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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 88
Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate in conformance with pre-
session filing rules, indicating neither advocacy nor opposition on the part of the President (at the request
of Senate Interim Committee on Energy and Environment)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Bans a power or gas company from including in its rates certain costs or expenses.
(Flesch Readability Score: 61.8).
Prohibits an electric or gas company from recovering from ratepayers costs or expenses asso-
ciated with advertising, political influence activity, litigation, penalties or fines and certain com-
pensation.
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 commis-
sion.
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 nonre-
coverable from ratepayers.
Imposes civil penalties for violations.
Declares an emergency, effective on passage.
A BILL FOR AN ACT
Relating to expenditures nonrecoverable from ratepayers; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. As used in sections 1 to 5 of this 2025 Act:
(1)(a) “Advertise” means to publish, disseminate, solicit or circulate, by any means or
media, communications that, in whole or in part, are intended to:
(A) Induce a person to use a commercial product or service;
(B) Promote a business brand;
(C) Promote desirable qualities about a product, service, business or industry; or
(D) Influence public opinion on a legislative, administrative or electoral matter.
(b) “Advertise” does not include public communications:
(A) Required by law, regulation or order;
(B) About service interruptions, safety measures or emergency conditions;
(C) About employment opportunities; or
(D) About a program approved by the Public Utility Commission regarding income-based
services, special rates or energy conservation.
(2) “Business unit” means a division, department, unit or organized employee group of
an electric or gas company.
(3) “Compensation” means wages, benefits, salary, bonus and any other consideration of
value.
(4) “Electric or gas company” means any entity that is a public utility under ORS 757.005
that is engaged in the business of distributing electricity or gas to retail customers in this
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 1806 SB88
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state.
(5)(a) “Political influence activity” means any action, including any research, analysis,
reparation or planning activity, taken to influence:
(A) An adoption, repeal or modification of a federal, state or local law, ordinance or
regulation;
(B) An election, recall, appointment or removal of a public official;
(C) An election for the adoption or rejection of an initiative or referenda;
(D) Public opinion on a matter described in subparagraphs (A) to (C) of this subsection;
(E) Public opinion on the approval, revocation or modification of a utility franchise
agreement;
(F) Public opinion on utility rates; or
(G) The decision of a federal, state or local government official.
(b) “Political influence activity” does not include:
(A) Appearing before a committee of the Legislative Assembly, the Public Utility Com-
mission, a state agency or a government body if the appearance is required or made at the
request of the committee, commission, state agency or government body.
(B) Appearing before the Public Utility Commission as part of a proceeding before the
commission.
SECTION 2. An electric or gas company may not recover from ratepayers costs or ex-
penses incurred by an electric or gas company that are or are associated with:
(1) Membership fees, dues, sponsorships or contributions to a trade association if the
trade association uses any portion of the membership fees, dues, sponsorships or contribu-
tions to advertise or support a political influence activity;
(2) Charitable giving, including contributions to an organization that is exempt from
federal income taxes under section 501(c)(3) or (4) of the Internal Revenue Code;
(3) Political influence activity;
(4) Advertising or activity to support advertising including research, analysis, reparation
or planning;
(5) Compensation to a person if any portion of the compensation is for work to influence
a decision by a federal, state or local government official;
(6) Contributions to a political candidate, political party, campaign committee, issue
committee or independent expenditure committee;
(7) Litigation over an existing or proposed federal, state or local legislation, regulation
orordinance;
(8) Any product or service not regulated by the Public Utility Commission, including
costs or expenses for marketing, administration, customer service or other costs or expenses
associated with the product or service not regulated by the commission;
(9) Penalty or fine, including any penalty or fine associated with taxes, issued against the
electric or gas company;
(10) Travel, lodging, entertainment or food and beverage for a member of the board of
directors or an officer of the electric or gas company or any affiliate unit of the electric or
gas company;
(11) An aircraft owned, leased or chartered for a member of the board of directors or an
officer of the electric or gas company or any affiliate unit of the electric or gas company;
(12) Investor relations;
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(13) Compensation above 50 percent of the annual total compensation or expense re-
imbursement for a member of the board of directors of the electric or gas company; and
(14) Preparing a report required under section 4 of this 2025 Act.
SECTION 3. (1) The Public Utility Commission shall by rule limit the amount that an
electric or gas company may recover from ratepayers for costs and expenses incurred by an
electric or gas company in preparing for, attending, participating in, or appealing a contested
proceeding conducted before the commission.
(2) In establishing rules under this section, the commission shall consider:
(a) Limiting the amount that an electric or gas company may recover from ratepayers
for costs and expenses for attorneys, consultants and third-party experts;
(b) Establishing a maximum percentage of an amount of costs and expenses incurred by
an electric or gas company that an electric or gas company may recover from ratepayers;
and
(c) Establishing a maximum amount of costs and expenses incurred by an electric or gas
company that an electric or gas company may recover from ratepayers as a proportion to
the amount of costs and expenses incurred by the Citizens’ Utility Board created under ORS
774.030 or an intervenor in preparing for, attending, participating in, or appealing a contested
proceeding conducted before the commission.
SECTION 4. (1) On or before April 30 of each year, an electric or gas company shall file
with the Public Utility Commission a report identifying the costs and expenses described in
sections 2 and 3 of this 2025 Act, incurred by the electric or gas company during the prior
calendaryear.
(2) The report filed under this section must include an itemized list that identifies:
(a) Each payment to each vendor, trade association, organization or person made by the
electric or gas company for an item or activity described in section 2 or 3 of this 2025 Act,
and for each itemized item or activity include:
(A) The billing amount;
(B) The billing date;
(C) The payee; and
(D) An explanation of the purpose of the item or activity;
(b) The compensation paid to each employee of the electric or gas company to carry out
an item or activity described in section 2 or 3 of this 2025 Act, and for each employee include:
(A) The employee’s job title;
(B) The employee’s job description and responsibilities;
(C) A description of each item or activity described in section 2 or 3 of this 2025 Act that
the employee carried out;
(D) The total amount of the employee’s annual compensation;
(E) The percentage amount of the employee’s annual compensation for work on an item
or activity described in section 2 or 3 of this 2025 Act;
(F) The percentage amount of the employee’s annual compensation that is recoverable
from ratepayers; and
(G) All uniform system of account codes for which compensation for the employee is re-
corded;
(c) Each business unit that carries out an item or activity described in section 2 or 3 of
this 2025 Act, and for each business unit include:
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(A) A list of employees who work in the business unit; and
(B) For each employee who works in the business unit, the information listed under
paragraph (b) of this subsection, as applicable; and
(d) Any other information required by the commission.
SECTION 5. (1) An electric or gas company that fails to comply with sections 2 to 4 of
this 2025 Act, or fails to comply with an order, rule or regulation of the Public Utility Com-
mission made to carry out sections 2 to 4 of this 2025 Act, shall be subject to a civil penalty
established by rule by the commission.
(2) An electric or gas company that includes a cost or expense that is not eligible for
recovery under section 2 or 3 of this 2025 Act in an account of costs and expenses that the
electric or gas company seeks to recover shall be subject to a civil penalty. The amount of
the civil penalty shall be not less than the amount of the cost or expense that is not eligible
for recovery under section 2 or 3 of this 2025 Act that the electric or gas company included
the account.
(3) The commission shall order an electric or gas company to refund any amount that
an electric or gas company recovers from a ratepayer that the electric or gas company is
not allowed to recover under section 2 or 3 of this 2025 Act.
(4) Civil penalties collected under this section may be:
(a) Distributed in whole or in part to ratepayers as a rebate; or
(b) Paid into the General Fund and credited to the Public Utility Commission Account
as described in ORS 756.990 (7) and used to carry out the provisions of sections 1 to 5 of this
2025 Act.
SECTION 6. This 2025 Act being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist, and this 2025 Act takes effect
on its passage.
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