FINAL BILL REPORT

SSB 6438

FULL VETO

BYSenate Committee on Energy & Utilities (originally sponsored by Senators Benitz, Stratton, Newhouse, Bluechel, Owen, Nelson, Pullen, Madsen, Williams and Talmadge)

Permitting banded rate tariffs for natural gas and electric services.

Senate Committee on Energy & Utilities

House Committe on Energy & Utilities

AS PASSED LEGISLATURE

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 Utilities and Transportation Commission 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.

VOTES ON FINAL PASSAGE:

      Senate    47     0

      House 98   0

FULL VETO:  (See VETO MESSAGE)