SENATE 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

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 18, 1988

Majority Report:  Do pass.

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

Senate Staff:Paul Parker (786-7455)

                  February 18, 1988

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

BACKGROUND:

Natural gas and electric utilities face increasing competition for industrial and agricultural customers.  Although the Utilities and Transportation Commission has approved utility requests for lower rates where necessary to prevent fuel- switching between customers, utilities seek more flexibility to better respond to such factors as fluctuating oil prices.

SUMMARY:

The UTC is authorized to allow rate flexibility for nonresidential service provided by energy utilities.  After the UTC approves a band or range of rates, with a minimum and maximum rate, the company may change rates within the band according to UTC procedure.  Banded rates are allowed only where utilities are subject to effective competition from energy suppliers not regulated by the UTC.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Representative Nelson, Sponsor