(1) Any gas company and any electrical company may deploy a thermal energy network within their service territories, in accordance with RCW 80.28.460. If a gas company or electrical company intends to deploy a thermal energy network, the company must submit the project for review and validation of costs assessments to the commission, in the case of an investor-owned gas company or electrical company, or to the governing body of the utility, in the case of a consumer-owned gas company or electrical company.

(2) For an investor-owned gas company or investor-owned electrical company, if the commission validates the costs assessments selection of a thermal energy network, the company may propose to recover the costs of building and operating the project from ratepayers in a rate case filing before the commission. The commission's validation of the utility's costs assessment of a thermal energy network resource does not constitute a prudency finding by the commission or a finding that the resource is used and useful for rate-making purposes.

(3) Companies exempt from commission oversight under RCW 80.04.550 are not subject to regulation by the commission under this chapter.