2007 ORS 758.525¹
Avoided cost schedules
  • filing
  • requirement to purchase energy from qualifying facilities

(1) At least once every two years each electric utility shall prepare, publish and file with the Public Utility Commission a schedule of avoided costs equaling the utility’s forecasted incremental cost of electric resources over at least the next 20 years. Prices contained in the schedules filed by public utilities shall be reviewed and approved by the commission.

(2) An electric utility shall offer to purchase energy or energy and capacity whether delivered directly or indirectly from a qualifying facility. Except as provided in subsection (3) of this section, the price for such a purchase shall not be less than the utility’s avoided costs. At the option of the qualifying facility, exercised before beginning delivery of the energy or energy and capacity, such prices may be based on:

(a) The avoided costs calculated at the time of delivery; or

(b) The projected avoided costs calculated at the time the legal obligation to purchase the energy or energy and capacity is incurred.

(3) Nothing contained in ORS 543.610 (Acquisition of project by state or municipality), 757.005 (Definitions) and 758.505 (Definitions for ORS 758.505 to 758.555) to 758.555 (Effect of energy sales on qualifying facility) shall be construed to require an electric utility to pay full avoided-cost prices for a purchase from a qualifying facility on which construction began before November 8, 1978, but the price for a purchase from such a facility shall be sufficient to encourage production of energy or energy and capacity.

(4) The rates of an electric utility for the sale of electricity shall not discriminate against qualifying facilities. [1983 c.799 §3]

Notes of Decisions

Utility's "legal obliga­tion to purchase the energy" is incurred when qualifying facility obligates itself to deliver energy. Snow Mt. Pine Company v. Maudlin, 84 Or App 590, 734 P2d 1366 (1987), Sup Ct review denied

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.