SENATE BILL REPORT

SB 6740

BYSenator Benitz

Adopting the electric supplier stabilization act.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 4, 1988; February 5, 1988

Senate Staff:Phil Moeller (786-7455)

AS OF FEBRUARY 4, 1988

BACKGROUND:

Several areas within the state are served by electric suppliers in close proximity to each other.  In at least one instance, a supplier with favorable rates has constructed electric supply lines which parallel those of another supplier with higher rates.  Customers have switched to the supplier with lower rates.  Questions have been raised over allocating resources which duplicate existing distribution systems.

SUMMARY:

Electric suppliers are prohibited from supplying electric service to a consumer who is presently served by another electric supplier without written consent of the original supplier.  Guidelines are established in the event of two or more suppliers being willing and able to supply a new consumer.

"Just compensation" is defined for electric supplier facilities.  Electric suppliers may continue to serve areas which become incorporated or annexed to a city or town.  If the city or town has supplied electric service, the service may be extended to incorporated areas upon payment of just compensation to the previous supplier.  Conditions are established for areas previously served by a cooperative.

An electric supplier proposing to extend lines into the service area of another electric supplier must bargain in good faith, and in the absence of an agreement, lines may not be extended.  Electric consumers who wish to change suppliers may apply to the superior court of the county of residence.

Requirements are outlined for agreements between public utility districts and electric cooperatives regarding servicing consumers.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested