Oregon Revised Statutes

Or. Rev. Stat. § 757.490 (2026)

Approval needed for certain contracts

✓ current as of May 2026

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757.490 Approval needed for certain contracts. (1) When any public utility doing business in this state enters into a contract with another corporation with relation to the construction, operation, maintenance or use of the property of said public utility in Oregon, or the use of the property of the other contracting party, or any part thereof, or for service, advice, engineering, financing, rentals, leasing or for any construction or management charges in respect of any such property, or for the purchase of property, materials or supplies, the proposed contract shall be filed with the Public Utility Commission for the investigation and approval when the public utility owns a majority of or controls directly or indirectly the voting stock of the other contracting corporations.

(2) Any such proposed contract shall be filed with the commission within 90 days of execution of the contract. The contract shall be deemed to be executed on the date the parties sign a written contract or on the date the parties begin to transact business under the contract, whichever date is earlier. The commission shall promptly investigate and act upon the contract in accordance with ORS 757.495 (3) and (6).

(3) In making such investigation the commission and accountants, examiners and agents, appointed by the commission for the purpose, shall be given free access to all books, books of account, documents, data and records of the public utility as well as of the corporation with which it is proposing to contract, which the commission may deem material to the investigation. The failure or refusal of either of the parties to the proposed contract to comply with this subsection is prima facie evidence that such contract is unfair, unreasonable and contrary to public interest, and is sufficient to justify a determination and finding of the commission to that effect, which has the same force and effect as any other determination or order of the commission. [Formerly 757.165; 1989 c.956 §6]

Notes of Decisions

Cited in 2 cases, 1975–2000 · leading case: Pac. Nw. Bell Tel. Co. v. Sabin, 534 P.2d 984 (Or. Ct. App. 1975).

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Pac. Nw. Bell Tel. Co. v. Sabin, 534 P.2d 984 (Or. Ct. App. 1975). “ORS 757.490 and 757.495 establish the standards by which the [Commissioner] is to determine the propriety and reasonableness of payments made to an affiliated interest by a public utility for any purchases.”

Util. Reform Proj. v. Oregon Pub. Util. Comm'n, 16 P.3d 516 (Or. Ct. App. 2000). “ORS 757.490 similarly requires Commission approval before a public utility may enter into a contract with another corporation concerning the construction, operation, maintenance, or use of public utility property.”

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