6001-S.E AMH MORR DURB 218

ESSB 6001 - H AMD TO H AMD (H3547.1) 777

By Representative Morris

ADOPTED 4/12/2007

   On page 11 of the amendment, beginning on line 1, strike all of subsections (5) and (6) and insert the following:

   "(5) Upon application by an electrical company, the commission shall determine whether the company's proposed decision to acquire electric generation or enter into a power purchase agreement for electricity complies with the greenhouse gases emissions performance standard established under section 5 of this act, whether the company has a need for the resource, and whether the specific resource selected is appropriate. The commission shall take into consideration factors such as the company's forecasted loads, need for energy, power plant technology, expected costs, and other associated investment decisions. The commission shall not decide in a proceeding under this subsection (5) issues involving the actual costs to construct and operate the selected resource, cost recovery, or other issues reserved by the commission for decision in a general rate case or other proceeding for recovery of the resource or contract costs. A proceeding under this subsection (5) shall be conducted pursuant to chapter 34.05 RCW (Part IV). The commission shall adopt rules to provide that the schedule for a proceeding under this subsection takes into account both (a) the needs of the parties to the proposed resource acquisition or power purchase agreement for timely decisions that allow transactions to be completed and (b) the procedural rights to be provided to parties in chapter 34.05 RCW (Part IV), including intervention, discovery, briefing, and hearing.

   (6) An electrical company may account for and defer for later consideration by the commission costs incurred in connection with the long-term financial commitment, including operating and maintenance costs, depreciation, taxes, and cost of invested capital. The deferral begins with the date on which the power plant begins commercial operation or the effective date of the power purchase agreement and continues for a period not to exceed 24 months; provided that if during such period the company files a general rate case or other proceeding for the recovery of such costs, deferral ends on the effective date of the final decision by the commission in such proceeding. Creation of such a deferral account does not by itself determine the actual costs of the long-term financial commitment, whether recovery of any or all of these costs is appropriate, or other issues to be decided by the commission in a general rate case or other proceeding for recovery of these costs."

   On page 11 of the amendment, at the beginning of line 25, strike all of subsection (7)

   Renumber the subsections consecutively and correct any internal references accordingly.

EFFECT: Requires the Utilities and Transportation Commission to determine, upon application by an electric company, whether a company's proposed decision to acquire electric generation or enter into a power purchase agreement complies with the greenhouse gases emissions performance standard, and whether the resource is needed and appropriate.

         Requires the Utilities and Transportation Commission to    adopt rules to develop a proceeding schedule which takes into    account the need for timely decisions related to acquisition of    electric resource by an electric company and protects other    parties' procedural rights allowed under the Administrative    Procedure Act.

         Authorizes electric companies to defer for later consideration by the Utilities and Transportation Commission    costs incurred in connection with a long-term financial    commitment.

         Limits the deferral to a period not to exceed 24 months,    provided that if during the period the electric company    files a general rate case or other proceeding for the recovery    of costs, deferral ends on the effective date of the final    decision by the commission in such proceeding.

         Specifies that the deferral account established by an    electric company does not determine the actual costs of the    long-term financial commitment.