AN ACT Relating to residential space heating; amending RCW 35.21.300, 35.21.301, 54.16.285, 54.16.286, 80.28.010, and 80.28.011; and creating a new section.

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

Sec. 1. Section 35.21.300, chapter 7, Laws of 1965 as last amended by section 1, chapter 356, Laws of 1987 and RCW 35.21.300 are each amended to read as follows:

(1) The lien for charges for service by a city waterworks, or electric light or power plant may be enforced only by cutting off the service until the delinquent and unpaid charges are paid, except that until June 30, ((~~1990~~)) 1992, utility service for residential space heating may be terminated between November 15 and March 15 only as provided in subsections (2) and (3) of this section. In the event of a disputed account and tender by the owner of the premises of the amount he claims to be due before the service is cut off, the right to refuse service to any premises shall not accrue until suit has been entered by the city and judgment entered in the case.

(2) Until June 30, ((~~1990~~)) 1992:

(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 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~~)) a proportion of any arrearage accrued ((~~from~~)) to the date application is made ((~~and thereafter during November 15 through March~~)) so as to pay the past due bill by the following October 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~~)) a proportion of any arrearage accrued ((~~from~~)) to the date application is made ((~~and thereafter~~)) so as to pay the past due bill by the following October 15. 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 potential benefits and 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 section. 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.

(3) All municipal utilities 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.

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

Sec. 2. Section 5, chapter 251, Laws of 1984 as amended by section 2, chapter 245, Laws of 1986 and RCW 35.21.301 are each amended to read as follows:

Until ((~~1990~~)) 1992, cities and towns distributing electricity shall report annually to the legislature for utilities subject to its jurisdiction: (1) The extent to which chapter 245, Laws of 1986 and chapter ..., Laws of 1990 (this 1990 act), benefit((s)) low income persons, and (2) the costs and benefits to other customers.

This section shall expire June 30, ((~~1990~~)) 1992.

Sec. 3. Section 2, chapter 251, Laws of 1984 as last amended by section 3, chapter 245, Laws of 1986 and RCW 54.16.285 are each amended to read as follows:

(1) A district providing utility service for residential space heating shall not terminate such utility service between November 15 through March 15 if the customer:

(a) 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;

(b) 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;

(c) 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;

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

(e) 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~~)) a proportion of any arrearage accrued ((~~from~~)) to the date application is made ((~~and thereafter during November 15 through March~~)) so as to pay for the past due bill by the following October 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~~)) a proportion of any arrearage accrued ((~~from~~)) to the date application is made ((~~and thereafter~~)) so as to pay the past due bill by the following October 15. 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

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

(2) The utility shall:

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

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

(c) 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

(d) 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 section. 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.

(3) All districts providing utility service for residential space heating 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.

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

(5) This section shall expire June 30, ((~~1990~~)) 1992.

Sec. 4. Section 6, chapter 251, Laws of 1984 as amended by section 4, chapter 245, Laws of 1986 and RCW 54.16.286 are each amended to read as follows:

Until ((~~1990~~)) 1992, districts distributing electricity shall report annually to the legislature: (1) The extent to which chapter 245, Laws of 1986 and chapter ..., Laws of 1990 (this 1990 act), benefit((s)) low income persons, and (2) the costs and benefits to other customers.

This section shall expire June 30, ((~~1990~~)) 1992.

Sec. 5. 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~~)) 1992:

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

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

(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 potential benefits and duties in this section;

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

(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.

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

Sec. 6. Section 7, chapter 251, Laws of 1984 as amended by section 6, chapter 245, Laws of 1986 and RCW 80.28.011 are each amended to read as follows:

Until ((~~1990~~)) 1992, the Washington utilities and transportation commission shall report annually to the legislature for utilities subject to its jurisdiction: (1) The extent to which chapter 245, Laws of 1986 and chapter ..., Laws of 1990 (this 1990 act), benefit((s)) low income persons, and (2) the costs and benefits to other customers. ((The commission shall also review its policies and the policies of gas and electric utilities under its jurisdiction on involuntary termination of gas or electric utility service, discontinuance of service, and responsibility for delinquent accounts, for all residential customers and undertake good faith efforts to adopt policies which apply to all residential customers in a similar fashion to minimize uncollectible customer billings and to encourage customer payments of prior service obligations in a manner consistent with applicable state and federal law. This review shall be completed and a report on the review supplied to the energy and utilities committees of the legislature by January 1, 1987.))

This section shall expire June 30, ((~~1990~~)) 1992.

NEW SECTION. Sec. 7. (1) The primary intent of the program set forth in RCW 35.21.300, 54.16.285, and 80.28.010 is to limit the involuntary disconnection of residential heating utility services to low-income households during the winter months, while providing a reasonable means for utilities to obtain payment for services delivered. While the moratorium program has served those ends, it sunsets on a changing energy landscape. Federal and state resources to assist low-income households in heating and weatherizing their homes are diminishing. An era of energy surplus is ending. New models for assisting low-income households with their energy needs have arisen in the state of Washington and across the nation. This new era of limited energy and financial resources requires an analysis of existing programs and new models alike to ensure that low-income households continue to have access to residential heating utility services and that utility companies are provided with a reasonable means for obtaining payment for services delivered. Accordingly, there is hereby created a joint select committee on low-income residential utility service policies and programs to make the findings of fact, make recommendations for new legislation, and issue a report as set forth in subsection (3) of this section.

The committee shall consist of twelve voting members appointed jointly by the speaker of the house of representatives and the president of the senate. The voting membership shall be equally divided from each major political caucus and shall, to the extent possible, represent major utility and low-income consumer interests, including but not limited to, energy, housing, appropriations, economic and community development, environmental, social services, and revenue.

(2) The support staff shall be provided by the senate committee services and the office of program research as mutually agreed upon by the cochairs of the joint select committee. The cochairs shall be designated by the speaker of the house of representatives and the president of the senate.

(3) In addition to the responsibilities identified in subsection (6) of this section, the purpose of the joint select committee shall be to collect information and data on current low-income energy programs and alternative models, analyze the effectiveness of such programs and, in a written report to the full legislature based on its analysis and fact-finding, recommend policies, programs, and alternative models for the provision of residential heating utility services to low-income households.

In making its report, the committee shall consider a range of policies, programs, and factors, including but not limited to conservation of energy resources and utility incentives for conservation investments, the diminishing availability of federal and state resources for low-income home energy heating and weatherization, financial assistance programs, alternative forms of payment plans, modification of customer services policies, rate structures, lifeline rates, consumer education, housing rehabilitation programs, the collection of data from utilities regarding low-income programs, guidelines for the involuntary termination of residential utility service, forms of energy assistance, and the diminishing quality and quantity of low-income housing stock in the state of Washington. In making its recommendations, the committee shall also consider, in conjunction with any investigations or proceedings conducted by the Washington utilities and transportation commission, methodologies for ensuring that traditional rate making does not create negative incentives for conservation investments and that incentives for conservation investments are made in conjunction with state law and federal policy and that such incentives, where appropriate, give priority to low-income households.

(4) The joint select committee may include in its report recommendations for revisions to existing laws regarding low-income residential utility services and may also give direction to utility companies and appropriate governmental agencies in carrying out state policies regarding low-income residential utility services.

(5) The joint select committee shall submit its written report of findings and recommendations to the 1991 legislature by November 1, 1990.

(6) The joint select committee shall monitor and report to the legislature the actions taken to implement recommendations made in the written report required in subsection (5) of this section.

(7) This section shall expire June 30, 1992.