BP BHEAD INT S [atlas:bill]

AN ACT Relating to the electric utility industry; and adding a new chapter to Title 80 RCW.

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

NEW SECTION. Sec. 1. The definitions in this section apply throughout this chapter unless the context clearly indicates otherwise.

(1) "Ancillary services" means scheduling, reactive power, voltage control, and other services that allow a retail electric customer to use distribution facilities and that are not subject to the exclusive jurisdiction of the federal energy regulatory commission. "Ancillary services" does not include long-term emergency or backup power to replace the loss of generation resources or to cover that portion of a customer's load that exceeds generation supply.

(2) "Commission" means the utilities and transportation commission.

(3) "Direct access" means the right of all retail electric customers and electricity service suppliers to interconnect with and use distribution facilities on a nondiscriminatory basis to transport electricity from any source by or on behalf of any retail electric customer. "Direct access" is also known as "retail wheeling."

(4) "Distribution facilities" means the equipment and infrastructure used to deliver electricity to retail electric customers, except a transmission facility.

(5) "Electrical company" means a company owned by investors that meets the definition of RCW 80.04.010.

(6) "Electric cooperative" means a cooperative or association organized under chapter 23.86 RCW.

(7) "Electric utility" means any electrical company, public utility district, electric cooperative, or municipal electric utility, that is engaged in the business of distributing electricity to retail electric customers in the state.

(8) "Electricity" means electric energy, measured in kilowatt hours, or electric capacity, measured in kilowatts.

(9) "Electricity service supplier" means any person or entity that sells electricity to more than one retail electric customer, including but not limited to electric utilities, aggregators, marketers, brokers, independent power producers, or other municipal or state authorities.

(10) "Governing body" means the board of directors; the council of a city or town; or the commissioners of an electric cooperative, municipal electric utility, or public utility district, respectively, that has the authority to set and approve rates.

(11) "Load" means the amount of electricity delivered or required by a retail electric customer at a specific point of delivery.

(12) "Municipal electric utility" means a city or town that owns and operates an electric utility authorized by chapter 35.92 RCW.

(13) "Public utility district" means a district authorized by chapter 54.04 RCW that sells electricity to retail electric customers.

(14) "Retail electric customer" means any person or entity, including but not limited to a residential, commercial, and industrial consumer, that purchases electricity for ultimate consumption and not for resale.

(15) "Transmission facility" means plant and equipment used to transmit electricity in interstate commerce and whose rates, terms, and conditions are subject to the exclusive jurisdiction of the federal energy regulatory commission.

NEW SECTION. Sec. 2. (1) The commission has the authority to approve pilot programs for direct access with retail electric customers of individual electrical companies.

(2) The governing body of a public utility district, municipal electric utility, or electric cooperative has the authority to approve pilot programs for direct access with retail electric customers.

NEW SECTION. Sec. 3. No later than January 1, 1998, every electric utility shall: (1) Separate its generation, transmission, and distribution assets and operations to accurately assess the costs of utility functions and to allow for fair and accurate pricing of unbundled services; and (2) publish separate rates, terms, and conditions for at least the following unbundled products and services: Electricity; ancillary services; and direct access to distribution facilities.

NEW SECTION. Sec. 4. No later than January 1, 1998, every bill to a retail electric customer from an electricity service supplier must contain, among other things: (1) A complete and accurate list of the rates and amount due for each unbundled service or product that the customer is purchasing; (2) the rates and amount of state and local taxes, if any, imposed on the customer; and (3) other price information necessary to facilitate customer choice, as determined by the commission for electrical companies, pursuant to rules adopted under RCW 80.04.160, and by the governing body of public utility districts, municipal electric utilities, and electric cooperatives.

NEW SECTION. Sec. 5. Sections 1 through 4 of this act constitute a new chapter in Title 80 RCW.