SENATE BILL REPORT

HB 2523

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 Reported by Senate Committee On:

Energy, Environment & Technology, February 22, 2018

Title: An act relating to the annual reporting requirements for regulated utility and transportation companies.

Brief Description: Concerning the annual reporting requirements for regulated utility and transportation companies.

Sponsors: Representatives Hudgins, DeBolt, Kloba, Tarleton, Smith and Morris; by request of Utilities & Transportation Commission.

Brief History: Passed House: 2/08/18, 78-20.

Committee Activity: Energy, Environment & Technology: 2/20/18, 2/22/18 [DP].

Brief Summary of Bill

Removes certain annual reporting requirements for regulated public service companies (companies).
Changes assessed penalties for companies that fail to timely file an annual report with the Utilities and Transportation Commission (Commission) from a per day fee to a graduated fee.
Provides a process to waive a penalty under certain circumstances.

SENATE COMMITTEE ON ENERGY, ENVIRONMENT & TECHNOLOGY

Majority Report: Do pass.

Signed by Senators Carlyle, Chair; Palumbo, Vice Chair; Ericksen, Ranking Member; Brown, Hawkins, Hobbs, McCoy, Ranker, Sheldon and Wellman.

Staff: Angela Kleis (786-7469)

Background: Under current law, the Commission regulates the rates, services, facilities, and practices of all public utility service businesses or commodities that operate for compensation within Washington.

Companies are required to file an annual report with the Commission by a due date determined by the Commission. The annual reports must include certain financial and safety data such as:

investment data;
employee salaries and statistics;
the character and costs of improvement; and
a complete exhibit of the financial operations of the company for each year.

The Commission is authorized to assess a penalty of $100 per day on companies that fail to meet the set due date.

Summary of Bill: Certain annual reporting requirements for financial and safety data are removed.

If a company fails to file an annual report with the Commission by the set due date, the company will be assessed a penalty as follows:

$250 for a report filed 1-30 days past due;
$500 for a report filed 31-60 days past due;
$1,000 for a report filed 61-90 days past due; or
cancellation or revocation of operating authority and additional penalties upon notice from the Commission.

The Commission may waive the assessed penalties if a company is able to demonstrate that an annual report was filed past due because of circumstances beyond the company's control. A company must request a waiver within 15 days after a penalty is assessed.

Appropriation: None.

Fiscal Note: Available.

Creates Committee/Commission/Task Force that includes Legislative members: No.

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

Staff Summary of Public Testimony: PRO: This agency request legislation that streamlines the annual reporting process by making modifications to current reporting enforcement policies and procedures. It creates a more efficient and transparent structure to the annual reporting process that reduces the financial and administrative burden on both the agency and the industry.

Persons Testifying: PRO: Jon Noski, Utilities & Transportation Commission.

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