Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Environment & Energy Committee

HB 1126

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Enabling electric utilities to prepare for the distributed energy future.

Sponsors: Representatives Morris, Ryu, Wylie, Kloba and Young.

Brief Summary of Bill

  • Establishes a declaration of state policy that any distributed energy resources planning process engaged in by an electric utility should accomplish certain goals.

  • Requires the Legislature to conduct an initial review of the state's policy pertaining to distributed energy resources by January 1, 2023, and a full review by January 1, 2026, and every four years thereafter.

Hearing Date:

Staff: Nikkole Hughes (786-7156).

Background:

Electric Utility Resource Planning.

An investor-owned or consumer-owned electric utility with more than 25,000 customers in the state must develop an Integrated Resource Plan (IRP). All other utilities in the state must file either an IRP or a less detailed resource plan.

The minimum required components of an IRP include:

An electric utility must update its IRP at least every four years or its resource plan at least every two years.

Distributed Energy Resources Planning.

The 2017-2018 Operating Budget directed the Utilities and Transportation Commission (UTC) to, by December 31, 2017, report findings and recommendations to the energy committees of the Legislature on best practices and policies for electric utilities to develop distributed energy resources plans. The UTC was required to include in its report a review of policies and practices for distributed energy resources planning in other states, an inventory of current utility distribution planning practices and capabilities in Washington, and recommendations for using distributed energy resources planning to inform utility IRPs.

In its 2017 report to the Legislature, the UTC recommended that any distributed energy resources planning policies adopted by the Legislature be broad and flexible, and suggested 10 best practices for distributed energy resources planning.

Summary of Bill:

The Legislature declares it to be the policy of Washington that any distributed energy resources planning process engaged in by an electric utility in the state should accomplish certain goals, including:

To ensure that procurement decisions are based on current cost and performance data for distributed energy resources, an electric utility should procure the distributed energy resource needs identified in any distributed energy resources plan through a process that is price-based and technology neutral.

By January 1, 2023, the Legislature must conduct an initial review of the state's policy pertaining to distributed energy resources planning. By January 1, 2026, and every four years thereafter, the Legislature must conduct a full review of the policy and determine how many electric utilities in the state have engaged or are engaging in a distributed energy resources planning process, whether the process has met the goals specified by the state's policy, and whether these goals need to be expanded or amended.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.