Z-131                 _______________________________________________

                                                    HOUSE BILL NO. 526

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Jacobsen and Barnes; by request of Utilities and Transportation Commission

Read first time 1/30/87 and referred to Committee on Energy & Utilities.

AN ACT Relating to public service company budgets; and amending RCW 80.04.310.

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

        Sec. 1.  Section 80.04.310, chapter 14, Laws of 1961 and RCW 80.04.310 are each amended to read as follows:

          The commission may, both as to original and supplementary budgets, prior to the making or contracting for the expenditure of any item therein, and after notice to the company and a hearing thereon, reject any item of the budget.  The commission may require any company to furnish further information, data, or detail as to any proposed item of expenditure.

          Failure of the commission to object to any item of expenditure within ((sixty)) ninety days of the filing of any original budget or within thirty days of the filing of any supplementary budget shall constitute authority to the company to proceed with the making of or contracting for such expenditure, but such authority may be terminated any time by objection made thereto by the commission prior to the making of or contracting for such expenditure.

          Examination, investigation, and determination of the budget by the commission shall not bar or estop it from later determining whether any of the expenditures made thereunder are fair, reasonable, and commensurate with the service, material, supplies, or equipment received.