HOUSE BILL REPORT

                 SSB 5628

                  As Passed House‑Amended:

                       April 15,  1997

Title:  An act relating to the regulation of securities issuances by electrical and natural gas companies.

Brief Description:  Authorizing the utilities and transportation commission to exempt electrical and natural gas companies from securities regulation.

Sponsors:  Senate Committee on Energy & Utilities (originally sponsored by Senators Hochstatter, Deccio, Brown and Strannigan).

Brief History:

Committee Activity:

Energy & Utilities:  3/25/97, 3/26/97 [DP].

Floor Activity:

Passed House-Amended:  4/15/97, 95‑0.

HOUSE COMMITTEE ON ENERGY & UTILITIES

Majority Report:  Do pass.  Signed by 13 members:  Representatives Crouse, Chairman; DeBolt, Vice Chairman; Mastin, Vice Chairman; Poulsen, Ranking Minority Member; Morris, Assistant Ranking Minority Member; Bush; Cooper; Honeyford; Kastama; Kessler; Mielke; Mulliken and B. Thomas.

Staff:  Margaret Allen (786-7110).

Background:    In 1988, the Legislature gave the Washington Utilities and Transportation Commission (WUTC) authority to approve tariffs for investor-owned utilities that include banded rates for nonresidential natural gas or electricity customers.

A banded rate has a minimum and maximum rate, with the minimum rate covering the cost of the product or service.  A banded rate gives a utility some pricing flexibility (such as to respond to changes in the cost of natural gas or electricity) by allowing the utility to set its own charge for a product or service, as long as the charge does not fall outside of the band.

Summary of Bill:  The authority of  the WUTC to approve tariffs that include banded rates for nonresidential natural gas or electricity customers is extended to tariffs that include banded rates for residential customers.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For (original bill):  This bill is enabling legislation that authorizes the WUTC to grant an exemption. The bill will allow companies to act rapidly when called upon to do so by the marketplace.

Testimony Against:  None.

Testified:  (Pro) Ron Newbry, PacifiCorp.