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Chapter 7592009 EDITION

Telecommunications Utility Regulation

GENERAL PROVISIONS759.005 Definitions759.015 Legislative findings on universal telecom-

munications service759.016 Legislative findings on broadband services759.020 Certificate of authority; application; pro-

cedure; criteria; intrastate toll servicelevel

759.025 Certificates of authority for persons,companies and corporations providingservices on January 1, 1986

759.027 Shared telecommunications service pro-vider; alternative access to local exchangetelecommunications services

759.035 Duty to furnish adequate and safe serviceat reasonable rates

REGULATION OFTELECOMMUNICATIONS SERVICES

759.036 Commission authority759.040 Exemptions for certain unaffiliated utili-

ties with fewer than 50,000 access lines759.045 Special rules for utilities exempted from

regulation under ORS 759.040759.050 Competitive zone service regulation759.052 Commission authority to exempt telecom-

munications services from regulation759.054 Price listing for product or service offered

as part of local exchange telecommuni-cations services

759.056 Price listing for product or service offeredas part of interexchange telecommuni-cations services

759.058 Commission action on petition under ORS759.052, 759.054 or 759.056

759.060 Information submitted by local exchangetelecommunications utilities; rules ex-empting disclosure

RIGHTS OF WAY759.075 Authority to construct lines and facilities;

condemnation power; procedure759.080 Use of property outside limits of munici-

pal corporation; agreement; condemnationupon failure to agree

ACCOUNTS AND RECORDS759.120 Form and manner of accounts prescribed

by commission759.125 Records and accounts prescribed by com-

mission; prohibition on other records oraccounts; exception; blanks for reports

759.130 Closing date of accounts; filing balancesheet; audit

759.135 Depreciation accounts; undepreciated in-vestment allowed in rates; conditions

RATE REGULATION AND PROCEDURES;MEASURING EQUIPMENT

759.175 Filing rate schedules and data with com-mission

759.180 Hearing on reasonableness of rates; pro-cedures; exceptions

759.182 Rate schedules for service promotions;rules

759.185 Suspension of rates pending hearing; timelimitation; refund of revenue collected;interim rates

759.190 Notice of schedule change759.195 Price listing of services; conditions; maxi-

mum rates; essential services; justifica-tion by utility of rates for price-listedservices

759.200 Inclusion of amortizations in rates; defer-ral of certain expenses or revenues; limi-tation on amounts; prohibited uses

759.205 Conformance of rates charged withschedule

759.210 Classification of service and rates; con-siderations

759.215 Public access to schedules759.217 Effect of tax credit under ORS 315.511759.218 Revenues and expenses of unregulated

activities759.219 Certain taxes as operating expense;

charge pro rata to users; condition759.220 Joint rates and classifications; procedure;

considerations759.225 Application of ORS 759.220 to unincor-

porated associations and cooperative cor-porations

759.230 Measured service rate for business cus-tomers; restriction

759.235 Mandatory measured service rate; prohi-bition

759.240 Measuring quality of service; standards;rules

759.245 Examination and testing of measuringappliances

759.250 Contracts for special services; procedurefor filing and approval; subsequent reviewand investigation

759.255 Setting prices without regard to returnon utility investment; petition; findings;conditions; application of statutes to ap-proved plan

759.257 Extended area service: Portland to Scap-poose

759.259 Extended area service: Portland to Mo-lalla

ILLEGAL PRACTICES759.260 Unjust discrimination in rates759.265 Practices not constituting unjust discrim-

ination759.267 Service promotion activities759.270 Reducing rates for persons furnishing part

of facilities; rental of customer facilities;furnishing meters and appliances

759.275 Undue preferences and prejudices

Title 57 Page 1 (2009 Edition)

UTILITY REGULATION

759.280 Soliciting or accepting rebates or specialadvantage

759.285 Charging rates based on cost of propertynot presently providing service

ISSUANCE OF SECURITIES759.300 “Stocks” defined759.305 Power to regulate issuance of telecom-

munications stocks759.310 When issuance of securities void759.315 Purposes for which securities may be is-

sued; order required; exceptions759.320 Application of ORS 759.315759.325 Application of ORS 759.375759.330 Hearings and supplemental orders for se-

curities issuance; joint approval for issu-ance by utility operating in another state

759.335 Obligation of state as consequence of ap-proval of issuance

759.340 Conditional approval of issuance759.345 Use of proceeds from issuance; accounting759.350 Limitation on authority of utility to

guarantee debt of another759.355 Issuance or use of proceeds contrary to

commission order759.360 Prohibited acts regarding issuance of se-

curities

TRANSACTIONS OF UTILITIES759.375 Approval prior to sale, mortgage or dis-

posal of operative utility property759.380 Purchase of stock or property of another

utility759.385 Contracts regarding use of utility prop-

erty; filing with commission; investigation759.390 Contracts with affiliated interests; proce-

dure; use in rate proceedings759.393 Applicability of ORS 759.385 and 759.390

PRICE CAP REGULATION(Generally)

759.400 Definitions759.405 Election of regulation under ORS 759.405

and 759.410; conditions; Telecommuni-cations Infrastructure Account; remedyfor failure of utility to comply with con-ditions

759.410 Intent of ORS 759.410; establishing maxi-mum and minimum price for telecommu-nications services; packaging services;notice of price change, new service; en-forcement

759.415 Order in rate proceeding filed prior toJanuary 1, 1999, to establish maximumrate for affected telecommunications ser-vices; dismissal of rate proceeding filedafter January 1, 1999

759.420 Application of ORS 759.400 to 759.455 towholesale transactions regulated underfederal law

(Universal Service Fund)759.425 Universal service fund; commission to es-

tablish price for basic telephone service;universal service surcharge; applicationto cellular services

(Public Purpose Funding)759.430 Approval of projects funded by carrier′s

Telecommunications Infrastructure Ac-count; Connecting Oregon CommunitiesAdvisory Board

759.435 Assessment of telecommunications infra-structure and community needs; contents;report

759.440 Additional funding for evaluating projectplans

759.445 Connecting Oregon Communities Fund;School Technology Account; Public Ac-cess Account

SERVICE QUALITY STANDARDS AND PROHIBITED ACTS

759.450 Minimum service quality standards; rules;customer impact indices; factors; whole-sale services; improvement plan; penal-ties; exceptions

759.455 Prohibited acts; commission action onallegation of violation; penalties; judicialreview

ALLOCATION OF TERRITORIES

(Generally)759.500 Definitions for ORS 759.500 to 759.570759.506 Purpose of allocated territory laws; car-

rier of last resort obligations; exemptionsfrom obligations; reinstatement of obli-gations

759.535 Application to serve unserved territory;hearing; notice

759.560 Assignment or transfer of allocated terri-tory

759.565 Injunction against unauthorized provisionof service

759.570 Application of law to local government

(Unserved Territory)759.580 Power of commission to require service to

unserved territory759.585 Definitions for ORS 759.585 to 759.595759.590 Application for service by unserved per-

son; rules759.595 Criteria for granting application for ser-

vice; effect on other territorial allocation

ATTACHMENT REGULATION759.650 Definitions for ORS 759.650 to 759.675759.655 Authority of commission to regulate at-

tachments759.660 Fixing charges or rates; criteria; costs of

hearing759.665 Considerations in determining just and

reasonable rate759.670 Presumption of reasonableness of rates

set by agreement759.675 Regulatory procedure

OPERATOR SERVICE PROVIDERS759.690 Operator service provider duties to service

users; rules


TELECOMMUNICATIONS UTILITY REGULATION

RESIDENTIAL SERVICE PROTECTION(Temporary provisions relating to resi-dential telecommunication service pro-tection are compiled as notes followingORS 759.690)

ASSISTIVE TELECOMMUNICATION DEVICES FOR PERSONS

WITH DISABILITIES(Temporary provisions relating to tele-communication devices for hearing andspeech impaired individuals are compiledas notes following ORS 759.690)

INFORMATION SERVICE PROVIDERS759.700 Definitions for ORS 759.700 to 759.720759.705 Program message preamble; information

to be included759.710 Pay-per-call information; disclosure

759.715 Information service blocking; suspensionor termination of telephone service fornonpayment of information servicecharges

759.720 Action against information provider forfailure to comply with law; remedies;customer liability for charges

UNAUTHORIZED CHANGES IN TELECOMMUNICATIONS CARRIERS

759.730 Unauthorized changes in telecommuni-cations carriers (“slamming”); rules

DAMAGES759.900 Liability of utility; effect on other reme-

dies; liability for personal injury or prop-erty damage

PENALTIES759.990 Penalties


UTILITY REGULATION


TELECOMMUNICATIONS UTILITY REGULATION 759.015

GENERAL PROVISIONS759.005 Definitions. As used in this

chapter:(1) “Competitive telecommunications pro-

vider” means a telecommunications servicesprovider that has been classified as a com-petitive telecommunications provider by thePublic Utility Commission pursuant to ORS759.020.

(2) “Intrastate telecommunications ser-vice” means any telecommunications servicein which the information transmitted origi-nates and terminates within the boundariesof the State of Oregon.

(3) “Local exchange telecommunicationsservice” means telecommunications serviceprovided within the boundaries of exchangemaps filed with and approved by the com-mission.

(4) “Private telecommunicationsnetwork” means a system for the provisionof telecommunications service or any portionof telecommunications service, including theconstruction, maintenance or operation ofthe system, by a person for the exclusive useof that person and not for resale, directly orindirectly.

(5) “Radio common carrier” means anycorporation, company, association, jointstock association, partnership and person,their lessees, trustees or receivers and anytown making available facilities to provideradio communications service, radio pagingor cellular communications service for hire.

(6) “Shared telecommunications service”means the provision of telecommunicationsand information management services andequipment to a user group located in discretepremises in building complexes, campuses orhigh-rise buildings, by a commercial sharedservices provider or by a users′ association,through privately owned customer premisesequipment and associated data processingand information management services andincludes the provision of connections to localexchange telecommunications service.

(7) “Telecommunications” means thetransmission of information chosen by a per-son, between or among points specified bythe person, without change in the form orcontent of the information sent or received.

(8) “Telecommunications service” meanstelecommunications that are offered for a feeto the public, or to such class of users as tobe effectively available to the public, withoutregard to the facilities used to provide thetelecommunications. “Telecommunicationsservice” does not include:

(a) Services provided by radio commoncarrier.

(b) One-way transmission of televisionsignals.

(c) Private telecommunications networks.(d) Communications of the customer that

take place on the customer side of on-premises equipment.

(9)(a) “Telecommunications utility”means:

(A) Any corporation, company, individualor association of individuals, or its lessees,trustees or receivers, that owns, operates,manages or controls all or a part of anyplant or equipment in this state for the pro-vision of telecommunications service, di-rectly or indirectly to or for the public,whether or not the plant or equipment, orany portion of the plant or equipment, iswholly within any town or city.

(B) Any corporation, company, individualor association of individuals that is party toan oral or written agreement for the pay-ment by a telecommunications utility, forservice, managerial construction, engineeringor financing fees, and has an affiliated inter-est with the telecommunications utility.

(b) “Telecommunications utility” does notinclude:

(A) Any plant owned or operated by amunicipality.

(B) Any corporation not providing intra-state telecommunications service to the pub-lic in this state, whether or not thecorporation has an office in this state or hasan affiliated interest with a telecommuni-cations utility as defined in this chapter.

(C) Any person acting only as a compet-itive telecommunications provider.

(D) Any corporation, company, individualor association of individuals providing onlytelephone customer premises equipment tothe public.

(10) “Toll” means switched telecommuni-cations between exchanges carried on thepublic switched network. “Toll” does not in-clude services that are an option to flat ratelocal or extended area service, even thoughthe options may include charges on a per-unit basis. [1987 c.447 §1; 1989 c.5 §15; 1991 c.326 §2;2005 c.232 §1; 2007 c.825 §1]

759.010 [1987 c.447 §2; 1989 c.17 §2; repealed by 2005c.232 §2]

759.015 Legislative findings on uni-versal telecommunications service. TheLegislative Assembly finds and declares thatit is the goal of the State of Oregon to secureand maintain high-quality universal telecom-munications service at just and reasonablerates for all classes of customers and to en-courage innovation within the industry by abalanced program of regulation and competi-tion. The Public Utility Commission shall


759.016 UTILITY REGULATION

administer the statutes with respect to tele-communications rates and services in accor-dance with this policy. [Formerly 757.810]

759.016 Legislative findings on broad-band services. The Legislative Assemblyfinds and declares:

(1) That it is the goal of this state topromote access to broadband services for allOregonians in order to improve the economyin Oregon, improve the quality of life in Or-egon communities and reduce the economicgap between Oregon communities that haveaccess to broadband digital applications andservices and those that do not, for bothpresent and future generations; and

(2) That the goal set forth in subsection(1) of this section may be achieved by:

(a) Expanding broadband and other tele-communications services;

(b) Creating incentives to establish andexpand broadband and other telecommuni-cations services;

(c) Undertaking telecommunicationsplanning at the local, regional and state lev-els that includes participants from both thepublic and the private sectors;

(d) Removing barriers to the full deploy-ment of broadband digital applications andservices and providing incentives for the re-moval of those barriers; and

(e) Removing barriers to public-privatepartnerships in areas where the private sec-tor cannot justify investments. [2003 c.775 §1]

Note: 759.016 was enacted into law by the Legisla-tive Assembly but was not added to or made a part ofORS chapter 759 or any series therein by legislativeaction. See Preface to Oregon Revised Statutes for fur-ther explanation.

759.020 Certificate of authority; appli-cation; procedure; criteria; intrastate tollservice level. (1) No person, corporation,company, association of individuals or theirlessees, trustees, or receivers shall provideintrastate telecommunications service on afor-hire basis without a certificate of author-ity issued by the Public Utility Commissionunder this section.

(2) Applications for certificates of au-thority shall be in a form prescribed by thecommission and shall describe the telecom-munications services the applicant proposesto provide. Notice of all applications shall,within 30 days of filing, be served by thecommission upon all persons holding author-ity to provide telecommunications service is-sued under this section or providing localexchange telecommunications service.

(3) Except as provided in ORS 759.050, nocertificate shall authorize any person to pro-vide local exchange telecommunications ser-vice within the local exchange

telecommunications service area of a tele-communications utility unless such utilityconsents, is unable to provide the service, orfails to protest an application. This subsec-tion shall not apply to any application for acertificate by a provider of shared telecom-munications services.

(4) After notice, a hearing need not beheld prior to issuance of a certificate of au-thority except upon the commission′s ownmotion or unless the application is to au-thorize a person to provide local exchangetelecommunications service in the local ex-change telecommunications service area of atelecommunications utility and such utilityprotests. After hearing, the commission shallissue the certificate only upon a showingthat the proposed service is required by thepublic interest.

(5) The commission may classify a suc-cessful applicant for a certificate as a tele-communications utility or as a competitivetelecommunications services provider. If thecommission finds that a successful applicantfor a certificate has demonstrated that ser-vices it offers are subject to competition orthat its customers or those proposed to be-come customers have reasonably availablealternatives, the commission shall classifythe applicant as a competitive telecommuni-cations services provider. The commissionshall conduct the initial classification andany subsequent review of the classificationin accordance with such procedures as thecommission may establish by rule, afterhearings. The commission may attach rea-sonable conditions to such classification andmay amend or revoke any such order as pro-vided in ORS 756.568. For purposes of thissection, in determining whether telecommu-nications services are subject to competitionor whether there are reasonably availablealternatives, the commission shall consider:

(a) The extent to which services areavailable from alternative providers in therelevant market.

(b) The extent to which the services ofalternative providers are functionally equiv-alent or substitutable at comparable rates,terms and conditions.

(c) Existing economic or regulatory bar-riers to entry.

(d) Any other factors deemed relevant bythe commission.

(6) Any provider of intrastate toll servicemust inform customers of the service levelfurnished by that provider, according to rulesof the commission. The commission, by rule,shall determine the level of intrastate tollservice that is standard. Any provider ofintrastate toll service must identify the ser-vice level the provider plans to furnish in an



annual report to the commission. The com-mission shall revoke the certification of anyprovider that does not consistently furnishthe service level identified in the provider′sannual report. [Formerly 757.815; 1991 c.326 §1; 1993c.423 §1]

759.025 Certificates of authority forpersons, companies and corporationsproviding services on January 1, 1986. (1)Notwithstanding ORS 759.020, the PublicUtility Commission shall issue to any person,company or corporation providing intrastatetelecommunications services that are subjectto regulation by the commission on January1, 1986, a certificate of authority to continueto provide those services on and after Janu-ary 1, 1986.

(2) Notwithstanding any other provisionof law, the commission shall issueto any cooperative corporation, or unincor-porated association providing intrastate tele-communications service on January 1, 1986,a certificate of authority to continue to pro-vide those services on and after January 1,1986. Such actions shall not subject such co-operative corporations or association to thecommission′s general powers of regulation.[Formerly 757.820]

759.027 Shared telecommunicationsservice provider; alternative access to lo-cal exchange telecommunications ser-vices. If the Public Utility Commission findsupon notice and investigation that customersof shared telecommunications services haveno alternative access to local exchange tele-communications services, the commissionmay require the shared telecommunicationsservice provider to make alternative facilitiesor conduit space available on reasonableterms and conditions and at reasonableprices. [2005 c.232 §5]

759.030 [Formerly 757.825; 1991 c.301 §1; repealed by2005 c.232 §6]

759.035 Duty to furnish adequate andsafe service at reasonable rates. Everytelecommunications utility is required tofurnish adequate and safe service, equipmentand facilities, and the charges made by anypublic utility for any service rendered or tobe rendered in connection therewith shall bereasonable and just, and every unjust or un-reasonable charge for such service is prohib-ited. [1987 c.447 §3]

REGULATION OFTELECOMMUNICATIONS SERVICES

759.036 Commission authority. Exceptas otherwise provided by law, the PublicUtility Commission shall have authority todetermine the manner and extent of the reg-ulation of telecommunications serviceswithin the State of Oregon. [2005 c.232 §7]

759.040 Exemptions for certain unaf-filiated utilities with fewer than 50,000access lines. (1) Subject to subsection (6) ofthis section, ORS 759.180 to 759.190 do notapply to new or revised tariff schedules filedwith the Public Utility Commission by tele-communications utilities or affiliated groupsof telecommunications utilities serving fewerthan 50,000 access lines in Oregon and notaffiliated or under common control with anyother kind of public utility providing servicein Oregon.

(2) Subject to subsection (6) of this sec-tion, ORS 759.375 to 759.393 do not apply totelecommunications utilities or affiliatedgroups of telecommunications utilities serv-ing fewer than 50,000 access lines in Oregonand not affiliated or under common controlwith any other kind of public utility provid-ing service in Oregon.

(3) Subject to subsection (6) of this sec-tion, ORS 759.300 to 759.360 do not apply totelecommunications utilities or affiliatedgroups of telecommunications utilities serv-ing fewer than 50,000 access lines in Oregonand not affiliated or under common controlwith any other kind of public utility provid-ing service in Oregon.

(4) Upon petition by any telecommuni-cations utility serving fewer than 50,000 ac-cess lines in Oregon and affiliated or undercommon control with another public utilityproviding service in Oregon, and a findingthat such action is consistent with the publicinterest, the commission by order may ex-empt such telecommunications utility from:

(a) ORS 759.180 to 759.190.(b) ORS 759.375 to 759.393.(c) ORS 759.300 to 759.360.(5) Upon petition by any telecommuni-

cations utility serving fewer than 50,000 ac-cess lines in Oregon, and finding that suchaction is consistent with the public interest,the commission by order may exempt suchtelecommunications utility from ORS 759.175and 759.205 to 759.215.

(6) Upon petition by the telecommuni-cations utility or upon petition by 10 percentof the then current access line subscribers,or 500 subscribers, whichever is the lesser,of any telecommunications utility:

(a) Filed with the commission not lessthan 10 days prior to the proposed effectivedate of new or revised tariff schedules, thecommission may impose all or part of theprocedures of ORS 759.180 to 759.190 to anyof the schedules of a telecommunicationsutility exempted from ORS 759.180 to 759.190pursuant to this section.

(b) After notice and hearing and a findingthat the action is required by the public in-



terest, the commission may revoke any ex-emption granted pursuant to this section orimpose reasonable conditions upon the con-tinued exercise of the exemption.

(7) Any telecommunications utility forwhich an exemption from the application ofORS 759.180 to 759.190 is provided pursuantto this section shall notify its affected cus-tomers of any price increase for intrastatetelecommunications services at least 45 daysprior to the proposed effective date of theincrease.

(8) Any telecommunications utility forwhich an exemption from the application ofany statute is provided pursuant to this sec-tion shall file with the commission an annualreport that includes copies of the incomestatement and balance sheet the telecommu-nications utility files with the Federal Com-munications Commission. Eachtelecommunications utility described in thissubsection shall notify customers that theincome statement and balance sheet are onfile with the commission. [Formerly 757.870; 1999c.451 §1; 2005 c.232 §12]

759.045 Special rules for utilities ex-empted from regulation under ORS759.040. The Public Utility Commission shalladopt specific rules to apply to telecommuni-cations utilities which are exempted fromcertain regulation under ORS 759.040. Anobjective of these rules shall be to minimizethe regulatory burden on these utilities tothe extent this objective is feasible and con-sistent with the public interest. These rulesshall not pertain to the statutes from whichthese utilities are exempted under ORS759.040. [1991 c.658 §2]

759.050 Competitive zone service regu-lation. (1) As used in this section:

(a) “Competitive zone” means a telecom-munications service area within all or partof a local exchange, described both by ser-vice and territory, that has been designateda competitive zone by the Public UtilityCommission under subsection (2) or (4) ofthis section.

(b) “Competitive zone service” means alocal exchange telecommunications servicethat the commission has authorized to beprovided within a competitive zone.

(c) “Essential function” means a func-tional component of a competitive zone ser-vice necessary to the provision of the serviceby a telecommunications provider for whichthere is no adequate alternative in terms ofquality, quantity and price to the incumbenttelecommunications utility.

(d) “Telecommunications utility” and“competitive provider” mean those entitiesthat are classified as such by the commissionunder ORS 759.020. “Telecommunications

provider” includes both telecommunicationsutilities and competitive providers.

(2)(a) Notwithstanding the provisions ofORS 759.020 (3), the commission may certifyone or more persons, including another tele-communications utility, to provide local ex-change telecommunications service withinthe local exchange telecommunications ser-vice area of a certificated telecommuni-cations utility if the commission determinesthat the authorization would be in the publicinterest. For the purpose of determiningwhether the authorization would be in thepublic interest, the commission shall con-sider:

(A) The effect on rates for local exchangetelecommunications service customers bothwithin and outside the competitive zone.

(B) The effect on competition in the localexchange telecommunications service area.

(C) The effect on access by customers tohigh quality, innovative telecommunicationsservice in the local exchange telecommuni-cations service area.

(D) Any other facts the commission con-siders relevant.

(b) Upon certification of a telecommuni-cations provider under paragraph (a) of thissubsection, the commission shall establish acompetitive zone defined by the services tobe provided by the telecommunications pro-vider and the geographic area to be servedby the telecommunications provider. Priceand service competition within the meaningof ORS 759.052 may not be deemed to existby virtue of the establishment of a compet-itive zone.

(c) At the time of certification of a tele-communications provider, or thereafter, thecommission may impose reasonable condi-tions upon the authority of the telecommu-nications provider to provide competitivezone service within the competitive zone.Reasonable conditions include, but are notlimited to, conditions:

(A) Designed to promote fair competition,such as interconnection; and

(B) Requiring contributions of the typerequired of a telecommunications utility onaccount of the provision of local exchangeservice, including those to the ResidentialService Protection Fund or the Telecommu-nication Devices Access Program.

(3) Upon demand, a competitive providerof competitive zone services shall makeavailable to the commission any informationrelating to competitive zone services that thecommission requests. Information provided tothe commission by a competitive providerunder this subsection shall be confidentialand may not be disclosed by the commission,



except for regulatory purposes in the contextof a proceeding before the commission.

(4) Upon application by a telecommuni-cations utility and a showing of competitionwithin its local exchange, whether or notfrom certificated providers, the commissionmay designate all or part of the local ex-change a competitive zone.

(5)(a) Except with respect to telecommu-nications utilities that are exempt from theprovisions of ORS 759.180 to 759.190, unlessthe commission determines that it is not inthe public interest at the time a competitivezone is created, upon designation of a com-petitive zone, price changes, service vari-ations and modifications of competitive zoneservices offered by a telecommunicationsutility in the zone are not subject to ORS759.180 to 759.190 and, at the telecommu-nication utility′s discretion, may be made ef-fective upon filing with the commission.

(b) The price and terms of service offeredby a telecommunications utility for a com-petitive zone service within a competitivezone may differ from that outside of the zone.However, the price for a competitive zoneservice within the zone may not be lowerthan the total service long run incrementalcost, for nonessential functions, of providingthe service within the zone and the chargesfor essential functions used in providing theservice, but the commission may establishrates for residential local exchange telecom-munications service at any level necessary toachieve the commission′s universal serviceobjectives. Within the zone, the price of acompetitive zone service, or any essentialfunction used in providing the competitivezone service, may not be higher than thoseprices in effect when the competitive zonewas established, unless authorized by thecommission.

(c) The commission may revoke the ex-emption of a telecommunications utility fromORS 759.180 to 759.190 if the commissionfinds that the utility has violated statutes,rules or conditions of the commission appli-cable to competitive zone services or thatthere has been a substantial change in thecircumstances that prevailed at the time thecompetitive zone was first established.

(d) On the motion of a telecommuni-cations provider or on its own motion, thecommission may order a telecommunicationsutility to disaggregate and offer essentialfunctions of the telecommunications utility′slocal exchange network.

(6) A decision of the commission, withrespect to the terms and conditions underwhich competitive zone services may be of-fered within a competitive zone by a tele-communications utility, to authorize a

competitor to provide service within the lo-cal exchange service area of a telecommuni-cations utility or to otherwise designate acompetitive zone shall be subject to judicialreview, but may not be stayed other than byorder of the commission, except upon ashowing by clear and convincing evidencethat failure to stay the decision will resultin irreparable harm to the aggrieved party.

(7) The exclusive remedy of a telecom-munications provider aggrieved by the prices,terms of service or practices of another pro-vider with respect to competitive zone ser-vices within a competitive zone is to file acomplaint with the commission under ORS756.500. The commission, either upon com-plaint or its own motion, may permanentlysuspend a filing made by a provider with re-spect to a competitive zone service or takesuch other action as the commission deemsappropriate, except an award for damages. Aclaim for damages arising from a commissiondecision in favor of the provider on a matteralleged in the complaint shall be brought asa separate action at law.

(8) Nothing in this section shall serve toshield any telecommunications provider oflocal exchange telecommunications servicefrom state or federal antitrust laws.

(9) The commission shall report annuallyto the Legislative Assembly:

(a) The number of competitive zones cre-ated under ORS 759.020 and 759.050;

(b) The number of competitive providersauthorized under ORS 759.020 and 759.050;

(c) The number and types of competitiveservices made available to consumers; and

(d) Consumer comments on competitivetelecommunications services. [1993 c.423 §3; 2005c.232 §13]

759.052 Commission authority to ex-empt telecommunications services fromregulation. (1)(a) Upon petition by any in-terested party and following notice and in-vestigation, the Public Utility Commissionmay exempt in whole or in part from regu-lation those telecommunications services forwhich the commission finds that:

(A) Price or service competition exists;(B) Telecommunications services can be

demonstrated by the petitioner or the com-mission to be subject to competition; or

(C) The public interest no longer requiresfull regulation of the telecommunicationsservices.

(b) The commission may attach reason-able conditions to an exemption made underparagraph (a) of this subsection and mayamend or revoke any order as provided inORS 756.568.



(2) Upon petition by a telecommuni-cations utility, and after notice and hearing,the commission shall exempt a telecommuni-cations service from regulation if the com-mission finds that price and servicecompetition exists.

(3) Prior to making the findings requiredby subsection (1) or (2) of this section, thecommission shall consider:


(b) The extent to which the services ofalternative providers are functionally equiv-alent or substitutable at comparable ratesand under comparable terms and conditions.


(d) Any other factors deemed relevant bythe commission.

(4) A service that is deregulated undersubsection (2) of this section may be reregu-lated, after notice and hearing, if the com-mission determines an essential finding onwhich the deregulation was based no longerprevails, and reregulation is necessary toprotect the public interest. [2005 c.232 §8]

759.054 Price listing for product orservice offered as part of local exchangetelecommunications services. (1) If thePublic Utility Commission determines that aproduct or service offered by a telecommuni-cations utility as part of local exchange tele-communications services can bedemonstrated by the utility to be subject tocompetition, or that a product or service isnot an essential product or service, the com-mission may authorize the utility to file aprice list with the commission.

(2) The price list shall contain the de-scription, terms, conditions and prices of theservice or product described in subsection (1)of this section. No other schedule for pricelisted services need be filed with the com-mission. The price list or any revision of theprice list is not subject to the provisions ofORS 759.180 to 759.190 and shall become ef-fective immediately upon filing with thecommission unless a later date is specified.

(3) In determining whether a product orservice is subject to competition, the com-mission shall consider:


(b) The extent to which services of alter-native providers are functionally equivalentor substitutable at comparable rates or undercomparable terms and conditions.


(d) Any other factors deemed relevant bythe commission. [2005 c.232 §9]

759.056 Price listing for product orservice offered as part of interexchangetelecommunications services. (1) If thePublic Utility Commission determines that aproduct or service offered by a telecommuni-cations utility as part of interexchange tele-communications services can bedemonstrated by the utility to be subject tocompetition, the commission, under condi-tions that the commission determines arereasonable, may authorize the utility to filea price list with the commission.

(2) The price list shall contain the de-scription, terms, conditions and prices of theservice or product described in subsection (1)of this section. No other schedule for pricelisted services need be filed with the com-mission. The price list or any revision of theprice list is not subject to the provisions ofORS 759.180 to 759.190 and shall become ef-fective immediately on filing with the com-mission unless a later date is specified.

(3) In determining whether a product orservice is subject to competition, the com-mission shall consider:


(b) The extent to which services of alter-native providers are functionally equivalentor substitutable at comparable rates or undercomparable terms and conditions.


(d) Any other factors deemed relevant bythe commission. [2005 c.232 §10]

759.058 Commission action on petitionunder ORS 759.052, 759.054 or 759.056.Within 60 days of a filing under ORS 759.052,759.054 or 759.056, the Public Utility Com-mission shall either determine the appropri-ateness of the filing or determine thatfurther investigation is necessary. If thecommission determines that further investi-gation is necessary, the commission maysuspend operation of the filing for a periodnot longer than five months from the end ofthe initial 60-day period. Upon a showing ofgood cause, any party may request extensionof the suspension period for an additionalthree months. [2005 c.232 §11]

759.060 Information submitted by localexchange telecommunications utilities;rules exempting disclosure. (1) The PublicUtility Commission, by rule, shall specify in-formation submitted to the commission bylocal exchange telecommunications utilitiesor cooperatives that is exempt from disclo-sure under ORS 192.410 to 192.505 as pro-



vided in this section. In adopting rules, thecommission shall consider, among other mat-ters:

(a) Whether the information is of a typethat could potentially be used to the compet-itive disadvantage of a local exchange tele-communications utility or cooperative.

(b) Whether the information concernsmatters of a nature personal to an employeeor stockholder of a local exchange telecom-munications utility or an employee or mem-ber of a cooperative.

(c) Whether the information is otherwisepublicly available.

(2) Information specified under subsec-tion (1) of this section is exempt from disclo-sure unless the public interest requiresdisclosure in the particular instance.

(3) Nothing in subsection (1) of this sec-tion limits the exemptions granted to a localexchange telecommunications utility or co-operative under ORS 192.410 to 192.505. [1995c.538 §2]

RIGHTS OF WAY759.075 Authority to construct lines

and facilities; condemnation power; pro-cedure. (1) Any telecommunications utilitymay:

(a) Enter upon lands within this state forthe purpose of examining, locating and sur-veying the line thereof and also other landsnecessary and convenient for the purpose ofconstruction of service facilities, doing nounnecessary damage thereby.

(b) Condemn such lands not exceeding100 feet in width for its lines (includingpoles, towers, wires, supports and necessaryequipment therefor) and in addition thereto,other lands necessary and convenient for thepurpose of construction of service facilities.

(2) Notwithstanding subsection (1) of thissection, any telecommunications utility may,when necessary or convenient for trans-mission lines (including poles, towers, wires,supports and necessary equipment therefor)designed for voltages in excess of 330,000volts, condemn land not to exceed 300 feet inwidth. In addition, if the lands are coveredby trees which are liable to fall and consti-tute a hazard to its wire or line, such tele-communications utility may condemn suchtrees for a width not exceeding 100 feet oneither side of the condemned land, as may benecessary or convenient for such purpose.

(3) The proceedings for the condemnationof such lands shall be the same as that pro-vided in ORS chapter 35, provided that anyaward shall include, but shall not be limitedto, damages for destruction of forest growth,premature cutting of timber and diminution

in value to remaining timber caused by in-creased harvesting costs. [1987 c.447 §69]

759.080 Use of property outside limitsof municipal corporation; agreement;condemnation upon failure to agree.When it is necessary or convenient, in thelocation of any poles or lines mentioned inORS 759.075, to appropriate any part of anypublic road, street, alley or public groundsnot within the corporate limits of any mu-nicipal corporation, the county court orboard of county commissioners of the countywithin which such road, street, alley or pub-lic grounds is located, may agree with thetelecommunications utility upon the extent,terms and conditions upon which the samemay be appropriated or used and occupied bysuch corporation. If such parties are unableto agree, the telecommunications utility maycondemn so much thereof as is necessary andconvenient in the location and constructionof the poles or lines. The provisions of ORSchapter 35 are applicable to condemnationsunder this section. [1987 c.447 §70]

ACCOUNTS AND RECORDS759.100 [1987 c.447 §5; repealed by 2005 c.232 §14]759.105 [1989 c.484 §7; renumbered 759.219 in 2005]759.110 [1987 c.447 §6; repealed by 2005 c.232 §14]759.115 [1987 c.447 §7; repealed by 2005 c.232 §14]

759.120 Form and manner of accountsprescribed by commission. (1) Every tele-communications utility shall keep and renderto the Public Utility Commission, in themanner and form prescribed by the commis-sion, uniform accounts of all business trans-acted. All forms of accounts which may beprescribed by the commission shall conformas nearly as practicable to similar formsprescribed by federal authority.

(2) Every telecommunications utility en-gaged directly or indirectly in any otherbusiness than that of a telecommunicationsutility shall, if required by the commission,keep and render separately to the commis-sion, in like manner and form, the accountsof all such other business, in which case allthe provisions of this chapter shall applywith like force and effect to the accounts andrecords of such other business. [1987 c.447 §8]

759.125 Records and accounts pre-scribed by commission; prohibition onother records or accounts; exception;blanks for reports. (1) The Public UtilityCommission shall prescribe the accounts andrecords required to be kept and every tele-communications utility is required to keepand render its accounts and records accu-rately and faithfully in the manner pre-scribed by the commission and to complywith all directions of the commission relatingto such accounts and records.



(2) No telecommunications utility shallkeep any other accounts or records of itstelecommunications utility business trans-acted than those prescribed or approved bythe commission except such as may be re-quired by the laws of the United States.

(3) The commission shall cause to beprepared suitable blanks for reports for car-rying out the purposes of this chapter, andshall, when necessary, furnish such blanksfor reports to each telecommunications util-ity. [1987 c.447 §9]

759.130 Closing date of accounts; filingbalance sheet; audit. (1) The accounts shallbe closed annually on December 31 and abalance sheet of that date promptly takentherefrom. On or before April 1 following,such balance sheet, together with such otherinformation as the Public Utility Commissionshall prescribe, verified by an officer of thetelecommunications utility, shall be filedwith the commission.

(2) The commission may examine and au-dit any account. Items shall be allocated tothe accounts in the manner prescribed by thecommission. [1987 c.447 §10]

759.135 Depreciation accounts; unde-preciated investment allowed in rates;conditions. (1) Every telecommunicationsutility shall carry a proper and adequate de-preciation account. The Public Utility Com-mission shall ascertain and determine theproper and adequate rates of depreciation ofthe several classes of property of each tele-communications utility. The rates shall besuch as will provide the amounts requiredover and above the expenses of maintenance,to keep such property in a state of efficiencycorresponding to the progress of the indus-try. Each telecommunications utility shallconform its depreciation accounts to therates so ascertained and determined by thecommission. The commission may makechanges in such rates of depreciation fromtime to time as the commission may find tobe necessary.

(2) In the following cases the commissionmay allow in rates, directly or indirectly,amounts on the utility′s books of accountwhich the commission finds represent unde-preciated investment in a utility plant, in-cluding that which has been retired fromservice:

(a) When the retirement is due to ordi-nary wear and tear, casualties, acts of God,acts of governmental authority; or

(b) When the commission finds that theretirement is in the public interest. [1987 c.447§11; 1989 c.956 §3]

RATE REGULATION ANDPROCEDURES; MEASURING

EQUIPMENT759.175 Filing rate schedules and data

with commission. (1) Every telecommuni-cations utility shall file with the PublicUtility Commission, within a time to be fixedby the commission, schedules showing allrates, tolls and charges that the utility hasestablished and that are in force at the timefor any service performed by the utilitywithin the state, or for any service in con-nection with or performed by any utilitycontrolled or operated by the utility. Sched-ules filed with the commission shall be opento public inspection.

(2) Every telecommunications utilityshall file, with and as part of every schedulefiled under subsection (1) of this section, allrules and regulations that in any manner af-fect the rates charged or to be charged forany service.

(3) Where a schedule of joint rates orcharges is or may be in force between twoor more telecommunications utilities, theschedule shall in like manner be printed andfiled with the commission. [1987 c.447 §12; 2005c.232 §15]

759.180 Hearing on reasonableness ofrates; procedures; exceptions. (1)(a) Exceptas provided in ORS 759.195 and 759.410 andORS 759.052, 759.054 or 759.056, wheneverany telecommunications utility files with thePublic Utility Commission any rate orschedule of rates stating or establishing anew rate or schedule of rates or increasingan existing rate or schedule of rates, thecommission may, either upon written com-plaint or upon the commission′s own initi-ative, after reasonable notice, conduct ahearing to determine the propriety and rea-sonableness of the rate or schedule. Thecommission shall conduct the hearing uponwritten complaint filed by the telecommuni-cations utility, its customer or customers, orany other proper party within 60 days of thetelecommunications utility′s filing. A hearingneed not be held if the particular ratechange is the result of an automatic adjust-ment clause. At the hearing the telecommu-nications utility shall bear the burden ofshowing that the rate or schedule of ratesproposed to be established or increased orchanged is just and reasonable.

(b) As used in this subsection, “automaticadjustment clause” means a provision of arate schedule, authorized pursuant to ORS759.195 (6), that provides for rate increases,decreases or both, without prior hearing, re-flecting increases, decreases or both in costsincurred by a telecommunications utility andthat is subject to review by the commissionat least once every two years.



(2) The commission and staff may consultat any time with, and provide technical as-sistance to, telecommunications utilities,their customers, and other interested partieson matters relevant to utility rates andcharges. If a hearing is held with respect toa rate change, the decisions of the commis-sion shall be based on the record made at thehearing. [1987 c.447 §13; 1989 c.5 §16; 2005 c.232 §16]

759.182 Rate schedules for servicepromotions; rules. (1) A telecommuni-cations utility may file rate schedules forservice promotions that are offered by theutility for the purpose of:

(a) Increasing the use of the utility′s ser-vices by present or future customers;

(b) Preventing a decrease in the use ofthe utility′s services by present or futurecustomers; or

(c) Inducing any person to use the utili-ty′s services instead of a competing provid-er′s services.

(2) The rates charged under a servicepromotion by a telecommunications utilitymust be adequate to ensure that:

(a) The utility will recover an amountequal to the sum of the total service long runincremental cost of providing the nonessen-tial functions of the service and the pricethat is charged to other telecommunicationscarriers for the essential functions; and

(b) The utility will recover the amountunder paragraph (a) of this subsection duringthe average time that customers use the ser-vice.

(3) Notwithstanding ORS 759.190, servicepromotion rate schedules become effectiveupon filing with the Public Utility Commis-sion.

(4) The commission shall adopt rulesgoverning service promotion rate schedulesfiled under this section. [2001 c.309 §2]

Note: 759.182 was added to and made a part of759.180 to 759.190 by legislative action but was notadded to any other series. See Preface to Oregon Re-vised Statutes for further explanation.

759.185 Suspension of rates pendinghearing; time limitation; refund of re-venue collected; interim rates. (1) ThePublic Utility Commission may, pending suchinvestigation and determination, order thesuspension of the rate or schedule of rates,provided the initial period of suspension shallnot extend more than six months beyond thetime when such rate or schedule would oth-erwise go into effect. If the commission findsthat the investigation will not be completedat the expiration of the initial suspension,the commission may enter an order furthersuspending such rate or schedule for notmore than three months beyond the last dayof the initial suspension.

(2) This section does not prevent thecommission and the telecommunications util-ity from entering into a written stipulationat any time extending any period of suspen-sion.

(3) After full hearing, whether completedbefore or after such rate or schedule hasgone into effect, the commission may makesuch order in reference thereto as would beproper in a proceeding initiated after suchrate or schedule has become effective.

(4) If the commission is required to ordetermines to conduct a hearing on a rate orschedule of rates filed pursuant to ORS759.180, but does not order a suspensionthereof, any increased revenue collected bythe telecommunications utility as a result ofsuch rate or rate schedule becoming effectiveshall be received subject to being refunded.If the rate or rate schedule thereafter ap-proved by the commission is for a lesser in-crease or for no increase, thetelecommunications utility shall refund theamount of revenues received that exceeds theamount approved as nearly as possible to thecustomers from whom such excess revenueswere collected, by a credit against futurebills or otherwise, in such manner as thecommission orders.

(5) The commission may, in a suspensionorder, authorize an interim rate or rateschedule under which the telecommuni-cations utility′s revenues will be increasedby an amount deemed reasonable by thecommission, not exceeding the amount re-quested by the telecommunications utility.An interim rate or rate schedule shall re-main in effect until terminated by the com-mission. [1987 c.447 §14]

759.190 Notice of schedule change. Nochange shall be made in any schedule, in-cluding schedules of joint rates, except upon30 days′ notice to the Public Utility Com-mission. All changes shall be plainly indi-cated upon existing schedules, or by filingnew schedules in lieu thereof 30 days priorto the time they are to take effect. However,the commission, for good cause shown, mayallow changes without requiring the 30 days′notice by filing an order specifying thechanges to be made and the time when theyshall take effect. [1987 c.447 §15]

759.195 Price listing of services; con-ditions; maximum rates; essential ser-vices; justification by utility of rates forprice-listed services. (1) Except as providedin subsection (6) of this section, upon peti-tion of a telecommunications utility thatprovides local exchange service directly, oris affiliated with a utility that provides localexchange service, and after notice and hear-ing, the Public Utility Commission may au-



thorize the utility to set rates for toll andother telecommunications services by filinga price list containing the price and termsfor the service. The price list or any revisionof the price list is not subject to the pro-visions of ORS 759.180 to 759.190 and shallbecome effective as determined by the com-mission. The commission may prescribe con-ditions on an authorization to establish ratesby price list, including conditions relating tothe sharing of revenues received by the util-ity that are in excess of allowances providedfor in the order of authorization.

(2) Telecommunications utilities thatprovide telecommunications services only be-tween exchanges and are not affiliated witha utility that provides local exchange servicemay establish rates by price list withoutspecial authorization from the commission.

(3) Prior to granting a petition to setrates by price list under this section, thecommission shall find that pricing flexibility:

(a) Is reasonably necessary to enable theutility to respond to current and future com-petitive conditions for any or all telecommu-nications services;

(b) Will maintain the appropriate balancebetween the need for price flexibility and theprotection of consumers;

(c) Is likely to benefit the consumers offixed rate services; and

(d) Is unlikely to cause any undue harmto any customer class.

(4) A rate set for a service by a utilitymay not be lower than the long run incre-mental cost of providing the service.

(5) Upon its own motion the commissionmay fix maximum rate levels and terms ofservice for price listed services and for tollservices on noncompetitive routes. Upon re-quest of any affected person, the commissionshall fix maximum rate levels and terms ofservice for price listed services not subjectto competition and for toll services on non-competitive routes.

(6) By rule, the commission shall desig-nate local exchange services that it deemsessential, and rates for such services shallbe prescribed under ORS 759.180 to 759.190.The commission also may authorize auto-matic adjustment clauses which reflect in-creases, decreases, or both, in particularcosts incurred by the utility. For the pur-poses of this subsection, “essential services”need not be essential for all classes of cus-tomers.

(7) The commission may, at any time, or-der a telecommunications utility to appearand establish that any of its price listed ratesare just and reasonable and in conformitywith the requirements of this section and the

authorization to price list issued by thecommission. Price listed rates shall also besubject to complaint under ORS 756.500.[Formerly 757.850; 2005 c.232 §13a]

759.200 Inclusion of amortizations inrates; deferral of certain expenses or re-venues; limitation on amounts; prohib-ited uses. (1) In addition to powersotherwise vested in the Public Utility Com-mission, and subject to the limitations con-tained in subsection (5) of this section, underamortization schedules set by the commis-sion, a rate or rate schedule may reflect thefollowing:

(a) Amounts lawfully imposed retro-actively by order of another governmentalagency; or

(b) Amounts deferred under subsection(2) of this section.

(2) Upon application of a telecommuni-cations utility or ratepayer or upon the com-mission′s own motion and after public noticeand opportunity for comment, the commis-sion by order may authorize deferral, forlater incorporation in rates, telecommuni-cations utility expenses or revenues, the re-covery or refund of which the commissionfinds should be deferred in order to minimizethe frequency of rate changes or the fluctu-ation of rate levels or to match appropriatelythe costs borne by and benefits received byratepayers. The authority under this subsec-tion is limited to the following accounts:

(a) Increases or decreases in amounts in-curred by a telecommunications utility re-sulting from changes in jurisdictionalseparations approved by the Federal Commu-nications Commission;

(b) Increases or decreases in amounts in-curred by a telecommunications utility re-sulting from changes in depreciation rates oramortization schedules approved by the com-mission;

(c) Increases or decreases in amounts in-curred by a telecommunications utility re-sulting from changes in income, excise,franchise or ad valorem taxes by the federal,state or local governments;

(d) Increases or decreases in amounts in-curred by a telecommunications utility re-sulting from restoration oftelecommunications services interrupted byfloods, fires, earthquakes, storms or otheracts of nature;

(e) Increases or decreases in amounts in-curred by a telecommunications utility forresearch, development, planning and advanceadvertising for products and services not yetin service;

(f) Increases or decreases in amounts in-curred by a telecommunications utility for



telephone plant transfers and property salesapproved by the commission;

(g) Increases or decreases in amounts in-curred by a telecommunications utility fromaffiliated interest contracts and transactionsapproved by the commission;

(h) Increases or decreases in amounts in-curred by a telecommunications utility fromattorney′s fees, court settlements and courtawards;

(i) Increases or decreases in amounts in-curred by a telecommunications utility re-sulting from changes in accounting methodsapproved by the commission; and

(j) Increases or decreases in amounts in-curred by a telecommunications utility fromcustomer service contracts, intercompanyservice contracts and joint and through ser-vice arrangements.

(3) The commission may authorize defer-rals under subsection (2) of this section be-ginning with the date of application, togetherwith interest established by the commission.A deferral may be authorized for a period notto exceed 12 months beginning on or afterthe date of application.

(4) Unless subject to an automatic ad-justment clause under ORS 759.180, amountsdescribed in this section shall be allowed inrates only to the extent authorized by thecommission in a proceeding to change ratesand upon review of the utility′s earnings atthe time of application to amortize thedeferral.

(5) In any one year, the overall averagerate impact of the amortizations authorizedunder this section shall not exceed threepercent of the telecommunications utility′sgross revenues for the preceding calendaryear.

(6) The provisions of this section may beused as a means of deferring the effect ofreadily identifiable and readily measurablechanges in particular costs or revenues of atelecommunications utility, but shall not beused to implement a claim for an increase ordecrease in the overall revenue requirementof a telecommunications utility when theamount of the change or changes would notbe known until the completion of a rate case.[1989 c.929 §2]

759.205 Conformance of rates chargedwith schedule. No telecommunications util-ity shall charge, demand, collect or receivea greater or less compensation for any ser-vice performed by it within the state, or forany service in connection therewith, than isspecified in printed rate schedules as may atthe time be in force, or demand, collect orreceive any rate not specified in such sched-

ule. The rates named therein are the lawfulrates until they are changed as provided inthis chapter. [1987 c.447 §16]

759.210 Classification of service andrates; considerations. (1) The Public UtilityCommission shall provide for a comprehen-sive classification of service for each tele-communications utility. The classificationmay take into account the quantity used, thetime when used, the purpose for which used,the existence of price competition or a ser-vice alternative, the services being provided,the conditions of service and any other rea-sonable consideration. Based on these con-siderations the commission may authorizeclassifications or schedules of rates applica-ble to individual customers or groups of cus-tomers. Each telecommunications utility isrequired to conform its schedules of rates tosuch classification. If the commission deter-mines that a tariff filing under ORS 759.175results in a rate classification primarily re-lated to price competition or a service alter-native, the commission, at a minimum, shallconsider the following:

(a) Whether the rate generates revenuesat least sufficient to cover relevant short andlong run costs of the utility during the termof the rates; and

(b) Whether the rate generates revenuessufficient to insure that just and reasonablerates are established for remaining custom-ers of the telecommunications utility.

(2) The commission may prescribe anychanges in the form in which the schedulesare issued by any telecommunications utilityas the commission finds to be expedient. Thecommission shall adopt rules that allow anyperson who requests notice of tariff filingsdescribed under subsection (1) of this sectionto receive such notice. [1987 c.447 §17; 1989 c.5§17; 2005 c.232 §18]

759.215 Public access to schedules. (1)A copy of so much of all schedules, includingschedules of joint rates and charges, as thePublic Utility Commission deems necessaryfor the use of the public, shall be madeavailable to the public.

(2) Except as provided in ORS 759.410 (8),copies of all new schedules shall be madereadily accessible to the public as requiredby the commission 30 days prior to the timethe schedules are to take effect, unless thecommission prescribes a shorter time. [1987c.447 §18; 2005 c.232 §19]

759.217 Effect of tax credit under ORS315.511. The Public Utility Commission maynot require a reduction in a rate or a sched-ule of rates as a result of a tax credit underORS 315.511 being allowed to a telecommu-nications utility. [2001 c.957 §17]



759.218 Revenues and expenses of un-regulated activities. (1) A telecommuni-cations utility may not use revenues earnedfrom, or allocate expenses to, that portion ofthe utility′s business that is regulated underthis chapter in order to subsidize activitiesthat are not regulated by this chapter.

(2) The Public Utility Commission maynot require revenues or expenses from anactivity that is not regulated under thischapter to be attributed to the regulated ac-tivities of a telecommunications utility.

(3) The commission may approve a tele-communications utility rate proposal forbasic local service rates that utilizes reven-ues from other regulated services to partiallycover the costs of providing basic local ser-vice. [2005 c.232 §4]

759.219 Certain taxes as operating ex-pense; charge pro rata to users; condi-tion. The privilege tax authorized by ORS221.515, or other similar exactions imposedby any municipality in this state upon tele-communications utilities for use and occu-pancy of streets, alleys or highways, or allof them, shall be allowed as an operating ex-pense of the affected telecommunicationsutilities operating in the municipality forrate-making purposes by the Public UtilityCommission. The cost of such privilege taxor other similar exactions shall be chargedpro rata to the users of such telecommuni-cations utility within the municipality unlessthe Public Utility Commission determines ona statewide basis that such pro rata chargeswould be inequitable, in whole or in part, tocity ratepayers or should otherwise be borneas a statewide operating expense by the tele-communications utility. [Formerly 759.105]

759.220 Joint rates and classifications;procedure; considerations. (1) A telecom-munications utility may establish reasonablethrough service and joint rates and classi-fications with other telecommunicationsutilities. Telecommunications utilities estab-lishing joint rates shall establish just andreasonable regulations and practices in con-nection therewith and just, reasonable andequitable divisions thereof, as between thepublic utilities participating therein whichshall not unduly prefer or prejudice any ofthe participating telecommunications utili-ties and every unjust and unreasonable rate,classification, regulation, practice and divi-sion is prohibited.

(2) The Public Utility Commission may,and shall, whenever deemed by the commis-sion to be necessary or desirable in the pub-lic interest, after full hearing uponcomplaint, or upon the commission′s own in-itiative without complaint, establish through

service, classifications and joint rates, thedivisions of such rates and the terms andconditions under which such through serviceshall be rendered. If any tariff or schedulecanceling any through service or joint rateor classification without the consent of allthe telecommunications utilities partythereto, or authorization by the commissionis suspended by the commission for investi-gation, the burden of proof is upon the tele-communications utility proposing suchcancellation to show that it is consistentwith the public interest.

(3) Whenever, after full hearing uponcomplaint or upon the commission′s own ini-tiative without complaint, the commission isof the opinion that the divisions of jointrates between the telecommunications utili-ties are or will be unjust, unreasonable, in-equitable or unduly preferential orprejudicial as between the telecommuni-cations utilities party thereto, whetheragreed upon by such telecommunicationsutilities or otherwise established, the com-mission shall, by order, prescribe the just,reasonable and equitable divisions thereof tobe received by the several telecommuni-cations utilities. In cases where the jointrate was established pursuant to the findingor order of the commission and the divisionsthereto are found by the commission to havebeen unjust, unreasonable or inequitable, orunduly preferential or prejudicial, the com-mission may also by order determine what,for the period subsequent to the filing of thecomplaint or petition or the making of theorder of investigation, would have been thejust, reasonable and equitable divisionthereof to be received by the several tele-communications utilities and require adjust-ment to be made in accordance therewith.

(4) In so prescribing and determining thedivisions of joint rates, the commission shallgive due consideration, among other things,to:

(a) The efficiency with which the tele-communications utilities concerned are oper-ated;

(b) The amount of revenue to pay theirrespective operating expenses, taxes and afair return on their telecommunications util-ity property held for and used in service;

(c) The importance to the public of theservices of such telecommunications utilities;

(d) Whether any particular participatingtelecommunications utility is an originating,intermediate or delivering utility; and

(e) Any other fact or circumstance whichordinarily would entitle one telecommuni-cations utility to a greater or less proportionof the joint rate than another. [1987 c.447 §19]



759.225 Application of ORS 759.220 tounincorporated associations and cooper-ative corporations. Notwithstanding anyother provision of law, ORS 759.220 appliesto any unincorporated association or cooper-ative corporation providing intrastate tele-communications service. The application ofORS 759.220 to unincorporated associationsand cooperative corporations:

(1) Does not allow the Public UtilityCommission to establish terms, conditions,classifications or rates for services renderedto members of unincorporated associationsor cooperative corporations;

(2) Does not make unincorporated associ-ations or cooperative corporations subject tothe commission′s general powers of regu-lation;

(3) Allows the commission to regulateaccess charges imposed by unincorporatedassociations and cooperative corporations;and

(4) Requires unincorporated associationsand cooperative corporations to provide in-formation to the commission that the com-mission deems necessary to establish newextended service areas. [Formerly 757.860; 2001c.853 §1]

759.230 Measured service rate forbusiness customers; restriction. (1) Not-withstanding any other provision of thischapter, the Public Utility Commission shallnot authorize a telecommunications utility toimplement a rate schedule that includes op-tional measured service for business custom-ers unless the rate for the service issufficient to defray all costs that must be in-curred to implement the service, includingthe costs of measuring and billing.

(2) As used in this section:(a) “Local exchange telephone service”

means telephone service provided within theboundaries of exchange maps filed with andapproved by the commission.

(b) “Measured service” means local ex-change telephone service, the rate for whichis based upon the number of calls, length ofcalls, distance or time of day. [Formerly 757.835]

759.235 Mandatory measured servicerate; prohibition. (1) The Public UtilityCommission shall be prohibited from requir-ing any call aggregator, telephone customeror class of customers to pay for local ex-change telephone service, or any portionthereof, on a mandatory measured servicebasis.

(2) As used in this section:(a) “Call aggregator” has the meaning

given that term in ORS 759.690.(b) “Measured service” means charging

for local exchange telephone service based

upon number of calls, length of calls, dis-tance, time of day, or any combinationthereof.

(3) Nothing in this section is intended toprohibit the commission from requiring tele-phone customers to pay on a mandatorymeasured service basis for:

(a) Land, marine, or air mobile service.(b) Local exchange telephone service re-

sold at a profit.(4) The commission shall not change

boundaries of local exchange service areasnor take any other actions if such changesor actions have the effect of circumventingsubsections (1) and (2) of this section.[Formerly 757.840; 1997 c.317 §1]

759.240 Measuring quality of service;standards; rules. (1) The Public UtilityCommission shall ascertain and prescribe foreach kind of telecommunications utility suit-able and convenient standard commercialunits of service. These shall be lawful unitsfor the purposes of this chapter.

(2) The commission shall ascertain andfix adequate and serviceable standards forthe measurement of quality, pressure, initialvoltage or other conditions pertaining to thesupply of the service rendered by any tele-communications utility and prescribe reason-able regulations for examination and testingof such service and for the measurementthereof. It shall establish reasonable rules,regulations, specifications and standards tosecure the accuracy of all meters and appli-ances for the measurements, and every tele-communications utility is required to carryinto effect all orders issued by the commis-sion relative thereto. [1987 c.447 §20]

759.245 Examination and testing ofmeasuring appliances. (1) The Public Util-ity Commission may provide for the exam-ination and testing of any and all appliancesused for the measuring of any service of atelecommunications utility and may provideby rule that no such appliance shall be in-stalled and used for the measuring of anyservice of any telecommunications utilityuntil it has been examined and tested by thecommission and found to be accurate.

(2) The commission shall declare and es-tablish a reasonable fee governing the costof such examination and test, which shall bepaid to the commission by the telecommuni-cations utility.

(3) The commission shall declare and es-tablish reasonable fees for the testing of suchappliances on the application of the cus-tomer, the fee to be paid by the customer atthe time of the customer′s request, but to berepaid to the customer by the commission



and to be paid by the telecommunicationsutility if the appliance is found defective orincorrect to the disadvantage of the customeror used beyond such reasonable limit as maybe prescribed by the commission.

(4) All fees collected under the provisionsof this section shall be paid by the commis-sion into the State Treasury.

(5) The commission may purchase suchmaterials, apparatus and standard measuringinstruments for the examination and tests asthe commission deems necessary. [1987 c.447§21]

759.250 Contracts for special services;procedure for filing and approval; subse-quent review and investigation. (1) A tele-communications utility may enter into acontract with any customer for the provisionof a telecommunications service that thePublic Utility Commission determines is anew service with limited availability, is de-signed to respond to a unique customer re-quirement or is subject to competition.Contracts shall be for a stated time period,not to exceed five years. If a contract in-cludes competitive and noncompetitive ser-vice elements, the noncompetitive serviceelements shall be unbundled and priced sep-arately from all other facilities and serviceelements in the contract. Such noncompet-itive service elements shall be made avail-able to all purchasers under the same orsubstantially the same circumstances at thesame rate, terms and conditions.

(2) The telecommunications utility shallfile any contract with the commission nolater than 90 days following its effectivedate. At the customer′s request, the telecom-munications utility shall file the contract atleast 30 days in advance of the effective date.Notice of the filing of the contract shall begiven by the commission to all persons whohave filed with the commission a petition toreceive such notice.

(3) Contracts entered into under thissection are not schedules of rates, tolls orcharges within the meaning of ORS 759.175.A contract entered into under this sectionshall be enforceable by the contracting par-ties according to its terms, unless the con-tract has been rejected by the commission asprovided in this section.

(4) Notwithstanding ORS 759.175 to759.185, the commission shall approve anycontract for a telecommunications serviceentered into under this section if the com-mission finds the following:

(a) The telecommunications service is anew service with limited availability, is de-signed to respond to a unique customer re-quirement or is subject to competition. Inmaking the determination of whether a ser-

vice is subject to competition, the commis-sion shall consider whether the customermight reasonably have chosen an alternativeto the telecommunications utility′s service.

(b) The contracted price for the telecom-munications service is above the long runincremental costs of providing such serviceduring the term of the contract. In makingthis calculation for a contract that includesboth competitive and noncompetitive serviceelements, the commission shall consider sep-arately whether the competitive service ele-ments are priced above the long runincremental costs of providing such serviceelements.

(c) The contracted price for the telecom-munications service includes all costs ofproviding such service, including the ratethat would be charged by a telecommuni-cations utility to any competitive telecom-munications provider for any componentessential to the competitive telecommuni-cations provider′s ability to offer the tele-communications service. The commissionshall determine which components of theservice shall be deemed essential and themethod to include prices of those componentsin costs of such services.

(5) The commission shall issue an orderregarding any contract filed under subsection(2) of this section within 90 days of the filing.If the commission does not act within 90days of the filing, the contract shall bedeemed approved. If the commission disap-proves the contract, it shall enter an orderdescribing the ways in which the contractfails to meet the standards set forth in sub-section (4) of this section and declaring thecontract null and void. The telecommuni-cations utility or customer may request thatthe commission hold a hearing to determinewhether the order should continue in effect.Any such request for hearing shall be sub-mitted to the commission not later than 15days after the date of service of the order,and the commission shall hold the hearingnot later than 60 days after receipt of suchrequest for hearing.

(6) Notwithstanding ORS 192.410 to192.505, the commission shall not disclosethe identity of a customer or any customerproprietary information contained in a con-tract filed under subsection (2) of this sectionwithout the consent of the customer and thetelecommunications utility.

(7) No contract filed under subsection (2)of this section may be automatically re-newed. A contract renewal shall be treatedas a new contract.

(8) Nothing in this section shall bedeemed state action for the purpose of ex-empting a telecommunications utility from



liability for anticompetitive conduct or otherunlawful practices.

(9) Any contract executed prior to Sep-tember 29, 1991, and approved by the com-mission is deemed lawful and shall beenforceable by the contracting parties ac-cording to its terms. A contract renewalshall be deemed a new contract.

(10) Nothing in this section shall restrictthe commission from subsequent scrutiny ofthe reasonableness of contracts filed underthis section for ratemaking purposes.

(11) In accordance with ORS 756.515, thecommission may investigate contracts filedby a specific telecommunications utility un-der this section. Notwithstanding any otherprovision of this section, if the commissionfinds that contracts entered into by a tele-communications utility have not generallybeen in the public interest, the commission,by order, may prevent or restrict the tele-communications utility from future contract-ing pursuant to this section and may requirethe telecommunications utility to file con-tracts under ORS 759.175. [1991 c.527 §2]

759.255 Setting prices without regardto return on utility investment; petition;findings; conditions; application of stat-utes to approved plan. (1) In addition topowers vested in the Public Utility Commis-sion under ORS 759.195, and subject to thelimitations contained in subsections (2) to (4)of this section, upon petition of a telecom-munications utility that provides local ex-change service directly, or is affiliated witha utility that provides local exchange service,the commission, after notice and hearing,may approve a plan under which the com-mission regulates prices charged by the util-ity, without regard to the return oninvestment of the utility. Prices approvedunder the plan are not subject to the pro-visions of ORS 759.180 to 759.190 and shallbecome effective as stated in the plan.

(2) Prior to granting a petition to approvea plan under subsection (1) of this section,the commission must find that the plan is inthe public interest. In making its determi-nation the commission shall consider, amongother matters, whether the plan:

(a) Ensures prices for telecommuni-cations services that are just and reasonable;

(b) Ensures high quality of existing tele-communications services and makes newservices available;

(c) Maintains the appropriate balance be-tween the need for regulation and competi-tion; and

(d) Simplifies regulation.(3) If the commission approves a plan

under subsection (1) of this section, the

commission shall establish objectives of theplan and conditions for review of the planduring the operation of the plan. The com-mission may not consider return on invest-ment of the utility when the commissionestablishes objectives of the plan and condi-tions for review of the plan during the oper-ation of the plan.

(4) A rate for any service in the plan au-thorized under subsection (1) of this sectionmay not be lower than the total service longrun incremental cost, for nonessential func-tions, of providing the service and thecharges of essential functions used in pro-viding the service. However, the commissionmay allow a telecommunications utility toestablish rates for residential local exchangeservice at any level necessary to achieve thecommission′s universal service objectives.

(5) If the commission approves a planunder subsection (1) of this section, thecommission may waive, in whole or in part,compliance by the telecommunications utilitywith ORS 759.120, 759.125, 759.130, 759.135,759.180 to 759.205, 759.215, 759.220, 759.285and 759.300 to 759.393. [1995 c.399 §2; 2005 c.232§13b]

759.257 Extended area service: Port-land to Scappoose. (1) Two-way, flat rate ormeasured extended area service shall be pro-vided by each telecommunications utilityproviding service between the Portland EASRegion and the Scappoose Exchange, as de-scribed by EAS and exchange maps filed withand approved by the Public Utility Commis-sion.

(2) The service provided for in subsection(1) of this section may be implemented dur-ing the currently pending Portland EAS Re-gion Expansion, but in no event shall suchimplementation occur later than November1, 1998.

(3) Nothing in subsection (1) of this sec-tion authorizes a telecommunications utilityto discontinue two-way, flat rate or measuredextended area service in any exchange areawhere that service was provided prior to Oc-tober 4, 1997. [1997 c.796 §2]

759.259 Extended area service: Port-land to Molalla. (1) Two-way, flat rate ormeasured extended area service shall be pro-vided by each telecommunications utilityproviding service between the Portland EASRegion and the Molalla Exchange, as de-scribed by EAS and exchange maps filed withand approved by the Public Utility Commis-sion.

(2) The service provided for in subsection(1) of this section may be implemented dur-ing the currently pending Portland EAS Re-gion Expansion, but in no event shall suchimplementation occur later than November



1, 1998, after approval by customers of theMolalla Exchange.

(3) Nothing in subsection (1) of this sec-tion authorizes a telecommunications utilityto discontinue two-way, flat rate or measuredextended area service in any exchange areawhere the service was provided prior to Oc-tober 4, 1997. [1997 c.505 §2]

ILLEGAL PRACTICES759.260 Unjust discrimination in rates.

(1) Except as provided in ORS 759.265, notelecommunications utility or any agent orofficer thereof shall, directly or indirectly, byany device, charge, demand, collect or re-ceive from any person a greater or less com-pensation for any service rendered or to berendered by it than:

(a) That prescribed in the public sched-ules or tariffs then in force or established;or

(b) It charges, demands, collects or re-ceives from any other person for a like andcontemporaneous service under substantiallysimilar circumstances. A difference in ratesor charges based upon a difference in classi-fication pursuant to ORS 759.210 shall notconstitute a violation of this paragraph.

(2) Any telecommunications utility vio-lating this section is guilty of unjust dis-crimination. [1987 c.447 §46; 1989 c.5 §22; 1993 c.18§165]

759.265 Practices not constituting un-just discrimination. (1) ORS 759.260 doesnot prevent any telecommunications utilityfrom giving free service, or reduced ratestherefor, to:

(a) Its officers, directors, employees andmembers of their families;

(b) Former employees of such telecom-munications utilities or members of theirfamilies where such former employees havebecome disabled in the service of such tele-communications utility or are unable fromphysical disqualification, including retire-ment, to continue in the service; or

(c) Members of families of deceased em-ployees of such telecommunications utility.

(2) The Public Utility Commission mayrequire any telecommunications utility to filewith the commission a list, verified underoath, of all free or reduced rate privilegesgranted by a telecommunications utility un-der the provisions of this section. [1987 c.447§47]

759.267 Service promotion activities.A telecommunications utility may promotethe use of its services by offering a waiverof part or all of a recurring or a nonrecur-ring charge, a redemption coupon or a pre-

mium with the purchase of a service. ORS759.260 and 759.265 do not apply to pro-motions under this section, but the customergroup to which the promotion is availablemust be based on reasonable distinctionsamong customers. [1993 c.204 §4]

759.270 Reducing rates for personsfurnishing part of facilities; rental ofcustomer facilities; furnishing metersand appliances. (1) No telecommunicationsutility shall demand, charge, collect or re-ceive from any person less compensation forany service rendered or to be rendered bythe telecommunications utility in consider-ation of the furnishing by such person of anypart of the facilities incident thereto.

(2) This section does not prohibit anytelecommunications utility from renting anycustomer′s facilities incident to providing itsservices and for paying a reasonable rentaltherefor.

(3) This section does not require a tele-communications utility to furnish any partof such appliances which are situated in andupon the premises of any customer, exceptmeters and appliances for measurements ofany service, unless otherwise ordered by thePublic Utility Commission. [1987 c.447 §48]

759.275 Undue preferences and preju-dices. (1) No telecommunications utilityshall make or give undue or unreasonablepreference or advantage to any particularperson or locality, or shall subject any par-ticular person or locality to any undue orunreasonable prejudice or disadvantage inany respect.

(2) Any telecommunications utility vio-lating this section is guilty of unjust dis-crimination. [1987 c.447 §49]

759.280 Soliciting or accepting rebatesor special advantage. No person shallknowingly solicit, accept or receive any re-bate, concession or discrimination in respectto any service whereby any such serviceshall, by any device, be rendered free or ata lesser rate than that named in the pub-lished schedules and tariffs in force, orwhereby any service or advantage is receivedother than authorized in this chapter. [1987c.447 §50]

759.285 Charging rates based on costof property not presently providing ser-vice. No telecommunications utility shall,directly or indirectly, by any device, charge,demand, collect or receive from any cus-tomer, rates which are derived from a ratebase which includes within it any construc-tion, building, installation or real or personalproperty not presently used for providingutility service to the customer. [1987 c.447 §51]

759.290 [1989 c.621 §2; repealed by 2007 c.823 §6]



ISSUANCE OF SECURITIES759.300 “Stocks” defined. As used in

ORS 759.300 to 759.360, “stocks” meansstocks, stock certificates or other evidenceof interest or ownership. [1987 c.447 §28]

759.305 Power to regulate issuance oftelecommunications stocks. The power oftelecommunications utilities to issue stocksand bonds, notes and other evidences of in-debtedness and to create liens on their prop-erty situated within this state is a specialprivilege, the right of supervision, regulation,restriction and control of which is and shallcontinue to be vested in the state. Suchpower shall be exercised as provided by lawand under such rules and regulations as thePublic Utility Commission may prescribe.[1987 c.447 §29]

759.310 When issuance of securitiesvoid. All stocks and bonds, notes or otherevidences of indebtedness and any securityof a telecommunications utility shall be voidwhen issued:

(1) Without an order of the Public UtilityCommission authorizing the same then in ef-fect except as provided in ORS 759.315 (3) or(5).

(2) With the authorization of the com-mission, but not conforming in its provisionsto the provisions, if any, which it is requiredby the order of authorization of the commis-sion to contain; but no failure to comply withthe terms or conditions of the order of au-thorization of the commission and no infor-mality or defect in the application or in theproceedings in connection therewith or withthe issuance of such order shall render voidany stock or bond, note or other evidence ofindebtedness, or security issued pursuant toand in substantial conformity with an orderof the commission, except as to a persontaking the same otherwise than in good faithand for value and without actual notice. [1987c.447 §30; 1993 c.204 §1]

759.315 Purposes for which securitiesmay be issued; order required; excep-tions. (1) A telecommunications utility mayissue stocks and bonds, notes and other evi-dences of indebtedness, and securities for thefollowing purposes and no others, except asotherwise permitted by subsection (4) of thissection:

(a) The acquisition of property, or theconstruction, completion, extension or im-provement of its facilities.

(b) The improvement or maintenance ofits service.

(c) The discharge or lawful refunding ofits obligations.

(d) The reimbursement of money actuallyexpended from income or from any other

money in the treasury of the telecommuni-cations utility not secured by or obtainedfrom the issue of stocks or bonds, notes orother evidences of indebtedness, or securitiesof such telecommunications utility, for anyof the purposes listed in paragraphs (a) to (c)of this subsection except the maintenance ofservice and replacements, in cases where theapplicant has kept its accounts and vouchersfor such expenditures in such manner as toenable the Public Utility Commission to as-certain the amount of money so expendedand the purposes for which such expendi-tures were made.

(e) The compliance with terms and con-ditions of options granted to its employees topurchase its stock, if the commission firstfinds that such terms and conditions arereasonable and in the public interest.

(2) Before issuing such securities, a tele-communications utility, in addition to theother requirements of law, shall secure fromthe commission upon application an orderauthorizing such issue, stating:

(a) The amount of the issue and the pur-poses to which the issue or the proceedsthereof are to be applied;

(b) In the opinion of the commission, themoney, property or labor to be procured orpaid for by such issue reasonably is requiredfor the purposes specified in the order andcompatible with the public interest, which isnecessary or appropriate for or consistentwith the proper performance by the applicantof service as a telecommunications utility,and will not impair its ability to perform thatservice; and

(c) Except as otherwise permitted in theorder in the case of bonds, notes or otherevidences of indebtedness, such purposes arenot, in whole or in part, reasonably chargea-ble to operating expenses or to income.

(3) This section and ORS 759.310 apply todemand notes but do not apply to the issu-ance or renewal of a note or evidence of in-debtedness maturing not more than one yearafter date of such issue or renewal.

(4) Nothing in ORS 759.300 to 759.360shall prevent issuance of stock to stockhold-ers as a stock dividend if there has been se-cured from the commission an order:

(a) Finding that the stock dividend iscompatible with the public interest;

(b) Authorizing such issue and a transferof surplus to capital in any amount equal tothe par or stated value of the stock so au-thorized; and

(c) Finding that a sum equal to theamount to be so transferred was expended forthe purposes enumerated in subsection (1) ofthis section.



(5) A telecommunications utility that de-rives one-half or more of its gross revenuefrom sources outside this state does not re-quire commission authorization to issuestocks and bonds, notes or other evidencesof indebtedness and any security unless thecommission finds that the authorization re-quirements of ORS 759.310 and subsection (2)of this section are necessary to:

(a) Prevent the telecommunications util-ity from issuing securities for purposes notpermitted under subsection (1) of this sec-tion; or

(b) Prevent impairment of the telecom-munications utility′s ability to provide tele-communications utility services to itscustomers in this state. The commission shalladopt rules that set forth independently de-termined financial indicators upon which thecommission must base any finding of im-paired ability to provide utility telecommuni-cations services. [1987 c.447 §31; 1993 c.204 §2; 2001c.236 §1]

759.320 Application of ORS 759.315.ORS 759.315 does not apply to the issuance,renewal or assumption of liability on any ev-idence of indebtedness when such issuance,renewal or assumption is for the purpose ofacquiring specific real or personal property,if the aggregate principal amount thereof,together with all other then outstanding evi-dences of indebtedness issued, renewed orassumed under this section, does not exceedwhichever is the greater of the followingamounts:

(1) The amount of $75,000.(2) The amount of one-half of one percent

of the sum of:(a) The total principal amount of all

bonds or other securities representing se-cured indebtedness of the telecommuni-cations utility issued or assumed and thenoutstanding; and

(b) The capital and surplus as then statedon the books of account of the telecommuni-cations utility. [1987 c.447 §32]

759.325 Application of ORS 759.375.ORS 759.375 does not apply to any mortgageor other encumbrance upon any real or per-sonal property given to secure payment ofany evidence of indebtedness issued underORS 759.315. [1987 c.447 §33]

759.330 Hearings and supplementalorders for securities issuance; joint ap-proval for issuance by utility operating inanother state. (1) To enable the PublicUtility Commission to determine whether thecommission will issue an order under ORS759.315, the commission may hold a hearingand may make such additional inquiry or in-vestigation, examine such witnesses, books,papers, documents and contracts and require

the filing of such data as the commissiondeems necessary. The application for suchorder shall be given priority and shall bedisposed of by the commission within 30 daysafter the filing of such application, unlessthat period is extended with the consent ofthe telecommunications utility.

(2) The commission may, upon applica-tion of the telecommunications utility, afteropportunity for hearing and for good causeshown, make such supplemental orders in thepremises as the commission finds necessaryor appropriate, and may by any such supple-mental order modify the provisions of anyprevious order as to the particular purposes,uses, extent to which, or the condition underwhich, any security theretofore authorizedor its proceeds may be applied. Such supple-mental orders are subject to the require-ments of ORS 759.315. The period of timepermitted under subsection (1) of this sectionfor disposing of applications shall not applyto supplemental orders.

(3) If a commission or other agency isempowered by another state to regulate andcontrol the amount and character of securi-ties to be issued by any telecommunicationsutility within such other state, the commis-sion of Oregon has power to agree with suchcommission or agency of such other state onthe issue of stocks, bonds, notes, other evi-dences of indebtedness or securities by atelecommunications utility owning or operat-ing a telecommunications utility both in suchstate and in this state, and has power to ap-prove such issue jointly with such commis-sion or agency and to issue a joint certificateof such approval. However, no such jointapproval is required in order to express theconsent to and approval of such issue by theState of Oregon if the issue is separately ap-proved by the Oregon commission. [1987 c.447§34]

759.335 Obligation of state as conse-quence of approval of issuance. No pro-vision of ORS 759.300 to 759.360, and no deedor act done or performed under or in con-nection therewith, shall be held or construedto obligate the State of Oregon to pay orguarantee, in any manner whatsoever, anystock or bond, note or other evidence of in-debtedness, authorized, issued or executedunder the provisions of ORS 759.300 to759.360. [1987 c.447 §35]

759.340 Conditional approval of issu-ance. The Public Utility Commission may byorder grant permission for the issue of stocksor bonds, notes or other evidences of indebt-edness in the amount applied for, or in alesser amount, or not at all, and may attachto the exercise of the permission such condi-tion or conditions as the commission deemsreasonable and necessary. [1987 c.447 §36]



759.345 Use of proceeds from issuance;accounting. (1) No telecommunications util-ity shall, without the consent of the PublicUtility Commission, apply the issue of anystock or bond, note or other evidence of in-debtedness, or any part or proceeds thereof,to any purpose not specified in the commis-sion′s order, or to any purpose specified inthe commission′s order in excess of theamount authorized for such purpose, or issueor dispose of the same on any terms less fa-vorable than those specified in such order,or a modification thereof.

(2) The commission has power to requiretelecommunications utilities to account forthe disposition of the proceeds of all sales ofstocks and bonds, notes and other evidencesof indebtedness, in such form and detail asthe commission deems advisable, and to es-tablish such rules and regulations as thecommission deems reasonable and necessaryto insure the disposition of such proceeds forthe purpose or purposes specified in the or-der. [1987 c.447 §37]

759.350 Limitation on authority ofutility to guarantee debt of another. Notelecommunications utility shall assume anyobligation or liability as guarantor, indorser,surety or otherwise in respect to the securi-ties of any other person, firm or corporation,when such securities are payable at periodsof more than 12 months after the datethereof, without first having secured fromthe Public Utility Commission an order au-thorizing it to do so. Every assumption madeother than in accordance with such an orderis void. [1987 c.447 §38]

759.355 Issuance or use of proceedscontrary to commission order. No tele-communications utility shall directly or indi-rectly, issue or cause to be issued any stockor bond, note or other evidence of indebted-ness in nonconformity with the order of thePublic Utility Commission authorizing thesame or contrary to the provisions of ORS759.300 to 759.360, or of the Constitution ofthis state, or apply the proceeds from thesale thereof, or any part thereof, to any pur-pose other than the purposes specified in thecommission′s order, or to any purpose speci-fied in the commission′s order, in excess ofthe amount in the order authorized for suchpurpose. [1987 c.447 §39]

759.360 Prohibited acts regarding is-suance of securities. No person shall:

(1) Knowingly authorize, direct, aid in,issue or execute, or cause to be issued orexecuted, any stock or bond, note or otherevidence of indebtedness, in nonconformitywith the order of the Public Utility Commis-sion authorizing the same, or contrary to theprovisions of ORS 759.300 to 759.360 or of theConstitution of this state.

(2) In any proceeding before the commis-sion, knowingly make any false statement orrepresentation or with knowledge of its fal-sity file or cause to be filed with the com-mission any false statement or representationwhich may tend in any way to influence thecommission to make an order authorizing theissue of any stock or bond, note or other ev-idence of indebtedness, or which results inprocuring from the commission the makingof any such order.

(3) With knowledge that any false state-ment or representation was made to thecommission in any proceeding tending in anyway to influence the commission to makesuch order, issue, execute or negotiate, orcause to be issued, executed or negotiated,any stock or bond, note or other evidence ofindebtedness.

(4) Directly or indirectly, knowingly ap-ply, or cause or assist to be applied, the pro-ceeds, or any part thereof, from the sale ofany stock or bond, note or other evidence ofindebtedness, to any purpose not specified inthe commission′s order, or to any purposespecified in the commission′s order in excessof the amount authorized for such purpose.

(5) With knowledge that any stock orbond, note or other evidence of indebtedness,has been issued or executed in violation ofORS 759.300 to 759.360, negotiate, or causethe same to be negotiated. [1987 c.447 §40]

TRANSACTIONS OF UTILITIES759.375 Approval prior to sale, mort-

gage or disposal of operative utilityproperty. (1) A telecommunications utilitydoing business in Oregon shall not, withoutfirst obtaining the Public Utility Commis-sion′s approval of such transaction:

(a) Sell, lease, assign or otherwise dis-pose of the whole of the property of suchtelecommunications utility necessary or use-ful in the performance of its duties to thepublic or any part thereof of a value in ex-cess of $100,000, or sell, lease, assign or oth-erwise dispose of any franchise, permit orright to maintain and operate such telecom-munications utility or telecommunicationsutility property, or perform any service as atelecommunications utility;

(b) Mortgage or otherwise encumber thewhole or any part of the property of suchtelecommunications utility necessary or use-ful in the performance of its duties to thepublic, including any franchise, permit orright to maintain and operate such telecom-munications utility or telecommunicationsutility property, or perform any service as atelecommunications utility; or

(c) By any means whatsoever, directly orindirectly, merge or consolidate any of its



lines, plant, system or other property what-soever, or franchise or permit to maintain oroperate any telecommunications utility prop-erty, or perform any service as a telecommu-nications utility, or any part thereof, withany other public utility or telecommuni-cations utility.

(2) A telecommunications utility thatsells, leases, assigns or otherwise disposes ofthe whole of the property of such telecom-munications utility necessary or useful in theperformance of its duties to the public or anypart thereof of a value in excess of $25,000,but less than $100,000, shall notify the com-mission of the sale within 60 days followingthe date of the sale.

(3) Every sale, lease, assignment, mort-gage, disposition, encumbrance, merger orconsolidation subject to subsection (1) of thissection made other than in accordance withthe order of the commission authorizing thesame is void.

(4) This section does not prohibit or in-validate the sale, lease or other dispositionby any telecommunications utility of prop-erty which is not necessary or useful in theperformance of its duties to the public. [1987c.447 §41; 1999 c.530 §2]

759.380 Purchase of stock or propertyof another utility. (1) No telecommuni-cations utility shall, directly or indirectly,purchase, acquire or become the owner ofany of the stocks or bonds or property uti-lized for utility purposes and having a valuein excess of $10,000 of any other public util-ity or telecommunications utility unless au-thorized to do so by the Public UtilityCommission.

(2) Every contract by any telecommuni-cations utility for the purchase, acquisition,assignment or transfer to it of any of thestock of any other telecommunications utilityby or through any person, partnership orcorporation without the approval of thecommission shall be void and of no effect,and no such transfer or assignment of suchstock upon the books of the corporation pur-suant to any such contract is effective forany purpose. [1987 c.447 §42]

759.385 Contracts regarding use ofutility property; filing with commission;investigation. (1) When any telecommuni-cations utility doing business in this state,except a telecommunications carrier that haselected to be subject to ORS 759.405 and759.410, enters into a contract with anothercorporation with relation to the construc-tion, operation, maintenance or use of theproperty of the telecommunications utility inOregon, or the use of the property of theother contracting party, or any part of theproperty, or for service, advice, engineering,financing, rentals, leasing or for any con-

struction or management charges with re-spect to any of the property, or for thepurchase of property, materials or supplies,the proposed contract shall be filed with thePublic Utility Commission for investigationand approval when the telecommunicationsutility owns a majority of or controls directlyor indirectly the voting stock of the othercontracting corporations.

(2) Any proposed contract described insubsection (1) of this section shall be filedwith the commission within 90 days of exe-cution of the contract. The contract shall bedeemed to be executed on the date the par-ties sign a written contract or on the datethe parties begin to transact business underthe contract, whichever date is earlier. Thecommission shall promptly investigate andact upon the contract in accordance withORS 759.390 (4) and (7).

(3) In making an investigation of thecontract, the commission and accountants,examiners and agents, appointed by the com-mission for the purpose, shall be given freeaccess to all books, books of account, docu-ments, data and records of the telecommuni-cations utility, as well as of the corporationwith which it is proposing to contract, thatthe commission may deem material to theinvestigation. The failure or refusal of eitherof the parties to the proposed contract tocomply with this subsection is prima facieevidence that the contract is unfair, unrea-sonable and contrary to public interest, andis sufficient to justify a determination andfinding of the commission to that effect. Adetermination and finding by the commissionunder this subsection has the same force andeffect as any other determination or order ofthe commission.

(4) This section applies only to transac-tions in which the telecommunications utili-ty′s Oregon intrastate expenditure to theaffiliate is more than $100,000. [1987 c.447 §43;1989 c.956 §4; 1991 c.899 §1; 1999 c.809 §1; 2005 c.232 §21;2009 c.11 §97]

759.390 Contracts with affiliated in-terests; procedure; use in rate pro-ceedings. (1) As used in this section,“affiliated interest” with a telecommuni-cations utility means:

(a) Every person owning or holding di-rectly or indirectly five percent or more ofthe voting securities of the telecommuni-cations utility.

(b) Every person in any chain of succes-sive ownership of five percent or more of thevoting securities of the telecommunicationsutility.

(c) Every corporation five percent ormore of whose voting securities are ownedby any person owning five percent or more



of the voting securities of the telecommuni-cations utility or by any person in any chainof successive ownership of five percent ormore of the voting securities of the telecom-munications utility.

(d) Every individual who is an officer ordirector of the telecommunications utility orof any person in any chain of successiveownership of five percent or more of thevoting securities of the telecommunicationsutility.

(e) Every corporation that has two ormore officers or two or more directors incommon with the telecommunications utility.

(f) Every entity, five percent or more ofwhich is directly or indirectly owned by atelecommunications utility.

(g) Every person that the Public UtilityCommission determines as a matter of fact,after investigation and hearing, actually isexercising any substantial influence over thepolicies and actions of the telecommuni-cations utility, even though the influence isnot based upon stockholdings, stockholders,directors or officers to the extent specified inthis section.

(h) Every person that the commission de-termines as a matter of fact, after investi-gation and hearing, actually is exercisingsuch substantial influence over the policiesand actions of the telecommunications utilityin conjunction with one or more other per-sons with whom they are related by owner-ship or blood or by action in concert thattogether they are affiliated with the tele-communications utility within the meaningof this section even though no one of themalone is so affiliated.

(2) When any telecommunications utilitydoing business in this state, except a tele-communications carrier that has elected tobe subject to ORS 759.405 and 759.410, entersinto any contract to make any payment, di-rectly or indirectly, to any person having anaffiliated interest, for service, advice, audit-ing, accounting, sponsoring, engineering,managing, operating, financing, legal orother services, or enters any charge on thebooks of the utility, and the contract is tobe recognized as an operating expense orcapital expenditure in any rate valuation orany other hearing or proceeding, the con-tract shall be filed with the commissionwithin 90 days of execution of the contract.The contract shall be deemed to be executedon the date the parties sign a written con-tract or on the date the parties begin totransact business under the contract, which-ever date is earlier.

(3) When any telecommunications utilitydoing business in this state enters into anycontract, oral or written, with any person

having an affiliated interest relating to theconstruction, operation, maintenance, leasingor use of the property of the telecommuni-cations utility in Oregon, or the purchase ofproperty, materials or supplies that is to berecognized as the basis of an operating ex-pense or capital expenditure in any rate val-uation or any other hearing or proceeding,the contract shall be filed with the commis-sion within 90 days of execution of the con-tract. The contract shall be deemed to beexecuted on the date the parties sign a writ-ten contract or on the date the parties beginto transact business under the contract,whichever date is earlier.

(4) The commission promptly shall exam-ine and investigate any contract submittedto the commission under subsection (2) or (3)of this section. If, after the investigation, thecommission determines that it is fair andreasonable and not contrary to the publicinterest, the commission shall enter findingsand order approving the contract and servea copy of the findings and order upon thetelecommunications utility. Following thecommission′s determination of fairness andreasonableness, any expenses and capital ex-penditures incurred by the telecommuni-cations utility under the contract may berecognized in any rate valuation or otherhearing or proceeding. If, after the investi-gation, the commission determines that thecontract is not fair and reasonable in all itsterms and is contrary to the public interest,the commission shall enter findings and or-der disapproving the contract and serve acopy of the findings and order upon the tele-communications utility. Except as providedin subsection (5) of this section, it is unlaw-ful to recognize a disapproved contract forthe purposes specified in this section.

(5) When any contract described in sub-section (2) or (3) of this section has beenfiled with the commission within 90 days ofexecution and the commission has not en-tered an order disapproving the contract un-der subsection (4) of this section, thecommission may not base its refusal to rec-ognize any expenses or capital expendituresincurred under the contract in any rate val-uation or other hearing or proceeding solelyon the basis that the contract has not beenapproved under subsection (4) of this section.

(6) A telecommunications utility may notissue notes or loan its funds or give crediton its books or otherwise to any person hav-ing an affiliated interest, either directly orindirectly, without the approval of the com-mission.

(7) The action of the commission withrespect to all the matters described in thissection shall be by findings and order to beentered within 90 days after the matter has



been submitted to the commission for con-sideration. The telecommunications utility,or any other person affected by any findingsand order of the commission under this sec-tion, may seek judicial review of the orderof the commission. An order of the commis-sion under this section is subject to judicialreview as an order in a contested case in themanner provided by ORS 756.610.

(8) This section applies only to transac-tions in which the telecommunications utili-ty′s Oregon intrastate expenditure to theaffiliate 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]

759.393 Applicability of ORS 759.385and 759.390. (1) Except as provided in sub-section (2) of this section, the filing of pro-posed contracts under ORS 759.385 and759.390 shall constitute a telecommuni-cations utility′s sole reporting obligation un-der ORS 759.385 and 759.390 and the PublicUtility Commission may not require a tele-communications utility to submit annual orother cumulative reports regarding suchcontracts, including contracts with affiliatesof the utility.

(2) On April 1 of each year, every tele-communications utility shall file with thecommission a list of affiliate contracts exe-cuted in the preceding year. The list shallconsist of the names of the parties to thecontracts, the dollar amounts of the con-tracts and the dates of execution of the con-tracts. [1999 c.809 §3]

759.394 [1991 c.899 §4; repealed by 1999 c.809 §5]

759.395 [1987 c.447 §45; repealed by 1991 c.315 §1]

PRICE CAP REGULATION(Generally)

759.400 Definitions. As used in ORS759.400 to 759.455:

(1) “Basic telephone service” means localexchange telecommunications service definedas basic by rule of the Public Utility Com-mission.

(2) “Retail telecommunications service”means a telecommunications service providedfor a fee to customers. “Retail telecommu-nications service” does not include a serviceprovided by one telecommunications carrierto another telecommunications carrier, un-less the carrier receiving the service is theend user of the service.

(3) “Telecommunications carrier” meansany provider of retail telecommunicationsservices, except a call aggregator as definedin ORS 759.690. [1999 c.1093 §23]

759.405 Election of regulation underORS 759.405 and 759.410; conditions; Tele-communications Infrastructure Account;remedy for failure of utility to complywith conditions. (1) A telecommunicationscarrier may elect to be subject to this sec-tion and ORS 759.410. The telecommuni-cations carrier shall notify, in writing, thePublic Utility Commission of its election.Such election shall be effective 30 days afterthe written notification is received by thePublic Utility Commission. A telecommuni-cations carrier that elects to be subject tothis section and ORS 759.410 shall be subjectto the infrastructure investment and priceregulation requirements of this section andORS 759.410 and shall not be subject to anyother regulation based on earnings, rates orrate of return.

(2) A telecommunications carrier thatelects to be subject to this section and ORS759.410 shall establish in its accounts aTelecommunications Infrastructure Account.The telecommunications carrier shall committo its Telecommunications InfrastructureAccount over a four-year period amounts to-taling 20 percent of the telecommunicationscarrier′s gross regulated intrastate revenuefor the calendar year immediately prior tothe year the telecommunications carrierelects to be subject to this section and ORS759.410. Of the total committed amount, 30percent shall be credited to and made avail-able for the purposes of the electing carrier′saccount on the date the telecommunicationscarrier′s election becomes effective. Anelecting telecommunications carrier shallcredit an equal amount on the same date inthe next following year. The electing carriershall credit to its Telecommunications Infra-structure Account an amount equal to 20percent of the total committed amount onthe same date in each of the next followingtwo years.

(3)(a) A telecommunications carrier thatelects to be subject to this section and ORS759.410 shall expend the moneys in the tele-communications carrier′s Telecommuni-cations Infrastructure Account on a plan orplans approved by the Oregon Business De-velopment Commission under ORS 759.430.Subject to paragraphs (c) and (d) of this sub-section, the total amount of capital and otherexpenses associated with completing theprojects shall equal the total amount ofmoneys available in the account.

(b) Moneys in the account shall be usedprimarily to ensure that rural and urban Or-egonians have improved access to telecom-munications technology and services.Expenditures from the account shall be usedfor investment in telecommunications infra-



structure and deployment of new and ad-vanced telecommunications services.

(c)(A) Within 120 days following the ef-fective date of a telecommunications carri-er′s election to be regulated under thissection and ORS 759.410, but not later thanJanuary 1 of the year following the effectivedate of a telecommunications carrier′selection, and on the same date in each of thenext following three years, a telecommuni-cations carrier serving less than one millionaccess lines in Oregon shall transfer 40 per-cent of the moneys most recently credited toits Telecommunications Infrastructure Ac-count to the Connecting Oregon Communi-ties Fund established under ORS 759.445.

(B) Within 120 days following the effec-tive date of a telecommunications carrier′selection to be regulated under this sectionand ORS 759.410, but not later than January1 of the year following the effective date ofa telecommunications carrier′s election, andon the same date in the next following year,a telecommunications carrier serving onemillion or more access lines in Oregon shalltransfer 70 percent of the moneys most re-cently credited to its TelecommunicationsInfrastructure Account to the ConnectingOregon Communities Fund established underORS 759.445.

(d) Notwithstanding ORS 285A.075 (2), ifthe Oregon Business Development Commis-sion determines, following notice and a pub-lic hearing, that the telecommunicationscarrier is not complying with plans or planmodifications approved under ORS 759.430,following notice to the telecommunicationscarrier and reasonable opportunity to cureany noncompliance, the Oregon BusinessDevelopment Commission may require thetelecommunications carrier to transfer anyor all moneys remaining in the carrier′sTelecommunications Infrastructure Account,and any future amounts credited to the ac-count, to the Connecting Oregon Communi-ties Fund established under ORS 759.445.

(4) Nothing in this section affects theauthority of a city or municipality to managethe public rights of way or to require fairand reasonable compensation from a tele-communications carrier, on a competitivelyneutral and nondiscriminatory basis, underORS 221.420, 221.450, 221.510 and 221.515.[1999 c.1093 §24; 2001 c.104 §295]

759.410 Intent of ORS 759.410; estab-lishing maximum and minimum price fortelecommunications services; packagingservices; notice of price change, new ser-vice; enforcement. (1) It is the intent of theLegislative Assembly that:

(a) The State of Oregon cease regulationof telecommunications carriers on a rate ofreturn basis;

(b) Telecommunications carriers subjectto rate of return regulation have the abilityto opt out of rate of return regulation;

(c) A telecommunications carrier thatopts out of rate of return regulation underthis section and ORS 759.405 shall be subjectto price cap regulation and the carrier underprice cap regulation shall continue to meetservice quality requirements; and

(d) Telecommunications carriers that optout of rate of return regulation under thissection and ORS 759.405 shall make pay-ments to the state to support the use of ad-vanced telecommunications services and tosupport deployment of advanced telecommu-nications services.

(2) A telecommunications carrier thatelects to be subject to this section and ORS759.405 shall be subject to price regulationas provided in this section and shall not besubject to any other retail rate regulation,including but not limited to any form ofearnings-based, rate-based or rate of returnregulation.

(3) The price a telecommunications util-ity that elects to be subject to this sectionand ORS 759.405 may charge for basic tele-phone service shall be established by thePublic Utility Commission under ORS759.425. Subject to ORS 759.415, the regulartariff rate of intrastate switched access andretail telecommunications services regulatedby the commission, other than basic tele-phone service, in effect on the date the car-rier elects to be subject to this section andORS 759.405 shall be the maximum price thetelecommunications carrier may charge forthat service.

(4) A telecommunications carrier thatelects to be subject to this section and ORS759.405 may adjust the price for intrastateswitched access or a regulated retail tele-communications service between the maxi-mum price established under this section anda price floor equal to the sum of the totalservice long run incremental cost of provid-ing the service for the nonessential functionsof the service and the price that is chargedto other telecommunications carriers for theessential functions. Basic telephone serviceshall not be subject to a price floor.

(5) The price for a new regulated retailtelecommunications service introduced by atelecommunications carrier within four yearsafter the date the carrier elects to be subjectto this section and ORS 759.405 shall besubject to a price floor test by the commis-sion to ensure that the service is not pricedbelow the sum of the total service long runincremental cost of providing the service forthe nonessential functions of the service andthe price that is charged to other telecom-



munications carriers for the essential func-tions. Beginning on the date four years afterSeptember 1, 1999, the price of a new tele-communications service shall be subject to aprice floor test by the commission to ensurethat the service is not priced below the totalservice long run incremental cost of provid-ing the service, without regard to whetherthe service is considered essential or nones-sential.

(6) A telecommunications carrier thatelects to be subject to this section and ORS759.405 may package and offer any of its re-tail telecommunications services with anyother service at any price, provided the fol-lowing conditions apply:

(a) Any regulated telecommunicationsservice may be purchased separately at orbelow the maximum price.

(b) The price of the package is not lessthan the sum of the price floors of each reg-ulated retail telecommunications service in-cluded in the package.

(c) The price of a package that is com-prised entirely of regulated retail telecom-munications services does not exceed thesum of the maximum prices for each of theservices.

(d) The price of a package comprised ofregulated and unregulated retail telecommu-nications services does not exceed the sumof the maximum prices established under thissection for regulated services and the retailprice charged by the carrier for the individ-ual unregulated services in the package. Atelecommunications carrier subject to regu-lation under this section shall provide noticeto the commission within 30 days of a changein the price of an unregulated telecommuni-cations service contained in the package.

(7) Nothing in this section or ORS759.405 is intended to limit the ability of atelecommunications carrier to seek deregu-lation of telecommunications services underORS 759.052.

(8)(a) Notice of a price change authorizedunder subsection (4) of this section, of theintroduction of a new regulated telecommu-nications service or of the packaging of ser-vices, must be given to the commissionwithin 30 days following the effective dateof the price change, new service or packagedservice. Notice of a new regulated telecom-munications service shall indicate the retailprice charged by the carrier for the service.

(b) The commission may investigate anyprice change authorized under subsection (4)of this section, the price of a new regulatedtelecommunications service or the price of apackage of services to determine that theprice complies with the provisions of thissection and any other applicable law. If the

commission determines that the price of theservice or package of services does not com-ply with the provisions of this section orother applicable law, the commission mayorder the telecommunications carrier to takesuch action as the commission determinesnecessary to bring the price into compliancewith this section or other applicable law.

(9) Nothing in this section affects theauthority of a city or municipality to managethe public rights of way or to require fairand reasonable compensation from a tele-communications carrier, on a competitivelyneutral and nondiscriminatory basis, underORS 221.420, 221.450, 221.510 and 221.515.

(10) Notwithstanding any other provisionof this section, the commission shall estab-lish prices for extended area service in amanner that allows a telecommunicationscarrier that elects to be subject to this sec-tion and ORS 759.405 to recover all costs andlost net revenues attributable to implement-ing new extended area service routes. Theprovisions of this subsection apply to tele-communications service provided on a flat ormeasured basis between exchanges definedby exchange maps filed with and approved bythe commission. [1999 c.1093 §25; 2001 c.966 §1; 2005c.232 §23]

759.415 Order in rate proceeding filedprior to January 1, 1999, to establishmaximum rate for affected telecommuni-cations services; dismissal of rate pro-ceeding filed after January 1, 1999. (1) Ina rate proceeding brought by a telecommuni-cations carrier that elects to be subject toORS 759.405 and 759.410, or by the PublicUtility Commission against an electing tele-communications carrier, prior to January 1,1999, that is on appeal on September 1, 1999,a final rate for a telecommunications serviceimplemented as a result of the final judgmentand order or negotiated settlement shall be-come the maximum rate for purposes of ORS759.410.

(2) A rate proceeding brought by oragainst an electing telecommunications car-rier, after January 1, 1999, that is pendingon the effective date of the carrier′s electionto be subject to ORS 759.405 and 759.410,shall be dismissed by the commission or bythe court if on appeal, provided the carrierelects to be subject to regulation under ORS759.405 and 759.410 within the later of:

(a) Ninety days from the commencementof the proceeding; or

(b) Ninety days from September 1, 1999.(3) Notwithstanding subsection (2) of this

section, the parties to a rate proceedingbrought by or against an electing telecom-munications carrier, after January 1, 1999,that is pending on the effective date of the



carrier′s election to be subject to ORS759.405 and 759.410, may agree to continuethe proceeding. [1999 c.1093 §27]

759.420 Application of ORS 759.400 to759.455 to wholesale transactions regu-lated under federal law. Nothing in ORS759.400 to 759.455 is intended to affect, alteror in any way modify wholesale transactionsregulated by the federal TelecommunicationsAct of 1996 (Public Law 104-104) as in effecton September 1, 1999, and regulationsadopted thereunder. [1999 c.1093 §26]

(Universal Service Fund)759.425 Universal service fund; com-

mission to establish price for basic tele-phone service; universal servicesurcharge; application to cellular ser-vices. (1) The Public Utility Commissionshall establish and implement a competitivelyneutral and nondiscriminatory universal ser-vice fund. Subject to subsection (6) of thissection, the commission shall use the uni-versal service fund to ensure basic telephoneservice is available at a reasonable and af-fordable rate. The Public Utility Commissionmay adopt rules to conform the universalservice fund to section 254 of the federalTelecommunications Act of 1996 (Public Law104-104), and to related rules adopted by theFederal Communications Commission, to theextent that the Public Utility Commissiondetermines is appropriate. The commissionmay delay implementation for rural telecom-munications carriers, as defined in the fed-eral Act, for up to six months after the datethe Federal Communications Commissionadopts a cost methodology for rural carriers.

(2)(a) The Public Utility Commissionshall establish the price a telecommuni-cations utility may charge its customers forbasic telephone service. The commission inits discretion shall periodically review andevaluate the status of telecommunicationsservices in the state and designate the ser-vices included in basic telephone service.The commission in its discretion shall peri-odically review and adjust as necessary theprice a telecommunications utility maycharge for basic telephone service.

(b) The provisions of this subsection donot apply to the basic telephone service pro-vided by a telecommunications utility de-scribed in ORS 759.040.

(3)(a) The Public Utility Commissionshall establish a benchmark for basic tele-phone service as necessary for the adminis-tration and distribution of the universalservice fund. The universal service fund shallprovide explicit support to an eligible tele-communications carrier that is equal to thedifference between the cost of providingbasic telephone service and the benchmark,

less any explicit compensation received bythe carrier from federal sources specificallytargeted to recovery of local loop costs andless any explicit support received by the car-rier from a federal universal service pro-gram.

(b) The commission in its discretion shallperiodically review the benchmark and ad-just it as necessary to reflect:

(A) Changes in competition in the tele-communications industry;

(B) Changes in federal universal servicesupport; and

(C) Other relevant factors as determinedby the commission.

(c) Except for a telecommunications util-ity described in ORS 759.040, the commissionshall seek to limit the difference between theprice a telecommunications utility maycharge for basic telephone service and thebenchmark.

(4) Except as provided in subsections (7)and (8) of this section, there is imposed onthe sale of all retail telecommunications ser-vices sold in this state a universal servicesurcharge. Unless otherwise provided by thePublic Utility Commission by rule, the sur-charge shall be a uniform percentage of thesale of retail telecommunications services inan amount sufficient to support the purposeof the universal service fund. The surchargemay be shown as a separate line item by alltelecommunications carriers using languageprescribed by the commission. A telecommu-nications carrier shall deposit amounts col-lected into the universal service fundaccording to a schedule adopted by the com-mission.

(5) The Public Utility Commission is au-thorized to establish a universal service fund,separate and distinct from the General Fund.The fund shall consist of all universal servicesurcharge moneys collected by telecommuni-cations carriers and paid into the fund. Thefund shall be used only for the purpose de-scribed in this section, and for payment ofexpenses incurred by the commission or athird party appointed by the commission toadminister this section. All moneys in thefund are continuously appropriated to thecommission to carry out the provisions ofthis section. Interest on moneys deposited inthe fund shall accrue to the fund.

(6) In addition to the purpose specified insubsection (1) of this section, moneys in theuniversal service fund may be used by thePublic Utility Commission to facilitate theavailability of broadband at fair and reason-able rates throughout this state. The amountof moneys in the universal service fund usedfor this purpose may not exceed the amountthe state is required to expend to receive the



maximum amount of funds available fromfederal sources for broadband services. If in-kind services are allowed for a state′s shareof a mapping project, the state shall use in-kind services before expending universal ser-vice funds. The commission may use anindependent contractor to perform mappingservices.

(7) For purposes of this section, “retailtelecommunications service” does not includeradio communications service, radio pagingservice, commercial mobile radio service,personal communications service or cellularcommunications service.

(8)(a) Notwithstanding subsection (7) ofthis section, a person who primarily providesradio communications service, radio pagingservice, commercial mobile radio service,personal communications service or cellularcommunications service may request desig-nation as an eligible telecommunicationscarrier by the Public Utility Commission forpurposes of participation in the universalservice fund.

(b) In the event a person who primarilyprovides radio communications service, radiopaging service, commercial mobile radio ser-vice, personal communications service orcellular communications service seeks desig-nation as an eligible telecommunicationscarrier for purposes of participation in theuniversal service fund, the person shall pro-vide written notice to the Public UtilityCommission requesting designation as an eli-gible telecommunications carrier within 60days of the date the commission establishesthe fund. Upon receiving notice, the com-mission may designate the person as an eli-gible telecommunications carrier forpurposes of participation in the fund.

(c) A person who primarily provides radiocommunications service, radio paging ser-vice, commercial mobile radio service, per-sonal communications service or cellularcommunications service who fails to requestdesignation as an eligible telecommuni-cations carrier within 60 days of the date theuniversal service fund is established by thePublic Utility Commission may not be desig-nated as an eligible telecommunications car-rier unless the person has contributed to thefund for at least one year immediately priorto requesting designation.

(9) A pay telephone provider may applyto the Public Utility Commission, on a formdeveloped by the commission, for a refund ofthe universal service surcharge imposed onthe provider under subsection (4) of this sec-tion for the provision of pay telephone ser-vice. [1999 c.1093 §28; 2001 c.966 §3; 2003 c.14 §§455,456;2007 c.353 §1; 2009 c.885 §16]

Note: Section 17, chapter 885, Oregon Laws 2009,provides:

Sec. 17. The amendments to ORS 759.425 by section16 of this 2009 Act apply to all moneys in the universalservice fund, whether deposited before, on or after theeffective date of this 2009 Act [August 4, 2009]. [2009c.885 §17]

(Public Purpose Funding)759.430 Approval of projects funded by

carrier′s Telecommunications Infrastruc-ture Account; Connecting Oregon Com-munities Advisory Board. (1)(a)Notwithstanding ORS 285A.075 (2), the Ore-gon Business Development Commission shallapprove plans and plan modifications forprojects funded by a telecommunicationscarrier′s Telecommunications InfrastructureAccount established under ORS 759.405.Projects funded from a telecommunicationscarrier′s Telecommunications InfrastructureAccount shall be completed by the carrierand shall be substantially for the benefit ofthe carrier′s customers. Plans approved bythe commission must be consistent with thepurpose of the fund as described in ORS759.405. The commission shall give priorityto projects that provide increased bandwidthbetween communities, route diversity andaccess to advanced telecommunications ser-vices in an expedited manner. The commis-sion shall seek to ensure that an approvedproject is the most technically appropriatemeans of addressing the circumstances pre-sented in a project plan. The commissionshall review recommendations and analysisfrom the Connecting Oregon CommunitiesAdvisory Board established in subsection (2)of this section prior to approving a plan.Project plans may be submitted by localcommunities including but not limited to lo-cal governments, community institutions,citizen groups, public and private educationalinstitutions and business groups.

(b) Under the policies and guidance ofthe commission, the Oregon Business Devel-opment Department shall adopt rules for thesubmission of project plans by telecommuni-cations carriers and other persons, includingcriteria for approval of such plans. The rulesshall include criteria to determine if thetelecommunications carrier reasonablyshould be expected to make the investmentbased on an economic analysis of the project.Projects that are determined to meet thecriteria but are not economically self-supporting or would not be undertaken inthe time frame proposed shall be given pri-ority over similar projects that would beeconomically self-supporting or likely wouldbe completed in the time frame proposed. Therules shall provide for review of the eco-nomic benefits of the proposed plan to theaffected community and the potential for the



proposed plan to leverage other fundingsources including but not limited to federal,state and private sources.

(c) The commission also shall approveexpenditures from the Public Access Accountof the Connecting Oregon Communities Fundestablished in ORS 759.445 (4).

(2) There is established within the Ore-gon Business Development Department theConnecting Oregon Communities AdvisoryBoard consisting of five members appointedby the commission. The commission shallseek advice from the Governor prior to mak-ing an appointment to the advisory board.

(3) There shall be one member of the ad-visory board from each of the followingareas:

(a) Eastern Oregon, including Hood RiverCounty;

(b) Central Oregon;(c) Southern Oregon;(d) Coastal Oregon; and(e) The Willamette Valley.(4) Employees of the Public Utility Com-

mission, employees of state or local govern-ment who are responsible for purchasingtelecommunications services or equipmentand employees of a telecommunications car-rier may not be appointed to the advisoryboard.

(5) The advisory board shall select oneof its members as chairperson and anotherof its members as vice chairperson, for suchterms and with duties and powers necessaryfor the performance of the functions of thoseoffices as the board determines.

(6) The purpose of the advisory board isto review and make recommendations to theOregon Business Development Commissionfor approval of and modifications to projectsfunded by a telecommunications carrier′sTelecommunications Infrastructure Accountunder this section and ORS 759.405. The ad-visory board shall seek advice and commenton plans submitted by a telecommunicationscarrier from affected local communities in-cluding but not limited to local governments,citizens and businesses. The advisory boardalso shall seek advice and comment fromstate and federal agencies when appropriateto ensure that investments will maximizestatewide public benefits and are consistentwith the needs and desires of the local com-munities. The advisory board shall considerthe needs of and impact on education, healthcare, economic development and the deliveryof state and local governmental serviceswhen evaluating a plan.

(7) The advisory board also shall reviewproposals submitted to the commission underORS 759.445 (5) and make recommendations

to the commission regarding approval, mod-ification or denial of the proposals.

(8) The advisory board shall make an an-nual report to the Joint Legislative Commit-tee on Information Management andTechnology on the plans and activitiesfunded under ORS 759.405 and 759.445 (5).

(9)(a) Reasonable expenses incurred bythe members of the advisory board in theperformance of their duties, costs of the Or-egon Business Development Department di-rectly related to providing staff to theadvisory board and costs to the departmentfor providing technical assistance to localcommunities shall be paid out of the Tele-communications Infrastructure Accountscreated under ORS 759.405.

(b) Following the transfer of funds re-quired under ORS 759.405 (2) and (3), a tele-communications carrier that elects to besubject to regulation under ORS 759.405 and759.410 shall transfer from the remainingfunds in its Telecommunications Infrastruc-ture Account the following amounts to theOregon Business Development Department tobe used for the payment of expenses de-scribed in paragraph (a) of this subsection:

(A) $575,000 in 2000;(B) $325,000 in 2001;(C) $325,000 in 2002; and(D) $325,000 in 2003.(c) If more than one telecommunications

carrier elects to be subject to regulation un-der ORS 759.405 and 759.410, the funding re-quirements described in paragraph (b) of thissubsection shall be distributed pro rataamong the electing carriers. [1999 c.1093 §31]

759.435 Assessment of telecommuni-cations infrastructure and communityneeds; contents; report. (1) The OregonBusiness Development Department, in col-laboration with affected telecommunicationscarriers, the Connecting Oregon Communi-ties Advisory Board, representatives of localcommunities and other members of the pub-lic interested in improved telecommuni-cations services, shall conduct an assessmentof telecommunications infrastructure andcommunity telecommunications needs in lo-cal communities and across the various re-gions of this state. The assessment shallinclude:

(a) The type of telecommunications ser-vices and technology, including infrastruc-ture, already deployed within communitiesand regions;

(b) The type of telecommunications tech-nology and services desired by communitieswithin regions;

(c) The competitiveness of the local tele-communications market, including a list of



all telecommunications carriers and Internetservice providers;

(d) The economic significance of desiredtelecommunications investments;

(e) Community and regional priority listsfor telecommunications infrastructure andservice investments;

(f) The ability of qualified public andnonprofit users within the community or re-gion to aggregate demand for telecommuni-cations services and the benefits of suchaggregation;

(g) The estimated costs and implementa-tion schedule of desired or proposed tele-communications investments;

(h) An analysis of state, federal, nonprofitand private sources of funding for the pro-posed improvements;

(i) The ability of the investment to beself-supporting; and

(j) The ability of a community or regionto make the investments necessary to con-nect to the Oregon Enterprise Network, andthe local and statewide benefits of such in-vestments.

(2)(a) To the maximum extent practicable,the assessment shall recognize and includeexisting state, regional and local plans andinformation. The department may use its ownstaff or may contract with third parties toconduct the assessment.

(b) A copy of the assessment shall besubmitted to the Oregon Business Develop-ment Commission and to the Joint Legisla-tive Committee on Information Managementand Technology. The commission shall con-sider the information contained in the reportwhen adopting or amending the rules re-quired under ORS 759.430 (1).

(3) The commission shall not approveplans under ORS 759.430 (1) until the com-mission has received the assessment requiredunder this section. The department shall re-port to the Joint Legislative Committee onInformation Management and Technology onimplementation of ORS 759.430 to 759.445prior to the approval of project plans underORS 759.430 (1). [1999 c.1093 §32]

759.440 Additional funding for evalu-ating project plans. The Oregon BusinessDevelopment Department may request ap-proval from the Emergency Board for thetransfer of additional funds from a telecom-munications carrier′s TelecommunicationsInfrastructure Account created under ORS759.405 for the purpose of providing technicalassistance to the department and the OregonBusiness Development Commission in evalu-ating project plans submitted under ORS759.430. If the request is approved, the com-

mission by order may direct the transfer offunds from a telecommunications carrier′sTelecommunications Infrastructure Accountto the Oregon Business Development De-partment. The department may not requestand the Emergency Board shall not approvea request or requests in excess of $100,000per year. [1999 c.1093 §32a]

759.445 Connecting Oregon Communi-ties Fund; School Technology Account;Public Access Account. (1) There is estab-lished in the State Treasury, separate anddistinct from the General Fund, the Con-necting Oregon Communities Fund. Moneysin the fund shall consist of amounts depos-ited in the fund under ORS 759.405 and anyother moneys deposited by a telecommuni-cations carrier that elects to be subject toORS 759.405 and 759.410, including amountsdeposited pursuant to a performance assur-ance plan implemented by a telecommuni-cations carrier in connection with anapplication under 47 U.S.C. 271, as in effecton January 1, 2002. Interest earned on mon-eys in the fund shall accrue to the fund.Moneys in the fund may be invested as pro-vided in ORS 293.701 to 293.820. Moneys inthe fund shall be used to provide access toadvanced telecommunications technology inelementary schools and high schools, collegesand universities, community colleges, publictelevision corporations, rural health careproviders, public libraries and other eligiblepersons.

(2) Two dedicated accounts shall be es-tablished within the Connecting OregonCommunities Fund for purposes of supportingeducation and public access to advancedtelecommunications services. The first $25million of the moneys deposited in the Con-necting Oregon Communities Fund in both2000 and 2001 shall be appropriated to theSchool Technology Account established un-der subsection (3) of this section. Except asprovided in subsection (8) of this section, anyadditional moneys available in the fund shallbe appropriated to the Public Access Ac-count established under subsection (4) of thissection.

(3) There is established the School Tech-nology Account within the Connecting Ore-gon Communities Fund. The purpose of theSchool Technology Account is to improveaccess to advanced telecommunications ser-vices for students attending public school inkindergarten through grade 12. Moneys inthe account shall be expended as provided insection 34, chapter 1093, Oregon Laws 1999.

(4)(a) There is established the Public Ac-cess Account within the Connecting OregonCommunities Fund. The purpose of the Pub-lic Access Account is to improve access toadvanced telecommunications services for



community colleges, universities, public li-braries and rural health care providers.

(b) If funding has not been provided fromother sources, the first $3 million availablein the Public Access Account shall be trans-ferred to the Oregon University System forthe purpose of funding the Oregon WideArea Network project to provide and expandInternet access for the Oregon UniversitySystem. The Oregon University System shallcomplete an audit of bandwidth utilizationand report to the Joint Legislative Commit-tee on Information Management and Tech-nology during the Seventy-first LegislativeAssembly in the manner provided in ORS192.245.

(c) Following the transfer of funds de-scribed in paragraph (b) of this subsection,the next $1 million available in the PublicAccess Account shall be transferred to theOregon University System for Oregon StateUniversity for the purpose of providing vir-tual access to persons with disabilities.

(d) Following the transfer of funds as de-scribed in paragraphs (b) and (c) of this sub-section, the next $2 million available in thePublic Access Account shall be transferredto the Department of Community Collegesand Workforce Development for distributionto community colleges for the purpose of de-veloping connectivity and distance educationprograms.

(e) Following the transfer of funds de-scribed in paragraphs (b) to (d) of this sub-section, the next $4 million available in thePublic Access Account shall be transferredto the Oregon University System for videotransport and network management servicesfor the Oregon University System.

(f) Following the transfer of funds de-scribed in paragraphs (b) to (e) of this sub-section, the next $5.5 million available in thePublic Access Account shall be transferredto the Oregon Public Broadcasting Corpo-ration for the purpose of digitizing the statetelevision network, using the Oregon Enter-prise Network when possible.

(g) Following the transfer of funds de-scribed in paragraphs (b) to (f) of this sub-section, the next $500,000 available in thePublic Access Account shall be transferredto the Southern Oregon Public TelevisionCorporation for the purpose of digitizing thestate television network, using the OregonEnterprise Network when possible.

(h) Following the transfer of funds de-scribed in paragraphs (b) to (g) of this sub-section, a state institution of highereducation, including the Oregon Health andScience University, may apply for one-timematching funds up to $1 million from thePublic Access Account to endow a telecom-

munications chair for the purpose of in-creasing research and development ofadvanced telecommunications services appli-cations. Only one chair may be endowed un-der this paragraph.

(5)(a) The Oregon Business DevelopmentCommission shall approve expenditure of anyremaining moneys in the Public Access Ac-count consistent with this section and ORS759.430.

(b) Community colleges, state institutionsof higher education, public libraries, publictelevision corporations and rural health careproviders may apply to the Oregon BusinessDevelopment Commission for funding fromthe Public Access Account under this sub-section.

(c) Funds received from the account shallbe used for the purchase of advanced tele-communications services, equipment or re-curring costs of telecommunicationsconnectivity. Priority shall be given to col-laborative projects that improve access toadvanced telecommunications services.

(d) Funds available in the Public AccessAccount under this subsection are contin-uously appropriated to the Oregon BusinessDevelopment Department for the purposesdescribed in this subsection.

(6) Public libraries and rural health careproviders must apply for federal universalservice support in order to be eligible for agrant from the Public Access Account.

(7) The video transport and networkmanagement services purchased with fundsmade available under this section shall bepurchased through the Oregon Departmentof Administrative Services.

(8) Any moneys deposited in the Con-necting Oregon Communities Fund undersubsection (1) of this section pursuant to aperformance assurance plan implemented bya telecommunications carrier in connectionwith an application under 47 U.S.C. 271, asin effect on January 1, 2002, shall be placedin the School Technology Account to be ex-pended as provided in section 34, chapter1093, Oregon Laws 1999. [1999 c.1093 §33; 2001c.966 §7; 2009 c.762 §89]

Note: Sections 34 and 37, chapter 1093, OregonLaws 1999, provide:

Sec. 34. (1) In addition to and not in lieu of anyother transfer or appropriation, for the calendar yearbeginning January 1, 2000, there is transferred to theDepartment of Education from the School TechnologyAccount the sum of $9,600 for each eligible school fa-cility as defined in section 35 (1), chapter 1093, OregonLaws 1999, which shall be expended for the purpose ofproviding a local area network and associated equip-ment to public school facilities pursuant to section 35,chapter 1093, Oregon Laws 1999.

(2) In addition to and not in lieu of any othertransfer or appropriation, there is transferred to theDepartment of Education from the School Technology



Account, to be distributed to the Oregon Association ofEducation Service Districts for the Oregon Public Edu-cation Network, for:

(a) The recurring costs of Internet bandwidth:(A) $500,000 for the calendar year beginning Janu-

ary 1, 2000; and(B) $1 million for the calendar year beginning

January 1, 2001.(b) The purchase of telecommunications equipment:(A) $250,000 for the calendar year beginning Janu-

ary 1, 2000; and(B) $250,000 for the calendar year beginning Janu-

ary 1, 2001.(c) The purpose of an online film and video server

pilot project to digitize and electronically distributevideo content, $250,000 for the calendar year beginningJanuary 1, 2000.

(3) In addition to and not in lieu of any othertransfer or appropriation, for the calendar years begin-ning January 1, 2000, and January 1, 2001, there istransferred to the Department of Education from theSchool Technology Account the sum of $5,400 for eacheligible school facility as defined in section 36 (1),chapter 1093, Oregon Laws 1999, for the purpose of dis-tribution to school districts and education service dis-tricts pursuant to section 36, chapter 1093, Oregon Laws1999, for the recurring costs of telecommunicationsconnectivity.

(4)(a) In addition to and not in lieu of any othertransfer or appropriation, there is transferred to theDepartment of Education from the School TechnologyAccount for the purpose of purchasing a two-way inter-active distance education system for each public highschool and education service district:

(A) $3,050,000 for the calendar year beginning Jan-uary 1, 2000; and

(B) $3,050,000 for the calendar year beginning Jan-uary 1, 2001.

(b) The Department of Education, in consultationwith the Oregon Department of Administrative Services,shall develop an implementation plan for this subsec-tion. The implementation plan shall include an imple-mentation timeline and requirements for each publichigh school and education service district that receivesa two-way interactive distance education system underthis subsection. The Department of Education shall en-sure that a distance education system purchased by theDepartment of Education meets State of Oregon infor-mation technology standards, is consistent with any re-lated interactive video strategy of the OregonDepartment of Administrative Services and is procuredthrough a competitively bid or negotiated state con-tract. The Department of Education shall reimburse theOregon Department of Administrative Services fromfunds made available under this subsection for costsincurred by the Oregon Department of AdministrativeServices in developing the implementation plan.

(5)(a) In addition to and not in lieu of any othertransfer or appropriation, there is transferred to theDepartment of Education from the School TechnologyAccount for the purpose of paying the recurring costsof telecommunications connectivity and video servicesassociated with the two-way interactive distance educa-tion systems purchased with funds transferred underthis section:

(A) $550,000 for the calendar year beginning Janu-ary 1, 2000; and

(B) $550,000 for the calendar year beginning Janu-ary 1, 2001.

(b) Any telecommunications or video services pur-chased by the Department of Education with fundstransferred under this subsection shall be purchased

from the Oregon Department of Administrative Servicesas long as such services are available through the Ore-gon Department of Administrative Services at a compa-rable level and comparable cost as can be obtainedelsewhere. Purchase of services and technology fromthe Oregon Department of Administrative Services shallbe through the Oregon Enterprise Network provided theOregon Enterprise Network can provide the servicesand technology at a cost equal to or less than the pricefor the same or similar services and technology fromother contracts or programs of the Oregon Departmentof Administrative Services. The Department of Educa-tion shall ensure that telecommunications and videoservices purchased by the Department of Educationmeet State of Oregon information technology standards,are consistent with any related interactive video strat-egy of the Oregon Department of Administrative Ser-vices and are purchased through a competitively bid ornegotiated state contract.

(c) Upon request of the North Central, Malheur,Jackson or Northwest Region education service district,the Department of Education may waive the require-ments of paragraph (b) of this subsection until suchtime as the district changes its systems to use the ser-vices available through the Oregon Department of Ad-ministrative Services, as determined by theimplementation plan established under subsection (4)(b)of this section.

(d) Upon request of a school district or educationservice district, the Oregon Department of Administra-tive Services may waive the requirements of paragraph(b) of this subsection if a state contract is not availablefor use by the district.

(6)(a) In addition to and not in lieu of any othertransfer or appropriation, there is transferred to theOregon Department of Administrative Services from theSchool Technology Account for the purchase of hubequipment necessary to support public school needs fortwo-way interactive video system bridging and otherservices:

(A) $700,000 for the calendar year beginning Janu-ary 1, 2000; and

(B) $700,000 for the calendar year beginning Janu-ary 1, 2001.

(b) The Oregon Department of Administrative Ser-vices shall reduce rates paid by school districts andeducation service districts to the department for videoservices by the amount transferred under this subsec-tion.

(7) In addition to and not in lieu of any othertransfer or appropriation, there is transferred to theDepartment of Education any amounts remaining in theaccount after the transfers described in subsections (1)to (6) of this section are made, which shall be distrib-uted to school districts pursuant to section 37, chapter1093, Oregon Laws 1999.

(8) Amounts described in this section shall betransferred each year only when sufficient funds areavailable in the School Technology Account. [1999c.1093 §34; 2001 c.966 §8]

Sec. 37. (1) As used in this section:(a) “ADMw” means the weighted average daily

membership of the school district for the prior fiscalyear as calculated under ORS 327.013.

(b) “Statewide ADMw” means the total ADMw ofall school districts for the prior fiscal year as calculatedunder ORS 327.013.

(2) The Department of Education shall distributegrants from amounts transferred under section 34 (7),chapter 1093, Oregon Laws 1999, to school districts.

(3) Except as provided in subsection (4) of thissection, a school district′s grant under this section =the school district′s ADMw × (the total amount trans-ferred to the department for the grants under section



34 (7), chapter 1093, Oregon Laws 1999 ÷ the totalstatewide ADMw).

(4) A school district′s grant under this section shallnot be less than $25,000.

(5) A school district that receives grant funds underthis section shall use those funds to support telecom-munications connectivity including:

(a) Building wiring and electrical power require-ments;

(b) Servers, hubs and routers;(c) Network design and installation;(d) Video distance education equipment;(e) Technology support staff salaries; and(f) Other costs necessary to support telecommuni-

cations connectivity.(6) A school district may not use grant funds re-

ceived under this section for payment of debt serviceon bonds.

(7) The State Board of Education may adopt anyrules necessary for the administration of this section.[1999 c.1093 §37; 2001 c.966 §9]

SERVICE QUALITY STANDARDS AND PROHIBITED ACTS

759.450 Minimum service quality stan-dards; rules; customer impact indices;factors; wholesale services; improvementplan; penalties; exceptions. (1) It is the in-tent of the Legislative Assembly that everytelecommunications carrier and those tele-communications utilities and competitivetelecommunications providers that providewholesale services meet minimum servicequality standards on a nondiscriminatory ba-sis.

(2) The Public Utility Commission shalldetermine minimum service quality standardsthat relate to the provision of retail tele-communications services to ensure safe andadequate service. Except as provided insubsections (8) and (9) of this section, mini-mum service quality standards adopted underthis section shall apply to all telecommuni-cations carriers. The commission by ruleshall review and revise the minimum servicequality standards as necessary to ensure safeand adequate retail telecommunications ser-vices.

(3) The minimum service quality stan-dards for providing retail telecommunicationsservices adopted by the commission shall re-late directly to specific customer impact in-dices including but not limited to heldorders, trouble reports, repair intervals andcarrier inquiry response times. In adoptingminimum service quality standards, the com-mission shall, for each standard adopted,consider the following:

(a) General industry practice andachievement;

(b) National data for similar standards;(c) Normal operating conditions;

(d) The historic purpose for which thetelecommunications network was con-structed;

(e) Technological improvements andtrends; and

(f) Other factors as determined by thecommission.

(4) Consistent with the federal Telecom-munications Act of 1996 (Public Law104-104), as amended and in effect on Sep-tember 1, 1999, the commission may establishminimum service quality standards related toproviding wholesale, interconnection, trans-port and termination services provided by atelecommunications carrier and those tele-communications utilities and competitivetelecommunications providers that providewholesale telecommunications services.

(5) The commission shall require a tele-communications carrier, telecommunicationsutility or competitive telecommunicationsprovider that is not meeting the minimumservice quality standards to submit a plan forimproving performance to meet the stan-dards. The commission shall review and ap-prove or disapprove the plan. If the carrier,utility or provider does not meet the goalsof its improvement plan within six monthsor if the plan is disapproved by the commis-sion, penalties may be assessed against thecarrier, utility or provider on the basis of thecarrier′s, utility′s or provider′s service qual-ity measured against the minimum servicequality standards and, if assessed, shall beassessed according to the provisions of ORS759.990.

(6) Prior to commencing an action underthis section and ORS 759.990, the commissionshall allow a telecommunications carrier,telecommunications utility or competitivetelecommunications provider an opportunityto demonstrate that a violation of a minimumservice quality standard is the result of thefailure of a person providing telecommuni-cations interconnection service to meet theperson′s interconnection obligations.

(7) Total annual penalties imposed on atelecommunications utility under this sectionshall not exceed two percent of the utility′sgross intrastate revenue from the sale oftelecommunications services for the calendaryear preceding the year in which the penal-ties are assessed. Total annual penalties im-posed on a competitive telecommunicationsprovider under this section shall not exceedtwo percent of the provider′s gross revenuefrom the sale of telecommunications servicesin this state for the calendar year precedingthe year in which the penalties are imposed.

(8) The provisions of this section do notapply to:



(a) Radio communications service, radiopaging service, commercial mobile radio ser-vice, personal communications service orcellular communications service; or

(b) A cooperative corporation organizedunder ORS chapter 62 that provides telecom-munications services.

(9) Telecommunications utilities andgroups of affiliated telecommunications utili-ties that serve fewer than 50,000 access linesin Oregon are exempt from any minimumservice quality standard adopted under thissection that would require the utility orgroup to measure carrier inquiry responsetime. [1999 c.1093 §29; 2001 c.95 §1]

759.455 Prohibited acts; commissionaction on allegation of violation; penal-ties; judicial review. (1) Unless exempt fromcompliance under section 251(f) of the federalTelecommunications Act of 1996 (47 U.S.C.251(f)), a telecommunications utility shallnot:

(a) Discriminate against another providerof retail telecommunications services by un-reasonably refusing or delaying access to thetelecommunications utility′s local exchangeservices.

(b) Discriminate against another providerof retail telecommunications services by pro-viding access to required facilities on termsor conditions less favorable than those thetelecommunications utility provides to itselfand its affiliates. A telecommunications fa-cility, feature or function is a required facil-ity if:

(A) Access to a proprietary facility, fea-ture or function is necessary; and

(B) Failure to provide access to the fa-cility, feature or function would impair atelecommunications carrier seeking accessfrom providing the services the carrier isseeking to provide.

(c) Unreasonably degrade or impair thespeed, quality or efficiency of access or anyother service, product or facility provided toanother provider of telecommunications ser-vices.

(d) Fail to disclose in a timely and uni-form manner, upon reasonable request andpursuant to a protective agreement concern-ing proprietary information, all informationreasonably necessary for the design of net-work interface equipment, services or soft-ware that will meet the specifications of thetelecommunications utility′s local exchangenetwork.

(e) Unreasonably refuse or delay inter-connections or provide inferior intercon-nections to another provider oftelecommunications services.

(f) Use basic exchange services rates, di-rectly or indirectly, to subsidize or offset thecost of other products or services offered bythe telecommunications utility.

(g) Discriminate in favor of itself or anaffiliate in the provision and pricing of, orextension of credit for, any telephone service.

(h) Fail to provide a service, product orfacility in accordance with applicable con-tracts, and tariffs and rules of the PublicUtility Commission.

(i) Impose unreasonable or discriminatoryrestrictions on network elements or the re-sale of its services, except that:

(A) The telecommunications utility mayrequire that residential service not be resoldas a different class of service; and

(B) The commission may prohibit the re-sale of services the commission has approvedfor provision to a not-for-profit entity atrates below those offered to the general pub-lic.

(j) Provide telephone service to a personacting as a telecommunications provider ifthe commission has ordered the telecommu-nications utility to discontinue telephoneservice to the person.

(2) A complaint alleging a violation ofsubsection (1) of this section shall be heardby the Public Utility Commission or, at thecommission′s discretion, by an Administra-tive Law Judge designated by the commis-sion. A hearing under this subsection shallbe conducted in an expedited manner con-sistent with the following:

(a) The complaint shall be served uponthe telecommunications carrier and filedwith the commission.

(b) An answer or other responsive plead-ing to the complaint shall be filed with thecommission not more than 10 days after re-ceipt of the complaint. Copies of the answeror responsive pleading shall be served uponthe complainant and upon the commission.

(c) A prehearing conference shall be heldnot later than 15 days after the complaint isfiled. Hearing on the complaint shall com-mence not later than 30 days after the com-plaint is filed. Within 45 days after thecomplaint is filed, the commission shall ei-ther prepare a final decision or approve asfinal the decision of the Administrative LawJudge. The final decision shall be issued asan order of the commission in the mannerprovided under ORS 756.558.

(3) If the commission or AdministrativeLaw Judge finds that a violation of this sec-tion has occurred, the commission shall,within five business days, order the telecom-munications utility to remedy the violationwithin a specified period of time. The com-



mission may prescribe specific action to betaken by the utility, including but not lim-ited to submitting a plan for preventing fu-ture violations. If the violation continuesbeyond the time period specified in the com-mission′s order, the commission on its ownmotion or upon the motion of an interestedparty may seek penalties as provided in ORS759.990 or otherwise may seek enforcementunder ORS 756.160 or 756.180, or both.

(4) Total annual penalties imposed on atelecommunications utility under this sectionand ORS 759.450 shall not exceed two per-cent of the utility′s gross intrastate revenuefrom the sale of telecommunications servicesfor the year preceding the year in which theviolation occurred.

(5) An order of the commission underthis section is subject to judicial review asan order in a contested case in the mannerprovided by ORS 756.610.

(6) The Court of Appeals shall give pro-ceedings under this section priority over allother matters before the court. [1999 c.1093 §38;2005 c.638 §17]

ALLOCATION OF TERRITORIES(Generally)

759.500 Definitions for ORS 759.500 to759.570. As used in ORS 759.500 to 759.570,unless the context requires otherwise:

(1) “Allocated territory” means a ge-ographic area for which the Public UtilityCommission has allocated to no more thanone person the authority to provide local ex-change telecommunications service, theboundaries of which are set forth on an ex-change map filed with and approved by thecommission.

(2) “Person” includes:(a) An individual, firm, partnership, cor-

poration, association, cooperative or munic-ipality; or

(b) The agent, lessee, trustee or refereeof an individual or entity listed in paragraph(a) of this subsection.

(3) “Local exchange telecommunicationsservice” has the meaning given that term inORS 759.005, except that “local exchangetelecommunications service” does not includeservice provided through or by the use of anyequipment, plant or facilities:

(a) For the provision of telecommuni-cations services that pass through or overbut are not used to provide service in or donot terminate in an area allocated to anotherperson providing a similar telecommuni-cations service;

(b) For the provision of local exchangetelecommunications service, as defined in

ORS 759.005, commonly known as “privatelines” or “farmer lines”; or

(c) For the provision of shared telecom-munications service. [1987 c.447 §53; 2005 c.232 §24;2007 c.825 §2]

759.505 [1987 c.447 §54; repealed by 2005 c.232 §32]

759.506 Purpose of allocated territorylaws; carrier of last resort obligations;exemptions from obligations; rein-statement of obligations. (1) The purposeof establishing allocated territories underORS 759.500 to 759.570 is to ensure thattelecommunications utilities, cooperativecorporations and municipalities certified bythe Public Utility Commission to provide lo-cal exchange telecommunications service:

(a) Provide adequate and safe service tothe customers of this state; and

(b) Serve all customers in an adequateand nondiscriminatory manner.

(2) The obligations described in this sec-tion may be referenced as carrier of last re-sort obligations.

(3) The commission, upon petition from atelecommunications utility, cooperative cor-poration or municipality, may exempt thetelecommunications utility, cooperative cor-poration or municipality from the obligationsdescribed in this section if the commissionfinds, for a property with four or moresingle-family dwellings, that the owner ordeveloper of the property, or a person actingon behalf of the owner or developer:

(a) Permits an alternative service pro-vider to install its facilities or equipmentused to provide local telecommunicationsservice based on a condition of exclusion ofthe telecommunications utility, cooperativecorporation or municipality during the con-struction phase of the real property;

(b) Accepts or agrees to accept incentivesor rewards from an alternative service pro-vider that are contingent upon the provisionof any or all local telecommunications ser-vices by one or more alternative service pro-viders to the exclusion of thetelecommunications utility, cooperative cor-poration or municipality; or

(c) Collects from the occupants or resi-dents of the property mandatory charges forthe provision of any local telecommuni-cations service provided to the occupants orresidents by an alternative service providerin any manner, including, but not limited to,collection through rent, fees or dues.

(4) If the commission, upon petition fromany interested person located within theproperty for which the commission haswaived the carrier of last resort obligationsunder subsection (3) of this section, findsthat the existing public convenience and ne-



cessity requires reinstatement of the carrierof last resort obligations, then the commis-sion has the power to assign the obligationsto a telecommunications utility, cooperativecorporation or municipality after a publichearing. The commission shall determinehow the costs of serving the customers areallocated so that the telecommunicationsutility, cooperative corporation or municipal-ity will be allowed an opportunity to recoverreasonable and prudent costs that exceed thecosts that would have been incurred to ini-tially construct or acquire facilities to servecustomers of the territory. The determinationof cost allocation by the commission mustalso divide the costs allowed equitably amongall customers of the territory to which ser-vice is being reinstated. [2005 c.232 §26; 2009 c.124§1]

759.510 [1987 c.447 §55; repealed by 2005 c.232 §32]759.515 [1987 c.447 §56; repealed by 2005 c.232 §32]759.520 [1987 c.447 §57; repealed by 2005 c.232 §32]759.525 [1987 c.447 §58; 2005 c.22 §509; repealed by

2005 c.232 §32]759.530 [1987 c.447 §59; repealed by 2005 c.232 §32]

759.535 Application to serve unservedterritory; hearing; notice. (1) A telecom-munications utility, cooperative corporationor municipality that desires to provide localexchange telecommunications service in aterritory that is not served by another personproviding a similar local exchange telecom-munications service may apply to the PublicUtility Commission for an order allocatingthe territory to the applicant. The applica-tion shall include an exchange map thatshows the unserved territory that the appli-cant is requesting to serve.

(2) The commission shall within 30 daysafter the filing of the application give noticeof the filing. If the commission chooses, or ifa customer requests a hearing on the matterwithin 30 days of the notice, the commissionshall hold a hearing by telephone or in per-son. The commission shall give notice of thehearing within 30 days of the request. Thenotice shall set the date and place of hear-ing. The hearing shall be held at a placewithin or conveniently accessible to the ter-ritory covered by the application. Notice ofthe filing shall be by publication in a news-paper or newspapers of general circulation inthe territory covered by the application andshall be published at least once weekly fortwo successive weeks. Written notice of thefiling shall be given to providers of similarlocal exchange telecommunications servicein adjacent territory. [1987 c.447 §60; 2005 c.232§28]

Note: Section 27, chapter 232, Oregon Laws 2005,provides:

Sec. 27. As of January 1, 2006, the Public UtilityCommission shall:

(1) Reallocate every allocated local exchange tele-communications service territory to a telecommuni-cations utility, cooperative corporation or municipalityto whom the commission had previously allocated localexchange telecommunications service territory. Allo-cations granted by the commission pursuant to thissubsection shall replace all allocations to telecommuni-cations utilities, cooperative corporations or municipal-ities granted by the commission prior to January 1,2006. An allocation made pursuant to this subsection isnot subject to ORS 759.535 or 759.560. The commissionhas authority under ORS 756.500 to 756.610 to resolve adispute arising from a reallocation made under thissubsection.

(2) Upon request, allocate every local exchangetelecommunications service territory that is shown ona map approved by the commission and that is unallo-cated as of December 31, 2005, to the telecommuni-cations utility, cooperative corporation or municipalitythat filed the map. An allocation made pursuant to thissubsection is not subject to ORS 759.535 or 759.560. Thecommission has authority under ORS 756.500 to 756.610to resolve a dispute arising from an allocation madeunder this subsection. [2005 c.232 §27]

759.540 [1987 c.447 §61; repealed by 2005 c.232 §32]759.545 [1987 c.447 §62; repealed by 2005 c.232 §32]759.550 [1987 c.447 §63; repealed by 2005 c.232 §32]759.555 [1987 c.447 §64; repealed by 2005 c.232 §32]

759.560 Assignment or transfer of al-located territory. (1) The rights acquired byan allocation of territory may only be as-signed or transferred with the approval ofthe Public Utility Commission after a findingthat the assignment or transfer is not con-trary to the public interest.

(2) The commission may approve a trans-fer of territory previously allocated onlyupon receipt of an application for allocationthat is jointly filed by the transferor and thetransferee. The application shall include ex-change maps that show how the applicantswant the commission to allocate the terri-tory. The commission shall enter an ordereither approving or disapproving the applica-tion as filed, or as amended, together withfindings of fact supporting the order.

(3)(a) An order approving an allocationof territory may not be construed to conferany property right.

(b) Notwithstanding paragraph (a) of thissubsection, upon the death of an individualto whom territory was allocated or who wasan applicant under an approved order, theexecutor or administrator of the estate of theindividual shall continue the operation of lo-cal exchange telecommunications service forthe purpose of transferring territorial allo-cation rights. The executor or administratorshall continue the operation for a period notto exceed two years from the date of death.

(4) In the event the property of a personserving an allocated territory is condemned,no value shall be claimed or awarded byreason of the contract or order making theallocation.



(5) The commission may by rule establishrequirements for notice to affected personsof the assignment or transfer of allocatedterritory. [1987 c.447 §65; 2005 c.232 §29]

759.565 Injunction against unauthor-ized provision of service. In the event anallocated territory is served by a person thatis not authorized by the Public Utility Com-mission to provide local exchange telecom-munications service in the territory, anaggrieved person or the commission may filean action in the circuit court for any countyin which is located some or all of the allo-cated territory allegedly involved in the un-authorized provision of service, for aninjunction against the alleged unauthorizedprovision of service. The trial of the actionshall proceed as in an action not triable byright to a jury. Any party may appeal to theCourt of Appeals from the circuit court′sjudgment, as in other equity cases. The rem-edy provided in this section shall be in addi-tion to any other remedy provided by law.[1987 c.447 §66; 2003 c.576 §562; 2005 c.232 §30]

759.570 Application of law to localgovernment. (1) ORS 759.500 to 759.570 maynot be construed or applied to restrict thepowers granted to cities to issue franchisesor to restrict the exercise of the power ofcondemnation by a municipality. If a munic-ipality condemns or otherwise acquiresequipment, plant or facilities from anotherperson for rendering local exchange telecom-munications service, the municipality ac-quires all of the rights of the person whoseproperty is condemned to serve the territoryserved by the acquired properties.

(2) ORS 759.500 to 759.570 may not beconstrued to restrict the right of a munic-ipality to provide local exchange telecommu-nications service for street lights, fire alarmsystems, airports, buildings and other munic-ipal installations regardless of their location.

(3) ORS 759.500 to 759.570 may not beconstrued to confer upon the Public UtilityCommission any regulatory authority overrates, service or financing of cooperatives ormunicipalities. [1987 c.447 §67; 2005 c.232 §31]

759.575 [1987 c.447 §68; repealed by 1993 c.204 §5]

(Unserved Territory)759.580 Power of commission to re-

quire service to unserved territory. ThePublic Utility Commission has power to re-quire any telecommunications utility, after apublic hearing of all parties interested, toextend its line, plant or system into, and torender service to, a locality not alreadyserved when the existing public convenienceand necessity requires such extension andservice. However, no such extension of ser-vice shall be required until the telecommu-

nications utility has been granted suchreasonable franchises as may be necessaryfor the extension of service and unless theconditions are such as to reasonably justifythe necessary investment by the telecommu-nications utility in extending its line, plantor system into such locality and furnishingsuch service. [1987 c.447 §4]

759.585 Definitions for ORS 759.585 to759.595. As used in ORS 759.585 to 759.595,“unserved person” means a person:

(1) Who does not have local exchangetelecommunications service;

(2) Who is applying for residential serviceor business service with five or fewer lines;and

(3) Who, for the initiation of such ser-vice, would be required to pay line extensioncharges. [1989 c.574 §2; 1991 c.307 §1]

759.590 Application for service by un-served person; rules. (1) An unserved per-son may file an application with the PublicUtility Commission for an order directinganother telecommunications utility to pro-vide local exchange service to the unservedperson.

(2) The commission shall adopt ruleswhich prescribe the form of an applicationfiled under subsection (1) of this section andwhich provide for reasonable notice and op-portunity for hearing to all telecommuni-cations utilities affected by an application.[1989 c.574 §3; 1991 c.307 §2]

759.595 Criteria for granting applica-tion for service; effect on other territo-rial allocation. (1) The Public UtilityCommission shall grant an application filedunder ORS 759.590 if the commission findsthat:

(a) The telecommunications utility inwhose territory the unserved person is lo-cated has declined to serve without line ex-tension charges;

(b) Another telecommunications utilityhas agreed to provide local exchange tele-communications service to the unserved per-son with no line extension charge or withline extension charges lower than those of-fered by the telecommunications utility inwhose territory the unserved person is lo-cated; and

(c) Approval of the application is notcontrary to the public interest.

(2) Any order of the commission issuedunder subsection (1) of this section shall nothave the effect of changing any territory al-located under ORS 758.400 to 758.475 that isbeing provided with local exchange telecom-munications service. [1989 c.574 §4; 1991 c.307 §3]

759.600 [1989 c.574 §5; repealed by 1991 c.307 §4]



ATTACHMENT REGULATION759.650 Definitions for ORS 759.650 to

759.675. As used in ORS 759.650 to 759.675,unless the context requires otherwise:

(1) “Attachment” means any wire or ca-ble for the transmission of intelligence bytelegraph, telephone or television (includingcable television), light waves or other phe-nomena, or for the transmission of electricityfor light, heat or power, and any related de-vice, apparatus or auxiliary equipment, in-stalled upon any pole or in any telegraph,telephone, electrical, cable television orcommunications right of way, duct, conduit,manhole or handhole or other similar facilityor facilities owned or controlled, in whole orin part, by one or more public utility, tele-communications utility or people′s utilitydistrict.

(2) “Licensee” means any person, firm,corporation, partnership, company, associ-ation, joint stock association or cooper-atively organized association which isauthorized to construct attachments upon,along, under or across the public ways.

(3) “People′s utility district” means anyconcern providing electricity organized pur-suant to ORS 261.010 and includes any entitycooperatively organized or owned by federal,state or local government or a subdivision ofstate or local government.

(4) “Public utility” has the meaning forthat term provided in ORS 757.005, and doesnot include any entity cooperatively organ-ized or owned by federal, state or local gov-ernment or a subdivision of state or localgovernment.

(5) “Telecommunications utility” meansany telecommunications utility as defined inORS 759.005 and does not include any entitycooperatively organized or owned by federal,state or local government, or a subdivisionof state or local government. [1987 c.447 §22;1989 c.5 §18]

759.655 Authority of commission toregulate attachments. The Public UtilityCommission of Oregon shall have the au-thority to regulate in the public interest therates, terms and conditions for attachmentsby licensees to poles or other facilities oftelecommunications utilities. All rates, termsand conditions made, demanded or receivedby any telecommunications utility for anyattachment by a licensee shall be just, fairand reasonable. [1987 c.447 §23]

759.660 Fixing charges or rates; crite-ria; costs of hearing. (1) Whenever thePublic Utility Commission of Oregon finds,after hearing had upon complaint by a li-censee or people′s utility district or a tele-communications utility that the rates, terms

or conditions demanded, exacted, charged orcollected in connection with attachments oravailability of surplus space for such attach-ments are unjust or unreasonable, or thatsuch rates or charges are insufficient to yielda reasonable compensation for the attach-ment and the costs of administering thesame, the commission shall determine thejust and reasonable rates, terms and condi-tions thereafter to be observed and in forceand shall fix the same by order. In determin-ing and fixing such rates, terms and condi-tions, the commission shall consider theinterest of the customers of the licensee, aswell as the interest of the customers of thetelecommunications utility or people′s utilitydistrict which owns the facility upon whichthe attachment is made.

(2) When the order applies to a people′sutility district, the order also shall providefor payment by the parties of the cost of thehearing. The payment shall be made in amanner which the commission considers eq-uitable. [1987 c.414 §166d; 1987 c.447 §24; 1989 c.5 §19]

759.665 Considerations in determiningjust and reasonable rate. A just and rea-sonable rate shall assure the telecommuni-cations utility or people′s utility district therecovery from the licensee of not less thanall the additional costs of providing andmaintaining pole attachment space for thelicensee nor more than the actual capital andoperating expenses, including just compensa-tion, of the telecommunications utility orpeople′s utility district attributable to thatportion of the pole, duct or conduit used forthe pole attachment, including a share of therequired support and clearance space in pro-portion to the space used for pole attachmentabove minimum attachment grade level, ascompared to all other uses made of the sub-ject facilities and uses which remain avail-able to the owner or owners of the subjectfacilities. [1987 c.447 §25]

759.670 Presumption of reasonablenessof rates set by agreement. Agreements re-garding rates, terms and conditions of at-tachments shall be deemed to be just, fairand reasonable unless the Public UtilityCommission finds upon complaint by a tele-communications utility, people′s utility dis-trict or licensee party to such agreement andafter hearing, that such rates, terms andconditions are adverse to the public interestand fail to comply with the provisions hereof.[1987 c.447 §26; 1989 c.5 §20]

759.675 Regulatory procedure. The pro-cedures of the Public Utility Commission forpetition, regulation and enforcement relativeto attachments, including any rights of ap-peal from any decision thereof, shall be thesame as those applicable to the commission.[1987 c.447 §27; 1989 c.5 §21]



OPERATOR SERVICE PROVIDERS759.690 Operator service provider du-

ties to service users; rules. (1) As used inthis section:

(a) “Call aggregator” means a personwho furnishes a telephone for use by thepublic, including but not limited to hotels,hospitals, colleges, airports, public pay sta-tion owners and pay station agents.

(b) “Contract” means an agreement be-tween an operator service provider and a callaggregator to automatically connect users oftelephones to the operator service providerwhen certain operator-assisted long distancecalls are made.

(c) “Operator service” includes but is notlimited to billing or completion of third-number, person-to-person, collect or creditcard calls.

(d) “Operator service provider” means aperson who furnishes operator service undercontract with a call aggregator.

(2) Each operator service provider shall:(a) Notify all callers at the beginning of

the call of the provider′s name.(b) Disclose rate and service information

to the caller when requested.(c) Maintain a current list of emergency

numbers for each service territory it serves.(d) Transfer an emergency call to the ap-

propriate emergency number when requested.(e) Transfer a call to, or instruct the

caller how to reach, the originating local ex-change company′s operator service upon re-quest of the caller, free of charge.

(f) Not transfer a call to another operatorservice provider without the caller′s notifi-cation and consent.

(g) Not bill or collect for calls not com-pleted to the caller′s destination. Wheretechnical limitations of the network preventthe identification of incomplete calls, eachoperator service provider shall issue creditsfor such calls upon the request of the caller.

(3) Each call aggregator who has a con-tract with an operator service provider shallpost in the immediate vicinity of each tele-phone available to the public the name of theoperator service provider, a toll-free cus-tomer service number, a statement that ratequotes are available upon request and in-structions on how the caller may accessother operator service providers.

(4) Neither the operator service providernor the call aggregator shall block or pre-vent a telephone user′s access to the user′soperator service provider of choice. In orderto prevent fraudulent use of its services, anoperator service provider or a call aggregatormay block access if the provider obtains a

waiver for such purpose from the PublicUtility Commission.

(5) The provisions of this section shall becarried out in such manner as the commis-sion, by rule, may prescribe. [1989 c.623 §2]

RESIDENTIAL SERVICE PROTECTIONNote: Sections 2 to 8 and 16, chapter 290, Oregon

Laws 1987, provide:Sec. 2. The Legislative Assembly declares that it

is the policy of this state to assure that adequate, af-fordable residential telecommunication service is avail-able to all citizens of this state. [1987 c.290 §2]

Sec. 3. In carrying out the provisions of section 2of this 1987 Act, the Public Utility Commission may re-quire telecommunications public utilities to assure thattime payment plans for deposits and installationcharges or such other options as may be appropriate fora particular telecommunications public utility are madeavailable. [1987 c.290 §3]

Sec. 4. In carrying out the provisions of section 2of this 1987 Act the Public Utility Commission may:

(1) Notwithstanding ORS 757.310, approve a differ-ent rate for local exchange residential telecommunica-tion service for low income customers than the ratecharged to other residential customers. However, anysuch rate is subject to all other provisions of thischapter.

(2) Establish plans, or require telecommunicationspublic utilities to establish plans, to educate customersregarding the options available for obtaining telecom-munication services. [1987 c.290 §4]

Sec. 5. (1) In carrying out the provisions of section2 of this 1987 Act, the Public Utility Commission shallestablish rules to prohibit the termination of local ex-change residential service when such termination wouldsignificantly endanger the physical health of the resi-dential customer.

(2) The commission shall provide by rule a methodfor determining when the termination of local exchangeresidential service would significantly endanger thephysical health of the residential customer.

(3)(a) The commission shall require that each tele-communications public utility:

(A) Accept medical statements by licensed physi-cians and licensed nurse practitioners as sufficient evi-dence of significant endangerment of health; and

(B) Establish procedures for submitting and receiv-ing such medical statements.

(b) A medical statement submitted under this sub-section shall be valid for such period as the commission,by rule, may prescribe.

(4) Rules adopted by the commission pursuant tothis section shall not apply to telecommunication ser-vice other than local exchange residential service.

(5) A customer submitting a medical certificate asprovided in this section is not excused from paying fortelecommunication service. Customers are required toenter into a time payment agreement with the utility ifan overdue balance exists. Local exchange service issubject to termination if a customer refuses to enterinto or fails to abide by terms of a payment agreement.

(6) Nothing in this section prevents the terminationof local exchange residential service if the telecommu-nications public utility providing the service does nothave the technical ability to terminate toll telecommu-nication service without also terminating local ex-change telecommunication service. [1987 c.290 §5]

Sec. 6. (1) In carrying out the provisions of section2, chapter 290, Oregon Laws 1987, the Public UtilityCommission shall establish a plan to provide assistance



to low income customers through differential rates orotherwise. The plan of assistance shall be designed touse, to the maximum extent possible, the availablefunding offered by the Federal Communications Com-mission, and may provide different levels of assistanceto low income customers based upon differences in localexchange rates. The plan established by the commissionshall prescribe the amount of assistance to be providedand the time and manner of payment.

(2) For the purpose of establishing a plan to pro-vide assistance to low income customers under thissection, the commission shall require all public utilities,cooperative corporations and unincorporated associ-ations providing local exchange telecommunication ser-vice to participate in the plan, except as provided insubsection (3) of this section.

(3) In lieu of participation in the commission′s planto assist low income customers, a public utility, coop-erative corporation or unincorporated association pro-viding local exchange telecommunication service mayapply to the commission to establish an alternative planfor the purpose of carrying out the provisions of section2, chapter 290, Oregon Laws 1987, for its own customers.The commission shall adopt standards for determiningthe adequacy of alternative plans.

(4) The commission may contract with any govern-mental agency to assist the commission in the adminis-tration of any assistance plan adopted pursuant to thissection.

(5)(a) As used in sections 2 to 6, chapter 290, Ore-gon Laws 1987, “low income customer” means an indi-vidual determined by the commission:

(A) To be receiving benefits from the SupplementalNutrition Assistance Program or from another low in-come public assistance program for which eligibilityrequirements limit participation to individuals with in-come that does not exceed 135 percent of federal povertyguidelines; or

(B) To be a resident of a long term care facility,as defined in ORS 442.015, or a residential care facility,as defined in ORS 443.400:

(i) Who receives medical assistance under ORSchapter 414; and

(ii) Who has income that does not exceed 135 per-cent of federal poverty guidelines.

(b) The commission must be able to verify thecontinuing participation of a low income customer in aprogram described in paragraph (a) of this subsection.[1987 c.290 §6; 1991 c.622 §1; 2007 c.29 §1; 2009 c.599 §25]

Sec. 7. (1) In order to fund the programs providedin sections 2 to 6 and 9 to 14, chapter 290, Oregon Laws1987, the Public Utility Commission shall develop andimplement a system for assessing a surcharge in anamount not to exceed 35 cents per month against eachpaying retail subscriber who has telecommunicationsservice with access to the telecommunications relayservice. The surcharge shall be applied on a telecom-munications circuit designated for a particular sub-scriber. One subscriber line shall be counted for eachcircuit that is capable of generating usage on the lineside of the switched network regardless of the quantityof customer premises equipment connected to each cir-cuit. For providers of central office based services, thesurcharge shall be applied to each line that has unre-stricted connection to the telecommunications relayservice. These central office based service lines thathave restricted access to the telecommunications relayservice shall be charged based on software design. Forcellular, wireless or other radio common carriers, thesurcharge shall be applied on a per instrument basis,but applies only to subscribers whose place of primaryuse, as defined and determined under 4 U.S.C. 116 to126, is within this state.

(2) The surcharge imposed by subsection (1) of thissection does not apply to:

(a) Services upon which the state is prohibited fromimposing the surcharge by the Constitution or laws ofthe United States or the Constitution or laws of theState of Oregon.

(b) Interconnection between telecommunicationsutilities, telecommunications cooperatives, competitivetelecommunications services providers certified pursuantto ORS 759.020, radio common carriers and interex-change carriers.

(3) The commission annually shall review the sur-charge and the balance in the Residential Service Pro-tection Fund and may make adjustments to the amountof the surcharge to ensure that the fund has adequateresources but that the fund balance does not exceed sixmonths of projected expenses.

(4) Moneys collected pursuant to the surchargeshall not be considered in any proceeding to establishrates for telecommunication service.

(5) The commission shall direct telecommunicationspublic utilities to identify separately in bills to custom-ers for service the surcharge imposed pursuant to thissection. [1987 c.290 §7; 1991 c.622 §2; 1991 c.872 §8; 1993c.231 §1; 1995 c.79 §387; 1995 c.451 §1; 2001 c.408 §2]

Sec. 8. The Residential Service Protection Fund isestablished in the State Treasury, separate and distinctfrom the General Fund. Interest earned by moneys inthe fund shall be credited to the fund. All moneys in thefund are appropriated to the Public Utility Commissionto carry out the provisions of chapter 290, Oregon Laws1987. [1987 c.290 §8; 1989 c.966 §74; 1991 c.622 §3; 1991c.872 §1; 1993 c.231 §2]

Sec. 16. Chapter 290, Oregon Laws 1987, is repealedJanuary 1, 2020. [1987 c.290 §16; 1991 c.622 §4; 1997 c.481§1; 2001 c.408 §1; 2009 c.544 §1]

Note: Sections 1 and 2, chapter 204, Oregon Laws2005, provide:

Sec. 1. Section 2 of this 2005 Act is added to andmade a part of sections 2 to 6, chapter 290, Oregon Laws1987. [2005 c.204 §1]

Sec. 2. (1) In carrying out the provisions of section2, chapter 290, Oregon Laws 1987, the Public UtilityCommission shall adopt rules to prohibit the termi-nation of local exchange residential service if the ter-mination would significantly endanger a customer, or aperson in the household of the customer, who is:

(a) At risk of domestic violence, as defined in ORS135.230;

(b) At risk of unwanted sexual contact, as definedin ORS 163.305;

(c) A person with a disability, as defined in ORS124.005, who is at risk of abuse, as defined in ORS124.005 (1)(a), (d) or (e);

(d) An elderly person, as defined in ORS 124.005,who is at risk of abuse, as defined in ORS 124.005 (1)(a),(d) or (e); or

(e) A victim of stalking, as described in ORS163.732.

(2) A customer may establish that termination oflocal exchange residential service would significantlyendanger the customer, or a person in the household ofthe customer, by providing a telecommunications publicutility with an affidavit signed by the customer statingthat termination would place the customer, or a personin the household of the customer, at significant risk ofdomestic violence, as defined in ORS 135.230, or of un-wanted sexual contact, as defined in ORS 163.305. Thecustomer must attach to the affidavit a copy of an orderissued under ORS 30.866, 107.700 to 107.735, 124.005 to124.040 or 163.738 that restrains another person fromcontact with the customer, or a person in the householdof the customer, or a copy of any other court order thatrestrains another person from contact with the cus-tomer, or a person in the household of the customer, by



reason of a risk described in subsection (1) of this sec-tion or by reason of stalking.

(3) The commission shall require that each tele-communications public utility establish procedures forsubmitting and receiving affidavits under subsection (2)of this section.

(4) This section does not apply to termination ofany telecommunication service other than local ex-change residential service.

(5) A customer submitting an affidavit as providedby subsection (2) of this section is not excused frompaying for telecommunication service. Customers arerequired to enter into a reasonable payment agreementwith the telecommunications public utility if an overduebalance exists. Local exchange residential service maybe terminated if a customer refuses to enter into or failsto abide by the terms of a reasonable payment agree-ment.

(6) Nothing in this section prevents the terminationof local exchange residential service if the telecommu-nications public utility providing the service does nothave the technical ability to terminate toll telecommu-nication service without also terminating local ex-change residential service. [2005 c.204 §2; 2007 c.70 §359]

ASSISTIVE TELECOMMUNICATION DEVICES FOR PERSONS

WITH DISABILITIESNote: Sections 9 to 16, chapter 290, Oregon Laws

1987, provide:Sec. 9. As used in sections 9 to 14, chapter 290,

Oregon Laws 1987, unless the context requires other-wise:

(1) “Adaptive equipment” means equipment thatpermits a person with a disability, other than a personwho is hard of hearing or speech impaired, to commu-nicate effectively on the telephone.

(2) “Applicant” means a person who applies for anassistive telecommunication device, adaptive equipmentor a signal device.

(3) “Assistive telecommunication device” means adevice that utilizes a keyboard, acoustic coupler, displayscreen, Braille display, speakerphone or amplifier toenable people who are deaf, deaf-blind, severely hard ofhearing or severely speech impaired to communicate ef-fectively on the telephone.

(4) “Audiologist” means a person who has a mas-ter′s or doctoral degree in audiology and a Certificateof Clinical Competence in audiology from the AmericanSpeech-Language-Hearing Association.

(5) “Deaf” means a profound hearing loss, as de-termined by an audiologist or a vocational rehabili-tation counselor of the Department of Human Services,that requires use of an assistive telecommunication de-vice to communicate effectively on the telephone.

(6) “Deaf-blind” means a hearing loss and a visualimpairment, as determined by a licensed physician andby an audiologist or a vocational rehabilitation coun-selor of the Department of Human Services, that requireuse of an assistive telecommunication device to com-municate effectively on the telephone.

(7) “Disability” means a physical condition, as de-termined by a licensed physician or vocational rehabil-itation counselor of the Department of Human Services,other than hearing or speech impairment that requiresuse of adaptive equipment to utilize the telephone.

(8) “Hearing aid specialist” means a person li-censed to deal in hearing aids under ORS chapter 694.

(9) “Physician” means an applicant′s primary carephysician or a medical specialist who is able to deter-mine an applicant′s disability and to whom the appli-cant was referred by the primary care physician.

(10) “Recipient” means a person who receivesadaptive equipment, an assistive telecommunication de-vice or a signal device.

(11) “Severely hard of hearing” means a hearingloss, as determined by an audiologist or vocational re-habilitation counselor of the Department of HumanServices, that requires use of an assistive telecommu-nication device to communicate effectively on the tele-phone.

(12) “Severely speech impaired” means a speechdisability, as determined by a speech-language pathol-ogist or vocational rehabilitation counselor of the De-partment of Human Services, that requires use of anassistive telecommunication device to communicate ef-fectively on the telephone.

(13) “Signal device” means a mechanical devicethat alerts a person who is deaf, deaf-blind or severelyhard of hearing of an incoming telephone call.

(14) “Speech-language pathologist” means a personwho has a master′s degree or equivalency in speech-language pathology and a Certificate of Clinical Com-petence issued by the AmericanSpeech-Language-Hearing Association.

(15) “Telecommunications relay center” means afacility authorized by the Public Utility Commission toprovide telecommunications relay service.

(16) “Telecommunications relay service” means theprovision of voice and teletype communication betweenusers of some assistive telecommunication devices andother parties. [1987 c.290 §9; 1991 c.872 §2; 1995 c.280 §32;1995 c.451 §2; 1999 c.384 §1; 2007 c.28 §1; 2007 c.70 §353]

Sec. 10. It is recognized that a large number ofpeople in this state, through no fault of their own, areunable to utilize telecommunication equipment due tothe inability to hear or speak well enough or due toother disabilities. It is also recognized that presenttechnology is available, but at significant cost, thatwould allow these people to utilize telecommunicationequipment in their daily activities. There is, therefore,a need to make available such technology in the formof assistive telecommunication devices and a telecom-munications relay service for people who are deaf, se-verely hard of hearing or severely speech impaired oradaptive equipment for people with disabilities at noadditional cost beyond normal telephone service. Theprovision of assistive telecommunication devices and atelecommunications relay service or adaptive equipmentwould allow those formerly unable to use telecommu-nication systems to more fully participate in the activ-ities and programs offered by government and othercommunity agencies, as well as in their family and so-cial activities. The assistive telecommunication devicesor adaptive equipment would be provided on a loanbasis to each recipient, to be returned if the recipientmoves out of the state. [1987 c.290 §10; 1991 c.872 §3; 1999c.384 §2; 2007 c.70 §354]

Sec. 11. (1) With the advice of the Telecommu-nication Devices Access Program Advisory Committee,the Public Utility Commission shall establish and ad-minister a statewide program to purchase and distributeassistive telecommunication devices to persons who aredeaf, severely hard of hearing, severely speech impairedor deaf-blind and establish a dual party relay systemmaking telephone service generally available to personswho are deaf, severely hard of hearing, severely speechimpaired or deaf-blind.

(2) With the advice of the Telecommunication De-vices Access Program Advisory Committee, the PublicUtility Commission shall establish and administer astatewide program to purchase and distribute adaptiveequipment to make telephone service generally availableto persons with physical disabilities. [1987 c.290 §11; 1991c.872 §4; 1999 c.384 §3; 2007 c.70 §355]

Sec. 12. (1) A Telecommunication Devices AccessProgram Advisory Committee shall be established to



advise the Public Utility Commission concerning mat-ters of general development, implementation and ad-ministration of the Telecommunication Devices AccessProgram.

(2) The Telecommunication Devices Access ProgramAdvisory Committee shall include:

(a) Nine consumers including seven who are deafor hard of hearing, one who is speech impaired and onewho has a disability;

(b) One professional in the field of speech impair-ment, hearing impairment or deafness or disability;

(c) One member of the Public Utility Commissionor a designee of the commission; and

(d) One representative from those telephone com-panies interested in providing telecommunication de-vices access relay services. [1987 c.290 §12; 1991 c.872§5; 2007 c.70 §356]

Sec. 13. (1) The Public Utility Commission shallemploy a coordinator for the Telecommunication De-vices Access Program, who shall be primarily responsi-ble for:

(a) The distribution and maintenance of assistivetelecommunication devices and adaptive equipment;

(b) The provision of telecommunications relay ser-vices and monitoring of those service providers; and

(c) Community outreach to locate potential benefi-ciaries of the Telecommunication Devices Access Pro-gram.

(2) The commission may contract with any govern-mental agency, or other entity the commission considersto be qualified, to assist the commission in the admin-istration of sections 9 to 14, chapter 290, Oregon Laws1987. [1987 c.290 §13; 1991 c.872 §6; 1999 c.384 §4]

Sec. 14. (1)(a) In order to be eligible to receiveassistive telecommunication devices or adaptive equip-ment, individuals must be certified as deaf, severelyhard of hearing, severely speech impaired or deaf-blindby a licensed physician, audiologist, hearing aid spe-cialist, speech-language pathologist or vocational re-habilitation counselor of the Department of HumanServices. Certification implies that the individual can-not use the telephone for expressive or receptive com-munication.

(b) No more than one assistive telecommunicationdevice or adaptive equipment device shall be providedto a household. However, two assistive telecommunica-tion devices or adaptive equipment devices may be pro-vided to a household if more than one eligible personpermanently resides in the household. Households with-out any assistive telecommunication devices or adaptiveequipment shall be given priority over households withone assistive telecommunication device or adaptiveequipment device when such devices are distributed.

(c) Sections 9 to 14, chapter 290, Oregon Laws 1987,do not require a telecommunications utility to providean assistive telecommunication device to any person inviolation of ORS 646.730.

(2)(a) In order to be eligible to receive adaptiveequipment, individuals must be certified to have the re-quired disability by a person or agency designated bythe Public Utility Commission to make such certifica-tions. Certification implies that the individual is unableto use the telephone.

(b) Sections 9 to 14, chapter 290, Oregon Laws 1987,do not require a telecommunications utility to provideadaptive equipment to any person in violation of ORS646.730. [1987 c.290 §14; 1989 c.115 §1; 1991 c.872 §7; 1995c.280 §33; 1999 c.384 §5; 2007 c.28 §2; 2007 c.70 §357]

Sec. 15. The program of distribution provided insections 9 to 14 of this Act is to be phased in over aperiod ending January 1, 1992. [1987 c.290 §15]

Sec. 16. Chapter 290, Oregon Laws 1987, is repealedJanuary 1, 2020. [1987 c.290 §16; 1991 c.622 §4; 1997 c.481§1; 2001 c.408 §1; 2009 c.544 §1]

INFORMATION SERVICE PROVIDERS759.700 Definitions for ORS 759.700 to

759.720. As used in ORS 759.700 to 759.720:(1) “Information provider” means any

person, company or corporation that operatesan information delivery service on a pay-per-call basis.

(2) “Information delivery service” meansany telephone-recorded messages, interactiveprograms or other information services thatare provided for a charge to a caller throughan exclusive telephone number prefix or ser-vice access code. Where a preexisting writ-ten contract exists between the customer andthe information provider, this definition doesnot apply. [1991 c.672 §7]

759.705 Program message preamble;information to be included. (1) An infor-mation provider that does business in thisstate shall include a preamble in its programmessages.

(2) The preamble must:(a) Describe the service that the program

provides.(b) Advise the caller of the price per call,

including:(A) Any per minute charge;(B) Any flat rate charge;(C) Any minimum charge;(D) The maximum charge possible for the

service as determined from multiplying max-imum duration in minutes by the cost perminute, unless the call has a possible indefi-nite duration, in which case the charge forone hour of use shall be stated;

(E) Whether calls that may last morethan 20 minutes are interactive or have apossible indefinite duration; and

(F) The maximum possible charges forany pay-per-call numbers to which the callermay be referred by the information provider.

(c) Advise that the billing will beginshortly after the end of the preamble. A rea-sonable length of time shall be allotted afterthe preamble to give consumers an opportu-nity to disconnect before the program mes-sage starts.

(3) All preambles must be clearly artic-ulated in the language used in advertise-ments for the telephone number and thelanguage used within the body of the pro-gram. The language in the preamble shall bespoken in a normal cadence and at a volumeequal to that of the program message.

(4) When an information provider′s pro-gram message consists only of a polling ap-



plication that permits the caller to registeran opinion or to vote on a matter by com-pleting a call, or results in a flat charge of$2 or less, this section does not apply. [1991c.672 §2]

759.710 Pay-per-call information; dis-closure. (1) An information provider thatadvertises pay-per-call services that arebroadcast by radio or television, contained inhome videos or that appear on movie screensmust include an announcement that accu-rately represents the price of the service be-ing advertised. The announcement must beclearly articulated in the language used inthe body of the program or any other lan-guage spoken in the advertisement. Theseprice disclosures shall be spoken in a normalcadence and at a volume equal to that usedto announce the telephone number in theadvertisement. The advertisement must statethe price of the service each time the tele-phone number of the information providerappears in the advertisement.

(2) An information provider that adver-tises pay-per-call services that are broadcastby television, contained in home videos orthat appear on movie screens must include,in clearly visible letters and numbers setagainst a contrasting background, the costof calling the advertised number. Visual dis-closure of the cost of the call must be dis-played adjacent to the advertised telephonenumber each time the number appears in theadvertisement. The lettering of the visualdisclosure of the cost of the call must be thesame size and typeface as that of the adver-tised telephone number.

(3) Except as provided in subsection (5)of this section, an information provider thatadvertises pay-per-call services that appear inprinted material must include, in clearly vis-ible letters and numbers set against a con-trasting background, the cost of calling theadvertised telephone number. The printeddisclosure of the cost of the call must bedisplayed adjacent to the advertised numbereach time the number appears in the adver-tisement. The lettering of the visual disclo-sure of the cost of the call must be the samesize and typeface as that of the advertisedtelephone number.

(4) Except as provided in subsection (5)of this section, an information provider thatadvertises pay-per-call services must includethe price or cost, including:

(a) Any per minute charge;(b) Any flat rate charge;(c) Any minimum charge;(d) The maximum charge possible for the

service as determined by multiplying maxi-mum duration in minutes by the cost per

minute, unless the call has a possible indefi-nite duration, in which case the charge forone hour of use shall be stated;

(e) An indication whether calls areinteractive or have a possible indefinite du-ration; and

(f) The maximum possible charges for allpay-per-call numbers to which the caller willbe referred by the telephone number beingadvertised.

(5) An information provider that adver-tises pay-per-call services in telephone direc-tory classified advertising must include aconspicuous disclosure in the advertisementthat the call is a pay-per-call service. [1991c.672 §3]

759.715 Information service blocking;suspension or termination of telephoneservice for nonpayment of informationservice charges. (1) Local exchange carriersshall make information delivery serviceblocking available to all customers as soonas such a system becomes technically avail-able to local exchange carriers. Local ex-change carriers shall notify customers ofsuch a blocking service when available.

(2) A customer′s local or long distanceservice shall not be suspended or terminatedfor nonpayment of information delivery ser-vice charges. The Public Utility Commissionthrough orders and rules shall require tele-phone utilities providing billing services forinformation providers to adequately informconsumers of their rights concerning infor-mation providers. [1991 c.672 §§5,6]

759.720 Action against informationprovider for failure to comply with law;remedies; customer liability for charges.(1) Any customer, telecommunications utilityor local exchange carrier who suffers dam-ages from a violation of ORS 646.608, 646.639and 759.700 to 759.720 by an informationprovider has a cause of action against suchinformation provider. The court may awardthe greater of three times the actual dam-ages or $500, or order an injunction or resti-tution. Except as provided in subsection (2)of this section, the court may award reason-able attorney fees to the prevailing party inan action under this section.

(2) The court may not award attorneyfees to a prevailing defendant under the pro-visions of subsection (1) of this section if theaction under this section is maintained as aclass action pursuant to ORCP 32.

(3) When an information provider hasfailed to comply with any provision of ORS646.608, 646.639 and 759.700 to 759.720, anyobligation by a customer that may havearisen from the dialing of a pay-per-call tele-phone number is void and unenforceable.



(4) Any obligation that may have arisenfrom the dialing of a pay-per-call telephonenumber is void and unenforceable if made by:

(a) An unemancipated child under 18years of age; or

(b) A person whose physician substanti-ates that:

(A) The person has a mental or emotionaldisorder generally recognized in the medicalor psychological community that makes theperson incapable of rational judgments andcomprehending the consequences of the per-son′s action; and

(B) The disorder was diagnosed beforethe obligation was incurred.

(5) Upon written notification to the in-formation provider or the billing agent forthe information provider that a bill for in-formation delivery services is void and unen-forceable under subsection (2) or (4) of thissection, no further billing or collection ac-tivities shall be undertaken in regard to thatobligation.

(6) The telecommunications utility or lo-cal exchange carrier may require the cus-tomer to take pay-per-call telephone blockingservice after the initial obligation has beenvoided. [1991 c.672 §4; 1993 c.513 §1; 1995 c.696 §49]

UNAUTHORIZED CHANGES IN TELECOMMUNICATIONS CARRIERS

759.730 Unauthorized changes in tele-communications carriers (“slamming”);rules. (1) The Public Utility Commissionmay by rule assume primary responsibilityfor resolving consumer complaints relatingto changes in a consumer′s telecommuni-cations carrier, as defined in ORS 759.400, inviolation of federal laws, federal regulationsor Federal Communications Commission or-ders.

(2) If the Public Utility Commission as-sumes primary responsibility for resolvingconsumer complaints relating to changes ina consumer′s telecommunications carrier un-der this section, the commission shall byrule:

(a) Establish a complaint process forconsumers who have had changes in tele-communications carriers;

(b) Establish a process for investigatingcomplaints under this section; and

(c) Establish appropriate remedies forconsumers who have had changes in tele-communications carriers in violation of fed-eral laws, federal regulations or FederalCommunications Commission orders.

(3) Rules adopted by the Public UtilityCommission under this section must be con-sistent with federal laws, federal regulations

and Federal Communications Commissionorders relating to resolution of consumercomplaints arising out of changes in tele-communications carriers, and may not im-pose more stringent conditions or penaltiesfor changes in telecommunications carriersthan the conditions and penalties imposed byfederal laws, federal regulations or FederalCommunications Commission orders forchanges in telecommunications carriers.

(4) The Public Utility Commission maynot adopt rules under this section that areapplicable to radio common carriers.

(5) Nothing in this section affects theability of the Attorney General to seek rem-edies under ORS 646.605 to 646.652 to theextent that an unauthorized change in tele-communications carriers constitutes an un-lawful practice under ORS 646.605 to 646.652.[2003 c.642 §2]

DAMAGES759.900 Liability of utility; effect on

other remedies; liability for personal in-jury or property damage. (1) Any telecom-munications utility which does, or causes orpermits to be done, any matter, act or thingprohibited by this chapter or ORS chapter756, 757 or 758 or omits to do any act, matteror thing required to be done by such stat-utes, is liable to the person injured therebyin the amount of damages sustained in con-sequence of such violation. Except as pro-vided in subsection (2) of this section, thecourt may award reasonable attorney fees tothe prevailing party in an action under thissection.

(2) The court may not award attorneyfees to a prevailing defendant under the pro-visions of subsection (1) of this section if theaction under this section is maintained as aclass action pursuant to ORCP 32.

(3) Any recovery under this section doesnot affect recovery by the state of the pen-alty, forfeiture or fine prescribed for suchviolation.

(4) This section does not apply with re-spect to the liability of any telecommuni-cations utility for personal injury or propertydamage. [1989 c.827 §4; 1995 c.696 §51]

PENALTIES759.990 Penalties. (1) Any telecommuni-

cations utility violating ORS 759.260 commitsa Class A violation, and upon conviction thecourt shall impose a fine of not less than$100. Violation of ORS 759.260 by an officeror agent of a telecommunications utility is aClass D violation.

(2) Any person violating ORS 759.275shall, upon conviction, forfeit and pay to theState Treasurer not less than $100 and not



more than $10,000 for each offense. Violationof ORS 759.275 by any agent or officer of anytelecommunications utility or person is pun-ishable, upon conviction, by a fine of not lessthan $100 and not more than $1,000 for eachoffense.

(3) Violation of ORS 759.280 is a Class Aviolation.

(4) Violation of ORS 759.355 is punish-able, upon conviction, by a fine of not lessthan $500 nor more than $20,000 for each of-fense.

(5) Violation of ORS 759.360 is a felonyand is punishable, upon conviction, by a fineof not less than $1,000 nor more than$20,000, or by imprisonment in the peniten-tiary for not less than one nor more thanfive years, or both.

(6) A telecommunications carrier, as de-fined in ORS 759.400, shall forfeit a sum ofnot less than $100 nor more than $50,000 foreach time that the carrier:

(a) Violates any statute administered bythe Public Utility Commission;

(b) Commits any prohibited act, or failsto perform any duty enjoined upon the car-rier by the commission;

(c) Fails to obey any lawful requirementor order made by the commission; or

(d) Fails to obey any judgment made byany court upon the application of the com-mission.

(7) In construing and enforcing subsec-tion (6) of this section, the act, omission orfailure of any officer, agent or other personacting on behalf of or employed by a tele-communications carrier and acting withinthe scope of the person′s employment shallin every case be deemed to be the act, omis-sion or failure of such telecommunicationscarrier.

(8) Except when provided by law that apenalty, fine, forfeiture or other sum be paidto the aggrieved party, all penalties, fines,forfeitures or other sums collected or paidunder subsection (6) of this section shall bepaid into the General Fund and credited tothe Public Utility Commission Account. [1987c.447 §52; 1999 c.1051 §225; 1999 c.1093 §39; 2003 c.576§563]


UTILITY REGULATION


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