OR SB845

Public Utility Commission gains authority to order the sale of a water utility that violates safety standards, fails to comply with commission orders, cannot maintain safe service, or poses unreasonable public health risks through contaminated water or dilapidated infrastructure

Before ordering a forced sale, the commission must provide written notice and allow the utility opportunity for alternative actions including repairs, management reorganization, contracting with another operator, appointing an independent administrator, merger, or acquisition by a municipality or cooperative

Rate base for an acquired utility must be set between net book value and the acquiring entity's offered purchase price, with transaction costs (due diligence, legal, financing) deferred at the utility's weighted average cost of capital for later rate recovery

Emergency repair funding cap for water utility plants increases from $5,000 to $100,000 per biennium, with the commission authorized to order utilities to make emergency repairs as an alternative to direct expenditure

Passed Senate April 10, 2025 and House May 20, 2025; requested by Governor Kotek for the Public Utility Commission