Oregon

Restructuring Overview  |  Public Benefits  |  Restructuring Resources  |  Consumer Protection

Legislation Passed
Electric Y Gas N

1999, SB 1149; Initial Restructuring Bill

Electric
Overview

• 1999-2002: Oregon’s electric restructuring bill was signed into law in July 1999 to establish electric choice on October 1, 2001. The 2001 legislative session delayed the start of choice until March 1, 2002.
• The bill establishes a restructuring plan for Oregon’s investor-owned electric utilities. It introduces more energy supply pricing options for all customers and competition in electricity supply for business customers. The restructuring law also provides residential and small business customers the opportunity to choose between basic service rate and four other electricity supply options from their current utility, called the portfolio approach.
• Oregon's program does not require utilities to sell off their generation assets, nor are they obligated to meet customers' remaining electric requirements through often high-priced, short-term power contract purchases.
• December 2002: In its annual report, the PUC stated that its residential customers would not benefit from electric competition, concluding that the amount of time residential customers spend reviewing their energy options would not outweigh the benefits of choice, as few suppliers are expected to compete in the residential market.

Choice Status

• As of June 2003, 1.2 million PGE and Pacific Power customers were eligible to choose portfolio options. Of these, 9,946 signed up for fixed renewable, 20,132 for renewable usage, 6,866 for habitat, 3,608 for time-of-use, and 1,147 for seasonal flux (PGE customers do not have the seasonal flux option). Thus, about 3.5 percent of eligible residential customers have signed up for alternative rate options.

Natural Gas
Overview

• The state has no unbundled service programs for residential customers.
• No retail unbundling program is being considered at this time by either the Oregon Public Utility Commission or the state legislature. In 1998, there were 10 commercial customers with transportation only service, all customers of Washington Water Power (Avista Corporation as of January 1, 1999).

Suppliers
www.puc.state.or.us/pccp/provppl.htm

Public Benefits

Oregon's restructuring law requires the state’s two investor-owned electric utilities to collect a 3% public purpose charge from their customers to fund energy efficiency, renewable energy and low-income weatherization programs. The state began collecting the public purpose charge in March 2002; annual funding is expected to be about $60 million. About 75% of the funds will be spent on conservation and renewable energy programs administered by the Oregon Energy Trust. The remainder will be used for low-income weatherization (12%), and for energy efficiency for schools (10%) and low-income housing (4.5%.) Additionally, the legislation requires the electric companies to collect funds, amounting to $10 million per year, beginning in 2000, for low-income electric bill payment assistance, administered by the state LIHEAP office. (Click here for details on the state’s low-income energy and general residential energy programs.)

Aggregation - buying coops

• An electric company shall permit retail electricity consumers that are eligible for direct access to voluntarily aggregate their electricity loads. A retail electricity consumer that is eligible for direct access may voluntarily aggregate its electricity load with the electricity load of any other retail electricity consumer that is eligible for direct access.
• The Public Utility Commission shall adopt rules necessary to implement the new law, including aggregation provisions. The aggregation rules may include aggregation of demand for other services available under direct access.
  

State Restructuring Resources

Utility Regulatory Commission
Public Utility Commission
1-800-522-2404
www.puc.state.or.us/

Consumer advocate
Oregon Citizens Utility Board
503-227-1984
www.oregoncub.org/

Grassroots groups
Citizens' Utility Board
503-227-1984
www.oregoncub.org/
The Citizens' Utility Board of Oregon is a public, non-profit organization dedicated to protecting the right of Oregon ratepayers to receive vital utility services for a fair and reasonable rate.

People Power
360-568-8483
www.pplpwr.org/index.html
People Power is a grassroots movement of consumers from non-profit utilities who support the goal of making sure power is affordable and available in the Northwest.

Consumer Protection

Disconnection policy

• Customers must be notified before a utility company can disconnect service. Electric and gas companies are required to give a 15-day notice, another notice five days before disconnection, and must try to contact the customer the day the disconnection is scheduled.
• A medical certificate will prevent immediate disconnection of the utility service and requires the utility to allow the customer to set up a payment plan to pay any overdue bill.
• Utility service cannot be disconnected for nonpayment on a weekend or a state- or utility-recognized holiday. Utility service cannot be disconnected for nonpayment on a Friday or the day before a state- or utility-recognized holiday unless mutually agreed upon by the customer, utility, and the Commission's Consumer Services Division.
• Utility service may be disconnected when:

1. The customer fails to pay a deposit or make payments under the terms of a deposit payment arrangement.
2. The customer provides false identification or verification of identity.
3. The customer’s facilities provided are unsafe or do not comply with state and municipal codes governing service or the utility's rules or when the customer does not cooperate in providing access to the meter.

Deferred payments

• A gas or electric utility may not disconnect residential service for nonpayment if a customer enters into a written time-payment plan. A utility must offer customers a choice of payment agreements. At a minimum, the customer may choose between a levelized payment plan and an equal-pay arrearage plan.
• A customer who selects a levelized payment plan will pay a down payment equal to the average annual bill including the account balance, divided by 12, and a like payment each month for 11 months thereafter.
• A customer who selects an equal-pay arrearage plan will pay a down payment equal to one-twelfth the amount owed for past utility service (including the overdue amount and any amounts owed for a current bill or a bill being prepared but not yet delivered to the customer). Each month, for the next 11 months, an amount equal to the down payment will be added to the current charges due for utility service.
• The utility and customer may agree in writing to alternate payment arrangement, provided the utility first informs the customer of the availability of the payment terms described above.
• If a customer fails to abide by the time-payment agreement, the utility may disconnect service after serving 15 days' notice.

Deposits/fees

• Utilities can require a deposit from a customer who received the same type of utility service from it or any Oregon utility within the preceding 24 months and owed an account balance that was not paid when service was terminated.
• Utilities may not require a deposit from an applicant it served within the preceding 24 months who voluntarily terminated service and whose final bill was paid in full by its due date.
• In all other cases, an applicant may choose whether to submit a credit reference from another utility, a surety agreement from a responsible party, a deposit, or positive identification such as an Oregon driver's license or a U.S. passport.
• When a gas or electric utility requires a deposit, the customer may pay the deposit in full or in three installments. The first installment is due immediately; the remaining installments are due 30 days and 60 days after the first installment payment. Except for the last payment, installments shall be the greater of $30 or one-third the deposit. When an installment payment or a deposit is made with a payment for gas or electric utility service, the amount paid shall first be applied toward payment of the deposit.
• When the gas or electric utility requires the customer or applicant to pay an additional deposit, the customer must pay one-third of the total deposit, or at least $30, whichever is greater, within five days. If the customer has an existing deposit installment agreement, the remaining installment payments will be adjusted to include the additional deposit; however, two installment payments cannot be required within the same 30-day period.
• When a customer or applicant enters into an installment agreement for payment of a deposit, the gas or electric utility must provide written notice explaining its deposit requirements, specifying the date each installment payment is due, and include a statement printed in bold-face type informing the customer that utility service will be disconnected if the gas or electric utility does not receive the payment when due. The notice must include the name and telephone number of the appropriate unit within the Department of Human Resources or other agencies that may be able to help the customer obtain financial aid.
• If a customer fails to abide by the terms of a deposit installment agreement, the gas or electric utility may disconnect service after a five-day notice.
• When good cause exists, the Commission or the gas or electric utility may provide more liberal arrangements for payment of deposits than those set forth in this rule.
• Customers disconnected for nonpayment of a deposit must pay the full amount of the deposit, any applicable reconnection fee, late-payment fee, and one-half the past due amount before service is restored. They must pay the balance of the past-due amount within 30 days of the date service is restored. Customers may continue with an existing time-payment agreement by paying all past-due installments, the full deposit, and other applicable fees.
• Customer deposits shall accrue interest at a rate based upon the effective interest rate for new issues of one-year Treasury Bills issued during the last week of October. This interest rate, rounded to the nearest percent, shall apply to deposits held during January 1 through December 31 of the subsequent year. If the deposit is held beyond one year, accrued interest will be paid by a credit to the customer's account. If held less than one year, interest will be prorated.

Billing and collections

• The electric company must report price information for each service or product for residential consumers as the average monthly bill and price per kilowatt-hour for monthly usage levels of 250, 500, 1,000 and 2,000 kilowatt-hours, for the available service options.

• Electric suppliers must furnish consumers with a statement of the ESS's terms and conditions that detail the customer's rights and responsibilities, along with a toll-free number or local number that is staffed during normal business hours to enable a consumer to resolve complaints or billing disputes.

Supplier licensing

• An electricity service supplier (ESS) must be certified by the Commission to sell electricity services to consumers. It must pay a certification fee of $400 and provide evidence of financial and technical competence. A supplier must also maintain insurance coverage, security bond, or other financial assurance commensurate with the types and numbers of consumers and loads being served, meet any other credit requirements contained in the electric company's tariffs, and cover creditors for a minimum of 90 days from the date of cancellation.

Telemarketing

• Several laws and rules protect customers against unwanted phone calls from persons or companies trying to sell products or services. The black dot law has been replaced with the "No Call" list program. Through the Oregon Department of Justice, Oregonians can have their name added to the list. With some exceptions, telephone solicitors are generally prohibited from contacting consumers who register with the program. Details are available at www.doj.state.or.us . Consumers may also visit the Oregon No Call web site at www.ornocall.com

• No aggregator may make material misrepresentations in consumer solicitations, agreements, or in the administration of consumer contracts. Aggregators may not engage in dishonesty, fraud, or deceit that benefits the aggregator or disadvantages consumers.

• When a dispute occurs between a customer and an energy utility about any bill, charge or service, the utility must thoroughly investigate the matter and promptly report the results of its investigation to the customer. Each utility must keep a written record showing the name and address of the customer or applicant involved, the date and character of the dispute, and the disposition of the matter.
• The utility must inform the customer of the right to supervisory review of any dispute, including but not limited to, establishment of credit and termination of service. If a dispute is not resolved, the utility must notify the customer of the Commission's dispute resolution procedure and its toll-free telephone number at its Consumer Services Division.
• The Commission's Consumer Services Division will assist the complainant and the utility in an effort to reach an informal resolution of the dispute. If a dispute cannot be resolved informally, the Commission's Consumer Services Division will advise the complainant of the right to file a formal written complaint with the Commission stating the facts of the dispute and the relief requested. The utility must answer the complaint within 15 days. A hearing may then be held on less than 10 days' notice when good cause is shown.
• Pending resolution of the dispute, the complainant's obligation to pay undisputed amounts continues.

• For each service or product it offers, an electric company must provide price, power source, and environmental impact information to all residential consumers at least quarterly. The information must be based on the available service options. The information must be supplied using a format prescribed by the Commission. An electric company must also include on every bill a URL address, if available, for a world-wide website where this information is displayed.

• For joint marketing, advertising, and promotional activities, an electric company cannot:

1. provide or acquire leads on behalf of its competitive operations;
2. solicit business or acquire information on behalf of its competitive operations;
3. represent to consumers or potential consumers that it can offer the goods or services of its competitive operations bundled or packaged with its own tariffed services; or
4. request authorization from its consumers to pass on information exclusively to its competitive operations.

• An electric company cannot engage in joint marketing, advertising, or promotional activities of its products or services with its competitive operations in a manner that favors the competitive operations. Such joint marketing, advertising, or promotional activities include joint sales calls; joint promotional communications or correspondence (although an electric company may allow its competitive operations access to consumer bill advertising inserts as long as access to such inserts is made available on the same terms and conditions to nonaffiliates offering similar services); and providing links from an electric company's internet website to a competitive operations' internet website.
• An electric company must file the types of information, and the prices, terms and conditions associated with the dissemination of such information, with the Commission for approval.

• An electric company must implement adequate safeguards precluding employees of its competitive operation, ESS, or other entity from gaining access to information in a manner that would allow or provide a means to transfer proprietary consumer information from an electric company to its competitive operation, electricity services suppliers, or other entity, without the written consent of the customer.
• An electric company must determine the types of proprietary consumer information that will be made available to its competitive operations, ESSs and other entities.