2669 AMS EEW S4588.1
HB 2669 - S COMM AMD
By Committee on Environment, Energy & Water
SCOPED 03/08/02
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 19.29A.090 and 2001 c 214 s 28 are each amended to read as follows:
(1) Beginning January 1, 2002, each electric utility must provide to its retail electricity customers a voluntary option to purchase qualified alternative energy resources in accordance with this section.
(2) Each electric utility must include with its retail electric customer's regular billing statements, at least quarterly, a voluntary option to purchase qualified alternative energy resources. The option may allow customers to purchase qualified alternative energy resources at fixed or variable rates and for fixed or variable periods of time, including but not limited to monthly, quarterly, or annual purchase agreements. A utility may provide qualified alternative energy resource options through either: (a) Resources it owns or contracts for; or (b) the purchase of credits issued by a clearinghouse or other system by which the utility may secure, for trade or other consideration, verifiable evidence that a second party has a qualified alternative energy resource and that the second party agrees to transfer such evidence exclusively to the benefit of the utility.
(3) For the purposes of this section, a "qualified alternative energy resource" means the electricity produced from generation facilities that are fueled by: (a) Wind; (b) solar energy; (c) geothermal energy; (d) landfill gas; (e) wave or tidal action; (f) gas produced during the treatment of wastewater; (g) qualified hydropower; or (h) biomass energy based on animal waste or solid organic fuels from wood, forest, or field residues, or dedicated energy crops that do not include wood pieces that have been treated with chemical preservatives such as creosote, pentachlorophenol, or copper‑chrome‑arsenic.
(4) For the purposes of this section, "qualified hydropower" means the energy produced either: (a) As a result of modernizations or upgrades made after June 1, 1998, to hydropower facilities operating on May 8, 2001, that have been demonstrated to reduce the mortality of anadromous fish; or (b) by run of the river or run of the canal hydropower facilities that are not responsible for obstructing the passage of anadromous fish.
(5)
The rates, terms, conditions, and customer notification of each utility's
option or options offered in accordance with this section must be approved by
the governing body of the consumer-owned utility or by the commission for
investor-owned utilities. For the purposes of this section, all costs
and benefits associated with ((any option)) acquiring qualified
alternative energy resources offered by an electric utility under this
section must be allocated to the customers who voluntarily choose that option
and may not be shifted to any customers who have not chosen such option. Prudently
incurred costs to encourage customers to choose such options shall not be
considered to be associated with acquiring qualified alternative energy
resources and may be recovered in general rates. Nothing in this section shall
be construed as prohibiting or discouraging an electric utility from acquiring
additional renewable resources or qualified alternative energy resources on
behalf of all customers for inclusion within the utility's fuel mix and melding
the costs of such additional resources into general rates.
(6) Each consumer-owned utility must report annually to the department and each investor-owned utility must report annually to the commission beginning October 1, 2002, until October 1, 2012, describing the option or options it is offering its customers under the requirements of this section, the rate of customer participation, the amount of qualified alternative energy resources purchased by customers, and the amount of utility investments in qualified alternative energy resources. The department and the commission together shall report annually to the legislature, beginning December 1, 2002, until December 1, 2012, with the results of the utility reports."
HB 2669 - S COMM AMD
By Committee on Environment, Energy & Water
On page 1, line 2 of the title, after "resource;" strike the remainder of the title and insert "and amending RCW 19.29A.090."
EFFECT: (1) Allows that the costs which are prudently incurred to encourage customers to choose green options may be recovered in general rates.
(2) Clarifies that utilities may not shift the costs of acquiring qualified alternative energy resources for the green option to customers who have not chosen the green option.
(3) Clarifies that the legislature does not intend to prohibit or discourage utilities from acquiring additional renewable or alternative energy resources on behalf of all customers for inclusion in the utility's general fuel mix.
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