HOUSE BILL REPORT

HB 541

BYRepresentatives Jesernig, Hankins, Madsen, Miller and Todd

Revising provisions on joint operating agencies.

House Committe on Energy & Utilities

Majority Report:     Do pass.  (15)

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

House Staff:Fred Adair (786-7113) and Ted Hunter (786-7114)

AS PASSED HOUSE MARCH 13, 1987

BACKGROUND:

The Washington Public Power Supply System (WPPSS) is authorized under existing state law to execute certain contracts related to construction and operation of nuclear plants without using a competitive sealed bid process.  There are seven exceptions to sealed bid competitive bidding 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 also has 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 sealed bid competitive bidding which relate to operating nuclear power plants. A uniform system of administering exceptions to competitive bidding is established.

Authority to engage in conservation activities is explicitly set forth.  Any operating agency which decides by majority vote of its members to undertake a new project must prepare a least-cost plan as part of the investment analysis.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Ron English, Washington Public Power Supply System.

House Committee - Testified Against: Duke Schaub, Associated General Contractors of Washington.

House Committee - Testimony For:     The exceptions to sealed bid contracting are in the public interest because of the savings of money and, in some cases, time they provide.  The exceptions enable the Supply System to manage its operating plant more efficiently.

House Committee - Testimony Against: The contractor fraud provisions included in the bill are unfair to some contractors and should be deleted.  (Staff note:  These provisions were in the draft of the bill heard January 22, when Mr. Schaub testified, but were not included in HB 541.)