Or. Admin. Code § 860-036-2300

Current through Register Vol. 63, No. 10, October 1, 2024

Section 860-036-2300 - Relating to City Charges, Taxes, and Other Exactions

(1) A rate-regulated water utility may recover the aggregate amount of all business or occupation taxes, licenses, franchise or operating permit charges, or other similar exactions imposed by any city in Oregon for engaging in business or for use and occupancy of city streets and public ways.

(2) The water utility may recover these amounts up to 3.5 percent of the water utility's gross revenue as operating expenses from all water utility customers. The utility may collect any remaining amounts in excess of 3.5 percent of its gross revenues on a pro rata basis to customers within the applicable city if separately stated on the regular billings to the customers. "Gross revenues" means revenues received from water utility operations within the city less related net uncollectibles, but do not include proceeds from the sale of bonds, mortgage or other evidence of indebtedness, securities or stocks, sales at wholesale by one utility to another when the water utility purchasing the service is not the ultimate customer.

(3) To calculate the amounts to be recovered under this rule, the water utility may not include:

(a) Permit or similar charges for street opening, installations, construction, and the like if the charges are reasonably related to the city's costs for inspection, supervision, and regulation in exercising its police powers; or

(b) The value of any water utility service or use of facilities provided on or before November 6, 1967, to a city without charge. These services may be continued within the same category or type of use.

(4) This rule does not affect franchises granted by a city on or before November 6, 1967. Payments made or value of service rendered by a water utility must be collected from all customers.

(a) When a franchise agreement existing on November 6, 1967, specifies a different compensation percentage than set forth in section (2), the compensation continues to be treated by the affected water utility as an operating expense during the balance of the term of such franchise.

(b) If a city unilaterally imposes or increases any tax, charge, or other exaction specified in section (2) of this rule during the unexpired term of a franchise existing on November 6, 1967, for use and occupancy of streets and public ways, the water utility must charge the additional amounts on a pro rata basis to local users.

Or. Admin. Code § 860-036-2300

PUC 1-2017, f. & cert. ef. 1/24/2017

Stat. Auth.: ORS 183, 756, 757

Stats. Implemented: ORS 756.040