FINAL BILL REPORT

                  ESB 6631

                           C 33 L 96

                      Synopsis as Enacted

Brief Description:  Exempting thermal energy companies from utilities and transportation commission authority.

Sponsors:  Senators Sutherland, West, Finkbeiner, Loveland, Heavey, Rasmussen, Hochstatter, Strannigan and Morton.

Senate Committee on Energy, Telecommunications & Utilities

House Committee on Energy & Utilities

Background:  The Legislature enacted measures in 1983 and 1987 intended to promote the use of district heating, including clarifying that this service is subject to only minimal regulation by the Washington Utilities and Transportation Commission (WUTC).  With recent changes to regulations pertaining to cooling systems, there is renewed interest in promoting district cooling.  District heating and cooling services are now termed "thermal energy services" in the industry.  The WUTC has not used the existing laws to regulate district heating.

Summary:  Sections allowing minimal regulation of district heating by the Washington Utilities and Transportation Commission are repealed.

It is clarified that the WUTC is not authorized to regulate the rates or services of thermal energy companies.

The definition of "waste heat" is clarified as it pertains to state agencies or school districts selling energy or waste heat.

Votes on Final Passage:

Senate    49 0

House     96 0

Effective:  June 6, 1996