CERTIFICATION OF ENROLLMENT

 

                        HOUSE BILL 2663

 

 

                    Chapter 47, Laws of 1998

 

 

 

 

                        55th Legislature

                      1998 Regular Session

 

 

FILING OF AFFILIATED TRANSACTIONS WITH THE UTILITIES AND TRANSPORTATION COMMISSION

 

 

 

                    EFFECTIVE DATE:  6/11/98

Passed by the House February 10, 1998  Yeas 96   Nays 0

 

 

 

             CLYDE BALLARD

Speaker of the

      House of Representatives

 

Passed by the Senate March 4, 1998

  Yeas 42   Nays 0

             CERTIFICATE

 

I, Timothy A. Martin, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 2663  as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

               BRAD OWEN

President of the Senate

          TIMOTHY A. MARTIN

                          Chief Clerk

 

 

Approved March 18, 1998 Place Style On Codes above, and Style Off Codes below.     

                                FILED          

 

 

           March 18, 1998 - 6:09 p.m.

 

 

 

              GARY LOCKE

Governor of the State of Washington

                   Secretary of State

                  State of Washington


          _______________________________________________

 

                          HOUSE BILL 2663

          _______________________________________________

 

             Passed Legislature - 1998 Regular Session

 

State of Washington      55th Legislature     1998 Regular Session

 

By Representative Crouse; by request of Utilities & Transportation Commission

 

Read first time 01/16/98.  Referred to Committee on Energy & Utilities.

Requiring companies that seek to contract with an affiliated interest to file with the utilities and transportation commission.  


    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.


    Passed the House February 10, 1998.

    Passed the Senate March 4, 1998.

Approved by the Governor March 18, 1998.

    Filed in Office of Secretary of State March 18, 1998.