SENATE BILL REPORT
EHB 1581
BYRepresentatives Nelson, Miller, Todd, Barnes, Gallagher, Hankins, Jacobsen, Meyers, May, Brooks, Jesernig, Armstrong, Sutherland, Unsoeld, S. Wilson, Day and Dorn
Permitting banded rate tariffs for natural gas and electric services.
House Committe on Energy & Utilities
Senate Committee on Energy & Utilities
Senate Hearing Date(s):February 18, 1988
Majority Report: Do pass.
Signed by Senators Benitz, Chairman; Bluechel, Vice Chairman; Madsen, Nelson, Newhouse, Owen, Williams.
Senate Staff:Paul Parker (786-7455)
February 18, 1988
AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, FEBRUARY 18, 1988
BACKGROUND:
Natural gas and electric utilities face increasing competition for industrial and agricultural customers. Although the Utilities and Transportation Commission has approved utility requests for lower rates where necessary to prevent fuel- switching between customers, utilities seek more flexibility to better respond to such factors as fluctuating oil prices.
SUMMARY:
The UTC is authorized to allow rate flexibility for nonresidential service provided by energy utilities. After the UTC approves a band or range of rates, with a minimum and maximum rate, the company may change rates within the band according to UTC procedure. Banded rates are allowed only where utilities are subject to effective competition from energy suppliers not regulated by the UTC.
Appropriation: none
Revenue: none
Fiscal Note: none requested
Senate Committee - Testified: Representative Nelson, Sponsor