SENATE BILL REPORT

SHB 1363

BYHouse Committee on Energy & Utilities (originally sponsored by Representatives Nelson, Jacobsen, Barnes and Unsoeld)

Expanding the authority of first class cities, public utility districts, and joint operating agencies to enter into agreements for the undivided ownership of electric generating plants and facilities.

House Committe on Energy & Utilities

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 18, 1988

Majority Report:  Do pass.

      Signed by Senators Benitz, Chairman; Madsen, Nelson, Newhouse, Owen.

Senate Staff:Paul Parker (786-7455)

                  February 18, 1988

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, FEBRUARY 18, 1988

BACKGROUND:

Certain municipal utilities, public utility districts, and joint operating agencies are authorized to jointly acquire and share in ownership of electric generating facilities or distribution systems together with other like entities in this state, rural electric cooperatives in this state, and regulated utilities in Washington and Oregon.  No specific authority exists to construct and operate generating facilities and distributing systems outside Washington or Oregon.

Under favorable water conditions, utilities with their own hydroelectric systems can have an electric energy surplus.  It is in the interest of the utilities and their ratepayers to market the surplus advantageously.  Current limitations on authority may preclude ownership participation in intertie ownership of interregional electric transmission interties by public power agencies.

SUMMARY:

In addition to their current authority, municipal utilities, public utility districts, and joint operating agencies may join with regulated utilities in any state, municipal corporations in any state, and certain federal agencies in ownership of electric generating facilities or distribution systems.  These public power agencies also are expressly authorized to join in projects located outside the state as well as within it.

Joint acquisition of a PUD's distribution properties is limited.  Condemnation actions by two or more PUDs, municipal utilities or joint operating agencies to acquire properties owned or operated by regulated or municipal utilities are prohibited.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: G. R. Garman, Seattle City Light (for); Gary Johnson, Tacoma City Light (for); Representative Nelson, Sponsor