AN ACT Relating to public utility services; amending RCW 35.92.355 and 80.28.010; adding a new section to chapter 35.92 RCW; adding a new section to chapter 54.16 RCW; and repealing RCW 35.92.360 and 54.16.280.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 1, chapter 239, Laws of 1979 ex. sess. and RCW 35.92.355 are each amended to read as follows:

The conservation of energy in all forms and by every possible means is found and declared to be a public purpose of highest priority. The legislature further finds and declares that all municipal corporations, quasi municipal corporations, and other political subdivisions of the state which are engaged in the generation, sale, or distribution of energy should be granted the authority to develop and carry out programs which will conserve resources, reduce waste, and encourage more efficient use of energy by consumers.

In order to establish the most effective state-wide program for energy conservation, the legislature hereby encourages any company, corporation, or association engaged in selling or furnishing utility services to assist their customers in the acquisition and installation of materials and equipment, for compensation or otherwise, for the conservation or more efficient use of energy, and to evaluate, and where economical, acquire energy through investments to increase the efficiency of energy use.

NEW SECTION. Sec. 2. A new section is added to chapter 35.92 RCW to read as follows:

The legislature recognizes that acquisition of gas, electricity, or power for the purposes stated in RCW 35.92.050 may be from a city or town's own works, plants, or facilities, by purchase from a supplier or suppliers, or by investments in improving the efficiency of gas or electricity use or by a combination of these. To enable acquisition of larger amounts of energy through investments in energy efficiency, the efficiency investments may be made singly by a city or town or jointly with one or more parties located within or without the city or town.

Sec. 3. Section 80.28.010, chapter 14, Laws of 1961 as last amended by section 5, chapter 245, Laws of 1986 and RCW 80.28.010 are each amended to read as follows:

(1) All charges made, demanded or received by any gas company, electrical company or water company for gas, electricity or water, or for any service rendered or to be rendered in connection therewith, shall be just, fair, reasonable and sufficient.

(2) Every gas company, electrical company and water company shall furnish and supply such service, instrumentalities and facilities as shall be safe, adequate and efficient, and in all respects just and reasonable.

(3) All rules and regulations issued by any gas company, electrical company or water company, affecting or pertaining to the sale or distribution of its product, shall be just and reasonable.

(4) Until June 30, 1990:

(a) Utility service for residential space heating shall not be terminated between November 15 through March 15 if the customer:

(i) Notifies the utility of the inability to pay the bill, including a security deposit. This notice shall be provided within five business days of receiving a payment overdue notice unless there are extenuating circumstances;

(ii) Provides self-certification of household income for the prior twelve months to a grantee of the department of community development which administers federally funded energy assistance programs. The grantee shall determine that the household income does not exceed the maximum allowed for eligibility under the state's plan for low-income energy assistance under 42 U.S.C. 8624 and shall provide a dollar figure that is seven percent of household income. The grantee may verify information provided in the self-certification;

(iii) Has applied for home heating assistance from applicable government and private sector organizations and certifies that any assistance received will be applied to the current bill and future utility bills;

(iv) Has applied for low-income weatherization assistance to the utility or other appropriate agency if such assistance is available for the dwelling;

(v) Agrees to a payment plan and agrees to maintain the payment plan. The plan will be designed both to pay the past due bill by the following October 15 and to pay for continued utility service. If the past due bill is not paid by the following October 15, the customer shall not be eligible for protections under this chapter until the past due bill is paid. The plan shall not require monthly payments in excess of seven percent of the customer's monthly income plus one-twelfth of any arrearage accrued from the date application is made and thereafter during November 15 through March 15. A customer may agree to pay a higher percentage during this period, but shall not be in default unless payment during this period is less than seven percent of monthly income plus one-twelfth of any arrearage accrued from the date application is made and thereafter. If assistance payments are received by the customer subsequent to implementation of the plan, the customer shall contact the utility to reformulate the plan; and

(vi) Agrees to pay the moneys owed even if he or she moves.

(b) The utility shall:

(i) Include in any notice that an account is delinquent and that service may be subject to termination, a description of the customer's duties in this section;

(ii) Assist the customer in fulfilling the requirements under this section;

(iii) Be authorized to transfer an account to a new residence when a customer who has established a plan under this section moves from one residence to another within the same utility service area; and

(iv) Be permitted to disconnect service if the customer fails to honor the payment program. Utilities may continue to disconnect service for those practices authorized by law other than for nonpayment as provided for in this subsection. Customers who qualify for payment plans under this section who default on their payment plans and are disconnected can be reconnected and maintain the protections afforded under this chapter by paying reconnection charges, if any, and by paying all amounts that would have been due and owing under the terms of the applicable payment plan, absent default, on the date on which service is reconnected.

(5) Every gas company and electrical company shall offer residential customers the option of a budget billing or equal payment plan. The budget billing or equal payment plan shall be offered low-income customers eligible under the state's plan for low-income energy assistance prepared in accordance with 42 U.S.C. 8624(C)(1) without limiting availability to certain months of the year, without regard to the length of time the customer has occupied the premises, and without regard to whether the customer is the tenant or owner of the premises occupied.

(6) Every gas company, electrical company and water company shall construct and maintain such facilities in connection with the manufacture and distribution of its product as will be efficient and safe to its employees and the public. The legislature recognizes that acquisition of gas or electricity for sale or distribution may be from a public service company's own works, plants, or facilities, by purchase from a supplier or suppliers, or by investments in improving the efficiency of gas or electricity use, or by a combination of these. To enable acquisition of larger amounts of energy through investments in energy efficiency, the efficiency investments may be made singly by a public service company or jointly with one or more parties located within or without the public service company's service territory.

(7) An agreement between the customer and the utility, whether oral or written, shall not waive the protections afforded under this chapter.

NEW SECTION. Sec. 4. A new section is added to chapter 54.16 RCW to read as follows:

The legislature recognizes that acquisition of electric energy for the purposes stated in RCW 54.16.040 may be from a district's own works, plants, or facilities, by purchase from a supplier or suppliers, or by investments in improving the efficiency of electric energy use or by a combination of these. To enable acquisition of larger amounts of energy through investments in energy efficiency, the efficiency investments may be made singly by a district or jointly with one or more parties located within or without the district.

NEW SECTION. Sec. 5. The following acts or parts of acts are each repealed:

(1) Section 2, chapter 239, Laws of 1979 ex. sess. and RCW 35.92.360; and

(2) Section 3, chapter 239, Laws of 1979 ex. sess. and RCW 54.16.280.