SENATE BILL REPORT

 

 

                                HB 541

 

 

BYRepresentatives Jesernig, Hankins, Madsen, Miller and Todd

 

 

Revising provisions on joint operating agencies.

 

 

House Committe on Energy & Utilities

 

 

Senate Committee on Energy & Utilities

 

     Senate Hearing Date(s):March 26, 1987; April 2, 1987

 

Majority Report:     Do pass as amended.

     Signed by Senators Williams, Chairman; Owen, Vice Chairman; Benitz, Cantu, Nelson, Smitherman, Stratton.

 

     Senate Staff:Judy Young (786-7455)

                April 2, 1987

 

 

    AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, APRIL 2, 1987

 

BACKGROUND:

 

The Washington Public Power Supply System (WPPSS) is authorized under existing state law to execute certain contracts related to construction and operation of nuclear plants without using a competitive sealed bid process.  There are seven exceptions to sealed bid competitive bidding and they expire on December 31, 1987. WPPSS has indicated that four of these exceptions are needed in order to operate Nuclear Project No. 2 effectively and efficiently.

 

WPPSS also has indicated that it lacks authority under existing law to engage in activities that would produce energy through energy efficiency improvements or conservation or to analyze its investments using a "least-cost" approach.

 

SUMMARY:

 

The expiration date of the four exceptions to sealed bid competitive bidding which had applied to the operation of nuclear power plants is eliminated.

 

A uniform system by which an operating agency must administer exceptions to competitive bidding is established.

 

Authority of operating agencies to engage in conservation activities is explicitly set forth.

 

An operating agency which undertakes a new project must prepare a least-cost plan as part of the investment analysis.

 

 

SUMMARY OF PROPOSED SENATE AMENDMENT:

 

Expiration date of the four exceptions to sealed bid competitive bidding which had applied to the operation of nuclear power plants is changed to December 31, 1992.

 

Fiscal Note:    none requested

 

Senate Committee - Testified:   Representative Jim Jesernig; Susie Tracy, WPPSS