HOUSE BILL REPORT

HB 2198

BYRepresentatives Nelson, Hankins, Cooper, Miller, May, Jacobsen, Brooks, Todd and H. Myers 

Pertaining to energy efficiency and conservation.

House Committe on Energy & Utilities

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass. (7)

      Signed by Representatives Nelson, Chair; Todd, Vice Chair; Cooper, Jacobsen, Jesernig, Miller and H. Myers.

Minority Report:  Do not pass. (5)

      Signed by Representatives Hankins, Ranking Republican Member; Brooks, May, R. Meyers and S. Wilson.

House Staff:Harry Reinert (786-7110)

Rereferred House Committee on Revenue

Majority Report:  The substitute bill by Committee on Energy and Utilities be substituted therefor and the substitute do pass.  (9)

      Signed by Representatives Wang, Chair; Pruitt, Vice Chair; Appelwick, Fraser, Grant, Haugen, Phillips, Rust and H. Sommers.

Minority Report:  Do not pass.  (5)

      Signed by Representatives Holland, Ranking Republican Member; Basich, Brumsickle, Morris and Van Luven.  (5) 

House Staff:      Rick Wickman and Bob Longman (786-7136)

AS REPORTED BY THE COMMITTEE ON REVENUE MARCH 4, 1989

BACKGROUND:

The Utilities and Transportation Commission has general responsibility to regulate the rates of public water, gas, and electric companies.  The commission is required to assure that rates charged by the companies are not unjust, unreasonable, unjustly discriminatory, or unduly preferential.  The commission must also assure that the rates yield a reasonable compensation for the service.  In 1980 the Legislature directed the commission to adopt policies to encourage conservation of electricity and gas. One policy the commission was specifically directed to adopt was a policy to allow an additional return of 2 percent on investments in efficiency and conservation measures.  Investments made between the effective date of the 1980 legislation and January 1, 1990 are eligible for the incentives.

Public utilities pay a tax to conduct business in the state.  The tax is imposed on both privately owned and publicly owned public utilities.  Public utilities may take as a deduction from the tax expenditures for cogeneration, energy generated from renewable resources, and amounts used to improve consumers' efficiency.  The deduction is available for expenditures made from the effective date of the 1980 legislation.  The exemption expires January 1, 1990.

SUMMARY:

SUBSTITUTE BILL:  The Utilities and Transportation Commission is given continuing authority to encourage energy conservation and efficiency.  Investments in cogeneration and municipal waste are no longer eligible for the beneficial treatment. The commission's authority to encourage energy efficiency is extended until 1996.

The deduction from the utility tax for conservation and efficiency expenditures is extended until 1996.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The original bill contained only an intent section.  The substitute added the provisions extending incentives for conservation and energy efficiency.

CHANGES PROPOSED BY COMMITTEE ON REVENUE:  None.

Fiscal Note:      Requested March 2, 1989.

House Committee ‑ Testified For:    (Energy and Utilities)  None Presented.

(Revenue)  None Presented.

House Committee - Testified Against:      (Energy and Utilities)  None Presented.

(Revenue)  None Presented.

House Committee - Testimony For:    (Energy and Utilities)  None Presented.

(Revenue)  None Presented.

House Committee - Testimony Against:      (Energy and Utilities)  None Presented.

(Revenue)  None Presented.