ORS 757.054: Cost-effective energy efficiency resources and demand response resources; legislative findings; planning and pursuit by electric company required; consumer credit; rules.

(1) As used in this section: (a) “Electric company” has the meaning given that term in ORS 757.600. (b) “Retail electricity consumer” means a retail electricity consumer, as defined in ORS 757.600, that is located in Oregon. (2) The Legislative Assembly finds and declares that: (a) Energy efficiency programs promote lower energy bills, protect the public health and safety, improve environmental benefits, stimulate sustainable economic development, create new employment opportunities and reduce reliance on imported fuels; and (b) Demand response resources result in more efficient use of existing resources and reduce the need for procuring new power generating resources, which, in turn, reduces energy bills, protects the public health and safety and improves environmental benefits. (3) For the purpose of ensuring prudent investments by an electric company in energy efficiency and demand response before the electric company acquires new generating resources, and in order to produce cost-effective energy savings, reduce customer demand for energy, reduce overall electrical system costs, increase the public health and safety and improve environmental benefits, each electric company serving customers in this state shall: (a) Plan for and pursue all available energy efficiency resources that are cost effective, reliable and feasible; and (b) As directed by the Public Utility Commission by rule or order, plan for and pursue the acquisition of available cost-effective demand response resources. (4) All funds necessary to plan for and pursue cost-effective energy efficiency resources pursuant to subsection (3)(a) of this section must be collected in the rates of an electric company through charges paid by all retail electricity consumers, including those retail electricity consumers receiving electricity from electricity service suppliers subject to the limitations set forth in section 3, chapter 547, Oregon Laws 2021. The commission may require that a portion of all of the funds collected under this subsection be paid to a nongovernmental entity to make expenditures consistent with this section. (5)(a) A retail electricity consumer that uses more than one average megawatt of electricity at any site in the prior year shall receive a credit against the amount charged in rates pursuant to subsection (4) of this section for that site for qualifying expenditures for energy efficiency resources made by the retail electricity consumer. The amount of the credit may not exceed the lesser of: (A) The amount charged to the retail electricity consumer in rates; or (B) The total amount of qualifying energy efficiency expenditures described in subsection (3)(a) of this section made by the retail electricity consumer for that site, less administration costs incurred under this subsection. (b) The State Department of Energy shall adopt by rule procedures and other provisions necessary for a retail electricity consumer to obtain a credit under this subsection. [2016 c.28 §19; 2021 c.547 §2] Sec. 3. Caps on amounts charged for larger consumers of retail electricity. (1) As used in this section: (a) “Single contiguous area” includes an area of land crossed by a public or railroad right of way, but does not include infrastructure facilities located within the public or railroad right of way for purposes of determining whether the single contiguous area of land constitutes a site. (b) “Site” means: (A) Buildings and related structures that are interconnected by facilities owned by a single retail electricity consumer and that are served through a single electric meter; (B) A single contiguous area of land containing buildings or other structures within which each building or structure is no more than 1,000 feet from at least one other building or structure, if the buildings and structures and the land containing and connecting the buildings and structures are all owned by a single retail electricity consumer, either directly or through a wholly owned subsidiary, that is billed for electricity use at the buildings and structures; or (C) For any single retail electricity consumer, each account of the retail electricity consumer that has exceeded 4,000 kilowatts at least twice within the most recent 13-month period and for which the retail electricity consumer maintains a load factor of 80 percent or greater, if the combined electricity usage across all of the accounts described in this subparagraph, in the aggregate, equals 100 average megawatts or more in a calendar year. (2) For the period beginning on the effective date of this 2021 Act [September 25, 2021] and ending December 31, 2025, a retail electricity consumer that uses more than one average megawatt of electricity at any site in the prior year may not be charged an amount in rates pursuant to ORS 757.054 (4) that exceeds 1.7 percent of the total revenue received from the sale of electricity services to the site from any source. (3) For the period beginning January 1, 2026, and ending December 31, 2035, the combined annual amount charged under ORS 757.054 and 757.612 to a retail electricity consumer that uses more than one average megawatt and less than 10 average megawatts of electricity at any site in the prior year may not exceed $250,000. (4)(a) For the period beginning January 1, 2026, and ending December 31, 2030, the combined annual amount charged under ORS 757.054 and 757.612 to a retail electricity consumer that uses more than 10 average megawatts of electricity at any site in the prior year may not exceed $4 million. (b) For the period beginning January 1, 2031, and ending December 31, 2035, the combined annual amount charged under ORS 757.054 and 757.612 to a retail electricity consumer that uses more than 10 average megawatts of electricity at any site in the prior year may not exceed $4.5 million. [2021 c.547 §3] Sec. 4. Section 3 of this 2021 Act is repealed on January 2, 2036. [2021 c.547 §4]