PERMANENT RULES
COMMISSION
STATUTORY OR OTHER AUTHORITY: The Washington Utilities and Transportation Commission takes this action under Notice No. WSR 99-17-044, filed with the code reviser on August 13, 1999. The commission brings this proceeding pursuant to RCW 80.04.160 and 80.01.040. The statutes being implemented are RCW 80.04.300 through 80.04.330.
STATEMENT OF COMPLIANCE: This proceeding complies with the Open Public Meetings Act (chapter 42.30 RCW), the Administrative Procedure Act (chapter 34.05 RCW), the State Register Act (chapter 34.08 RCW), the State Environmental Policy Act of 1971 (chapter 34.21C RCW), and the Regulatory Fairness Act (chapter 19.85 RCW).
DATE OF ADOPTION: The commission adopted this rule on October 13, 1999.
CONCISE STATEMENT OF PURPOSE AND EFFECT OF THE RULE: The proposed rules implement the requirements of Executive Order 97-02, requiring agencies to review rules for clarity, intent and statutory authority, need, effectiveness and efficiency, coordination, cost, and fairness. The proposal repeals existing rules, reorganizes and rewrites the current rules, and adds a new section allowing the commission to grant an exemption of any rule in this chapter. The proposal places into rule a streamlined process for budget reporting, reducing the amount of information required, and permitting utilities to provide the information in their own format.
REFERENCE TO NEW RULE: This order adds the following new section to chapter 480-140 WAC: WAC 480-140-015 Exemptions from rules.
REFERENCE TO AFFECTED RULES: This order amends the following sections of the Washington Administrative Code: WAC 480-140-010 Definitions, 480-140-020 Who must file, 480-140-030 When to file, 480-140-040 Preparation, and 480-140-080 Secrecy provision.
REFERENCE TO REPEALED RULES: This order repeals the following sections of the Washington Administrative Code: WAC 480-140-050 Approval, 480-140-060 Supplemental change, 480-140-070 Emergency expenditures, 480-140-090 Conformity of accounts, 480-140-100 Donations, 480-140-110 Dues, 480-140-120 Wage scales, 480-140-130 Tax expenditures, 480-140-140 Affiliated interests, 480-140-150 Advertising, 480-140-160 Salaries, and 480-140-170 Operations covered.
PREPROPOSAL STATEMENT OF INQUIRY AND ACTIONS THEREUNDER: The Commission filed a preproposal statement of inquiry (CR-101) on April 15, 1999, at WSR 99-09-028.
ADDITIONAL NOTICE AND ACTIVITY PURSUANT TO PREPROPOSAL STATEMENT: The statement advised interested persons that the commission was considering entering a rule making on rules relating to Budgets. The commission also informed persons of the inquiry into this matter by providing notice of the subject and the CR-101 to all persons on the commission's list of persons requesting such information pursuant to RCW 34.05.320(3), and by sending notice to all affected companies. The commission accepted written comment regarding the CR-101 through May 14, 1999.
Pursuant to the notice, the commission engaged in one stakeholder meeting on June 4, 1999. The workshop participants included representatives from Commission Staff, US WEST Communications, Inc. (USWC), Sprint Communications Company (Sprint), Puget Sound Energy, Inc. (Puget), Cascade Natural Gas Corporation, Avista Utilities (Avista), PacifiCorp, and Northwest Natural Gas Company (NW Natural). In addition, the commission received written comments from the attendees and from GTE Northwest, Incorporated (GTE), Stroh Water Company, and Washington Independent Telephone Association (WITA). Workshop participants reached a consensus concerning rules that could be deleted. Staff incorporated comments into a discussion draft.
On June 28, 1999, the commission mailed a notice and a rule discussion draft to interested persons. The commission received written comments through July 16, 1999. Avista, PacifiCorp, and GTE submitted written comments. Avista and PacifiCorp supported the proposed rule revisions. GTE had initial concerns about the rules. After discussions with staff, GTE submitted a letter dated July 27, 1999, acknowledging that the company did not anticipate that the draft language would require any more time or effort than is currently required by the existing rule.
NOTICE OF PROPOSED RULE MAKING: The commission filed a notice of proposed rule making (CR-102) on August 13, 1999, at WSR 99-17-044. The commission scheduled this matter for oral comment and adoption under Notice No. WSR 99-17-044 at 9:30 a.m., Wednesday, August 11, 1999, in the Commission's Hearing Room, Second Floor, Chandler Plaza Building, 1300 South Evergreen Park Drive S.W., Olympia, WA. The notice provided interested persons the opportunity to submit written comments to the commission.
COMMENTERS (WRITTEN COMMENTS): The commission received written comments from Puget and USWC. Following the filing of the CR-102, staff worked with interested parties through individual discussions to further clarify the rules and resolve concerns. USWC continues to believe that either all telecommunications companies should be required to file an annual budget or all telecommunications companies should be exempt from filing an annual budget. As currently drafted, staff recognizes that RCW 80.04.530 (1)(a) exempts telecommunications companies that serve less than 2% of the access lines in the state of Washington from filing a budget and, further, that telecommunications companies classified as competitive by the commission are exempted from filing a budget. Due to these existing exemptions, this rule applies only to Washington's four largest telecommunications companies. When these four companies are classified as competitive, they will no longer be required to file a budget.
Puget offered three primary suggestions: (1) Change major "construction" projects to major "capital" projects, (2) restructure the rules for clarity, and (3) include language to clarify that budget information will be on a total company basis, except for major construction projects, which would be listed individually. Staff recommends that the term "construction" remain to assure the language is consistent with the statute. Staff developed clarifying language changes in consultation with Puget to address suggestions (2) and (3). Staff incorporated Puget's suggestion to change the title of WAC 480-140-080 from Secrecy provision to Confidentiality provision. Likewise, staff removed the phrase "in no event" from WAC 480-140-030 as suggested by Puget.
On September 24, 1999, interested persons received the amended rule proposal. No one responded with written comments.
RULE-MAKING HEARING: The rule proposal was considered for adoption, pursuant to notice, at a rule-making hearing scheduled during the commission's regularly scheduled open meeting on October 13, 1999, before Chairwoman Marilyn Showalter, Commissioner Richard Hemstad, and Commissioner William R. Gillis. The commission heard oral comments from Fred Ottavelli, representing commission staff. No other interested person made oral comments.
COMMISSION ACTION: After considering all of the information regarding this proposal, the commission repealed, amended, and adopted the proposed rules, with the changes described below.
CHANGES FROM PROPOSAL: The commission adopted the proposal with the following changes from the text in the proposed rule making (CR-102) at WSR #99-17-044 (underlined text added).
To clarify the intent of WAC 480-140-020, Who must file as it relates to water companies, the adopted rule adds language to WAC 480-140-020(4) stating, "Water companies required to file water system plans with the department of health must concurrently file a copy with the commission." This additional language is for clarification only; it does not change the intent of the rule. The proposal removes the phrase "in no event" from WAC 480-140-020, and changes the title of WAC 480-140-080 from Secrecy provision to Confidentiality provision.
To clarify the filing format accepted from companies, the proposal adds language to WAC 480-140-040, specifying "Budgets, in a format selected by the reporting company." Additional language clarifies that budget information will be on a total company basis except for major construction projects.
The Commission also adopts minor typographical changes.
STATEMENT OF ACTION; STATEMENT OF EFFECTIVE DATE: In reviewing the entire record, the commission determines that WAC 480-140-050, 480-140-060, 480-140-070, 480-140-090, 480-140-100, 480-140-110, 480-140-120, 480-140-130, 480-140-140, 480-140-150, 480-140-160, and 480-140-170 should be repealed, WAC 480-140-010, 020, 030, 040, and 080, should be amended, and WAC 480-140-015, should be adopted to read as set forth in Appendix A, as rules of the Washington Utilities and Transportation Commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 5, Repealed 12.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
1. WAC 480-140-050, 480-140-060, 480-140-070, 480-140-090, 480-140-100, 480-140-110, 480-140-120, 480-140-130, 480-140-140, 480-140-150, 480-140-160, and 480-140-170 are repealed, WAC 480-140-010, 480-140-020, 480-140-030, 480-140-040, and 480-140-080 are amended, and WAC 480-140-015 is adopted as set forth in Appendix A, as rules of the Washington Utilities and Transportation Commission, to take effect on the thirty-first day after the date of filing with the code reviser, pursuant to RCW 34.05.380(2).
2. This order and the rules set out in Appendix A, after being recorded in the register of the Washington Utilities and Transportation Commission, shall be forwarded to the code reviser for filing pursuant to chapters 80.01 and 34.05 RCW and chapter 480-09 WAC.
3. The commission adopts the commission staff open public meeting memoranda, presented when the commission considered filing a preproposal statement of inquiry, when it considered filing the formal notice of proposed rule making, and when it considered adoption of this proposal, in conjunction with the text of this order, as its concise explanatory statement of the reasons for adoption as required by RCW 34.05.025.
DATED at Olympia, Washington, this 12th day of November, 1999.
Washington Utilities and Transportation Commission
Marilyn Showalter, Chairwoman
Richard Hemstad, Commissioner
William R. Gillis, Commissioner
OTS-3325.2
AMENDATORY SECTION(Amending Order R-5, filed 6/6/69, effective
10/9/69)
WAC 480-140-010
Definitions.
(((1) The term "public
service company" shall mean every person, firm, corporation, or
association, or their lessees, trustees, or receivers, now or
hereafter engaged in business in this state as a public utility
and subject to regulation as to rates and service by the
Washington utilities and transportation commission.
(2) The term "commission" when used in those rules and regulations shall mean the Washington utilities and transportation commission or such body as may succeed to the powers and duties now exercised by it.
(3) The term "budget" when used in these rules and regulations shall mean a financial statement prepared by each public service company showing the estimated revenues, sources and amounts of money which each public service company shall, in its judgment, require during the ensuing year for maintenance, operations and construction classified by accounts as prescribed by the commission.)) Commission means Washington utilities and transportation commission.
Net utility plant in service means plant in service less accumulated depreciation and amortization.
Public service company means every gas company, electrical company, telecommunications company, and water company subject to regulation under the provisions of Title 80 RCW as to rates and service by the commission.
[Order R-5, § 480-140-010, filed 6/6/69, effective 10/9/69.]
(1) The commission may grant an exemption of any rule in this chapter, if consistent with the public interest, the purposes underlying regulation, and applicable statutes.
(2) To request a rule exemption, a person must file with the commission a written request identifying the rule for which an exemption is sought and giving a full explanation of the reason the exemption is requested.
(3) The commission will assign the request a docket number, if needed, and schedule the request for consideration at one of its regularly scheduled open meetings or, if appropriate under chapter 34.05 RCW, in an adjudication. The commission will notify the person requesting the exemption, and other interested persons, of the date the commission will consider the request.
(4) The commission will enter an order granting or denying the request or setting it for hearing, pursuant to chapter 480-09 WAC.
[]
((All public service
companies shall file budgets with the commission except (1) gas,
water, telecommunications, telegraph, and electrical companies
whose annual gross operating revenues do not exceed one hundred
fifty thousand dollars and (2) water companies who are required
to file water system plans with the department of health in
compliance with WAC 246-290-100. Water companies required to
file such plans with the department of health shall concurrently
file a copy of such plan with the commission.)) The following
public service companies with annual gross operating revenues
exceeding two hundred fifty thousand dollars must file budgets
with the commission:
(1) Gas companies;
(2) Electrical companies;
(3) Telecommunications companies that serve more than two percent of the access lines in the state of Washington, except those companies classified as competitive by the commission; and
(4) Water companies that are not required to file water system plans with the department of health in compliance with WAC 246-290-100. Water companies required to file water system plans with the department of health must concurrently file a copy with the commission.
[Statutory Authority: RCW 80.01.040. 92-02-083 (Order R-363, Docket No. U-911075), § 480-140-020, filed 12/31/91, effective 1/31/92; 91-08-026 (Order R-341, Docket No. U-901099), § 480-140-020, filed 3/28/91, effective 4/28/91. Statutory Authority: RCW 80.01.040 and 80.04.320. 87-01-001 (Order R-269, Cause No. U-86-121), § 480-140-020, filed 12/5/86; Order R-5, § 480-140-020, filed 6/6/69, effective 10/9/69.]
The budget for the ensuing
fiscal year ((shall)) must be ((prepared and)) filed with the
commission within ((10)) ten days ((of the date)) after it is
approved by the company, but ((in no event shall it be filed)) no
later than ((the last day of the year preceding that for which
the budget is applicable)) sixty days after the beginning of the
company's fiscal year.
[Order R-5, § 480-140-030, filed 6/6/69, effective 10/9/69.]
((Budgets
shall be made in duplicate on forms furnished by the commission. The original and three copies shall be filed with the commission
and one copy shall be kept by the company for its files. Each
question must be answered fully and accurately. Where the word
"none" truly and completely states the fact, it may be given as
the answer to any particular inquiry or portion thereof. Do not
leave blank lines. Items and schedules which do not apply to the
reporting company's business and therefore cannot be filled in,
shall be answered "not applicable." In no case shall any utility
deviate from the requirements of these rules except upon a
showing of good cause, and then only to the extent authorized by
the commission in writing. For the purpose of the budget report
an "individual major project," is defined according to the
following schedule:
| $500,000 or more)) |
All other individual projects shall be listed by name,
location, and estimated cost. For companies with utility
operations in more than one state, the major project threshold
shall be applied to all projects proposed to be located in the
state of Washington and to all projects which will be partly or
wholly allocated to Washington operations: Provided, That
individual project description sheets shall be required only for
those projects for which the assigned or allocated costs to
Washington equal or exceed the threshold set forth in this
rule.)) Budgets, in a format selected by the reporting company,
must show amounts needed for construction, operation and
maintenance during the ensuing year. The reporting company must
provide the information by industry (water, gas, electrical, and
telecommunications) to the extent such information has been
prepared. All major construction projects must be identified in
the budget. Major construction projects will be determined as
described below:
(1) For water, gas, and electrical companies, major projects include all projects where the Washington-allocated share of the total project is greater than five-tenths of one percent of the company's latest year-end Washington-allocated net utility plant in service, but does not include any project of less than three million dollars on a total project basis. This determination for companies providing combined industry services will be done on an industry-specific basis.
(2) For telecommunications companies, major projects include all construction projects where the intrastate Washington jurisdictional share is greater than one million dollars.
[Statutory Authority: RCW 80.01.040. 92-02-083 (Order R-363, Docket No. U-911075), § 480-140-040, filed 12/31/91, effective 1/31/92; 91-08-026 (Order R-341, Docket No. U-901099), § 480-140-040, filed 3/28/91, effective 4/28/91. Statutory Authority: RCW 80.01.040 and 80.04.320. 87-01-001 (Order R-269, Cause No. U-86-121), § 480-140-040, filed 12/5/86. Statutory Authority: RCW 80.01.040 and 80.04.300 through 80.04.330. 83-06-016 (Order R-195, Cause No. U-83-02), § 480-140-040, filed 2/23/83; Order R-5, § 480-140-040, filed 6/6/69, effective 10/9/69.]
The
commission may, in its discretion, to the extent permitted by
((section 31, chapter 1, Laws of 1973)) RCW 80.04.095 and chapter 42.17 RCW, upon the request of any public service company,
withhold from publication, ((during such time as the commission
may deem advisable,)) any portion of any ((original or
supplemental)) budget ((relating to proposed capital
expenditures)) designated as confidential pursuant to WAC 480-09-015.
[Order R-43, § 480-140-080, filed 4/5/73 and 4/18/73; Order R-5, § 480-140-080, filed 6/6/69, effective 10/9/69.]
The following sections of the Washington Administrative Code are repealed:
| WAC 480-140-050 | Approval. |
| WAC 480-140-060 | Supplemental change. |
| WAC 480-140-070 | Emergency expenditures. |
| WAC 480-140-090 | Conformity of accounts. |
| WAC 480-140-100 | Donations. |
| WAC 480-140-110 | Dues. |
| WAC 480-140-120 | Wage scales. |
| WAC 480-140-130 | Tax expenditures. |
| WAC 480-140-140 | Affiliated interests. |
| WAC 480-140-150 | Advertising. |
| WAC 480-140-160 | Salaries. |
| WAC 480-140-170 | Operations covered. |