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Utilities, consumer advocates tell committee HB 4,077 would add self-insurance to securitization tools
Summary
Portland General Electric and the Oregon Citizens' Utility Board said HB 4,077 would let the Public Utility Commission approve securitization of PUC‑approved self-insurance or captive insurance programs to manage rising wildfire-related insurance costs, while reaffirming the Commission's oversight role under ORS 757.457.
Witnesses told the House committee that HB 4,077 would expand the state's securitization statute to allow the Public Utility Commission to approve securitization of self-insurance or captive insurance programs approved by the PUC.
Jay Tinker, senior manager for rates and regulatory affairs at Portland General Electric, said the amendment would give the PUC another tool to manage energy affordability and noted companies are seeing large insurance-premium increases: "At PGE, we see we've seen our annual insurance premiums increase over 180% over the last 5 years." He described securitization as a financing tool that can lower interest rates and spread costs over time in a way that can reduce near-term rate impacts.
Jennifer Hillhart of the Oregon Citizens' Utility Board testified in support while noting that utilities would remain subject to commission directives that securitized costs charged to ratepayers be just and reasonable.
The committee limited oral testimony and closed the hearing after representatives answered no questions; no vote occurred during the hearing.
