S-2081.1 _______________________________________________
SUBSTITUTE SENATE BILL 5390
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State of Washington 53rd Legislature 1993 Regular Session
By Senate Committee on Energy & Utilities (originally sponsored by Senators Sutherland, Hochstatter, Deccio, Haugen and Erwin)
Read first time 03/03/93.
AN ACT Relating to conservation tariffs allowing transfer of payment obligations to successive property owners; adding a new section to chapter 80.28 RCW; adding a new section to chapter 64.04 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. (1) The legislature finds that:
(a) The ability of utilities to acquire cost effective conservation measures is instrumental in assuring that Washington citizens have reasonable energy rates and that utilities have adequate energy resources to meet future energy demands;
(b) Customers may be more willing to accept investments in energy efficiency and conservation if real and perceived impediments to property transactions are avoided;
(c) Potential purchasers of real property should be notified of any utility conservation charges at the earliest point possible in the sale.
(2) It is the intent of the legislature to encourage utilities to develop innovative approaches designed to promote energy efficiency and conservation that have limited rate impacts on utility customers. It is not the intent of the legislature to restrict the authority of the utilities and transportation commission to approve tariff schedules.
(3) It is also the intent of the legislature that utilities which establish conservation tariffs should undertake measures to assure that potential purchasers of property are aware of the existence of any conservation tariffs. Measures that may be considered include, but are not limited to:
(a) Recording notification of conservation tariff obligations with the county property records;
(b) Annually notifying customers who have entered agreements of the conservation tariff obligation; and
(c) Working with the real estate industry to provide for disclosure of conservation tariff obligations in standardized listing agreements and earnest money agreements.
NEW SECTION. Sec. 2. A new section is added to chapter 80.28 RCW to read as follows:
(1) Upon request by an electrical or gas company, the commission may approve a tariff schedule that contains rates or charges for energy conservation measures, services, or payments provided to individual property owners or customers. The tariff schedule shall require the electrical or gas company to enter into an agreement with the property owner or customer receiving services at the time the conservation measures, services, or payments are initially provided. The tariff schedule may allow for the payment of the rates or charges over a period of time and for the application of the payment obligation to successive property owners or customers at the premises where the conservation measures or services were installed or performed or with respect to which the conservation payments were made.
(2) The electrical or gas company shall record a notice of a payment obligation resulting from an agreement under this section with the county auditor or recording officer as provided in RCW 65.04.030.
(3) The commission may prescribe by rule other methods by which an electrical or gas company shall notify property owners or customers of any such payment obligation.
NEW SECTION. Sec. 3. A new section is added to chapter 64.04 RCW to read as follows:
Prior to closing, the seller of real property subject to a rate or charge for energy conservation measures, services, or payments provided under a tariff approved by the utilities and transportation commission pursuant to section 2 of this act shall disclose to the purchaser of the real property the existence of the obligation and the possibility that the purchaser may be responsible for the payment obligation.
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