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Low-Income Consumers Union v. Oregon Public Utility Commission

Citations: 946 P.2d 1164; 150 Or. App. 491; 1997 Ore. App. LEXIS 1472Docket: 94-12-08220; CA A94223

Court: Court of Appeals of Oregon; October 15, 1997; Oregon; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by a consumer advocacy group, the Low-Income Consumers Union (LICU), against the Oregon Public Utility Commission's (PUC) order dismissing LICU's complaint about Portland General Electric Company's (PGE) late payment fee tariffs. LICU challenged the legality of a 1.5% late payment charge approved by PUC in 1988, asserting it was a rate increase without proper procedure. PUC stayed LICU's initial complaint, opting for rulemaking to clarify its authority over such charges, which it affirmed in 1990. PUC concluded that late payment charges did not require the procedural rigor associated with general rate changes and dismissed LICU's complaint in 1994, citing prior resolution of relevant issues. The appellate court affirmed PUC's authority and procedures, finding a rational basis for the conclusions despite LICU's procedural claims. LICU's contentions regarding procedural rights and tariff notice requirements were dismissed due to lack of necessity for broader notification. LICU's introduction of new arguments on appeal was rejected as untimely. Additionally, an initial trial court error on the burden of proof citation was deemed inconsequential. The court upheld both the PUC's order and the trial court's judgment, concluding the late payment fees were justified and reasonable.

Legal Issues Addressed

Admissibility of New Issues on Appeal

Application: Appellant's attempt to introduce a new issue under ORS 756.568 on appeal was deemed untimely and therefore inadmissible.

Reasoning: LICU's attempt to introduce a new issue under ORS 756.568 on appeal is deemed too late.

Authority of Public Utility Commission Over Late Payment Charges

Application: The Public Utility Commission has the authority to approve late payment charges imposed by a utility company, and such charges do not require the procedural requirements of a general rate change.

Reasoning: In 1990, PUC affirmed its authority to permit late payment charges and ruled in subsequent decisions that these charges did not necessitate extensive procedural requirements typically required for general rate changes.

Justification of Utility Charges

Application: The Public Utility Commission's determination that the late payment fees were 'just and reasonable' and justified by their impact on financial operations was upheld.

Reasoning: The PUC's argument that late payment fees are justified by their impact on financial operations is upheld, countering LICU's claim that such fees are unrelated to utility service costs.

Procedural Rights and Notice Requirements

Application: The appellant's claim regarding procedural rights was rejected as the late payment fee changes did not constitute a 'general rate revision,' thus not necessitating broader customer notification.

Reasoning: LICU's assertion that the tariffs violated notice requirements is dismissed, as the changes did not constitute a 'general rate revision' and thus did not necessitate broader customer notification.