Electric Utility Energy Independence Act Reports.

The Energy Independence Act (EIA), also known as Initiative 937, requires electric utilities with more than 25,000 customers in the state (qualifying utilities) to meet energy conservation and renewable resources targets.  Qualifying utilities must pursue all available conservation that is cost-effective, reliable, and feasible, and must set a biennial acquisition target for cost-effective conservation and meet the target during the subsequent two-year period.  The renewable resources target, as of 2020, is that at least 15 percent of a qualifying utility's load every year must be met by using eligible renewable resources or by acquiring equivalent renewable energy credits (RECs), or both.

By June 1, qualifying utilities must annually report to the Department of Commerce (Commerce) on progress made in the preceding year towards meeting these targets.  Progress reporting must include expected electricity savings from the conservation target, spending on conservation, actual savings, the amount of electricity needed to meet the annual renewable energy target, the amount of renewable resource electricity acquired, the type and amount of RECs acquired, and the percent of the utility's total annual retail revenue requirement invested in the incremental cost of eligible renewable resources and the cost of RECs.  Investor-owned utilities that are qualifying utilities must also submit this information to the Utilities and Transportation Commission (UTC) and all other qualifying utilities must make this information available to the State Auditor's Office.  Qualifying utilities must also make these reports available to their customers.

Electric and Water Utility Reports on Heat-Related Disconnections.

Utilities and landlords may not involuntarily terminate water or electric service to any residential user during days for which the National Weather Service (NWS) has issued or has announced that it intends to issue certain heat-related alerts.  Electric and water utilities and landlords must promptly make a reasonable attempt to reconnect service to a dwelling on receipt of a request to reconnect utility service for such days.

On an annual basis, each electrical company or water company regulated by the UTC must submit a report to the UTC that includes the total number of disconnections that occurred on each day for which the NWS issued or announced that it intended to issue a heat-related alert.

On an annual basis, each publicly owned utility with more than 25,000 electric customers or 2,500 water customers in Washington must produce a report that includes the total number of disconnections that occurred on each day for which the NWS issued, or announced that it intended to issue, a heat-related alert.  The required information must be submitted in a form, timeline, and manner as prescribed by Commerce.  Utilities with fewer than 25,000 electric customers or 2,500 water customers in Washington must provide similar information upon request.  Subject to availability, each utility company must provide any other information related to utility disconnections that is requested by Commerce.

Commerce State Energy Strategy Implementation Reports.

By the end of 2020, and at least once every eight years after, Commerce must review the State Energy Strategy and align the strategy with the requirements of the Energy Independence Act, the Clean Energy Transformation Act, and the state's greenhouse gas emissions reduction targets.  Commerce published the State Energy Strategy in 2021.

A successful State Energy Strategy must balance three goals:  (1) maintaining competitive energy prices that are fair and reasonable for consumers and businesses, and support the state's continued economic success; (2) increasing competitiveness by fostering a clean energy economy and jobs through business and workforce development; and (3) meeting the state's obligations to reduce greenhouse gas emissions.

Commerce is responsible for coordinating implementation of the State Energy Strategy.  Commerce must submit a report on the implementation of the State Energy Strategy and other important energy issues by December 1 of every even-numbered year to the Governor and the Legislature.

Commerce Adequacy of the State's Electricity Supply Reports.

Commerce must review and aggregate electric utility resource plans and data from other state, regional, national sources, to assess the overall adequacy of Washington's electricity supply.  The report must include a statewide summary of utility load forecasts; load/resource balance; and utility plans for the development of thermal generation, renewable resources, conservation and efficiency resources, and an examination of methods used by utilities to address overgeneration events.

Commerce may submit this report within the State Energy Strategy biennial implementation report.  The UTC must provide Commerce with data summarizing investor-owned utility plans to use in this report.  Commerce must also submit any reports it receives from utilities of existing and potential combined heat and power facilities to the Washington State University Extension Energy Program for analysis.

Electric Utility Requirements for Providing Low-Income Energy Assistance.

Under the Clean Energy Transformation Act, all electric utilities must make programs and funding available for energy assistance to low-income households, and to the extent practicable, must give priority to low-income households that spend a higher portion of their annual household income on energy bills (energy burden).  Energy assistance is a program undertaken by a utility to reduce the household energy burden of its customers and includes, but is not limited to, weatherization, conservation and efficiency services, monetary assistance, and direct customer ownership in distributed energy resources or other strategies, if such strategies achieve a reduction in energy burden for the customer above other available conservation and demand-side measures.

Energy Independence Act Reporting.

Qualifying utilities must submit their EIA reports to Commerce biennially, rather than annually.  Qualifying utilities must report on the type and amount of RECs that were retired, rather than acquired.  The reporting language is modified to clarify that instead of reporting on progress in the preceding year in meeting the targets, qualifying utilities must report on compliance in meeting the targets.  Electric utilities are encouraged to use any savings from these decreased reporting requirements for low-income energy assistance.

State Energy Strategy Implementation Report.

The State Energy Strategy implementation report is due by December 1, 2024, and then by four years after Commerce completes its review of the State Energy Strategy.

Reporting Utility Disconnections on Heat-Related Alert Days.

The requirement that electric and water utilities report on the total number of disconnections that occurred on each day for which the National Weather Service issued or announced that it intended to issue a heat-related alert is eliminated.  Electric utilities are encouraged to use any savings from these removed reporting requirements for low-income energy assistance.

Adequacy of the State's Electricity Supply Biennial Report.

The requirement for Commerce to biennially report on the adequacy of the state's electricity supply is eliminated.

(In support) This reporting is either duplicative or no longer needed or useful.  The heat-related disconnection reporting sounds like a good idea, but it hasn't provided useful data, is burdensome for Commerce and for utilities, and the funding for the reporting tool was eliminated last session.  The bill makes tweaks to ensure that reported information is useful.  This bill is about streamlining and efficiency, and is similar to House Bill 1362, from 2023, which passed the House unanimously.

(Opposed) None.

(Other) The intent is appreciated, and it may be appropriate to eliminate the Commerce report in section 10, if that data is provided elsewhere to ensure our energy supply is reliable.  However, there has been a lack of information about resource adequacy, and so utilities and others have stepped in to fill those gaps in other reports, so legislators should make sure they don't need this Commerce report anymore.  This streamlines cumbersome reporting.  The EIA reports will now focus on what is of interest to decision-makers and the public, so will focus on how electric utilities comply, rather than how they anticipate complying with the EIA.  The moratorium on shutoffs during extreme heat protects households, but the reporting isn't valuable or funded.  Under this bill, Commerce would still publicize utility resource plans but would no longer aggregate the plans into a legislative report.  Newer reporting requirements under the Clean Energy Transformation Act and the resource adequacy meetings hosted jointly by Commerce and the Utilities and Transportation Commission provide more thorough updates than the report in section 10.  By changing the State Energy Strategy implementation report, staff can focus their time on implementing the State Energy Strategy.

(In support) Representative Zach Hall, prime sponsor.