Oregon Revised Statutes

Or. Rev. Stat. § 221.420 (2026)

Municipal regulation of public utilities

✓ current as of May 2026
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      221.420 Municipal regulation of public utilities. (1) As used in this section:

      (a) “Public utility” has the meaning for that term provided in ORS 757.005.

      (b) “Commission” means the Public Utility Commission of Oregon.

      (c) “Council” means the common council, city council, commission or any other governing body of any municipality wherein the property of the public utility is located.

      (d) “Municipality” means any town, city or other municipal government wherein property of the public utility is located.

      (e) “Service” is used in its broadest and most inclusive sense and includes equipment and facilities.

      (f) “Heating company” means any person furnishing heat but not electricity or natural gas to its customers.

      (2) Subject to ORS 758.025, a city may:

      (a) Determine by contract or prescribe by ordinance or otherwise, the terms and conditions, including payment of charges and fees, upon which any public utility, electric cooperative, people’s utility district or heating company, or Oregon Community Power, may be permitted to occupy the streets, highways or other public property within such city and exclude or eject any public utility or heating company therefrom.

      (b) Require any public utility, by ordinance or otherwise, to make such modifications, additions and extensions to its physical equipment, facilities or plant or service within such city as shall be reasonable or necessary in the interest of the public, and designate the location and nature of all additions and extensions, the time within which they must be completed, and all conditions under which they must be constructed.

      (c) Fix by contract, prescribe by ordinance, or in any other lawful manner, the rates, charges or tolls to be paid to, or that may be collected by, any public utility or the quality and character of each kind of product or service to be furnished or rendered by any public utility furnishing any product or service within such city. No schedule of rates, charges or tolls, fixed in the manner provided in this paragraph, shall be so fixed for a longer period than five years. Whenever it is proposed by any city to enter into any contract, or to enact any ordinance, or other municipal law or regulation concerning the matters specified in this paragraph, a copy of such proposed contract, ordinance or other municipal law or resolution shall be filed with the Public Utility Commission of Oregon before the same may be lawfully signed or enacted, as the case may be, and the commission shall thereafter have 90 days within which to examine into the terms thereof. If the commission is of the opinion that in any respect the provisions of the proposed contract, ordinance or other municipal law or resolution are not in the public interest, the commission shall file, in writing, with the clerk or other officer who has the custody of the files and records of the city, the commission’s reasons therefor. If the objections are filed within said period of 90 days, no proposed contract, ordinance or other municipal law or regulation shall be valid or go into effect until it has been submitted to or ratified by the vote of the electors of the city. Unless and until a city exercises its powers as provided in this paragraph, the commission is vested with all powers with respect to the matters specified in this paragraph. If the schedule of rates, charges and tolls or the quality and character of each kind of product or service is fixed by contract, ordinance or other municipal law or regulation and in the manner provided in this paragraph, the commission has no power or jurisdiction to interfere with, modify or change it during the period fixed thereby. Upon the expiration of said period such powers shall again be vested in the commission, to be exercised by the commission unless and until a new schedule of rates or the quality and character for such service or product is fixed or prescribed by contract, ordinance or other municipal law or regulation in the manner provided in this paragraph.

      (d) Provide for a penalty for noncompliance with the provisions of any charter provision, ordinance or resolution adopted by the city in furtherance of the powers specified in this subsection. [Amended by 1971 c.655 §245; 1987 c.245 §2; 1987 c.628 §1; 1989 c.5 §1; 1989 c.999 §6; 1999 c.1093 §6; 2007 c.807 §40; 2009 c.444 §3]

 

      221.430 [Amended by 1967 c.359 §684; repealed by 1973 c.33 §1]

 

      221.440 [Repealed by 1973 c.33 §1]

Notes of Decisions
Cited in 19 cases, 1969–2018 · leading case: Springfield Util. Bd. v. Emerald Pud, 125 P.3d 740 (Or. 2005).
Springfield Util. Bd. v. Emerald Pud, 125 P.3d 740 (Or. 2005). · cites it 45× “That city charter also empowers the board to exercise the regulatory authority provided in ORS 221.420, discussed post. [3] The board has acted as the exclusive provider of residential electrical services within the city limits of Springfield since 1975.”
Nw. Nat. Gas Co. v. City of Gresham, 374 P.3d 829 (Or. 2016). · cites it 20× “That position is consistent with our determination in Rogue Valley Sewer Services, 357 Or at 455, that “ORS 221.420 and ORS 221.450 do not create a statutory scheme that prevents the state law and local ordinance from operating concurrently.”
Rogue Valley Sewer Servs. v. City of Phoenix, 353 P.3d 581 (Or. 2015). · cites it 17× “See ORS 221.420; ORS 221.450. Where cities and utilities have not entered into an agreement for a different fee arrangement, the legislature provides for a five percent fee.”
Springfield Util. Bd. v. Emerald People's Util. Dist., 84 P.3d 167 (Or. Ct. App. 2004). · cites it 32× “The legislature adopted what is now ORS 221.420 as section 61 of chapter 279 of the 1911 Oregon Laws (section 61).”
PacifiCorp v. City of Ashland, 749 P.2d 1189 (Or. Ct. App. 1988). · cites it 18× “) The focus of city’s concern with our former opinion is our statement that “the city is not correct in its view that its unexercised authority under [ORS 221.420(2) (a) and other] statutes [setting out city regulatory powers] is relevant to the question presented in plaintiffs…”
Rogue Valley Sewer Servs. v. City of Phoenix, 329 P.3d 1 (Or. Ct. App. 2014). · cites it 12× “Specifically, RVS argued that the imposition of the fee constituted an impermissible regulation of RVS’s utility rates because RVS would be required to raise rates to cover the fee and because the ordinance is inconsistent with ORS 221.420, which permits local governments to…”
Nw. Nat. Gas Co. v. City of Gresham, 330 P.3d 65 (Or. Ct. App. 2014). · cites it 13× “In 1931, the legislature amended the utility-regulation statutes, including the predecessor to ORS 221.”
Springfield Util. Bd. v. Emerald People's Util. Dist., 125 P.3d 740 (Or. 2005). · cites it 45× “That city charter also empowers the board to exercise the regulatory authority provided in ORS 221.420, discussed post. 3 The board has acted as the exclusive provider of residential electrical services within the city limits of Springfield since 1975.”
Pacificorp v. City of Ashland, 744 P.2d 257 (Or. Ct. App. 1987). · cites it 6× “ORS 221.420 grants no authority to a municipality to itself provide utility service; that authority must come from some other statutory source.”
US West Commc'ns, Inc. v. City of Eugene, 81 P.3d 702 (Or. 2003). “1 If certain conditions are met, a city either may enter into a franchise agreement that determines the “charges and fees upon which any public utility * * * may be permitted to occupy the streets, highways or other public property within such city,” ORS 221.420(2), or may…”
Fred Hass v. Oregon State Bar, 883 F.2d 1453 (9th Cir. 1989). “010(1); ORS §§ 244.050-244.201, nor rate hearings for aggrieved parties, ORS § 9.”
Nw. Nat. Gas Co. v. City of Portland, 711 P.2d 119 (Or. 1985). “” This statute was later redesignated as ORS 221.420, which provides in relevant part: “(2) Every city may: (a) Determine by contract or prescribe by ordinance or otherwise, the quality and character of each kind of product or service to be furnished or rendered by any public…”
— Or. Rev. Stat. § 221.420(1) — 1 case
Springfield Util. Bd. v. Emerald People's Util. Dist., 84 P.3d 167 (Or. Ct. App. 2004). “The legislature adopted what is now ORS 221.420 as section 61 of chapter 279 of the 1911 Oregon Laws (section 61).”
— Or. Rev. Stat. § 221.420(1)(a) — 4 cases
Springfield Util. Bd. v. Emerald People's Util. Dist., 84 P.3d 167 (Or. Ct. App. 2004). “The legislature adopted what is now ORS 221.420 as section 61 of chapter 279 of the 1911 Oregon Laws (section 61).”
Springfield Util. Bd. v. Emerald Pud, 125 P.3d 740 (Or. 2005). “That city charter also empowers the board to exercise the regulatory authority provided in ORS 221.420, discussed post. [3] The board has acted as the exclusive provider of residential electrical services within the city limits of Springfield since 1975.”
Springfield Util. Bd. v. Emerald People's Util. Dist., 125 P.3d 740 (Or. 2005). “That city charter also empowers the board to exercise the regulatory authority provided in ORS 221.420, discussed post. 3 The board has acted as the exclusive provider of residential electrical services within the city limits of Springfield since 1975.”
— Or. Rev. Stat. § 221.420(1)(d) — 2 cases
Springfield Util. Bd. v. Emerald Pud, 125 P.3d 740 (Or. 2005). “That city charter also empowers the board to exercise the regulatory authority provided in ORS 221.420, discussed post. [3] The board has acted as the exclusive provider of residential electrical services within the city limits of Springfield since 1975.”
Springfield Util. Bd. v. Emerald People's Util. Dist., 125 P.3d 740 (Or. 2005). “That city charter also empowers the board to exercise the regulatory authority provided in ORS 221.420, discussed post. 3 The board has acted as the exclusive provider of residential electrical services within the city limits of Springfield since 1975.”
— Or. Rev. Stat. § 221.420(2) — 8 cases
Nw. Nat. Gas Co. v. City of Gresham, 374 P.3d 829 (Or. 2016). “That position is consistent with our determination in Rogue Valley Sewer Services, 357 Or at 455, that “ORS 221.420 and ORS 221.450 do not create a statutory scheme that prevents the state law and local ordinance from operating concurrently.”
Springfield Util. Bd. v. Emerald People's Util. Dist., 84 P.3d 167 (Or. Ct. App. 2004). “The legislature adopted what is now ORS 221.420 as section 61 of chapter 279 of the 1911 Oregon Laws (section 61).”
PacifiCorp v. City of Ashland, 749 P.2d 1189 (Or. Ct. App. 1988). “) The focus of city’s concern with our former opinion is our statement that “the city is not correct in its view that its unexercised authority under [ORS 221.420(2) (a) and other] statutes [setting out city regulatory powers] is relevant to the question presented in plaintiffs…”
US West Commc'ns, Inc. v. City of Eugene, 81 P.3d 702 (Or. 2003). “1 If certain conditions are met, a city either may enter into a franchise agreement that determines the “charges and fees upon which any public utility * * * may be permitted to occupy the streets, highways or other public property within such city,” ORS 221.420(2), or may…”
Pacificorp v. City of Ashland, 744 P.2d 257 (Or. Ct. App. 1987). “ORS 221.420 grants no authority to a municipality to itself provide utility service; that authority must come from some other statutory source.”
— Or. Rev. Stat. § 221.420(2)(a) — 11 cases
Springfield Util. Bd. v. Emerald Pud, 125 P.3d 740 (Or. 2005). “That city charter also empowers the board to exercise the regulatory authority provided in ORS 221.420, discussed post. [3] The board has acted as the exclusive provider of residential electrical services within the city limits of Springfield since 1975.”
PacifiCorp v. City of Ashland, 749 P.2d 1189 (Or. Ct. App. 1988). “) The focus of city’s concern with our former opinion is our statement that “the city is not correct in its view that its unexercised authority under [ORS 221.420(2) (a) and other] statutes [setting out city regulatory powers] is relevant to the question presented in plaintiffs…”
Springfield Util. Bd. v. Emerald People's Util. Dist., 84 P.3d 167 (Or. Ct. App. 2004). “The legislature adopted what is now ORS 221.420 as section 61 of chapter 279 of the 1911 Oregon Laws (section 61).”
Rogue Valley Sewer Servs. v. City of Phoenix, 353 P.3d 581 (Or. 2015). “See ORS 221.420; ORS 221.450. Where cities and utilities have not entered into an agreement for a different fee arrangement, the legislature provides for a five percent fee.”
Nw. Nat. Gas Co. v. City of Gresham, 374 P.3d 829 (Or. 2016). “That position is consistent with our determination in Rogue Valley Sewer Services, 357 Or at 455, that “ORS 221.420 and ORS 221.450 do not create a statutory scheme that prevents the state law and local ordinance from operating concurrently.”
— Or. Rev. Stat. § 221.420(l)(a) — 3 cases
Rogue Valley Sewer Servs. v. City of Phoenix, 353 P.3d 581 (Or. 2015). “See ORS 221.420; ORS 221.450. Where cities and utilities have not entered into an agreement for a different fee arrangement, the legislature provides for a five percent fee.”
Rogue Valley Sewer Servs. v. City of Phoenix, 329 P.3d 1 (Or. Ct. App. 2014). “Specifically, RVS argued that the imposition of the fee constituted an impermissible regulation of RVS’s utility rates because RVS would be required to raise rates to cover the fee and because the ordinance is inconsistent with ORS 221.420, which permits local governments to…”
Springfield Util. Bd. v. Emerald People's Util. Dist., 125 P.3d 740 (Or. 2005). “That city charter also empowers the board to exercise the regulatory authority provided in ORS 221.420, discussed post. 3 The board has acted as the exclusive provider of residential electrical services within the city limits of Springfield since 1975.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.