SENATE BILL REPORT

SB 6176

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 3, 2016

Title: An act relating to requiring the utilities and transportation commission to consider policies that allow electrical companies to establish a user fee or other similar charge for electric vehicle supply equipment that is deployed for the benefit of ratepayers.

Brief Description: Requiring the utilities and transportation commission to consider policies that allow electrical companies to establish a user fee or other similar charge for electric vehicle supply equipment that is deployed for the benefit of ratepayers.

Sponsors: Senator Ericksen.

Brief History:

Committee Activity: Energy, Environment & Telecommunications: 1/14/16.

SENATE COMMITTEE ON ENERGY, ENVIRONMENT & TELECOMMUNICATIONS

Staff: Kimberly Cushing (786-7421)

Background: The Utilities and Transportation Commission (UTC) regulates the rates, services, and practices of privately-owned utilities and transportation companies. Among the companies regulated by the UTC are electrical and natural gas companies. The UTC must ensure that rates charged by these companies are fair, just, and reasonable.

In 2015, the Legislature passed Substitute House Bill 1843, which directs the UTC to consider policies to encourage electric vehicle charging equipment build-out when establishing rates for utilities. The UTC may also establish an inventive rate of return-on-investment on capital expenditures for electric vehicle charging equipment that is deployed for the benefit of ratepayers. The UTC must report to the Legislature by December 31, 2017 on the use and quantifiable impacts of the incentives, and recommendations about utility participation in the electric vehicle market.

Summary of Bill: The UTC may include policies that allow electrical companies to establish a user fee or similar charge for electric vehicle supply equipment that is deployed for the benefit of ratepayers when considering and adopting policies for electric vehicle supply equipment.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

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

Staff Summary of Public Testimony: PRO: This amends the bill from last year by allowing utilities to recoup their cost from equipment that benefits ratepayers.

OTHER: Electric vehicles are an emerging field. We are concerned that it is too soon to modify last year's bill. No utility has filed a UTC docket yet. The law already limits to .25 percent on rates. Transportation electrification may be a socialized cost for ratepayers but may also be rate reduction for ratepayers. Last year, utilities couldn’t charge for investing in infrastructure. Once the infrastructure is in place, it results in more sales, and becomes self financing.

Persons Testifying: PRO: Senator Erickson, prime sponsor.

OTHER: JJ McCoy, NW Energy Coalition.

Persons Signed In To Testify But Not Testifying: No one.