Bans a power or gas company from including in its rates certain costs or expenses.
Prohibits an electric or gas company from recovering from ratepayers costs or expenses associated with advertising, political influence activity, litigation, penalties or fines and certain compensation. Directs the Public Utility Commission to limit the amount that an electric or gas company may recover from ratepayers for costs and expenses incurred by the electric or gas company in preparing for, attending, participating in or appealing a contested proceeding conducted before the commission. Requires an electric or gas company to submit an annual report to the commission that includes an itemized list of all costs and expenses incurred by the electric or gas company that are nonrecoverable from ratepayers. Imposes civil penalties for violations. Declares an emergency, effective on passage.
SB 88 is unconstitutional on multiple grounds, including violations of the First Amendment’s free speech protections, the Fifth Amendment’s takings clause, and the Fourteenth Amendment’s due process clause.
This bill seeks to bypass the Public Utility Commission’s (PUC) well-established process for determining what costs are reasonable for utilities to recover. The PUC already has full authority to regulate utilities through a transparent and thorough process that ensures ratepayers’ interests are balanced with a utility’s right to earn a just and reasonable return on investment. The regulatory framework provides essential checks and balances between utilities and regulators representing the public interest.
It is unlikely that SB 88 would significantly impact utility bills. Natural gas, water, and electric bills are increasing due to cost burdens introduced by climate change. Regulators have attempted to keep rates low by reducing infrastructure costs for many years. Now, jurisdictions must accept the costs of cumulative climate disasters and implement infrastructure repairs. This is why costs will continue to rise. SB 88 does not address the root cause of increasing costs, and will throw pricing our of balance.
EMAIL COMMITTEE
Sen.JaneenSollman@OregonLegislature.gov
Sen.DavidBrockSmith@OregonLegislature.gov
Sen.JeffGolden@OregonLegislature.gov
Sen.KhanhPham@OregonLegislature.gov
Sen.NoahRobinson@OregonLegislature.gov