HOUSE BILL REPORT

HB 1363

BYRepresentatives Nelson, Jacobsen, Barnes and Unsoeld

Expanding the authority of first class cities, public utility districts, and joint operating agencies to enter into agreements for the undivided ownership of electric generating plants and facilities.

House Committe on Energy & Utilities

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass. (13)

      Signed by Representatives Nelson, Chair; Todd, Vice Chair; Armstrong, Barnes, Brooks, Gallagher, Hankins, Jacobsen, Meyers, Miller, Sutherland, Unsoeld and S. Wilson.

House Staff: Fred Adair (786-7113)

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES JANUARY 18, 1988

BACKGROUND:

Certain municipal utilities, public utility districts, and joint operating agencies are authorized to share in ownership of electric generating facilities or distribution systems together with other like entities in this state, rural electric cooperatives in this state, and regulated utilities in Washington and Oregon.

Under favorable water conditions, utilities with their own hydroelectric systems can have an electric energy surplus.  It is in the interest of the utilities and their ratepayers to market the surplus advantageously.

Control of portions of interregional electric transmission interties may better assure a beneficial out-of-region market for surplus energy. Current limitations on authority may preclude advantageous participation in intertie ownership.

SUMMARY:

SUBSTITUTE BILL:  In addition to their current authority, municipal utilities, public utility districts, and joint operating agencies may join with regulated utilities in any state, municipal corporations in any state, and certain federal agencies in ownership of electric generating facilities or distribution systems.  Also, these entities are expressly authorized to join in projects located outside the state as well as within it.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Narrows eligible federal agencies and prevents the consortium from condemning utility property.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Randy Scott and Ray Nelson, Seattle City Light; and Gary Johnson, Tacoma City Light.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Partial interregional intertie ownership may enable more favorable marketing of surplus electric energy.  The bill also would enable part ownership of attractive out-of-state generating projects.  In both cases, affected utility ratepayers stand to gain.

House Committee - Testimony Against:      None Presented.