AN
ACT Relating to disclosure of attributes of electricity products; amending RCW
19.29A.010; adding new sections to chapter 19.29A RCW; and creating a new
section.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. (1)
Consumer disclosure ensures that retail electric consumers purchasing electric
energy receive basic information about the characteristics associated with
their electric product in a form that facilitates consumer understanding of
retail electric energy service and the development of new products responsive
to consumer preferences.
(2)
The legislature finds and declares that there is a need for reliable, accurate,
and timely information regarding fuel source, that is consistently collected,
for all electricity products offered for retail sale in Washington.
(3)
The desirability and feasibility of such disclosure has been clearly
established in nutrition labeling, uniform food pricing, truth-in-lending, and
other consumer information programs.
(4)
The legislature intends to establish a consumer disclosure standard under which
retail suppliers in Washington disclose information on the fuel mix of the
electricity products they sell. Fundamental to disclosure is a label that
promotes consistency in content and format, that is accurate, reliable, and
simple to understand, and that allows verification of the accuracy of
information reported.
(5)
To ensure that consumer information is verifiable and accurate, certain
characteristics of electricity generation must be tracked and compared with
information provided to consumers.
Sec.
2. RCW
19.29A.010 and 1998 c 300 s 2 are each amended to read as follows:
The
definitions in this section apply throughout this chapter unless the context
clearly requires otherwise.
(1)
"Biomass generation" means electricity derived from burning solid
organic fuels from wood, forest, or field residue, or dedicated energy crops
that do not include wood pieces that have been treated with chemical
preservatives such as creosote, pentachlorophenol, or copper-chroma-arsenic.
(2)
"Bonneville power administration system mix" means a generation mix
sold by the Bonneville power administration that is net of any resource
specific sales and that is net of any electricity sold to direct service
industrial customers, as defined in section 3(8) of the Pacific Northwest
Electric Power Planning and Conservation Act (16 U.S.C. Sec. 839(a)(8)).
(3)
"Coal generation" means the electricity produced by a generating
facility that burns coal as the primary fuel source.
(4)
"Commission" means the utilities and transportation commission.
(((2)))
(5) "Conservation" means an increase in efficiency in the use
of energy use that yields a decrease in energy consumption while providing the
same or higher levels of service. Conservation includes low-income
weatherization programs.
(((3)))
(6) "Consumer-owned utility" means a municipal electric
utility formed under Title 35 RCW, a public utility district formed under Title
54 RCW, an irrigation district formed under chapter 87.03 RCW, a cooperative
formed under chapter 23.86 RCW, or a mutual corporation or association formed
under chapter 24.06 RCW, that is engaged in the business of distributing
electricity to more than one retail electric customer in the state.
(((4)))
(7) "Declared resource" means an electricity source specifically
identified by a retail supplier to serve retail electric customers. A declared
resource includes a stated quantity of electricity tied directly to a specified
generation facility or set of facilities either through ownership or contract
purchase, or a contractual right to a stated quantity of electricity from a
specified generation facility or set of facilities.
(8)
"Department" means the department of community, trade, and economic
development.
(((5)))
(9) "Electricity information coordinator" means the organization
selected by the department under section 6 of this act to: (a) Compile
generation data in the Northwest power pool by generating project and by
resource category; (b) compare the quantity of electricity from declared
resources reported by retail suppliers with available generation from such
resources; (c) calculate the net system power mix; and (d) coordinate with
other comparable organizations in the western interconnection.
(10)
"Electric meters in service" means those meters that record in at
least nine of twelve calendar months in any calendar year not less than two
hundred fifty kilowatt hours per month.
(((6)))
(11) "Electricity product" means the electrical energy produced by
a generating facility or facilities that a retail supplier sells or offers to
sell to retail electric customers in the state of Washington, provided that
nothing in this title shall be construed to mean that electricity is a good or
product for the purposes of Title 62A RCW, or any other purpose. It does not
include electrical energy generated on-site at a retail electric customer's premises.
(12)
"Electric utility" means a consumer-owned or investor-owned utility
as defined in this section.
(((7)))
(13) "Electricity" means electric energy measured in kilowatt
hours, or electric capacity measured in kilowatts, or both.
(((8)))
(14) "Fuel mix" means the actual or imputed sources of electricity
sold to retail electric customers, expressed in terms of percentage
contribution by resource category. The total fuel mix included in each
disclosure shall total one hundred percent.
(15)
"Geothermal generation" means electricity derived from thermal energy
naturally produced within the earth.
(16)
"Governing body" means the council of a city or town, the
commissioners of an irrigation district, municipal electric utility, or public
utility district, or the board of directors of an electric cooperative or
mutual association that has the authority to set and approve rates.
(((9)))
(17) "High efficiency cogeneration" means electricity produced by
equipment, such as heat or steam used for industrial, commercial, heating, or
cooling purposes, that meets the federal energy regulatory commission standards
for qualifying facilities under the public utility regulatory policies act of
1978.
(18)
"Hydroelectric generation" means a power source created when water
flows from a higher elevation to a lower elevation and the flow is converted to
electricity in one or more generators at a single facility.
(19)
"Investor-owned utility" means a company owned by investors that
meets the definition of RCW 80.04.010 and is engaged in distributing
electricity to more than one retail electric customer in the state.
(((10)))
(20) "Landfill gas generation" means electricity produced by a
generating facility that uses waste gases produced by the decomposition of
organic materials in landfills.
(21)
"Natural gas generation" means electricity produced by a generating
facility that burns natural gas as the primary fuel source.
(22)
"Northwest power pool" means the generating resources included in the
United States portion of the Northwest power pool area as defined by the
western systems coordinating council.
(23)
"Net system power mix" means the fuel mix in the Northwest power
pool, net of: (a) Any declared resources in the Northwest power pool
identified by in-state retail suppliers or out-of-state entities that offer
electricity for sale to retail electric customers; (b) any electricity sold by
the Bonneville power administration to direct service industrial customers; and
(c) any resource specific sales made by the Bonneville power administration.
(24)
"Oil generation" means electricity produced by a generating facility
that burns oil as the primary fuel source.
(25)
"Proprietary customer information" means: (a) Information that
relates to the source and amount of electricity used by a retail electric
customer, a retail electric customer's payment history, and household data that
is made available by the customer solely by virtue of the utility-customer
relationship; and (b) information contained in a retail electric customer's
bill.
(((11)))
(26) "Renewable resources" means electricity generation
facilities fueled by: (a) Water; (b) wind; (c) solar energy; (d) geothermal
energy; (e) landfill gas; or (f) biomass energy based on solid organic fuels
from wood, forest, or field residues, or dedicated energy crops that do not
include wood pieces that have been treated with chemical preservatives such as
creosote, pentachlorophenol, or copper-chrome-arsenic.
(((12)))
(27) "Resale" means the purchase and subsequent sale of
electricity for profit, but does not include the purchase and the subsequent
sale of electricity at the same rate at which the electricity was purchased.
(((13)))
(28) "Retail electric customer" means a person or entity that
purchases electricity for ultimate consumption and not for resale.
(((14)))
(29) "Retail supplier" means an electric utility that offers an
electricity product for sale to retail electric customers in the state.
(30)
"Small utility" means any consumer-owned utility with twenty-five thousand
or fewer electric meters in service, or that has an average of seven or fewer
customers per mile of distribution line.
(((15)))
(31) "Solar generation" means electricity derived from radiation
from the sun that is directly or indirectly converted to electrical energy.
(32)
"State" means the state of Washington.
(33)
"Waste incineration generation" means electricity derived from
burning solid or liquid wastes from businesses, households, municipalities, or
waste treatment operations.
(34)
"Wind generation" means electricity created by movement of air that
is converted to electrical energy.
NEW
SECTION. Sec. 3. (1)
Beginning in 2001, each retail supplier shall provide to its existing and new
retail electric customers its annual fuel mix information by generation
category as required in section 4 of this act.
(2)
Disclosures required under subsection (1) of this section shall be provided
through a disclosure label presented in a standardized format as required in
section 4(7) of this act.
(3)
Except as provided in subsection (5) of this section, each retail supplier
shall provide the disclosure label:
(a)
To each of its new retail electric customers at the time service is
established;
(b)
To all of its existing retail electric customers, as a bill insert or other
mailed publication, not less than semiannually; and
(c)
As part of any marketing material, in paper, written, or other media format,
that is used primarily to promote the sale of any specific electricity product
being advertised, contracted for, or offered for sale to current or prospective
retail electric customers.
(4)
In addition to the disclosure requirements under subsection (3) of this
section, each retail supplier shall provide to each electric customer it
serves, at least two additional times per year, a publication that contains
either:
(a)
The disclosure label;
(b)
A customer service phone number to request a disclosure label; or
(c)
A reference to an electronic form of the disclosure label.
(5)
Small utilities and mutual light and power companies shall provide the
disclosure label not less than annually through a publication that is
distributed to all their retail electric customers, and have disclosure label
information available in their main business office. If a small utility or
mutual company engages in marketing a specific electric product new to that
utility it shall provide the disclosure label described in subsection (3)(c) of
this section.
NEW
SECTION. Sec. 4. (1)
Each retail supplier shall disclose the fuel mix of each electricity product it
offers to retail electric customers as follows:
(a)
For an electricity product comprised entirely of declared resources, a retail
supplier shall disclose the fuel mix for the electricity product based on the
quantity of electric generation from those declared resources for the previous
calendar year and any adjustment, if taken, available under subsection (6) of
this section.
(b)
For an electricity product comprised of no declared resources, a retail
supplier shall report the fuel mix for the electricity product as the fuel mix
of net system power for the previous calendar year, as determined by the
electricity information coordinator under section 6 of this act.
(c)
For an electricity product comprised of a combination of declared resources and
the net system power, a retail supplier shall disclose the fuel mix for the
electricity product as a weighted average of the megawatt-hours from declared
resources and the megawatt-hours from the net system power mix for the previous
calendar year according to the proportion of declared resources and net system
power contained in the electricity product.
(2)
The disclosures required by this section shall identify the percentage of the
total electricity product sold by a retail supplier during the previous
calendar year from each of the following categories:
(a)
Coal generation;
(b)
Hydroelectric generation;
(c)
Natural gas generation;
(d)
Nuclear generation; and
(e)
Other generation, except that when a component of the other generation category
meets or exceeds two percent of the total electricity product sold by a retail
supplier during the previous calendar year, the retail supplier shall identify
the component or components and display the fuel mix percentages for these
component sources, which may include, but are not limited to: (i) Biomass
generation; (ii) geothermal generation; (iii) landfill gas generation; (iv) oil
generation; (v) solar generation; (vi) waste incineration; or (vii) wind
generation. A retail supplier may voluntarily identify any component or
components within the other generation category that comprises two percent or
less of annual sales.
(3)
Retail suppliers may separately report a subcategory of natural gas generation
to identify high efficiency cogeneration.
(4)
Except as provided in subsection (3) of this section, a retail supplier cannot
include in the disclosure label any environmental quality or environmental
impact qualifier related to any of the generation categories disclosed.
(5)
For the portion of an electricity product purchased from the Bonneville power
administration, retail suppliers may disclose the Bonneville power
administration system mix.
(6)
A retail supplier may adjust its reported fuel mix for known changes in its
declared resources for the current year based on any changes in its sources of
electricity supply from either generation or contracts. If a retail supplier
changes its fuel mix during a calendar year, it shall report those changes to
the electricity information coordinator.
(7)
Disclosure of the fuel mix information required in this section shall be made
in the following uniform format: A tabular format with two columns, where the
first column shall alphabetically list each category and the second column
shall display the corresponding percentage of the total that each category
represents. The percentage shall be reported as a numeric value rounded to the
nearest one percent. The percentages listed for the categories identified must
sum to one hundred percent with the table displaying such a total.
NEW
SECTION. Sec. 5. The
department shall:
(1)
Convene a work group of interested parties to suggest modifications, if any, to
the disclosure requirements required in section 4 of this act to improve
information content, readability, and consumer understanding, and to suggest
modifications, if any, to the responsibilities of the electricity information
coordinator required in section 6 of this act to improve the accuracy and
efficiency of the tracking process. If the department serves as the electricity
information coordinator, these evaluation and reporting requirements relative
to the responsibilities of the electricity information coordinator and the
tracking process shall be assigned to an independent third party;
(2)
Invite interested parties, including but not limited to representatives from
investor-owned utilities, consumer-owned utilities, the commission, the
attorney general's office, consumer advocacy groups, and the environmental
community to participate in the work group convened in subsection (1) of this
section; and
(3)
Submit to the legislature no later than December 1, 2003, a report with
suggested modifications, if any, to the disclosure requirements and
responsibilities of the electricity information coordinator, as referred to in
subsection (1) of this section.
NEW
SECTION. Sec. 6. (1)
For the purpose of selecting the electricity information coordinator, the
department shall form a work group of interested parties. The department shall
invite interested parties, including, but not limited to, representatives from
investor-owned utilities, consumer-owned utilities, the commission, the
attorney general's office, consumer advocacy groups, and the environmental
community to participate in the work group. In the event an appropriate regional
entity is not selected by November 1, 2000, the department shall serve as the
electricity information coordinator after notifying the committees of the
senate and house of representatives with jurisdiction over energy matters.
(2)
The department may receive any lawful gifts, grants, or endowments from public
or private sources that are made from time to time, in trust or otherwise, for
the use and benefit of the department in implementing this section, and may
spend such gifts, grants, or endowments for the purposes of implementing this
section.
(3)
As a condition for an appropriate regional entity to be selected under this
section to serve as the electricity information coordinator, it must agree to
compile the following information:
(a)
Actual generation by fuel mix in the Northwest power pool for the prior
calendar year, expressed in megawatt hours. This data will be compiled as it
becomes available.
(b)
Adjustments to the actual generation for the prior calendar year that are known
and provided to the electricity information coordinator by the end of January
of the current calendar year to reflect known changes in declared resources for
the current year and changes due to interconnection of new generating resources
or decommissioning or sale of existing resources or contracts. These
adjustments shall include supporting documentation.
(c)
The amount of electricity from declared resources that retail suppliers will
identify in their fuel mix disclosures during the current calendar year.
Retail suppliers shall make this data available by the end of January each
year.
(4)
Retail suppliers shall make available upon request the following information to
support the ownership or contractual rights to declared resources:
(a)
Documentation of ownership of declared resources by retail suppliers; or
(b)
Documentation of contractual rights by retail suppliers to a stated quantity of
electricity from a specific generating facility.
If
the documentation referred to in either (a) or (b) of this subsection is not
available, the retail supplier may not identify the electricity source as a
declared resource and instead must report the net system power mix for the
quantity of electric generation from that resource.
(5)
If the documentation referred to in either subsection (4)(a) or (b) of this
section is not available, the retail supplier may not identify the electricity
source as a declared resource and instead must report the net system power mix
for the quantity of electric generation from that resource.
(6)
As a condition for an appropriate regional entity to be selected under this
section to serve as the electricity information coordinator, it must agree to:
(a)
Coordinate with comparable entities or organizations in the western
interconnection;
(b)
On or before May 1st of each year, or as soon thereafter as practicable once
the data in subsection (3)(a) of this section is available, calculate and make
available the net system power mix as follows:
(i)
The actual Northwest power pool generation for the prior calendar year;
(ii)
Plus any adjustments to the Northwest power pool generation as made available
to the electricity information coordinator by the end of January of the current
calendar year pursuant to section 4(6) of this act;
(iii)
Less the quantity of electricity associated with declared resources claimed by
retail suppliers for the current calendar year;
(iv)
Plus other adjustments necessary to ensure that the same resource output is not
declared more than once.
(c)
To the extent the information is available, verify that the quantity of
electricity associated with the declared resources does not exceed the
available generation from those resources.
(7)
Subsections (3) and (6) of this section apply to the department in the event
the department assumes the functions of the electricity information
coordinator.
NEW SECTION. Sec. 7.
Sections 3 through 6 of this act are each added to chapter 19.29A RCW.
