FINAL BILL REPORT

HB 1581

                                  C 166 L 88

BYRepresentatives Nelson, Miller, Todd, Barnes, Gallagher, Hankins, Jacobsen, Meyers, May, Brooks, Jesernig, Armstrong, Sutherland, Unsoeld, S. Wilson, Day and Dorn

Permitting banded rate tariffs for natural gas and electric services.

House Committe on Energy & Utilities

Senate Committee on Energy & Utilities

SYNOPSIS AS ENACTED

BACKGROUND:

Washington statute law does not authorize the Utilities and Transportation Commission to use "banded rates" in its regulation of regulated natural gas companies and electric utilities.  Generally, under the concept of "banded rates" a regulated entity is permitted to charge a rate that does not exceed a minimum or maximum amount.  The concept is recognized as a method to reduce regulatory costs and to provide for flexibility in rate making and utility pricing.

SUMMARY:

Upon request by a regulated natural gas company or regulated electric utility, the Utilities and Transportation Commission may approve a tariff that includes banded rates for non-residential service that is subject to effective competition from an energy supplier not regulated by the commission.  The commission may require advance notice of rate changes within an approved band.

VOTES ON FINAL PASSAGE:

      House 97   1

      Senate    47     0

EFFECTIVE:March 21, 1988