Committee approves securitization expansion to include PUC‑approved self‑insurance programs

The Senate Energy and Environment Committee moved House Bill 40 77 to the Senate floor after testimony from utilities and consumer advocates supporting an expansion of securitization tools that the Public Utility Commission (PUC) may approve.

Chris Little, treasurer for Portland General Electric, told the committee HB 40 77 would add PUC‑approved self‑insurance or captive insurance programs to the state's securitization statute and that any use of securitization would require PUC review to determine whether issuing bonds is more beneficial to customers than other options. Little said PGE has seen insurance premiums rise nearly 180% over five years and that adding the tool could help manage large, irregular costs.

Jennifer Hillhart of the Oregon Citizens' Utility Board said consumer advocates support the bill because securitization allows utilities to convert large approved costs into lower‑cost borrowing subject to PUC oversight and the requirement that cost recovery be just and reasonable. In committee Q&A, senators asked how securitization debt service and interest costs would be weighed; PGE and witnesses said the PUC would evaluate whether securitization is the more cost‑effective path and that interest costs would ultimately be repaid through dedicated charges on utility bills if approved.

Senator Golden moved the bill to the floor with a due‑pass recommendation; no objections were recorded and the motion carried. Proponents emphasized that any captive/self‑insurance use would remain subject to PUC review and public process.