By COMMITTEE ON BUSINESS, LABOR AND CONSUMER AFFAIRS

                             May 27

  In line 2 of the printed bill, delete 'amending ORS 757.310'
and insert 'creating new provisions; amending ORS 757.310; and
declaring an emergency'.
  After line 27, insert:
  '  { +  SECTION 2. + }  { + Section 3 of this 2005 Act is added
to and made a part of ORS 757.205 to 757.240. + }
  '  { +  SECTION 3. + }  { + (1) As used in this section,
'electric company ' has the meaning given that term in ORS
757.600.
  ' (2) The Public Utility Commission shall require that an
electric company mitigate a rate increase payable by a class of
customers described in subsection (5) of this section if:
  ' (a) The increase results from a transition to an electric
company's generally applicable cost-based rate from the rates
established under the contracts described in subsection (5) of
this section; and
  ' (b) The increase in the cost of electricity to that class of
customers by reason of the transition will exceed 50 percent
during the first 12 calendar months after the transition occurs.
  ' (3) The commission shall require an electric company to
mitigate a rate increase under this section by means of a
schedule of rate credits for the class of customers described in
subsection (5) of this section. The rate credits provided by an
electric company under the schedule shall automatically decrease
each year to the lowest credit necessary to avoid a rate increase
that is greater than 50 percent in any subsequent year. Rate
credits under this section may not be provided for more than
seven years after the transition occurs.
  ' (4) For the purpose of determining the increase in the cost
of electricity to a class of customers by reason of a transition
described in subsection (2)(a) of this section, the commission
shall:
  ' (a) Include the total charges for electricity service,
including all special charges and credits other than the rate
credit provided under this section; and
  ' (b) Exclude any local taxes or fees paid by the class of
customers.
  ' (5) This section applies only to customers of an electric
company that purchase electricity at metering points that before
the transition described in subsection (2)(a) of this section
were eligible for rates that were set under contracts entered
into before 1960 and remained unchanged throughout the period of
the contract.
  ' (6) The full cost of providing rate credits under this
section shall be spread equally among all other customers of the
electric company. + }
  '  { +  SECTION 4. + }  { + This 2005 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2005 Act
takes effect on its passage. + } ' .