Wildfire Mitigation Plans.
Each investor-owned electrical company must review and adopt a wildfire mitigation plan and provide it to the Utilities and Transportation Commission (UTC) to review and confirm whether the plan contains the recommended elements. Each investor-owned electrical company must review, and revise if necessary, its wildfire mitigation plan every three years. An investor-owned utility may pursue recovery of costs and investments associated with a wildfire mitigation plan through a proceeding to set rates at the UTC.
Each investor-owned utility must also provide a copy of its wildfire mitigation plan to the Department of Natural Resources (DNR), along with a list and description of wildland fires involving utility equipment over the previous two years as reported by the DNR. The wildfire mitigation plan must be submitted to the Utility Wildland Fire Prevention Advisory Committee (Advisory Committee) to be posted on the Advisory Committee's website.
Utilities and Transportation Commission.
The UTC is a three-member commission appointed by the Governor and confirmed by the Senate. The UTC regulates the rates, services, facilities, and practices of investor-owned utilities and transportation companies, including electrical companies, natural gas companies, and telecommunications companies.
Utility Wildland Fire Prevention Advisory Committee.
The Advisory Committee advises the DNR on issues including:
The Advisory Committee produces a report every three years that addresses implementing and updating a model agreement for managing vegetation adjacent to utility rights-of-way and implementing and updating recommendations related to communication between the DNR and utilities. The Advisory Committee develops recommendations for strengthening state agency coordination of wildland fire risk reduction, prevention, and suppression and posts electric utility wildfire mitigation plans on its website.
Recommended Elements for Utility Wildfire Mitigation Plans.
The DNR recommends a format and list of elements to be included in an electrical utility company's wildfire mitigation plan. The recommended elements include:
Wildfire Mitigation Plans.
An investor-owned electrical company must file a wildfire mitigation plan with the UTC. In reviewing a wildfire mitigation plan, the UTC:
The UTC must adopt rules that include guidelines for determining fair market landowner compensation when it is appropriate.
An electrical company must update its wildfire mitigation plan at least every three years and provide a copy of its wildfire mitigation plan and updates to the DNR and the Advisory Committee.
The requirement that each investor-owned electrical company provide the DNR with a list and description of wildland fires involving utility equipment for the previous two years is repealed.
Other Provisions.
The UTC must collect a reasonable fee from a utility for the purposes of approving plans or updates.
Provides that the Legislature intends that the act relates to planning only and does not create or alter any cause of action or alter the burden of proof in any cause of action.
(In support) Previous legislation allowed utilities to provide the Utilities and Transportation Commission (UTC) with their wildfire mitigation plans. The feedback that the utilities have received on the wildfire plans has been helpful, but making that feedback more helpful will enhance the response in planning. Trying to figure out how to handle these growing risks and this bill is a good way to allocate risk. We don't want the major catastrophic fires like those in California and we need to learn from this. Wildfires are a growing concern in the western United States, most evidenced in California. Fire seasons have gotten longer with drought and climate change. Many of the highest risk areas are rural areas. There is no federal oversight of fire risk plans. Regulatory oversight is necessary to increase the safety of the electric infrastructure and to allocate resources equitably. The utility companies would like to expand these practices and get UTC approval. This legislation is designed to establish prudent mitigation practices to help avoid catastrophic fires like those in California. This bill gives companies a higher degree of confidence of cost recovery. The plan outlines the actions the utility will take, but it is not preapproval of the expenditures and cost recovery would still need to go through ratemaking process. Credit rating agencies help determine the cost of borrowing. If we have more processes in place, that makes financing cheaper with better access to credit. Wildfire mitigation issues are complex and investor-owned utilities have worked on provisions around customer engagement during the process. There is a small concern regarding the impact of the bill on forestry interactions that could benefit from some clarifying language.
(Opposed) None.
(Other) The bill provides an important tool to prevent wildfires, but the provisions for the planning process should be strengthened. Many of these transmission facilities travel through forested areas and there is a need to remove forest material, but that material has value. The bill would be improved if the process recognized this material's value and compensated for that value. There is concern about the 60-day review period, and a 180 day review period to match that of Oregon would be preferrable. Wildfire mitigation plans are complex and deserve a longer time for review and for feedback. The goal of the bill is to strengthen the UTC's ability to review the plans and provide utilities with mitigation tools and certainty and that can still be improved.
(In support) Representative Tom Dent, prime sponsor; Jillian Caires, Avista Corporation; Jay Balasbas, PacifiCorp; Matt Miller, Puget Sound Energy; Peter Godlewski, Association of Washington Business; and Brandon Houskeeper, Alliance of Western Energy Consumers.