FINAL BILL REPORT

HB 541

                                  C 376 L 87

BYRepresentatives Jesernig, Hankins, Madsen, Miller and Todd

Revising provisions on joint operating agencies.

House Committe on Energy & Utilities

Senate Committee on Energy & Utilities

SYNOPSIS AS ENACTED

BACKGROUND:

Generally, sealed competitive bids must be used in awarding contracts for the construction and operation of nuclear plants.  However, the Washington Public Power Supply System (WPPSS), a joint operating agency, is authorized to execute certain contracts without using a competitive sealed bid process.  There are seven exceptions to the competitive sealed bidding requirement and they expire on December 31, 1987.  WPPSS has indicated that four of these exceptions are needed in order to effectively and efficiently operate Nuclear Project No. 2.

WPPSS has also indicated that it lacks authority under existing law to engage in activities that would produce energy through energy efficiency improvements or conservation or to analyze its investments using a "least-cost" approach.

SUMMARY:

The expiration date is eliminated for the four exceptions to the competitive sealed bidding requirement which relate to operating nuclear power plants.  A uniform system of administering exceptions to competitive bidding is established.

Authority for a joint operating agency to engage in conservation activities is explicitly stated.  Any joint operating agency which decides to undertake a new energy project must prepare a "least-cost" plan as part of the investment analysis.

VOTES ON FINAL PASSAGE:

      House 94   0

      Senate    45     0

EFFECTIVE:July 26, 1987