HOUSE BILL REPORT

EHB 1581

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

Majority Report:  Do pass with amendment. (13)

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

House Staff: Fred Adair (786-7113)

AS PASSED HOUSE FEBRUARY 8, 1988

BACKGROUND:

Utility rate revision can be lengthy and costly.  Even small changes involve considerable costs.  Allowing rates to be changed within specified upper and lower limits (a "band") may be efficacious, more economical, and still provide adequate protection for ratepayers of regulated electric and gas utilities.  The chief concern relates to non-residential customers with more than one fuel choice.

SUMMARY:

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

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Steve McLellan, Utilities and Transportation Commission; Marc Sullivan, Northwest Conservation Act Coalition; Scott Nelson, Washington Natural Gas; Ron Newbry and John Stefani, Pacific Power; Chuck Adams, Public Counsel Section of the Attorney General's Office.  (Mr. Adams was not expressly for nor against, but agreed with the basis and stated some concerns.)

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The principal aim is to streamline the regulatory process in the limited situation described in the bill.  The benefits of competition could be expanded.  Additionally, this measure will help smooth out peaks and valleys in the amount of energy supplied by the utilities.  Mr. Adams cautioned that the minimum band should not be below the cost of service and that there should be no cross-subsidization.

House Committee - Testimony Against:      None Presented.