AN ACT Relating to public utilities; amending RCW 80.01.100, 80.04.510, 80.01.080, and 80.24.020; adding a new chapter to Title 80 RCW; prescribing penalties; and making an appropriation.

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

Sec. 1. Section 80.01.100, chapter 14, Laws of 1961 and RCW 80.01.100 are each amended to read as follows:

It shall be the duty of the attorney general to represent and appear for the people of the state of Washington and the commission in all actions and proceedings involving any question under this title or Title 81 RCW, or under or in reference to any act or order of the commission, except as provided under chapter 80.... RCW (sections 3 through 8 of this 1985 act); and it shall be the duty of the attorney general generally to see that all laws affecting any of the persons or corporations herein enumerated are complied with, and that all laws, the enforcement of which devolves upon the commission, are enforced, and to that end he is authorized to institute, prosecute and defend all necessary actions and proceedings.

Sec. 2. Section 80.04.510, chapter 14, Laws of 1961 and RCW 80.04.510 are each amended to read as follows:

It shall be the duty of the attorney general to represent and appear for the people of the state of Washington and the commission in all actions and proceedings involving any question under this title, or under or in reference to any act or order of the commission, except as provided under chapter 80.... RCW (sections 3 through 8 of this 1985 act); and it shall be the duty of the attorney general generally to see that all laws affecting any of the persons or corporations herein enumerated are complied with, and that all laws, the enforcement of which devolves upon the commission, are enforced, and to that end he is authorized to institute, prosecute and defend all necessary actions and proceedings.

NEW SECTION. Sec. 3. For the purposes of this chapter:

(1) "Board" means the consumers' utility board.

(2) "Counsellor" means the consumers' counsellor.

(3) "Office" means the office of consumers' counsel.

NEW SECTION. Sec. 4. There is hereby established in the attorney general's office an office of consumers' counsel. The office of consumers' counsel:

(1) Shall assess the impact of utility rate changes and other regulatory actions on consumers in the state of Washington, and shall be an advocate in its own name of positions most advantageous to the majority of consumers as determined by the office;

(2) May initiate, appear, or intervene in any proceeding before any state or federal agency, administrative or regulatory body, or court, which may involve or affect the rates, services, facilities, or practices of utilities regulated under this title;

(3) May make recommendations to the legislature in its capacity as a representative of the interests of consumers;

(4) May develop other means to insure the effective representation of consumers, including education of the public, reporting to the public through the news media, or providing consulting services and technical assistance; and

(5) May represent individual consumers with respect to their complaints concerning utility rates, services, facilities, or practices.

NEW SECTION. Sec. 5. The consumers' utility board is hereby established in the office of consumers' counsel. The board shall recommend to the attorney general within sixty days of appointment of the full board three candidates for the position of consumers' counsellor. The board shall study and advise the counsellor on solutions and policy alternatives relating to utility rates, services, facilities, or practices, and their effect on consumers, and assist the consumers' counsellor in the discharge of the counsellor's duties and powers. The board may also recommend dismissal of the consumers' counsellor for violating section 7(3) of this act, or for failure to carry out the duties of the office as prescribed by this chapter.

NEW SECTION. Sec. 6. (1) The consumers' utility board established under section 5 of this act shall consist of three members appointed by the governor, three members appointed by the president of the senate, and three members appointed by the speaker of the house of representatives. Each board member shall be appointed for a three-year term, except that the governor, the president of the senate, and the speaker of the house of representatives shall each appoint initial members within thirty days after the effective date of this act as follows: One member for one year, one member for two years, and one member for three years. A vacancy shall be filled for the unexpired term in the same manner as the original appointment.

(2) The board shall be composed of persons who as a group reflect a reasonable geographic representation of Washington, including its population distribution. Board members shall include low-income persons, minority group members, senior citizens, persons engaged in small commercial enterprises, a representative of labor, citizen advocates, and family farmers. No more than five board members may be members of the same political party.

(3) Board members shall not: (a) Have a direct or indirect interest in any utility company regulated under this title, be employed by, or otherwise have any official relationship to any such regulated company; or (b) hold or be candidates for any paid appointive or elective office in Washington.

(4) The board shall annually select a chairperson, and such other officers as it finds appropriate, from among its members. A simple majority of the members then appointed to the board constitutes a quorum. The board shall hold meetings every two months, and may hold other meetings as the chairperson and majority of the board find appropriate.

(5) Board members shall receive seventy-five dollars for each day spent in the conduct of board business. Such compensation shall not exceed four thousand five hundred dollars in any fiscal year. Board members shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060. The office of consumers' counsel shall provide reasonable amounts of staff assistance to the board, subject to budget limitations. The costs covered by this section shall be paid by the office.

NEW SECTION. Sec. 7. (1) The attorney general, upon recommendation of the board, shall appoint one of the three candidates as the consumers' counsellor. The consumers' counsellor shall serve as director of the office of consumers' counsel for a three-year term and may be reappointed. Any vacancy shall be filled in the same manner as the original appointment.

(2) The consumers' counsellor shall be a member of the bar of the state of Washington who has demonstrated a strong commitment and involvement in efforts to safeguard the rights of the public and possesses the knowledge and experience necessary to practice effectively in utility proceedings.

(3) During the period of the counsellor's employment, and for a period of one year following the termination of employment, it shall be unlawful for any person employed as the consumers' counsellor to have a direct or indirect interest in any utility company regulated under this title, to provide legal services directly or indirectly to, or be employed in any capacity by, a utility company regulated under this title, its parent, or its subsidiary companies, corporations, or cooperatives; but such person may otherwise engage in the private practice of law after the termination of employment as the consumers' counsellor. Any person violating this subsection shall be guilty of a gross misdemeanor punishable as provided under chapter 9A.20 RCW.

(4) The consumers' counsellor may employ such employees as are necessary to carry out the purposes of this chapter. All employees and expenses of the office of consumers' counsel, and the expenses of the consumers' utility board, shall be paid from funds appropriated for the use of the consumers' counsellor.

(5) The consumers' counsellor may contract for the services of technically qualified persons in the area of public utility matters to assist him or her in the preparation and presentation of matters before the commission, other state and federal administrative agencies, and the courts. Such persons shall be paid from funds appropriated for the use of the consumers' counsellor.

(6) The consumers' counsellor shall give proper consideration to policy and advocacy strategy recommendations of the consumers' utility board, but the consumers' counsellor has sole discretion to determine whether, when, and how to initiate, intervene, or continue in proceedings.

(7) On or before the first day of each regular session of the legislature, the consumers' counsellor shall file a report with the legislature, the attorney general, the governor, and the secretary of the commission detailing the actions taken by the office of consumers' counsel in the preceding calendar year and the results.

(8) Discharge of the consumers' counsellor by the attorney general shall occur only upon recommendation from the consumers' utility board by majority vote, and shall be based upon a showing that the counsellor has violated the provisions of subsection (3) of this section, or has failed to carry out the duties of the office as prescribed by this chapter.

NEW SECTION. Sec. 8. The office of consumers' counsel shall be located separately from the offices of the commission and shall not be associated with or connected to the other divisions of the commission.

Sec. 9. Section 80.01.080, chapter 14, Laws of 1961 and RCW 80.01.080 are each amended to read as follows:

The transportation revolving fund and the public utilities revolving fund are abolished as of April 1, 1949, and as of such date there is created in the state treasury a "Public Service Revolving Fund" to which shall be transferred all moneys which then remain on hand to the credit of the transportation revolving fund and the public utilities revolving fund, subject, however, to outstanding warrants and other obligations chargeable to appropriations made from such funds. From and after April 1, 1949, regulatory fees payable by all types of public service companies shall be deposited to the credit of the public service revolving fund. All expense of operation of the Washington utilities and transportation commission, and the office of consumers' counsel under chapter 80.... RCW (sections 3 through 8 of this 1985 act), shall be payable out of the public service revolving fund.

Sec. 10. Section 80.24.020, chapter 14, Laws of 1961 and RCW 80.24.020 are each amended to read as follows:

In fixing the percentage rates of gross operating revenue to be paid in any year, the commission shall consider all moneys then in the public service revolving fund and the fees currently to be paid into such fund, to the end that the fees collected from the ((~~several classes of~~)) utility companies shall be approximately the same as the reasonable cost of: (1) Supervising and regulating ((~~such~~)) the classes of companies under RCW 80.24.010; and (2) representation provided by the office of consumers' counsel under chapter 80.... RCW (sections 3 through 8 of this 1985 act) in proceedings involving that company. The cost of representation shall be determined for individual companies by the commission in any manner which ensures that the costs of the office of consumers' counsel are assessed equitably upon companies regulated under this title.

NEW SECTION. Sec. 11. (1) There is appropriated from the public service revolving fund to the office of the attorney general for the biennium ending June 30, 1987, the sum of eight hundred thousand dollars, or so much thereof as may be necessary, for the use of the consumers' counsellor in carrying out the purposes of this act.

(2) If necessary to provide the funds to carry out the purposes of this act, the commission shall increase the percentage rates of gross operating revenues to be paid by the utility companies under RCW 80.24.010 up to the maximum rates provided therein.

NEW SECTION. Sec. 12. Sections 3 through 8 of this act shall constitute a new chapter in Title 80 RCW.