AN ACT Relating to proceedings of the utilities and transportation commission; and adding a new chapter to Title 80 RCW.

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

NEW SECTION. Sec. 1. It is the policy of the state that financial ability should not restrict access of citizens or public interest ratepayer organizations to reasonable participation in hearings before the utilities and transportation commission. Public participation in the ratemaking process ensures that all pertinent issues are addressed by the commission in a fair and knowledgeable manner.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Hearing" means those activities described in RCW 80.04.110 referring to the process involved in determining the reasonableness of public service company rates, charges, rules, regulations, or practices.

(2) "Compensation" means reasonable attorneys' fees, reasonable expert witness fees, and other reasonable expenses incurred in preparation for and participation in hearings before the commission.

(3) "Intervenor" means any retail consumer of a public service company or authorized representative of such a consumer, any governmental instrumentality, or any representative of a group or organization authorized pursuant to articles of incorporation or bylaws to represent the interests of consumers that demonstrates significant financial hardship.

(4) "Expert witness fee" means expenses incurred by an intervenor for use of an expert witness in hearings before the commission.

(5) "Other reasonable expenses" means reasonable expenses incurred by an intervenor with respect to preparation and participation in hearings not exceeding fifteen percent of the total of reasonable attorneys' fees and expert witness fees awarded.

(6) "Consumer" means any retail customer of a public service company subject to the jurisdiction of the commission.

(7) "Significant financial hardship" shall be established by demonstrating that the intervenor does not have sufficient resources available to adequately participate in the proceeding without an award of compensation or, in the case of a group or organization, by showing that the economic resources reasonably available to the group or organization are small in comparison to the expense of effective preparation for and participation in the proceeding.

NEW SECTION. Sec. 3. Within thirty days after a complaint is filed by the commission in accordance with RCW 80.04.110 or 80.04.130, any person or group wishing to intervene and receive compensation under this chapter shall file with the commission:

(1) An application to intervene in accordance with the commission rules for intervention; and

(2) An application setting forth:

(a) A statement of the position which the intervenor intends to take in the proceeding; and

(b) A statement identifying the consumer interest represented by the intervenor, the relevance of the proceeding to that interest, and why participation is necessary for a full and fair determination of the issues; and

(c) A statement of the intervenor's financial position and a showing that, without compensation, preparation for and participation in the hearing will impose a significant financial hardship on the intervenor; and

(d) A detailed schedule of expected expenses for attorneys' fees, expert witness fees, and other reasonable expenses of preparing for and participating in the proceeding.

NEW SECTION. Sec. 4. (1) The commission shall conduct a prehearing conference to determine an applicant's eligibility as an intervenor under this chapter within thirty days of the filing of an application for intervenor status or fourteen days prior to the hearing for which intervenor status is sought, whichever is earlier. Notice shall be provided to all interested persons, including the applicant, to the hearing. The notice shall include the date, time, and location of the prehearing conference.

(2) The commission's decision on the request for intervenor funding shall include:

(a) A determination as to whether the intervenor carried its burden of proof regarding significant financial hardship;

(b) A designation, if appropriate, to join as one party all intervenors with the same or similar interests;

(c) A determination as to whether the intervenor has or represents an interest which would otherwise not be adequately represented in the hearing and representation of which is necessary for a fair determination in the proceeding; and

(d) A determination as to whether or not to grant a preliminary award of compensation to eligible intervenors based on the evidence presented at the prehearing conference of the cost to prepare for and participate in the hearing, subject to evaluation and determination by the commission at the close of the hearing.

NEW SECTION. Sec. 5. (1) Within ten days after the close of the hearing or submission of posthearing briefing, any intervenor seeking compensation shall file with the commission a complete itemized accounting of its actual costs.

(2) All intervenor records pertaining to costs for which compensation is sought shall be available for inspection at all reasonable times by the commission.

NEW SECTION. Sec. 6. (1) Within fourteen days after the intervenor submits an itemized accounting, the commission shall permit all parties to submit written briefs commenting on intervenor compensation.

(2) The commission shall make a final award of compensation to eligible intervenors that it determines have adequately represented the interests specified in the application for compensation. If the commission declines to make an award of compensation under this section, it may allow costs for expenses incurred by the intervenor, including but not be limited to printing, photocopying, service of process, and other administrative expenses.

(3) The award of compensation shall be measured against the prevailing market rates for persons of comparable training and experience who are offering similar services. The fees shall not exceed those paid by the commission or the utility, whichever is greater, for persons of comparable training who are offering similar services.

(4) Upon issuance of an order following the conclusion of a hearing, the commission may award compensation to eligible intervenors.

(5) If the commission denies compensation and the intervenor appeals the decision, the prevailing party is entitled to attorney's fees and the costs of appeal.

NEW SECTION. Sec. 7. (1) The costs of compensation under this chapter are payable from the public service revolving fund.

(2) Payment shall be made by the commission directly to the intervenor within thirty days after service of the commission's order determining the reasonable amount of compensation.

(3) The commission, at its discretion, may provide advance funding to the intervenor if the commission determines that the intervenor could not proceed without the advance. The advance shall not be considered as a final award of compensation as provided in this chapter.

NEW SECTION. Sec. 8. The commission may adopt such rules as are necessary to administer this chapter.

NEW SECTION. Sec. 9. Sections 1 through 8 of this act shall constitute a new chapter in Title 80 RCW.