(Doc Name COUNCIL\SA\4950C029.DKA.SA18.DOCX):
EXPLANATION:
Amend the bill, as and if amended, Part IB, Section 73, OFFICE OF REGULATORY STAFF, page 411, after line 26, by adding an appropriately numbered paragraph to read:
/ (ORS: Base Load Review Act
Prudence) (A)
In the current fiscal year, pursuant to Section
58-33-277 and requirements of entities subject to Title 58 of
the 1976 Code, from the funds appropriated to the Office of
Regulatory Staff, the office shall consider the following
regarding reports to, contents of, and on-going monitoring by
Office of Regulatory Staff:
(1)
'Imprudent' or 'imprudence' includes, but
is not limited to, lack of caution, care, or diligence as
determined by the Public Service Commission in regard to any
action or decision taken by the utility or one acting on its
behalf including, but not limited to, its officers, board,
agents, employees, contractors, subcontractors, consultants
affecting the project, or any other person acting on behalf of
or for the utility affecting the project. Imprudent or
imprudence includes, but does not require, a finding of
negligence, carelessness, or recklessness.
Imprudence on behalf of any
contractor, subcontractor, agent, or person hired to construct a
plant or perform any action or service on behalf of the utility
must be attributed to the utility.
Imprudence includes, but is
not limited to, any one or more of the following:
(a)
failure to timely disclose and provide to
the commission or the Office of Regulatory Staff any report,
study, analysis, or written communication material to a
particular project prepared by a third party engaged or caused
to be engaged by the utility and furnished to the utility which
relates to the management, supervision, or oversight of the
project, the budgeted costs of the project, the performance of
contractors or subcontractors on the project, or the scheduled
completion date of the project;
(b)
inappropriate or poor management or
oversight decisions in the construction of the project
including, but not limited to, failure to keep knowledgeable
utility management or supervisory personnel on the project site
to ensure proper supervision and oversight of the project and
its construction; and
(c)
any other fact, factor, or relationship
which indicates the lack of prudence as defined in this item as
determined by the commission.
(2)
'Prudent', 'prudence', or 'prudency'
means a high standard of caution, care, and diligence in regard
to any action or decision taken by the utility or one acting on
its behalf including, but not limited to, its officers, board,
agents, employees, contractors, subcontractors, consultants
affecting the project, or any other person acting on behalf of
or for the utility affecting the project.
To the extent a utility
enters a contract with a third party that delegates some or all
decision-making authority related to the project, the utility
retains the burden of establishing the prudency of specific
items of cost or specific third-party decisions.
'Prudent', 'prudence', or
'prudency' also requires that any action or decision be made in
a timely manner.
In determining whether any
action or decision was prudent, the commission shall consider,
including, but not limited to:
(a)
whether the utility acts in a timely
manner, with any passage of time which results in increased
costs or expense prior to the utility acting or making the
decision weighing against a finding of prudency;
(b)
whether prior actions or decisions by the
utility were imprudent and such imprudent actions led to a
decision by the utility that could otherwise be prudent. Such
circumstances weigh against a finding of prudency; and
(c)
any other relevant factors, including
commission of a fraudulent act, which are deemed not to be
prudent.
As used in subitem (c),
'fraud' includes, in addition to its normal legal connotation,
concealment, omission, misrepresentation, or nondisclosure of a
material fact in any proceeding or filing before the commission
or Office of Regulatory Staff. Proceedings and filings to which
the provisions of this paragraph apply include, but are not
limited to, rate or revised rate filings, responsive filings,
motions, pleadings, briefs, memoranda, document requests, and
other communications before the commission or Office of
Regulatory Staff.
(B)
The costs associated with the implementation of this
proviso must be from the funds appropriated to the Office of
Regulatory Staff. /
Renumber sections to conform.
Amend totals and titles to conform.