Oregon Service Tariff Rates Support Damage Prevention
The Oregon Utility Notification Center is funded exclusively through a service tariff paid by underground facility members on a per-ticket or notification basis. It does not receive annual funding from the Oregon State Legislature or the federal government.
As stated in Oregon Revised Statutes 757.552 (2)(b), the Oregon Utility Notification Center is required to, “… establish rates, on a per call basis, under which subscribers shall pay to fund all of the activities of the Oregon Utility Notification Center.”
The OUNC Board of Directors reviews the tariff rate for adjustment on an annual basis. To support ongoing operations and system enhancements, the OUNC Board of Directors approved a .05 cent (3.3%) rate adjustment to the service tariff base rate, which will take effect on January 1, 2025.
Ongoing refinement of the 811 system is bringing improved accuracy and efficiency, which saves valuable time and money otherwise spent on unnecessary or unnecessarily large locates. By optimizing mapping accuracy and notification capabilities, the cost savings and increased value are significant.
The Oregon Utility Notification Center is committed to fiscal responsibility and transparency. If you have questions, comments or need additional information, please reach out to us at [email protected].
Frequently Asked Questions
What are these funds used for?
Service Tariff funds support the current and future financial obligations of the Oregon Utility Notification Center. Almost the entirety of the OUNC’s revenue comes from the Service Tariff, while more than 3/4 of all expenditures are contractually obligated for continued notification center operations.
The funds support technological upgrades and enhancements that improve system efficiency and reduce damages – saving time and costs for Oregon 811 system users. They also support training programs and outreach efforts.
Why were these adjustments necessary?
This is about revenue keeping pace with expenses. The top factors that contribute to this issue include:
- Contract for Notification Center – the contract includes a capped annual increase tied to the Consumer Price Index. While inflation affects other increasing costs, the contract escalation is a primary factor because it represents approximately 3/4 of all expenditures.
- System and Service Enhancements – increased costs cover upgrades to the notification center, which has increased accuracy. This reduces unnecessary locate requests and related truck rolls for subscribers, saving significant time, money and resources through the efficient use of technology.
- In/Out Ratio – improved accuracy of excavation areas (and related notification) has brought a sustained, declining number of outgoing tickets per incoming requests. This directly impacts the bottom line, as the guaranteed cost increases are not matched by revenue.
- Hiring staff – with the hiring of employees, the board acknowledged that there was some uncertainty in the long-term overhead cost increases. These costs carry an annual escalation as well.
Can you cut costs or find other ways to keep rates down?
Maximizing the use of our existing resources and controlling costs are ongoing priorities, but if costs continue to escalate while the tariff rate remains idle we cannot solve this issue through cuts. As the board pursues long-term solutions to prevent damage, this will require more investments in vital programs and outreach – not less. Adequate and stable funding is needed to support these important, ongoing efforts.
When were the previous adjustments?
Starting on July 1, 2024, the service tariff was set at $1.49 and the OUNC Board of Directors instituted an annual review of the rate. Prior to 2024, there was no regular schedule for adjustment of the service tariff rate.
Over the past 20 years, prior increases averaged $0.0175 (1.67%) annually. Effective July 1, 2019, the rate increased from $1.05 to $1.20. Prior to that change, the previous rate of $1.05 was approved in 2004.
On July 13, 2022, the board approved a phased increase of the service tariff of 12.5% from $1.20 to $1.35 starting in August 2022 and an increase of another 3.7% to $1.40 per ticket starting January of 2023. The rate for voice transmitted tickets has also increased with commensurate percentages.
If you have questions, comments or concerns about the Service Tariff, please email [email protected].
