Z-1112.1 _______________________________________________
SENATE BILL 6359
_______________________________________________
State of Washington 55th Legislature 1998 Regular Session
By Senators Finkbeiner, Rossi, Brown and Jacobsen; by request of Utilities & Transportation Commission
Read first time 01/16/98. Referred to Committee on Energy & Utilities.
AN ACT Relating to filing of affiliated transactions with the utilities and transportation commission; and amending RCW 80.16.020, 80.16.030, 80.16.050, 80.16.060, 80.16.070, 81.16.020, 81.16.030, 81.16.050, 81.16.060, and 81.16.070.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 80.16.020 and 1961 c 14 s 80.16.020 are each amended to read as follows:
((No))
Every public service company shall file with the commission a verified copy,
or a verified summary if unwritten, of a contract or arrangement providing
for the furnishing of management, supervisory construction, engineering,
accounting, legal, financial, or similar services, ((and no)) or
any contract or arrangement for the purchase, sale, lease, or
exchange of any property, right, or thing, or for the furnishing of any
service, property, right, or thing, other than those ((above))
enumerated in this section, hereafter made or entered into between a
public service company and any affiliated interest as defined in this chapter,
including open account advances from or to ((such)) the
affiliated interests((, shall be valid or effective unless and until such
contract or arrangement shall have received the approval of the commission. It
shall be the duty of every public service company to file with the commission,
a verified copy or a verified summary of any such unwritten contract or
arrangement, and also of all such contracts and arrangements, whether written
or unwritten, entered into prior to March 18, 1933 and in force and effect at
that time. The commission shall approve such contract or arrangement hereafter
made or entered into only if it shall clearly appear and be established upon
investigation that it is reasonable and consistent with the public interest;
otherwise the contract or arrangement shall not be approved)). The
filing must be made prior to the effective date of the contract or
arrangement. Modifications or amendments to the contracts or arrangements with
affiliated interests must be filed with the commission prior to the effective
date of the modification or amendment. Any time after receipt of the contract
or arrangement, the commission may institute an investigation and disapprove
the contract, arrangement, modification, or amendment thereto if the commission
finds the public service company has failed to prove that it is reasonable and
consistent with the public interest. The commission ((shall not be
required to approve)) may disapprove any such contract or arrangement
((unless)) if satisfactory proof is not submitted to the
commission of the cost to the affiliated interest of rendering the services or
of furnishing the property or service described ((herein)) in this
section.
Sec. 2. RCW 80.16.030 and 1961 c 14 s 80.16.030 are each amended to read as follows:
In
any proceeding, whether upon the commission's own motion or upon complaint,
involving the rates or practices of any public service company, the commission
may exclude from the accounts of ((such)) the public service
company any payment or compensation to an affiliated interest for any services
rendered or property or service furnished, as ((above)) described in
this section, under existing contracts or arrangements with ((such))
the affiliated interest unless ((such)) the public service
company ((shall)) establishes the reasonableness of ((such))
the payment or compensation. In ((such)) the proceeding
the commission shall disallow ((such)) the payment or
compensation, in whole or in part, in the absence of satisfactory proof that it
is reasonable in amount. In such a proceeding, any payment or
compensation may be disapproved or disallowed by the commission, in whole or in
part, ((unless)) if satisfactory proof is not submitted to
the commission of the cost to the affiliated interest of rendering the service
or furnishing the property or service ((above)) described in this
section.
Sec. 3. RCW 80.16.050 and 1961 c 14 s 80.16.050 are each amended to read as follows:
The
commission shall have continuing supervisory control over the terms and
conditions of such contracts and arrangements as are herein described so far as
necessary to protect and promote the public interest. The commission shall
have the same jurisdiction over the modifications or amendment of contracts or
arrangements as are herein described as it has over such original contracts or
arrangements. The fact that a contract or arrangement has been filed with,
or the commission ((shall have)) has approved entry into such
contracts or arrangements as described herein shall not preclude disallowance
or disapproval of payments made pursuant thereto, if upon actual experience
under such contract or arrangement, it appears that the payments provided for
or made were or are unreasonable. Every order of the commission approving any
such contract or arrangement shall be expressly conditioned upon the reserved
power of the commission to revise and amend the terms and conditions thereof,
if, when, and as necessary to protect and promote the public interest.
Sec. 4. RCW 80.16.060 and 1961 c 14 s 80.16.060 are each amended to read as follows:
Whenever
the commission shall find upon investigation that any public service company is
giving effect to any such contract or arrangement without such contract or
arrangement having ((received the commission's approval)) been filed
or approved, the commission may issue a summary order prohibiting the
public service company from treating any payments made under the terms of such
contract or arrangement as operating expenses or as capital expenditures for
rate or valuation purposes, unless and until such contract or arrangement
has been filed with the commission or until payments ((shall)) have
received the approval of the commission.
Sec. 5. RCW 80.16.070 and 1961 c 14 s 80.16.070 are each amended to read as follows:
Whenever
the commission ((shall)) finds upon investigation that any public
service company is making payments to an affiliated interest, although ((such))
the payments have been disallowed ((and)) or disapproved
by the commission in a proceeding involving the public service company's rates
or practices, the commission shall issue a summary order directing the public
service company ((from treating such)) to not treat the payments
as operating expenses or capital expenditures for rate or valuation purposes,
unless and until ((such)) the payments ((shall)) have received
the approval of the commission.
Sec. 6. RCW 81.16.020 and 1961 c 14 s 81.16.020 are each amended to read as follows:
((No))
Every public service company shall file with the commission a verified copy,
or a verified summary if unwritten, of a contract or arrangement providing
for the furnishing of management, supervisory construction, engineering,
accounting, legal, financial, or similar services, ((and no)) or
any contract or arrangement for the purchase, sale, lease, or
exchange of any property, right, or thing, or for the furnishing of any
service, property, right, or thing, other than those ((above))
enumerated in this section, hereafter made or entered into between a
public service company and any affiliated interest as defined in this chapter,
including open account advances from or to ((such)) the
affiliated interests((, except open account advances from or to a common
carrier subject to the provisions of part one of the interstate commerce act,
shall be valid or effective unless and until such contract or arrangement shall
have received the approval of the commission. It shall be the duty of every
public service company to file with the commission, a verified copy or a
verified summary of any such unwritten contract or arrangement, and also of all
such contracts and arrangements, whether written or unwritten, entered into
prior to March 18, 1933 and in force and effect at that time. The commission
shall approve such contract or arrangement hereafter made or entered into only
if it shall clearly appear and be established upon investigation that it is
reasonable and consistent with the public interest; otherwise the contract or
arrangement shall not be approved)). The filing must be made prior to
the effective date of the contract or arrangement. Modifications or amendments
to the contracts or arrangements with affiliated interests must be filed with
the commission prior to the effective date of the modification or amendment.
The commission may at any time after receipt of the contract or arrangement
institute an investigation and disapprove the contract, arrangement, or
amendment thereto if the commission finds the public service company has failed
to prove that it is reasonable and consistent with the public interest.
The commission ((shall not be required to approve)) may disapprove
any such contract or arrangement ((unless)) if satisfactory proof
is not submitted to the commission of the cost to the affiliated
interest of rendering the services or of furnishing the property or service
described ((herein)) in this section.
Sec. 7. RCW 81.16.030 and 1961 c 14 s 81.16.030 are each amended to read as follows:
In
any proceeding, whether upon the commission's own motion or upon complaint,
involving the rates or practices of any public service company, the commission
may exclude from the accounts of ((such)) the public service
company any payment or compensation to an affiliated interest for any services
rendered or property or service furnished, as ((above)) described in
this section, under existing contracts or arrangements with ((such))
the affiliated interest unless ((such)) the public service
company ((shall)) establishes the reasonableness of ((such))
the payment or compensation. In ((such)) the proceeding
the commission shall disallow ((such)) the payment or
compensation, in whole or in part, in the absence of satisfactory proof that it
is reasonable in amount. In such a proceeding, any payment or
compensation may be disapproved or disallowed by the commission, in whole or in
part, ((unless)) if satisfactory proof is not submitted to
the commission of the cost to the affiliated interest of rendering the service
or furnishing the property or service ((above)) described in this
section.
Sec. 8. RCW 81.16.050 and 1961 c 14 s 81.16.050 are each amended to read as follows:
The
commission shall have continuing supervisory control over the terms and
conditions of such contracts and arrangements as are herein described so far as
necessary to protect and promote the public interest. The commission shall
have the same jurisdiction over the modifications or amendment of contracts or
arrangements as are herein described as it has over such original contracts or
arrangements. The fact that a contract or arrangement has been filed with,
or the commission ((shall have)) has approved entry into such
contracts or arrangements, as described herein, shall not
preclude disallowance or disapproval of payments made pursuant thereto, if upon
actual experience under such contract or arrangement, it appears that the
payments provided for or made were or are unreasonable. Every order of the
commission approving any such contract or arrangement shall be expressly
conditioned upon the reserved power of the commission to revise and amend the
terms and conditions thereof, if, when and as necessary to protect and promote
the public interest.
Sec. 9. RCW 81.16.060 and 1961 c 14 s 81.16.060 are each amended to read as follows:
Whenever
the commission shall find upon investigation that any public service company is
giving effect to any such contract or arrangement without such contract or
arrangement having ((received the commission's approval)) been filed
or approved, the commission may issue a summary order prohibiting the
public service company from treating any payments made under the terms of such
contract or arrangement as operating expenses or as capital expenditures for
rate or valuation purposes, unless and until such contract or arrangement
has been filed with the commission or until payments ((shall)) have
received the approval of the commission.
Sec. 10. RCW 81.16.070 and 1961 c 14 s 81.16.070 are each amended to read as follows:
Whenever
the commission ((shall)) finds upon investigation that any public
service company is making payments to an affiliated interest, although ((such))
the payments have been disallowed ((and)) or disapproved
by the commission in a proceeding involving the public service company's rates
or practices, the commission shall issue a summary order directing the public
service company ((from treating such)) to not treat the payments
as operating expenses or capital expenditures for rate or valuation purposes,
unless and until ((such)) the payments ((shall)) have
received the approval of the commission.
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