Subject of Possible Rule Making: This rule making would consider developing a new chapter applicable to the economic regulation of hazardous liquid pipeline companies regulated as common carriers by the commission, including, but not limited to, financial reporting requirements.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 80.01.040, 80.04.160, 81.01.010, and 81.88.030.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: There is currently no chapter of rules that addresses economic regulation of hazardous liquid pipeline companies. Such rules would facilitate the commission in carrying out its statutory powers and duties, and to respond promptly to rapidly changing regulatory, operational, economic, and consumer issues. To that end, staff proposes that the commission explore this topic, which is expected to result in consideration of rules that (among other potential subjects):

     Require financial transaction reports twenty days prior to the transfer of cash, credit, or pecuniary interest when certain thresholds have been exceeded.

     Require an annual subsidiary transaction report summarizing all transactions that occurred between the company and its subsidiaries during the preceding year.

     Require an annual affiliated interest transaction report.

     Clarify accounting system requirements.

     Set out retention and preservation of records requirements.

     Establish consumer rules.

     Process for Developing New Rule:      Agency study; and the commission will ask for initial written comments, and will provide the opportunity for participation in workshop-style sessions as well as opportunities for additional comments.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting the Secretary, Washington Utilities and Transportation Commission, P.O. Box 47250, 1300 South Evergreen Park Drive S.W., Olympia, WA, 98504-7250, phone (360) 664-1174, facsimile (360) 586-1150.

     Interested persons may file written comments on the CR-101 by Wednesday, April 9, 2003. For specific information regarding opportunities for written comment and to ensure receipt of further information concerning this rule making, please see below.

     A stakeholder workshop will be held Thursday, April 10, 2003, in Room 206 at the commission's headquarters, beginning at 9:30 a.m. until 4:30 p.m.

     WRITTEN COMMENTS AND STAKEHOLDER WORKSHOP: Written comments may be submitted to the commission at the address given above and should be filed with the commission no later than Wednesday, April 9, 2003, for consideration at the April 10, 2003, stakeholder workshop.

     Electronic copies. The commission requests that comments be provided in electronic format to enhance public access, for ease of providing comments, to reduce the need for paper copies, and to facilitate quotations from the comments. Comments may be submitted by electronic mail to the commission's records center at records@wutc.wa.gov. Please include:

•     The docket number of this proceeding (TO-030288).

•     The commenting party's name.

•     The title and date of the comment or comments.

     An alternative method for submitting comments may be by mailing/delivering an electronic copy on a 3 1/2 inch, IBM-formatted, high-density disk, in .pdf Adobe Acrobat format or in Word 97 or later. Include all of the information requested above. The commission will post on the commission's website all comments that are provided in electronic format. The website is located at http://www.wutc.wa.gov/030288. If you are unable to file your comments electronically or to submit them on a disk, the commission will always accept a paper document.

     Opportunity for further comment is anticipated. Information about the schedule and other aspects of the rule making, including comments, will be posted on the commission's website as it becomes available. If you wish to receive further information on this rule making you may (1) call the commission's records center at (360) 664-1234, (2) e-mail the commission at <records@wutc.wa.gov>, or (3) mail written comments to the address above to the attention of Carole J. Washburn, Secretary. When contacting the commission, please refer to Docket No. TO-030288 to ensure that you are placed on the appropriate service list. Questions may be addressed to Kim Dobyns, (360) 664-1242 or e-mail at kdobyns@wutc.wa.gov.

March 13, 2003

Carole J. Washburn

Secretary

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