HOUSE BILL REPORT

                     SSB 6064

                     As Reported By House Committee on:

                             Energy & Utilities

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):  By Senate Committee on Energy & Utilities (originally sponsored by Senators Thorsness and Williams).

Brief History:

   Reported by House Committee on:

Energy & Utilities, February 25, 1992, DP.

HOUSE COMMITTEE ON

ENERGY & UTILITIES

Majority Report: Do pass.  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 (BPA) 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 in 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 BPA, 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:  Requested January 20, 1992.

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

Testimony For:  (On companion bill EHB 2347):  Use of intertie transmission lines increases electric service reliability and holds down electricity costs.  Municipal electric utilities need this authority.

Testimony Against:  None.

Witnesses:  Charles Black, Tacoma Public Utilities (pro); and Ray Nelson, Seattle City Light (pro).