S-4175               _______________________________________________

                                                   SENATE BILL NO. 4883

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senator Williams

Read first time 1/23/86 and referred to Committee on Energy & Utilities.

AN ACT Relating to the approval of temporary and interim rate increases by the utilities and transportation commission; and adding a new section to chapter 80.04 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 80.04 RCW to read as follows:

          (1) The commission may approve temporary or interim rates for a utility.  "Temporary or interim rates" means rates approved pending final hearing and determination of a rate increase request that is under suspension and investigation.  Temporary or interim rates are emergency in nature and may be approved after notice and hearing only under the following conditions:

          (a) The utility moving for the temporary or interim rate increase has the burden of proof; and

          (b) The utility moving for the temporary or interim rate increase must show that one of the following conditions exists, and that the condition was a result of circumstances beyond the control of the utility management:

          (i) That in the absence of a temporary or interim increase in rates, there will be a marked decline in the quality of service to the public;

          (ii) That there is an imminent or clearly present threat to the utility's ability to obtain capital; or

          (iii) That the utility's current revenues will result in a rate of return that is substantially less than its allowed rate of return and is found by the commission to be substantially less than reasonable.

          (2) Once the conditions specified in subsection (1)(b) of this section have been met, the commission may grant temporary or interim rates at a level not greater than that necessary to avert the emergency caused by the existence of the conditions.  Temporary or interim rates shall not be allowed for the purpose of circumventing or substituting for requirements necessary for a grant of permanent rate relief.

          (3) No order granting a temporary or interim rate increase may be made by the commission unless the temporary or interim rate provides for a full refund to customers of all increased revenues collected under the temporary or interim rate, with accrued interest at the rate prescribed by law, if after final hearing the commission determines that the utility is not entitled to the requested rate increase.