WSR 26-04-035
PREPROPOSAL STATEMENT OF INQUIRY
UTILITIES AND TRANSPORTATION
COMMISSION
[Filed January 26, 2026, 2:22 p.m.]
Subject of Possible Rule Making: The Washington utilities and transportation commission (commission) commences this rule making to consider rules within chapter 480-110 WAC to improve commission review of water company filings, address commission jurisdiction of water companies, improve and update customer notice requirements, and assess low-income program availability for water companies and their customers.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The commission regulates certain private water companies operating within Washington state. This includes companies with 100 or more connections or if the utility charges more than $557 a year per customer. The commission believes it may be necessary to reassess these jurisdictional thresholds given changing valuations and costs for water utilities across Washington state. Additionally, water companies are currently the only regulated utilities required to print and mail customer notices. Updating this requirement would better reflect operational flexibility and provide consistency across utilities. Next, water companies have submitted extension contracts which are not fully executed. Updating commission rules to require that an extension contract may be submitted only after it is signed by all parties will ensure the commission is reviewing fully executed contracts. The commission recently ruled that cost of service studies and cost-benefit analyses are necessary to understand the impact of rate consolidation proposals. It would be beneficial to develop rules to provide guidance to utilities and parties regarding what is required. Relatedly, the commission has often allowed single tariff pricing and now would like to explore and provide better guidance regarding what single tariff pricing is, when it is appropriate, and what must be included in a single tariff pricing proposal. The commission further believes it is desirable and consistent with state policy to explore the availability of low-income rates for water companies. Finally, the commission recognizes that some topics addressed in comments submitted in Docket UW-240733 regarding a water utility cost of capital policy statement may be more appropriately addressed via rule making and the commission may consider some of these topics to include in draft rules.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The departments of health and ecology also have authority to regulate water systems in the state, particularly regulating safe drinking water and water rights. The commission will coordinate with the agencies in the rule making to ensure that the agencies are working cooperatively with affected water companies.
Process for Developing New Rule: Agency study; and the commission will request initial written comments, schedule one or more workshops, and will provide the opportunity for interested parties to submit additional written comments on draft rules and proposed CR-102 rules prior to adoption.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Jeff Killip, Executive Director and Secretary, 621 Woodland Square Loop S.E., Lacey, WA 98503, phone 360-664-1173, fax 360-586-1150, email records@utc.wa.gov.
January 26, 2026
Jeff Killip
Executive Director and Secretary