HOUSE BILL REPORT

HB 1479

BYRepresentatives Nelson, Barnes, Jacobsen and Wang; by request of Washington State Energy Office

Extending the authorization for utilities to lend money for energy conservation.

House Committe on Energy & Utilities

Majority Report:  Do pass. (13)

      Signed by Representatives Nelson, Chair; Todd, Vice Chair; Armstrong, Barnes, Brooks, Gallagher, Hankins, Jacobsen, Meyers, Miller, Sutherland, Unsoeld and S. Wilson.

House Staff:Fred Adair (786-7113) 

AS PASSED HOUSE JANUARY 25, 1988

BACKGROUND:

Voter acceptance of the constitutional amendment to authorize public utility conservation loans necessitated granting this authority to public utilities.  The original authorization was for 10 years.  A companion joint resolution this year would remove the expiration date and expand the utilities' loan authority to include commercial and industrial customers. 

SUMMARY:

Public utilities are enabled to make conservation loans to commercial and industrial customers in addition to their current authority for residential customer loans.

 This bill would be effective on December 8, 1988 only if the companion joint resolution is approved by voters in the November 1988 general election. 

Fiscal Note:      Not Requested. 

House Committee ‑ Testified For: Matt Dillon, Snohomish County Public Utility District Commissioner; Larry Gunn, Seattle City Light; Dick Watson, Director, State Energy Office; Jake Fey, City of Tacoma; and Tom Mortimer, Washington Public Utility District Association. 

House Committee - Testified Against:      Michael Fox (for himself).  He was not specifically opposed but expressed cautions. 

House Committee - Testimony For:      This has been a successful and valuable option for securing electric energy to serve additional demand.  It generally works in conjunction with grants by loaning up-front cash to enable customer participation.  The 10 year duration was placed in 1979 because the venture then was considered experimental.  Now it is well proven and valuable into the indefinite future.  Accordingly, the expiration should be eliminated.  Additionally, the inexpensive conservation potential in the loads of commercial and industrial customers is large and the loan opportunity should be extended to them. 

House Committee - Testimony Against: Building tightening may increase indoor air quality problems.  Governments should beware of liability ramifications.