S-4651               _______________________________________________

                                                   SENATE BILL NO. 6845

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senators Benitz and Stratton

Read first time 1/30/90 and referred to Committee on  Energy & Utilities.

AN ACT Relating to energy resources; creating a new section; and adding a new section to chapter 80.28 RCW.

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

NEW SECTION. Sec. 1.     The legislature finds that conservation of energy will not in itself meet the future energy needs of the state, and that additional sources of energy generation need to be developed.  The legislature further finds that large generating stations will continue to play a vital role in the future of the state's energy resources, and that utilities have been given the incentive to avoid the investments in these resources due to the uncertainty of recovering the outlay in capital needed to develop these resources.

NEW SECTION. Sec. 2.  A new section is added to chapter 80.28 RCW to read as follows:

          By January 1, 1991, the commission shall develop a policy that allows for the periodic recovery of investment for an energy storage or energy generation project for which construction has begun after January 1, 1991.  The policy shall provide for a mechanism that allows recovery of investment without the requirement of a rate case by the utility.  The policy shall also allow for recovery of the investment in a project, as approved by the commission, on no longer than an annual basis.