ORS 759.390
Contracts with affiliated interests

  • procedure
  • use in rate proceedings

(1)

As used in this section, “affiliated interest” with a telecommunications utility means:

(a)

Every person owning or holding directly or indirectly five percent or more of the voting securities of the telecommunications utility.

(b)

Every person in any chain of successive ownership of five percent or more of the voting securities of the telecommunications utility.

(c)

Every corporation five percent or more of whose voting securities are owned by any person owning five percent or more of the voting securities of the telecommunications utility or by any person in any chain of successive ownership of five percent or more of the voting securities of the telecommunications utility.

(d)

Every individual who is an officer or director of the telecommunications utility or of any person in any chain of successive ownership of five percent or more of the voting securities of the telecommunications utility.

(e)

Every corporation that has two or more officers or two or more directors in common with the telecommunications utility.

(f)

Every entity, five percent or more of which is directly or indirectly owned by a telecommunications utility.

(g)

Every person that the Public Utility Commission determines as a matter of fact, after investigation and hearing, actually is exercising any substantial influence over the policies and actions of the telecommunications utility, even though the influence is not based upon stockholdings, stockholders, directors or officers to the extent specified in this section.

(h)

Every person that the commission determines as a matter of fact, after investigation and hearing, actually is exercising such substantial influence over the policies and actions of the telecommunications utility in conjunction with one or more other persons with whom they are related by ownership or blood or by action in concert that together they are affiliated with the telecommunications utility within the meaning of this section even though no one of them alone is so affiliated.

(2)

When any telecommunications utility doing business in this state, except a telecommunications carrier that has elected to be subject to ORS 759.405 (Election of regulation under ORS 759.405 and 759.410) and 759.410 (Intent of ORS 759.410), enters into any contract to make any payment, directly or indirectly, to any person having an affiliated interest, for service, advice, auditing, accounting, sponsoring, engineering, managing, operating, financing, legal or other services, or enters any charge on the books of the utility, and the contract is to be recognized as an operating expense or capital expenditure in any rate valuation or any other hearing or proceeding, the contract shall be filed with the commission within 90 days of execution of the contract. The contract shall be deemed to be executed on the date the parties sign a written contract or on the date the parties begin to transact business under the contract, whichever date is earlier.

(3)

When any telecommunications utility doing business in this state enters into any contract, oral or written, with any person having an affiliated interest relating to the construction, operation, maintenance, leasing or use of the property of the telecommunications utility in Oregon, or the purchase of property, materials or supplies that is to be recognized as the basis of an operating expense or capital expenditure in any rate valuation or any other hearing or proceeding, the contract shall be filed with the commission within 90 days of execution of the contract. The contract shall be deemed to be executed on the date the parties sign a written contract or on the date the parties begin to transact business under the contract, whichever date is earlier.

(4)

The commission promptly shall examine and investigate any contract submitted to the commission under subsection (2) or (3) of this section. If, after the investigation, the commission determines that it is fair and reasonable and not contrary to the public interest, the commission shall enter findings and order approving the contract and serve a copy of the findings and order upon the telecommunications utility. Following the commission’s determination of fairness and reasonableness, any expenses and capital expenditures incurred by the telecommunications utility under the contract may be recognized in any rate valuation or other hearing or proceeding. If, after the investigation, the commission determines that the contract is not fair and reasonable in all its terms and is contrary to the public interest, the commission shall enter findings and order disapproving the contract and serve a copy of the findings and order upon the telecommunications utility. Except as provided in subsection (5) of this section, it is unlawful to recognize a disapproved contract for the purposes specified in this section.

(5)

When any contract described in subsection (2) or (3) of this section has been filed with the commission within 90 days of execution and the commission has not entered an order disapproving the contract under subsection (4) of this section, the commission may not base its refusal to recognize any expenses or capital expenditures incurred under the contract in any rate valuation or other hearing or proceeding solely on the basis that the contract has not been approved under subsection (4) of this section.

(6)

A telecommunications utility may not issue notes or loan its funds or give credit on its books or otherwise to any person having an affiliated interest, either directly or indirectly, without the approval of the commission.

(7)

The action of the commission with respect to all the matters described in this section shall be by findings and order to be entered within 90 days after the matter has been submitted to the commission for consideration. An order of the commission under this section is subject to judicial review in the manner provided by ORS 756.610 (Judicial review).

(8)

This section applies only to transactions in which the telecommunications utility’s Oregon intrastate expenditure to the affiliate is more than $100,000. [1987 c.447 §44; 1989 c.956 §5; 1991 c.899 §2; 1999 c.809 §2; 2005 c.232 §22; 2005 c.638 §16a; 2017 c.312 §10]

Source: Section 759.390 — Contracts with affiliated interests; procedure; use in rate proceedings, https://www.­oregonlegislature.­gov/bills_laws/ors/ors759.­html.

759.005
Definitions
759.015
Legislative findings on universal telecommunications service
759.016
Legislative findings on broadband services
759.020
Certificate of authority
759.025
Certificates of authority for persons, companies and corporations providing services on January 1, 1986
759.027
Shared telecommunications service provider
759.035
Duty to furnish adequate and safe service at reasonable rates
759.036
Commission authority
759.040
Exemptions for certain unaffiliated utilities with fewer than 50,000 access lines
759.045
Special rules for utilities exempted from regulation under ORS 759.040
759.050
Competitive zone service regulation
759.052
Commission authority to exempt telecommunications services from regulation
759.054
Price listing for product or service offered as part of local exchange telecommunications services
759.056
Price listing for product or service offered as part of interexchange telecommunications services
759.058
Commission action on petition under ORS 759.052, 759.054 or 759.056
759.060
Information submitted by local exchange telecommunications utilities
759.070
Charge to access public body radio tower
759.075
Authority to construct lines and facilities
759.080
Use of property outside limits of municipal corporation
759.120
Form and manner of accounts prescribed by commission
759.125
Records and accounts prescribed by commission
759.130
Closing date of accounts
759.135
Depreciation accounts
759.175
Filing rate schedules and data with commission
759.180
Hearing on reasonableness of rates
759.182
Rate schedules for service promotions
759.185
Suspension of rates pending hearing
759.190
Notice of schedule change
759.195
Price listing of services
759.200
Inclusion of amortizations in rates
759.205
Conformance of rates charged with schedule
759.210
Classification of service and rates
759.215
Public access to schedules
759.218
Revenues and expenses of unregulated activities
759.219
Certain taxes as operating expense
759.220
Joint rates and classifications
759.225
Application of ORS 759.220 to unincorporated associations and cooperative corporations
759.230
Measured service rate for business customers
759.235
Mandatory measured service rate
759.240
Measuring quality of service
759.245
Examination and testing of measuring appliances
759.250
Contracts for special services
759.255
Setting prices without regard to return on utility investment
759.257
Extended area service: Portland to Scappoose
759.259
Extended area service: Portland to Molalla
759.260
Unjust discrimination in rates
759.265
Practices not constituting unjust discrimination
759.267
Service promotion activities
759.270
Reducing rates for persons furnishing part of facilities
759.275
Undue preferences and prejudices
759.280
Soliciting or accepting rebates or special advantage
759.285
Charging rates based on cost of property not presently providing service
759.300
“Stocks” defined
759.305
Power to regulate issuance of telecommunications stocks
759.310
When issuance of securities void
759.315
Purposes for which securities may be issued
759.320
Application of ORS 759.315
759.325
Application of ORS 759.375
759.330
Hearings and supplemental orders for securities issuance
759.335
Obligation of state as consequence of approval of issuance
759.340
Conditional approval of issuance
759.345
Use of proceeds from issuance
759.350
Limitation on authority of utility to guarantee debt of another
759.355
Issuance or use of proceeds contrary to commission order
759.360
Prohibited acts regarding issuance of securities
759.375
Approval prior to sale, mortgage or disposal of operative utility property
759.380
Purchase of stock or property of another utility
759.385
Contracts regarding use of utility property
759.390
Contracts with affiliated interests
759.393
Applicability of ORS 759.385 and 759.390
759.400
Definitions for ORS 759.400 to 759.455
759.405
Election of regulation under ORS 759.405 and 759.410
759.410
Intent of ORS 759.410
759.415
Order in rate proceeding filed prior to January 1, 1999, to establish maximum rate for affected telecommunications services
759.420
Application of ORS 759.400 to 759.455 to wholesale transactions regulated under federal law
759.425
Universal service fund
759.430
Approval of projects funded by carrier’s Telecommunications Infrastructure Account
759.435
Assessment of telecommunications infrastructure and community needs
759.440
Additional funding for evaluating project plans
759.445
Connecting Oregon Communities Fund
759.450
Minimum service quality standards
759.455
Prohibited acts
759.500
Definitions for ORS 759.500 to 759.570
759.506
Purpose of allocated territory laws
759.535
Application to serve unserved territory
759.560
Assignment or transfer of allocated territory
759.565
Injunction against unauthorized provision of service
759.570
Application of law to local government
759.580
Power of commission to require service to unserved territory
759.585
Definitions for ORS 759.585 to 759.595
759.590
Application for service by unserved person
759.595
Criteria for granting application for service
759.650
Definitions for ORS 759.650 to 759.675
759.655
Authority of commission to regulate attachments
759.660
Fixing charges or rates
759.665
Considerations in determining just and reasonable rate
759.670
Presumption of reasonableness of rates set by agreement
759.675
Regulatory procedure
759.680
Operator service provider duties to service users
759.685
Surcharge assessed on retail telecommunications subscribers
759.687
Residential Service Protection Fund
759.688
Oregon Telephone Assistance Program Advisory Committee
759.689
Use of surcharge for marketing and outreach to increase participation rate in plan of assistance
759.693
Definitions
759.694
Legislative recognition of need
759.695
Program for assistive telecommunication devices and communication facilitator services
759.696
Telecommunication Devices Access Program Advisory Committee
759.697
Program coordinator
759.698
Eligibility
759.700
Definitions for ORS 759.700 to 759.720
759.705
Program message preamble
759.710
Pay-per-call information
759.715
Information service blocking
759.720
Action against information provider for failure to comply with law
759.730
Unauthorized changes in telecommunications carriers (“slamming”)
759.900
Liability of utility
759.990
Penalties
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