Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Technology & Economic Development Committee

HB 1882

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Excluding certain appliances from the definitions of electric plant and gas plant.

Sponsors: Representatives Young, Morris and Smith.

Brief Summary of Bill

  • Excludes certain appliances operated, owned, leased, controlled, used, or to be used by a business or residential customer of an electrical or gas company from the definitions of "electric plant" and "gas plant."

Hearing Date: 2/7/17

Staff: Nikkole Hughes (786-7156).

Background:

The Utilities and Transportation Commission (UTC) must regulate the rates, services, and practices of privately-owned electrical and gas companies in the public interest. The UTC is required to ensure that rates charged by these companies are just, fair, reasonable, and sufficient. The UTC is broadly authorized to make rules and regulations necessary to carry out its powers and duties.

"Electrical company" means any corporation, company, association, joint stock association, partnership, and person; their lessees, trustees, or court-appointed receivers; and every city or town that owns, operates, or manages any electric plant for hire in the state. "Electric plant" includes all real estate, fixtures, and personal property operated, owned, used or to be used for, or in connection with or to facilitate, the generation, transmission, distribution, sale, or furnishing of electricity for light, heat, or power for hire; and any conduits, ducts, or other devices, materials, apparatus, or property for containing, holding, or carrying conductors used or to be used for the transmission of electricity for light, heat, or power.

"Gas company" includes every corporation, company, association, joint stock association, partnership, and person; their lessees, trustees, or court-appointed receivers; and every city or town that owns, controls, operates, or manages any gas plant in the state. "Gas plant" includes all real estate, fixtures, and personal property owned, leased, controlled, used or to be used for, or in connection with, the transmission, distribution, sale, or furnishing of natural gas; or the manufacture, transmission, distribution, sale, or furnishing of other types of gas for light, heat, or power.

In November 2016 the UTC issued a final order rejecting a revised tariff filed by Puget Sound Energy in which the company proposed a program to lease water heating and heating, ventilation, and air conditioning (HVAC) equipment to its customers and to provide associated installation, maintenance, and repair for that equipment.

Summary of Bill:

"Electric plant" and "gas plant" do not include any appliance operated, owned, leased, controlled, used, or to be used by a business or residential customer of an electrical or gas company. These excluded appliances include, but are not limited to, water heaters, HVAC appliances, or appliances such as clothes washers, clothes dryers, dishwashers, refrigerators, and freezers.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.