H-453                _______________________________________________

                                                    HOUSE BILL NO. 439

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Todd and D. Nelson

Read first time 2/1/85 and referred to Committee on Energy & Utilities.

AN ACT Relating to contracting authority of public service companies; and amending RCW 80.04.300 and 80.04.320.

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

        Sec. 1.  Section 80.04.300, chapter 14, Laws of 1961 and RCW 80.04.300 are each amended to read as follows:

          The commission ((may)) shall regulate, restrict, and control the budgets of expenditures of public service companies.  Each company shall prepare a budget showing the amount of money which, in its judgment, will be needed during the ensuing year for maintenance, operation, and construction, classified by accounts as prescribed by the commission, and shall within ten days of the date it is approved by the company file it with the commission for its investigation and approval or rejection.  When a budget has been filed the commission shall within sixty days examine into and investigate it to determine whether the expenditures therein proposed are fair and reasonable and not contrary to public interest.

If the commission finds that expenditures therein proposed are not fair and reasonable or are contrary to public interest, the commission shall reject the proposed expenditures in whole or in part.

          Adjustments or additions to budget expenditures may be made from time to time during the year by filing a supplementary budget with the commission for its investigation and approval or rejection.

        Sec. 2.  Section 80.04.320, chapter 14, Laws of 1961 and RCW 80.04.320 are each amended to read as follows:

          The commission ((may)) shall prescribe the necessary rules and regulations to place RCW 80.04.300 through 80.04.330 in operation.  It may, by general order, exempt in whole or in part from the operation thereof companies whose gross operating revenues are less than twenty-five thousand dollars a year.  The rules shall specify methods for determining the need for any energy facility for which a construction expenditure is proposed and for determining that such energy facility is consistent with the Northwest conservation and electric power plan prepared pursuant to P.L. 96-501.  The commission may upon request of any company withhold from publication during such time as the commission may deem advisable any portion of any original or supplementary budget relating to proposed capital expenditures.