HOUSE BILL REPORT

                  HB 2750

                       As Passed House

                      February 10, 1994

Title:  An act relating to joint operating agencies.

Brief Description:  Changing provisions relating to joint operating agencies.

Sponsors:  Representatives Long, Bray, Kessler, Johanson, Chandler, Finkbeiner, Kremen and Caver.

Brief History:

  Reported by House Committee on:

Energy & Utilities, February 3, 1994, DP;

  Passed House, February 10, 1994, 95-0.

HOUSE COMMITTEE ON ENERGY & UTILITIES

Majority Report:  Do pass.  Signed by 9 members:  Representatives Bray, Chair; Finkbeiner, Vice Chair; Casada, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Caver; Johanson; Kessler; Kremen and Long.

Staff:  Harry Reinert (786-7110).

Background:  Publicly owned electric utilities in the state may form a joint operating agency (JOA) to construct and operate an electric generating facility or engage in energy efficiency projects.  A JOA which is constructing or operating a nuclear power plant may enter into a contract through competitive negotiation to replace a defaulted contract or to take into account factors in addition to price in order to achieve economical operation of the plant.

A competitively negotiated contract may only be entered after a request for proposals is issued and a pre‑proposal conference is held.  The JOA must execute the contract with the responsible offeror whose proposal is determined to be most advantageous to the JOA.

Summary of Bill:  A joint operating agency constructing or operating a nuclear power plant which seeks to enter into a competitively negotiated contract shall execute a contract with the responsible offeror whose proposal is determined to be most advantageous to the joint operating agency and the state.

Fiscal Note:  Not requested.

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

Testimony For:  This bill will allow a joint operating agency to consider the benefit to the state when pursuing a competitively negotiated contract.

Testimony Against:  None.

Witnesses:  Craig Doupé, Washington Public Power Supply System.