capacity, such prices may be based on:


The avoided costs calculated at the time of delivery; or


The projected avoided costs calculated at the time the legal obligation to purchase the energy or energy and capacity is incurred.


Nothing contained in ORS 543.610 (Acquisition of project by state or municipality), 757.005 (Definition of public utility) and 758.505 (Definitions for ORS 758.505 to 758.555) to 758.555 (Effect of energy sales on qualifying facility) shall be construed to require an electric utility to pay full avoided-cost prices for a purchase from a qualifying facility on which construction began before November 8, 1978, but the price for a purchase from such a facility shall be sufficient to encourage production of energy or energy and capacity.


The rates of an electric utility for the sale of electricity shall not discriminate against qualifying facilities. [1983 c.799 §3]
Last accessed
May. 15, 2020