H-4238              _______________________________________________

                                                   HOUSE BILL NO. 1984

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representatives Todd, Jacobsen and D. Nelson

Read first time 1/24/86 and referred to Committee on Energy & Utilities.

AN ACT Relating to the approval of banded rate tariffs by the utilities and transportation commission; and amending RCW 80.36.340.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 6, chapter 450, Laws of 1985 and RCW 80.36.340 are each amended to read as follows:

(1) The commission may approve a tariff which includes banded rates for any ((telecommunications)) service ((if such tariff is in the public interest)) offered by a telecommunications company found by the commission to be experimental.

(2) An experimental service is a  new service, not previously offered, and not offered as a substitute for an  existing service.

(3) A service can no longer be considered experimental after it is used for a period of one year.

(4) The minimum rate in the rate band must cover the cost of service and the maximum rate in the rate band cannot exceed the minimum rate in the band by more than 1.5 times.

(5) "Banded rate," as used in this section, means a rate which has a minimum and a maximum rate.  The minimum rate in the rate band shall cover the cost of the service.  The cost of service shall include long-run incremental costs.

(6) Rates may be changed within the rate band upon such notice as the commission may order.