2007 ORS 758.410¹
Contracts for allocation of territories and customers
  • transfer of facilities

(1) Any person providing a utility service may contract with any other person providing a similar utility service for the purpose of allocating territories and customers between the parties and designating which territories and customers are to be served by which of said contracting parties; and the territories and customers so allocated and designated may include all or any portion of the territories and customers which are being served by either or both of the parties at the time the contract is entered into, or which could be economically served by the then existing facilities of either party, or by reasonable and economic extensions thereto.

(2) Any such contracting parties may also contract in writing for the sale, exchange, transfer, or lease of equipment or facilities located within territory which is the subject of the allocation agreed upon pursuant to subsection (1) of this section. Any sale, exchange, transfer or lease of equipment, plant or facilities made pursuant to this subsection by any person which is a "public utility" as defined in ORS 757.005 (Definitions) is also subject to the approval of the Public Utility Commission to the extent required by ORS chapter 757.

(3) The commission may approve a contract entered into under this section that authorizes Coos County to construct a natural gas pipeline into allocated territory in Coos County and that contains terms for the allocation of industrial customers in Coos County between the county and the other party to the contract. The contract need not specify the territory in which industrial customers subject to the allocation are located. The commission may approve the provisions of a contract under this subsection that govern allocation of industrial customers only if the commission determines that the provisions promote the purposes specified in ORS 758.405 (Purpose of ORS 758.400 to 758.475). The commission shall actively supervise the implementation of any contract entered into pursuant to this subsection to ensure that the contract continues to promote the purposes specified in ORS 758.405 (Purpose of ORS 758.400 to 758.475). A contract entered into under this subsection is not subject to ORS 758.420 (Filing of contract) (2). [Formerly 757.615; 2003 c.32 §1]

Notes of Decisions

Public Utility Commission approved alloca­tion of exclusive service area is entitled to state-ac­tion immunity from federal antitrust law. Columbia River PUD v. Portland General Electric, 40 F. Supp. 2d 1152 (D. Or. 1999)

Notes of Decisions

Municipalities are subject to exclusive territorial alloca­tion statutes and, although cities have certain authority to regulate public utilities, they may not compete with exclusive provider in allocated territory by reason of their regulatory authority. Pacificorp v. City of Ashland, 88 Or App 15, 744 P2d 257 (1987), as modified by 89 Or App 366, 749 P2d 1189 (1988), Sup Ct review denied

City may provide utility services in territory allocated to an­oth­er provider pursuant to these sec­tions if it exercises authority under ORS 221.420 (Municipal regulation of public utilities) to exclude or eject provider from territory, however, city's mere place­ment of utility facilities and pro­vi­sion of services in territory is not exercise of that authority and is viola­tion of alloca­tion statutes in absence of formal ac­tion by city to eject or exclude provider. PacifiCorp v. City of Ashland, 89 Or App 366, 749 P2d 1189 (1988), Sup Ct review denied

Order of Public Utility Commission issued in conjunc­tion with agree­ment between electric companies to exchange electric facilities within certain defined areas did not authorize monopoliza­tion of service. Pacificorp v. Portland General Electric Co., 770 F Supp 562 (1991)

Atty. Gen. Opinions

Constitu­tionality of alloca­tion statutes as applied to people's utility districts, (1987) Vol 45, p 209

1 Legislative Counsel Committee, CHAPTER 758—Utility Rights of Way and Territory Allocation; Cogeneration, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­758.­html (2007) (last ac­cessed Feb. 12, 2009).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 758, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­758ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.