Subcommittee approves LFO-recommended Public Utility Commission budget and forwards bill to full committee

Co Chair Gomberg and members of the Joint Committee on Ways and Means Subcommittee on Transportation and Economic Development voted May 20 to adopt the Legislative Fiscal Office's recommendation for House Bill 5,034, the Public Utility Commission (PUC) budget, and moved the bill to the full Ways and Means committee with a due-pass recommendation.

The Legislative Fiscal Office (LFO) told the subcommittee the recommended total funds budget is $130,347,867, representing a 3.3% increase over current service levels, and includes funding to finish a new activity-and-docketing system, replace a 25-year-old Residential Service Protection Fund database, add positions for expanded wildfire mitigation oversight, and create a permanent public affairs specialist position. "This is a 3.3% increase over the current service level," LFO staff member Mr. Ruff said as he summarized the recommendation.

LFO described the largest near-term, one-time items as a $2,100,000 other-funds limitation to complete the new docketing system and another package (listed in the work materials as package 109) increasing other-funds limitation by $1,668,493 to develop a new Residential Service Protection Fund database. To support wildfire mitigation oversight, LFO recommended establishing four permanent positions and $400,000 in professional services for validation, compliance reviews and performance analysis; package 104 (as corrected in the hearing) establishes the permanent analyst positions. Package 106 funds a permanent public affairs specialist position, and package 105 funds one-time professional services. LFO also recommended a $68,811 adjustment for activity-and-docket maintenance (package 102) and a bookkeeping shift of two gas-pipeline-safety positions from other funds to federal funds (package 108).

During discussion Representative Kate asked whether the agency had authority or plans to raise a percentage-based operations fee charged to utilities. Mr. Ruff responded that the specific policy option allowing a percentage fee was not included in the recommended budget and is part of a separate policy bill currently moving through the Legislature. He confirmed: "That is not included. That particular policy option package did not have an effect on the budget. That is part of a policy bill, that is making its rounds right now, so it was not included." Co Chair Meek and members subsequently moved adoption of a Dash 1 amendment that updated the LFO recommendation; the amendment was adopted without objection.

The subcommittee also approved the PUC's 19 key performance measures and targets as recommended by the LFO. After brief procedural motions, the committee carried the amended bill to the full Ways and Means Committee with a due-pass recommendation; the motion carried with no recorded objections. Representative Winn later recorded a yes vote when the committee suspended the rules to allow his participation.

The LFO materials and the PUC presentation placed emphasis on funding to support agency modernization (the docketing system and customer database) and increasing staff capacity for wildfire mitigation oversight and public communications. LFO noted the board-level change to the Oregon Board of Maritime Pilots operating fee in the agency materials but treated that fee change as separate line items in the PUC-related packages.

What the subcommittee did not take final action on in this session: the transcript shows no separate vote on the percentage-based operations fee described by Representative Kate; LFO and the committee said that policy matter is being considered in a separate bill (House Bill 2,370) scheduled for future work sessions.

Looking ahead, committee staff said the subcommittee will meet again Thursday for additional work sessions on related agency and fee matters, including a separate work session on fees imposed by the Public Utility Commission.