S-1242               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 5355

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senate Committee on Energy & Utilities (originally sponsored by Senators Benitz, Williams, Metcalf, Smitherman, Bluechel, Stratton, Johnson and Fleming)

Read first time 1/25/89.

AN ACT Relating to cities of the first class that own and operate an electrical utility; and adding a new section to chapter 35.92 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 35.92 RCW to read as follows:

          (1) Cities of the first class which operate electric generating facilities and distribution systems shall have power and authority to participate and enter into agreements for the undivided ownership of high voltage transmission facilities and for the undivided ownership of any type of electric generating plants and facilities, including, but not limited to, nuclear and other thermal power generating plants and facilities and transmission facilities including, but not limited to, related transmission facilities, to be called "common facilities"; and for the planning, financing, acquisition, construction, operation, and maintenance with:  (a) Each other; (b) electrical companies which are subject to the jurisdiction of the Washington utilities and transportation commission or the regulatory commission of any other state, to be called "regulated utilities"; (c) rural electric cooperatives, including generation and transmission cooperatives in any state; (d) municipal corporations, utility districts, or other political subdivisions in any state; and (e) any agency of the United States authorized to generate or transmit electrical energy. It shall be provided in such agreements that each city shall own a percentage of any common facility equal to the percentage of the money furnished or the value of property supplied by it for the acquisition and construction of the facility and shall own and control a like percentage of the electrical output.

          (2) The agreement must provide that each participant shall defray its own interest and other payments required to be made or deposited in connection with any financing undertaken by it to pay its percentage of the money furnished or value of property supplied by it for the planning, acquisition, and construction of any common facility, or any additions or betterments.  The agreement shall provide a uniform method of determining and allocating operation and maintenance expenses of a common facility.

          (3) Each city participating in the ownership or operation of a common facility shall pay all taxes chargeable to its share of the common facility and the electric energy generated under any applicable statutes and may make payments during preliminary work and construction for any increased financial burden suffered by any county or other existing taxing district in the county in which the common facility is located, under agreement with such county or taxing district.

          (4) In carrying out the powers granted in this section, each such city shall be severally liable only for its own acts and not jointly or severally liable for the acts, omissions, or obligations of others.  No money or property supplied by any such city for the planning, financing, acquisition, construction, operation, or maintenance of any common facility shall be credited or otherwise applied to the account of any other participant therein, nor shall the undivided share of any city in any common facility be charged, directly or indirectly, with any debt or obligation of any other participant or be subject to any lien as a result thereof.  No action in connection with a common facility shall be binding upon any city unless authorized or approved by resolution or ordinance of its governing body.

          (5) Any city acting jointly outside the state of Washington, by mutual agreement with any participant under authority of this section, shall not acquire properties owned or operated by any public utility district, by any regulated utility, or by any public utility owned by a municipality without the consent of the utility owning or operating the property, and shall not participate in any condemnation proceeding to acquire such properties.