HOUSE BILL REPORT

                     EHB 2347

                              As Passed House

                             February 11, 1992

Title:  An act relating to municipal electric utility access to high voltage transmission facilities.

Brief Description:  Changing municipal electric utility access to high voltage transmission facilities.

Sponsor(s):  Representatives Grant, May, Jacobsen, Hochstatter, H. Myers, Cooper and Silver.

Brief History:

   Reported by House Committee on:

Energy & Utilities, January 21, 1992, DPA;

Passed House, February 11, 1992, 88-0.

HOUSE COMMITTEE ON

ENERGY & UTILITIES

Majority Report: Do pass as amended.  Signed by 11 members:  Representatives Grant, Chair; H. Myers, Vice Chair; May, Ranking Minority Member; Hochstatter, Assistant Ranking Minority Member; Bray; Casada; Cooper; R. Fisher; Jacobsen; Miller; and Rayburn.

Staff:  Fred Adair (786-7113).

Background:  The Bonneville Power Administration has been spearheading development of added electric transmission capacity between the northwest and the Pacific southwest.  Initially, it appeared that utilities would be offered ownership shares of the new lines.  To this end, in 1989, municipal electric utilities were authorized to raise money to buy ownership shares in the lines.

It now appears that access rather than ownership will be marketed by the Bonneville Power Administration, giving rise to the need to allow municipal electric utilities to finance acquisition of capacity rights as well as outright ownership of shares of a line.

Summary of Bill:  Municipal electric utilities may participate and enter into agreements for use of transmission facilities and capacity rights in those facilities.  A city may issue revenue bonds or other obligations to finance the city's share of the use of those facilities.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Additional intertie capacity reduces costs due to needing fewer generators and improves reliability through making available an additional supply of power.  Currently, municipal electric utilities may raise money to buy a share of a transmission line.  This legislation would provide the added option, now expected to be the case, to raise money to acquire capacity rights in a transmission line.  Military facilities would be aided by increased reliability of electric power supply.

Testimony Against:  None.

Witnesses:  Henry Yates and Ray Nelson, Seattle City Light; Charles Black, Tacoma Public Utilities; George F. Tyler; and Virginia Wilhelmi, Citizens Against Overhead Power Lines.