HOUSE BILL REPORT

SSB 6438

BYSenate Committee on Energy & Utilities (originally sponsored by Senators Benitz, Stratton, Newhouse, Bluechel, Owen, Nelson, Pullen, Madsen, Williams and Talmadge)

Permitting banded rate tariffs for natural gas and electric services.

House Committe on Energy & Utilities

Majority Report:  Do pass.  (12)

      Signed by Representatives Nelson, Chair; Barnes, Brooks, Gallagher, Jacobsen, Jesernig, May, Meyers, Miller, Sutherland, Unsoeld and S. Wilson.

House Staff:Fred Adair (786-7113)

AS PASSED HOUSE FEBRUARY 29, 1988

BACKGROUND:

Natural gas and electric utilities face increasing competition for industrial and agricultural customers.  Although the Utilities and Transportation Commission has approved utility requests for lower rates where necessary to prevent fuel- switching between customers, utilities seek more flexibility to better respond to such factors as fluctuating oil prices.

SUMMARY:

The UTC is authorized to allow rate flexibility for nonresidential service provided by energy utilities.  After the UTC approves a band or range of rates, with a minimum and maximum rate, the company may change rates within the band according to UTC procedure.  Banded rates are allowed only where utilities are subject to effective competition from energy suppliers not regulated by the UTC.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Ron Newbry, Pacific Power and Light.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This measure would better enable gas and electric utilities to compete with unregulated providers in supplying certain commercial and industrial customers.

House Committee - Testimony Against:      None Presented.