S-4765.2  _______________________________________________

                         SENATE BILL 6726

          _______________________________________________

State of Washington      54th Legislature     1996 Regular Session

By Senators Prentice, Spanel and Thibaudeau

Read first time 01/26/96.  Referred to Committee on Energy, Telecommunications & Utilities.

Requiring the utilities and transportation commission  to review the impact that utility rate increases, merger decisions, and layoffs have on the economy, society, and the quality of utility service provided.

    AN ACT Relating to the utilities and transportation commission; adding a new section to chapter 80.04 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  The legislature finds that large-scale downsizings, mergers, or work force reductions by public utility suppliers such as electric, gas, telecommunications, and water companies, can have a substantial economic and societal impact.  These impacts include significant job loss, reductions in retail spending, reductions in the quality of utility service, and increases in crime, domestic violence, and family stress.  The legislature further finds that it is in the public interest for the utilities and transportation commission to consider economic and societal impacts prior to approving large-scale mergers or work force reductions.

NEW SECTION. Sec. 2.  A new section is added to chapter 80.04 RCW to read as follows:

    (1) The commission must consider the economic, societal, and quality of utility service impacts to communities, businesses, individuals, and state and local governments prior to approving a merger by a public utility supplier that affects the employment status of one hundred or more employees of the public utility supplier, or a rate increase or rate decrease that is the result of a work force reduction by a public utility supplier that affects one hundred or more employees of the public utility supplier.  The commission may modify or reject all or part of a merger, rate increase, or rate decrease proposed by a public utility supplier based upon a finding of significant economic, societal, or quality of utility service impact.

    (2) A public utility supplier must notify the commission sixty days prior to a work force reduction of one hundred or more employees.  Within thirty days of the notification, the commission must determine the potential impact that the work force reduction will have on the quality of utility service provided to communities, businesses, individuals, and state and local governments served by the public utility supplier.  The commission may modify, reject, or suspend a public utility supplier's proposed reduction in work force based upon a finding of significant adverse impact to the quality of utility service provided.

    (3) For the purposes of this section, "public utility supplier" means, but is not limited to, electric companies, gas companies, telecommunications companies, and water systems.

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