FINAL BILL REPORT

                  ESB 5888

                          C 124 L 95

                      Synopsis as Enacted

Brief Description:  Revising considerations for charges for sewerage and storm water control systems.

Sponsors:  Senator Sutherland.

Senate Committee on Energy, Telecommunications & Utilities

House Committee on Energy & Utilities

Background:  Counties and cities are separately authorized to provide various utility services, including water, sewerage and storm water control services.  These local governments are also authorized to fix the rates and charges of these services.

In setting rates, the legislative bodies of local governments may classify customers based on various factors.  These factors include the difference in cost to serve or maintain service to classes of customers, the difference in quantity or quality of the service provided, capital contributions to the system, and other similarly related differences.

Concern has been raised that local governments may lack the statutory authority to allow different rates for customer classes that require large capacity coupled with proportionately smaller usage.

Summary:  When county governments fix rates for water, sewerage and storm water control services, customers may be classified by the nonprofit public benefit status of the land user.  When cities or towns fix rates for systems of sewerage, customers may be classified by the nonprofit public benefit status of the land user.

Votes on Final Passage:

Senate    44 4

House     97 0

Effective:  July 23, 1995