H-1560.2  _______________________________________________

                          HOUSE BILL 1857

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Representatives Mastin, Hankins, Kessler, DeBolt, Morris, B. Thomas, Mielke, Delvin, Grant, Honeyford and Chandler

Read first time 02/11/97.  Referred to Committee on Energy & Utilities.

Implementing public service companies nonregulated activities.

    AN ACT Relating to the nonregulated activities of public service companies; and amending RCW 80.04.270.

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

    Sec. 1.  RCW 80.04.270 and 1983 2nd ex.s. c 3 s 40 are each amended to read as follows:

    Any public service company or its affiliates engaging in the sale of merchandise ((or)), appliances ((or)), equipment, or nonregulated services such as, but not limited to, advertising shall keep separate accounts, as prescribed by the commission, of its capital employed in such business and of its revenues therefrom and operating expenses thereof.  The capital employed in such business shall not constitute a part of the fair value of said company's property for rate making purposes, nor shall the revenues from or operating expenses of such business constitute a part of the operating revenues and expenses of said company as a public service company.  An affiliate of a public service company shall not be required to pay a royalty to, or share its revenues with, the public service company.  For purposes of this section, the providing of competitive telephone service, as defined in RCW 82.04.065, shall not constitute the sale of merchandise, appliances, or equipment, unless the commission determines that it would be in the public interest to hold otherwise.

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