Yes, I've sometimes seen this. This form of bioluminescence is most commonly known as foxfire, and is (as you describe) usually found in mushrooms  growing on rotting wood. (Especially the delicious "Honey Mushroom", Armillaria/Armillariella Mellea! ).

Here's a few web links with more info

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I don't have much mushroom-picking experience in Ontario, mostly chanterelles, lactarius, boletus. Any other amateur mycologists out there?