title: RCW 80.28.300

text:
(1) Gas companies and electrical companies under this chapter are highly encouraged to provide information to their customers regarding landscaping that includes tree planting for energy conservation.
(2)(a) Gas companies and electrical companies under this chapter may request voluntary donations from their customers for the purposes of urban forestry. The request may be in the form of a check-off on the billing statement or other form of a request for a voluntary donation.
(b) Voluntary donations collected by gas companies and electrical companies under this section may be used by the gas companies and electrical companies to:
(i) Support the development and implementation of urban forestry ordinances, as that term is defined in RCW 76.15.010, for cities, towns, or counties within their service areas;
(ii) Complete projects consistent with the urban forestry management plans and ordinances developed under RCW 76.15.090; or
(iii) Fund a tree planting program for energy conservation that accomplishes the goals established under RCW 80.28.260(2) (a) through (k).
(c) Donations received under this section do not contribute to the gross income of a light and power business or gas distribution business under chapter 82.16 RCW.
[ 2021 c 209 s 14; 2021 c 11 s 7; 2008 c 299 s 21; 1993 c 204 s 4.]
Notes:
Reviser's note: This section was amended by 2021 c 11 s 7 and by 2021 c 209 s 14, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Findings—Intent—2021 c 209: See note following RCW 76.15.005.
Findings—Intent—2021 c 11: See note following RCW 35.92.355.
Short title—2008 c 299: See note following RCW 76.15.020.
Findings—1993 c 204: See note following RCW 35.92.390.

catchline: Gas, electrical companies encouraged to provide customers with landscaping information and to request voluntary donations for urban forestry.


doc_type: statute

jurisdiction: wa

title: RCW 80.28.303

text:
(1) An electrical, gas, or water company may file a conservation service tariff with the commission. The tariff shall provide:
(a) The terms and conditions upon which the company will offer the conservation measures and services specified in the tariff;
(b) The period of time during which the conservation measures and services will be offered; and
(c) The maximum amount of expenditures to be made during a specified time period by the company on conservation measures and services specified in the tariff.
(2) The commission has the same authority with respect to a proposed conservation service tariff as it has with regard to any other schedule or classification the effect of which is to change any rate or charge, including, without limitation, the power granted by RCW 80.04.130 to conduct a hearing concerning a proposed conservation service tariff and the reasonableness and justness thereof, and pending such hearing and the decision thereon the commission may suspend the operation of the tariff for a period not exceeding ten months from the time the tariff would otherwise go into effect.
(3) The rates so determined may be included in general rate schedules or may be expressed in one or more separate rate schedules.
(4) Nothing in this chapter precludes the commission from adopting or continuing other conservation policies and programs intended to provide incentives for and to encourage electrical, gas, or water company investment in improving the efficiency of energy or water end use. However, the policies or programs shall not impair rate recovery assets. This chapter is not intended to be an exclusive or mandatory approach to conservation programs for electrical, gas, and water companies, and no such company is obligated to file conservation service tariffs under this chapter, to apply to the commission for a determination that conservation costs constitute bondable rate recovery expenditures within the meaning of this chapter, or to issue rate recovery bonds.
(5)(a) If a customer of an electrical, gas, or water company for whose benefit the company made expenditures for conservation measures or services ceases to be a customer of such company for one or more of the following reasons, the commission may require that the portion of such expenditures that had been included in rate base but not theretofore recovered in the rates of such company be removed from the rate base of the company:
(i) The customer ceases to be a customer of the electrical, gas, or water company, and the customer repays to the company the portion of the expenditures made for the benefit of such customer that has not theretofore been recovered in rates of such company; or
(ii) Such company sells its property used to serve such customer and the customer ceases to be a customer of the company as a result of such action.
(b) An electrical, gas, or water company may include in a contract for a conservation measure or service, and the commission may by rule or order require to be included in such contracts, a provision requiring that, if the customer ceases to be a customer of that such company, the customer shall repay to the company the portion of the conservation expenditures made for the benefit of such customer that has not theretofore been recovered in rates of the company.
[ 2025 c 310 s 5; 1994 c 268 s 2.]
Notes:
Purpose—Intent—Severability—Validity of actions taken pursuant to financing orders—Application—Effective date—2025 c 310: See notes following RCW 80.28.005.

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Conservation service tariff—Contents of filing—Rate base—Duties of commission.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 80.28.306

text:
(1) Electrical, gas, and water companies, or finance subsidiaries, may, upon approval by the commission, finance or refinance bondable rate recovery expenditures as described in RCW 80.28.303. Bonds, notes, certificates of beneficial interests in a trust, and other evidences of indebtedness or ownership issued for this purpose are rate recovery bonds for the purposes of this section.
(2)(a) An electrical, gas, or water company, finance subsidiary, or assignee may grant a security interest in rate recovery assets as collateral for rate recovery bonds. A security interest in rate recovery assets is valid and enforceable against the debtor and third parties, subject only to the rights of any third parties holding security interests in the rate recovery assets attached and perfected in the manner described in this subsection.
(b) A security interest in rate recovery assets attaches if:
(i) The secured party, or a financing party that the secured party represents, has given value; and
(ii) The debtor has signed a security agreement granting the secured party a security interest in the rate recovery assets.
(c) A valid and enforceable security interest in rate recovery assets is perfected if: (i) The security interest has attached in the manner described in (b) of this subsection; and (ii) a financing statement has been filed in accordance with the requirements of chapter 62A.9A RCW that identifies the debtor as "debtor," the secured party as "secured party," and the rate recovery assets granted as security as the "collateral," and contains a description in the financing statement that refers to the commission's financing order creating the rate recovery assets. The financing statement is deemed sufficient under chapter 62A.9A RCW and all other relevant law for identifying the rate recovery assets granted as security.
(d) A perfected security interest in rate recovery assets is a continuously perfected security interest, whether or not the related revenues have accrued or the related rate recovery charges have been charged, billed, or collected. Rate recovery assets constitute a presently existing, fully vested property right for the purposes of contracts securing the rate recovery bonds whether or not the related revenues have accrued or the related rate recovery charges have been charged, billed, or collected. Multiple security interests in the same rate recovery assets shall rank according to priority in time of perfection.
(e) Subject to the terms of the security agreement covering the rate recovery assets, the relative priority of a security interest created or perfected under this section is not adversely affected by: (i) Any later modification of the financing order or rate recovery assets; or (ii) the commingling of proceeds of rate recovery assets with other moneys.
(3)(a) A transfer of rate recovery assets to an assignee is perfected against all third parties if a notice of the transfer, by means of a financial statement:
(i) Is filed in accordance with the requirements of chapter 62A.9A RCW;
(ii) Specifies that the notice of transfer is filed to provide notice of the transfer of the rate recovery assets from the transferor to the assignee;
(iii) Identifies the transferor as "debtor," the assignee as "secured party," and the rate recovery asset as "collateral"; and
(iv) Contains a description that refers to the commission's financing order that created the rate recovery assets.
(b) A notice of transfer that is filed in accordance with the requirements under (a) of this subsection shall be deemed sufficient under chapter 62A.9A RCW and all other relevant laws for identifying the rate recovery assets and for providing notice that the rate recovery assets have been transferred to the assignee.
(c) A transfer is perfected against third parties on the date a notice of transfer is filed.
(d) A transfer of rate recovery assets to a financing subsidiary that is perfected under this subsection is free and clear of all claims, security interests, liens, and encumbrances of the transferring electrical, gas, or water company, except for any prior security interest perfected under subsection (2) of this section.
(e) The priority of a transfer that is perfected under this subsection is not adversely affected by:
(i) Any later modification of the financing order or rate recovery assets; or
(ii) The commingling of proceeds of rate recovery assets.
(4)(a) When proceeds of rate recovery assets are transferred to a segregated account for an assignee or secured party, any lien or security interest that may apply to those proceeds, other than a security interest perfected under subsection (2) of this section, is automatically terminated, without the need for further notice, act, or evidence.
(b) Proceeds from rate recovery assets shall be held in trust for an assignee or secured party until the proceeds have been transferred to the assignee or secured party.
(c) Any adjustment in rate recovery charges does not affect the validity, perfection, or priority of a security interest in or the transfer of rate recovery assets.
(5)(a) The rights and remedies of a secured party in enforcing a security interest in rate recovery assets do not include and are without recourse to any electrical, gas, or water company asset except for the rate recovery assets, even if the rate recovery assets are commingled with other assets.
(b) If an electrical, gas, or water company or finance subsidiary defaults on a required payment with respect to rate recovery bonds, a secured party or secured party's representatives may apply to the commission for relief. Upon application by a secured party or secured party's representatives, the commission shall order, without limiting other remedies of the secured party or secured party's representatives, the sequestration and payment to the secured party or secured party's representatives of the proceeds of the rate recovery assets.
(c) The interest of an assignee or financing party in rate recovery assets is not subject to setoff, counterclaim, surcharge, or defense by the electrical, gas, or water company or any other person in connection with a bankruptcy, reorganization, or insolvency proceeding. However, any surplus in excess of amounts necessary to pay principal, premium, if any, interest, and other amounts due with respect to the rate recovery bonds and associated financing costs, including enforcement costs, with respect to the security agreement shall be remitted to the debtor electrical, gas, or water company for the return of such surplus as customer refunds. A company may request authorization for the return of surplus funds by the commission in separate proceedings for this purpose. The commission shall issue an order approving or denying the petition for return of surplus funds within 90 days.
(d) The commission's financing order and any order issued under (b) of this subsection shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to an electrical, gas, or water company debtor, or transferor with respect to rate recovery assets.
(6) The granting, perfection, and enforcement of security interests in rate recovery assets to secure rate recovery bonds is subject to chapter 62A.9A RCW, except that when a provision in chapter 62A.9A RCW comes in conflict with a provision in this section, the provision in this section shall control.
(7) A transfer of rate recovery assets by an electrical, gas, or water company to a finance subsidiary or other assignee, which such parties have in the governing documentation expressly stated to be a sale or other absolute transfer, in a transaction approved in a financing order, shall be treated as a true sale, and not as a pledge or other financing, of such rate recovery assets. According the holders of rate recovery bonds a preferred right to revenues of the electrical, gas, or water company, or the provision by such company of other credit enhancement with respect to rate recovery bonds, does not impair or negate the characterization of any such transfer as a true sale.
(8) Any successor to an electrical, gas, or water company pursuant to any bankruptcy, reorganization, or other insolvency proceeding shall perform and satisfy all obligations of the company under an approved contract governing rate recovery bonds, in the same manner and to the same extent as was required of such company before any such proceeding, including, without limitation, billing, collecting, and paying to the bondholders or their representatives revenues arising with respect to the rate recovery assets pledged to secure the rate recovery bonds.
(9) Except for enforcement permitted under the laws of another state, the laws of this state shall govern the creation, validity, enforceability, attachment, perfection, priority, and exercise of remedies with respect to the creation or transfer of a security interest in a rate recovery asset.
[ 2025 c 310 s 6; 1994 c 268 s 3.]
Notes:
Purpose—Intent—Severability—Validity of actions taken pursuant to financing orders—Application—Effective date—2025 c 310: See notes following RCW 80.28.005.

catchline: Rate recovery bonds—Rate recovery assets as collateral—Priority of security interests—Transfers.


title: RCW 80.28.309

text:
(1) Costs incurred before May 17, 2025, by electrical, gas, or water companies with respect to events described in RCW 80.28.005(3)(a) or energy or water conservation measures and services described in RCW 80.28.005(3)(b) shall constitute bondable rate recovery expenditures for purposes of RCW 80.28.005, 80.28.303, 80.28.306, and this section, if:
(a) The commission has previously issued a rate order authorizing the inclusion of such costs in rate base; and
(b) The commission authorizes the issuance of rate recovery bonds secured by rate recovery assets associated with such costs.
(2) If costs incurred before May 17, 2025, by electrical, gas, or water companies with respect to events described in RCW 80.28.005(3)(a) or energy or water conservation measures described in RCW 80.28.005(3)(b) have not previously been considered by the commission for inclusion in rate base, an electrical, gas, or water company may apply to the commission for approval of such costs. If the commission finds that the expenditures are bondable rate recovery expenditures, the commission shall by order designate such expenditures as bondable rate recovery expenditures, which shall be subject to RCW 80.28.005, 80.28.303, 80.28.306, 80.28.490, and 80.28.500, and this section.
[ 2025 c 310 s 7; 1994 c 268 s 4.]
Notes:
Purpose—Intent—Severability—Validity of actions taken pursuant to financing orders—Application—Effective date—2025 c 310: See notes following RCW 80.28.005.

catchline: Costs as bondable rate recovery expenditures.


title: RCW 80.28.310

text:
Upon request by an electrical company, the commission may approve a tariff for irrigation pumping service that allows the company to buy back electricity from customers to reduce electricity usage by those customers during the electrical company's particular irrigation season.
[ 2001 c 122 s 1.]
Notes:
Effective date—2001 c 122: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [April 27, 2001]." [ 2001 c 122 s 7.]

catchline: Tariff for irrigation pumping service—Authority for electrical companies to buy back electricity.


title: RCW 80.28.320

text:
The commission shall not regulate the rates, services, facilities, and practices of an entity that offers battery charging facilities to the public for hire; if: (1) That entity is not otherwise subject to commission jurisdiction as an electrical company; or (2) that entity is otherwise subject to commission jurisdiction as an electrical company, but its battery charging facilities and services are not subsidized by any regulated service. An electrical company may offer battery charging facilities as a regulated service, subject to commission approval.
[ 2011 c 28 s 2.]

catchline: Regulation of battery charging facilities.


title: RCW 80.28.330

text:
(1) A wastewater company may not own or develop a system of sewerage for the purpose of providing service for compensation without first having obtained from the commission a certificate declaring that the public convenience and necessity requires such service.
(2) Issuance of the certificate of public convenience and necessity must be determined on, but not limited to, the following factors:
(a) A comprehensive business plan detailing the design, construction, operation, and maintenance of the proposed service system;
(b) Demonstration of sufficient financial resources to properly operate and maintain the proposed system, and to replace and upgrade capital assets;
(c) The need to develop a new stand-alone system instead of connecting to an existing system;
(d) A statement of prior experience, if any, in such field by the petitioner, set out in an affidavit or declaration;
(e) A certification from the municipal corporation that it is not willing and able to provide the sewerage services being proposed; and
(f) A certification from the municipal corporation that the company's proposed service is consistent with the locally approved general sewer plan.
(3) The commission may, after providing notice and an opportunity for public comment, issue certificates, or for good cause shown refuse to issue them, or issue them for the partial exercise only of the privilege sought, and may attach to the exercise of the rights granted such terms and conditions as, in its judgment, the public convenience and necessity may require.
(4) No certificate may be transferred to any private or nonprofit entity unless authorized by the commission.
(5)(a) Prior to the commission approving a wastewater company to provide new service or extend existing service, the wastewater company must file and continuously maintain in effect, a bond, or equivalent surety as determined by the commission, with the commission to ensure that there are sufficient funds to:
(i) Design, construct, operate, and maintain the proposed system;
(ii) Replace and upgrade capital assets as required by federal or state law or by order of the department of health or department of ecology; and
(iii) Allow additional connections to the system, if approved by the department of health or the department of ecology.
(b) The bond, or its equivalent surety, is payable under this section to the commission upon:
(i) An order under RCW 80.28.340 to transfer a system or systems of sewerage to a capable wastewater company;
(ii) Notice that the wastewater company does not intend to renew the bond or its equivalent surety or has failed to renew the bond or its equivalent surety; or
(iii) A petition by the commission under RCW 80.28.350, 80.28.030, or 80.28.040 to place a wastewater company in receivership.
(c) The commission must hold the payment in trust until an acquiring wastewater company is designated under RCW 80.28.340 or a receiving entity is designated under RCW 80.28.350, 80.28.030, or 80.28.040, at which point the funds will be made available to the company or entity to expend as directed by the commission.
(6) For purposes of issuing certificates under this chapter, the commission may adopt rules to implement this section.
(7) A wastewater company must obtain commission approval before expanding an existing system beyond the approved capacity set forth in its certificate or acquiring new systems, either by construction or purchase.
[ 2011 c 214 s 3.]
Notes:
Findings—Purpose—Limitation of chapter—Effective date—2011 c 214: See notes following RCW 80.04.010.

catchline: Certificate of public convenience and necessity—Bond or equivalent surety—Rule-making authority.


title: RCW 80.28.340

text:
(1) If the commission determines, after providing notice and opportunity for a hearing in the manner required for complaints under RCW 80.04.110, that a wastewater company is unfit to provide wastewater service on any system of sewerage, under its ownership, the commission may order the transfer of any such system or systems to a capable wastewater company.
(2) In determining whether a wastewater company is unfit to provide wastewater service on a system of sewerage in consultation with the department of health or the department of ecology as appropriate to the agencies' jurisdiction, the commission may consider the company's technical and managerial expertise to operate the system of sewerage, the company's financial soundness and the company's willingness and ability to make ongoing investments necessary to maintain compliance with statutory and regulatory standards for the safety, adequacy, efficiency, and reasonableness of the service provided.
(3) Before ordering the transfer of a system of sewerage owned by a wastewater company that is unfit to provide service, the commission must first determine that:
(a) Alternatives to the transfer are impractical or not economically feasible;
(b) The acquiring wastewater company is willing and able to acquire the system or systems of sewerage, [is] financially sound, and has the technical and managerial expertise to own and operate the system or systems of sewerage in compliance with applicable statutory and regulatory standards; and
(c) Rates paid by existing customers served by the acquiring wastewater company will not increase unreasonably because of the acquisition of the system of sewerage or because of expenditures that may be necessary to assure compliance with applicable statutory and regulatory standards for the safety, adequacy, efficiency, and reasonableness of the service provided.
(4) The sale price for the unfit wastewater company's system or systems of sewerage assets must be determined by agreement between the unfit wastewater company and the acquiring capable wastewater company subject to a finding by the commission that the agreed price is reasonable. A price is deemed reasonable if it does not exceed the original cost of plant in service, minus accumulated depreciation, minus contributions in aid to construction. If the unfit wastewater company and the acquiring capable wastewater company are unable to agree on the sale price or the commission finds that the agreed sale price is not reasonable, the acquiring capable wastewater company may initiate a condemnation proceeding in superior court in the manner provided by chapter 8.04 RCW to determine the compensation to be paid by the acquiring capable wastewater company for the failed system or systems of sewerage assets.
(5) The capable wastewater company acquiring an unfit wastewater company's system or systems shall have the same immunity from liability as wastewater companies assuming substandard systems as set forth in RCW 80.28.275.
(6) The commission must provide copies of the notice required by subsection (1) of this section to the department of health or the department of ecology, as appropriate to the agencies' jurisdiction, and all proximate public entities providing wastewater utility service.
(7) Any capable wastewater company approved by the commission to acquire the system or systems of sewerage of an unfit wastewater company must submit to the commission, for approval, a financial plan, including a timetable, for bringing the acquired system of sewerage assets into compliance with applicable statutory and regulatory standards. The acquiring capable wastewater company must also provide a copy of the plan to the department of health or the department of ecology, as appropriate to the agencies' jurisdiction, and other state or local agency as the commission may direct. The commission must give the department of health or the department of ecology, as appropriate to the agencies' jurisdiction, adequate opportunity to comment on the plan and must consider any comments submitted in deciding whether or not to approve the plan.
(8) The legislature grants to any private entity the power of eminent domain, for exercise only under the circumstances described in this section. However, a private entity must obtain authorization from the city, town, or county with jurisdiction over the subject property after the legislative authority of the city, town, or county has passed an ordinance requiring that property be taken for public use. This subsection does not limit eminent domain authority granted by any other provision of law.
[ 2011 c 214 s 5.]
Notes:
Findings—Purpose—Limitation of chapter—Effective date—2011 c 214: See notes following RCW 80.04.010.

catchline: Determination that a wastewater company is unfit to provide wastewater service on a system of sewerage—Commission may order transfer—Power of eminent domain.


title: RCW 80.28.350

text:
(1) The commission may petition the Thurston county superior court pursuant to chapter 7.60 RCW to place a wastewater company in receivership. The petition must include the names of one or more qualified candidates for receiver who have consented to assume operation of the system of sewerage. The petition must also include a list of interested and qualified individuals, municipal corporations, and wastewater companies with experience in providing wastewater service and a history of satisfactory operation of a system of sewerage. If no other entity is willing and able to be appointed as the receiver, the court must appoint the county or other municipal corporation whose geographic boundaries include, in whole or in part, the system of sewerage at issue. The municipal corporation may designate one of its agencies or divisions to operate the system, or it may contract with another entity to operate the system. The department of health or department of ecology, whichever has jurisdiction, must provide regulatory oversight for managing the system of sewerage.
(2) In any petition for receivership under subsection (1) of this section, the commission must recommend that the court grant the receiver full authority to act in the best interests of the customers served by the system of sewerage. The receiver must assess the capability, in conjunction with the department of health or ecology, whichever has jurisdiction, and local government, for the system to operate in compliance with health and safety standards. The receiver must report to the court and the commission its recommendations for the company's future operation of the system, including the formation of a water-sewer district or other public entity, or ownership by another existing wastewater company capable of providing service.
(3) If a petition for receivership and verifying affidavit executed by an appropriate official allege an immediate and serious danger to residents constituting an emergency, the court must set the matter for hearing within three days and may appoint a temporary receiver ex parte upon the strength of such petition and affidavit pending a full evidentiary hearing, which must be held within fourteen days after receipt of the petition.
(4) If the court imposes a bond upon a receiver, the amount must reasonably relate to the level of operating revenue generated by, and the capital value of, the wastewater company. Any receiver appointed pursuant to this section may not be held personally liable for any good faith, reasonable effort to assume possession of, and to operate, the system in compliance with the court's orders, subject to the provisions of law governing clean water as referenced by the commission by rule.
(5) The court must authorize the receiver to impose reasonable assessments on the customers of the system of sewerage to recover expenditures for improvements necessary for the public health and safety.
(6) The commission must develop a plan for transfer of the system of sewerage to a new operator and submit its plan to the court. The commission must develop the plan after notice to, and an opportunity to participate by, the receiver, the municipal corporations whose geographic boundaries, in whole or in part, include the system of sewerage at issue, and the public. The commission must complete the plan no later than twelve months after appointment of a receiver.
(a) If the commission finds that no private entity is able or willing to take over the system of sewerage and decides the system of sewerage should be taken over by a municipal corporation whose geographic boundaries include the system of sewerage at issue, in whole or in part, the commission must provide its findings to the court and the court may issue an order to that effect. If the court orders a municipal corporation to take over the system of sewerage, the municipal corporation must promptly institute negotiations to purchase the system. If, within six months of the court's order, the negotiations fail or otherwise do not result in a purchase, the municipal corporation must promptly initiate a condemnation proceeding to acquire the system. The court must terminate the receivership once the purchase is complete.
(b) If the commission decides the system of sewerage should be taken over by a private entity, such as an individual or business, the commission must provide its findings to the court and the court may issue an order to that effect. If the court orders a private entity to take over the system of sewerage, the private entity must promptly institute negotiations to purchase the system. If, within six months of the court's order, the negotiations fail or otherwise do not result in a purchase, the private entity must promptly exercise its power of eminent domain granted by the legislature in subsection (9) of this section to acquire the system. The court must terminate the receivership once the purchase is complete.
(7) Other than pursuant to subsection (6)(a) and (b) of this section, the court may not terminate the receivership, and order the return of the system to the owners, unless the commission approves that action. The court may impose reasonable conditions upon the return of the system to the owner, including the posting of a bond or other security, routine performance and financial audits, employment of qualified operators and other staff or contracted services, compliance with financial viability requirements, or other measures sufficient to ensure the ongoing proper operation of the system.
(8) If, as part of the ultimate disposition of the system, a condemnation proceeding is commenced to acquire the system of sewerage, the court shall oversee any appraisal of the system conducted under Title 7 RCW to assure that the appraised value properly reflects any reduced value because of the necessity to make improvements to the system. The court has the authority to approve the appraisal and to modify the appraisal based on any information provided at an evidentiary hearing. The court's determination of the proper value of the system, based on the appraisal, is final and only appealable if not supported by substantial evidence. If the appraised value is appealed, the court may order the system's ownership to be transferred upon payment of the approved appraised value.
(9) The legislature grants any municipal corporation, and any private entity the power of eminent domain under the circumstances described in this section. However, a private entity must obtain authorization from the city, town, or county with jurisdiction over the subject property after the legislative authority of the city, town, or county has passed an ordinance requiring that property be taken for public use. This subsection does not limit eminent domain authority granted by any other provision of law.
[ 2011 c 214 s 6.]
Notes:
Findings—Purpose—Limitation of chapter—Effective date—2011 c 214: See notes following RCW 80.04.010.

catchline: Petition to place a wastewater company in receivership—Power of eminent domain.


title: RCW 80.28.360

text:
(1) In establishing rates for each electrical company regulated under this title, the commission may allow an incentive rate of return on investment through December 31, 2030, on capital expenditures for electric vehicle supply equipment that is deployed for the benefit of ratepayers, provided that the capital expenditures of the utilities' programs or plans in RCW 80.28.365(1) do not increase the annual retail revenue requirement of the utility, after accounting for the benefits of transportation electrification in each year of the plan, in excess of one-quarter of one percent. The commission must consider and may adopt other policies to improve access to and promote fair competition in the provision of electric vehicle supply equipment.
(2) An incentive rate of return on investment under this section may be allowed only if the company chooses to pursue capital investment in electric vehicle supply equipment on a fully regulated basis similar to other capital investments behind a customer's meter. In the case of an incentive rate of return on investment allowed under this section, an increment of up to two percent must be added to the rate of return on common equity allowed on the company's other investments.
(3) The incentive rate of return on investment authorized in subsection (2) of this section applies only to projects which have been installed after July 1, 2015.
(4) The incentive rate of return on investment increment pursuant to this section may be earned only for a period up to the depreciable life of the electric vehicle supply equipment as defined in the depreciation schedules developed by the company and submitted to the commission for review. When the capital investment has fully depreciated, an electrical company may gift the electric vehicle supply equipment to the owner of the property on which it is located.
(5) By December 31, 2017, the commission must report to the appropriate committees of the legislature with regard to the use of any incentives allowed under this section, the quantifiable impacts of the incentives on actual electric vehicle deployment, and any recommendations to the legislature about utility participation in the electric vehicle market.
[ 2019 c 287 s 6; 2019 c 109 s 5; 2015 c 220 s 2.]
Notes:
Effective date—2019 c 287 ss 1-7, 12, and 14-23: See note following RCW 28B.30.903.
Findings—Intent—2019 c 287: See note following RCW 28B.30.903.
Findings—Intent—2019 c 109: See note following RCW 35.92.450.
Findings—Intent—2015 c 220: "(1) The legislature finds that the transportation sector is Washington's largest contributor to greenhouse emissions and hazardous air pollutants as defined by federal national ambient air quality standards and mobile source air toxics rules. The sector's portion is considerably higher than the national average because our state relies heavily on hydropower for electricity generation, unlike other states that rely on fossil fuels such as coal, petroleum, and natural gas to generate electricity.
(2) The legislature also finds that federal clean air act regulations and complementary Washington policies supporting renewable energy generation, energy efficiency, and energy conservation are likely to result in further reduction of emissions in the electricity and in the combined residential, commercial, and industrial sectors. The legislature finds that state policy can achieve the greatest return on investment in reducing greenhouse gas emissions and improving air quality by expediting the transition to alternative fuel vehicles, including electric vehicles.
(3) The legislature finds that utilities, who [that] are traditionally responsible for understanding and engineering the electrical grid for safety and reliability, must be fully empowered and incentivized to be engaged in electrification of our transportation system. The legislature further finds that it has given utilities other policy directives to promote energy conservation which do not make the benefits of building out electric vehicle infrastructure, as well as any subsequent increase in energy consumption, readily apparent. Therefore the legislature intends to provide a clear policy directive and financial incentive to utilities for electric vehicle infrastructure build-out." [ 2015 c 220 s 1.]

catchline: Electric vehicle supply equipment—Capital expenditures—Incentive rate of return on investment.


title: RCW 80.28.365

text:
(1) An electric utility regulated by the utilities and transportation commission under this chapter may submit to the commission an electrification of transportation plan that deploys electric vehicle supply equipment or provides other electric transportation programs, services, or incentives to support electrification of transportation. The plans should align to a period consistent with either the utility's planning horizon under its most recent integrated resource plan or the time frame of the actions contemplated in the plan, and may include:
(a) Any programs that the utility is proposing contemporaneously with the plan filing or anticipates later in the plan period;
(b) Anticipated benefits of transportation electrification, based on a forecast of electric transportation in the utilities' service territory; and
(c) Anticipated costs of programs, subject to the restrictions in RCW 80.28.360.
(2) In reviewing an electrification of transportation plan under subsection (1) of this section, the commission may consider the following: (a) The applicability of multiple options for electrification of transportation across all customer classes; (b) the impact of electrification on the utility's load, and whether demand response or other load management opportunities, including direct load control and dynamic pricing, are operationally appropriate; (c) system reliability and distribution system efficiencies; (d) interoperability concerns, including the interoperability of hardware and software systems in electrification of transportation proposals; and (e) the benefits and costs of the planned actions.
(3) The commission must issue an acknowledgment of an electrification of transportation plan within six months of the submittal of the plan. The commission may establish by rule the requirements for preparation and submission of an electrification of transportation plan. An electric utility may submit a plan under this section before or during rule-making proceedings.
(4) The commission may require a large combination utility as defined in RCW 80.86.010 to incorporate the requirements of this section into an integrated system plan established under RCW 80.86.020.
[ 2024 c 351 s 16; 2019 c 287 s 5; 2019 c 109 s 4.]
Notes:
Effective date—2024 c 351: See note following RCW 80.86.010.
Effective date—2019 c 287 ss 1-7, 12, and 14-23: See note following RCW 28B.30.903.
Findings—Intent—2019 c 287: See note following RCW 28B.30.903.
Findings—Intent—2019 c 109: See note following RCW 35.92.450.

catchline: Electric vehicle supply equipment, programs, or services—Electrification of transportation plan—Review—Issuance of acknowledgment.


title: RCW 80.28.370

text:
The definitions in this section apply throughout this section and RCW 80.28.375 unless the context clearly requires otherwise.
(1) "Community solar company" means a person, firm, or corporation, other than an electric utility or a community solar cooperative, that owns a community solar project and provides community solar project services to project participants.
(2) "Community solar project" means a solar energy system that has a direct current nameplate generating capacity that is no larger than one thousand kilowatts.
(3) "Community solar project services" means the provision of electricity generated by a community solar project, or the provision of the financial benefits associated with electricity generated by a community solar project, to multiple project participants, and may include other services associated with the use of the community solar project such as system monitoring and maintenance, warranty provisions, performance guarantees, and customer service.
(4) "Electric utility" means a consumer-owned utility or investor-owned utility as those terms are defined in RCW 19.280.020.
(5) "Project participant" means a customer who enters into a lease, power purchase agreement, loan, or other financial agreement with a community solar company in order to obtain a beneficial interest in, other than direct ownership of, a community solar project.
(6) "Solar energy system" means any device or combination of devices or elements that rely upon direct sunlight as an energy source for use in the generation of electricity.
[ 2017 3rd sp.s. c 36 s 10.]
Notes:
Findings—Intent—Effective date—2017 3rd sp.s. c 36: See notes following RCW 82.16.130.

catchline: Community solar companies—Definitions.


title: RCW 80.28.375

text:
(1) No community solar company may engage in business in this state except in accordance with the provisions of this chapter. Engaging in business as a community solar company includes advertising, soliciting, offering, or entering into an agreement to own a community solar project and provide community solar project services to electric utility customers.
(2) A community solar company must register with the commission before engaging in business in this state or applying for certification from the Washington State University extension energy program under RCW 82.16.165(1). Registration with the commission as a community solar company must occur on an annual basis. The registration must be on a form prescribed by the commission and contain that information as the commission may by rule require, but must include at a minimum:
(a) The name and address of the community solar company;
(b) The name and address of the community solar company's registered agent, if any;
(c) The name, address, and title of each officer or director;
(d) The community solar company's most current balance sheet;
(e) The community solar company's latest annual report, if any;
(f) A description of the services the community solar company offers or intends to offer, including financing models; and
(g) Disclosure of any pending litigation against it.
(3) As a precondition to registration, the commission may require the procurement of a performance bond or other mechanism sufficient to cover any advances or deposits the community solar company may collect from project participants or order that the advances or deposits be held in escrow or trust.
(4) The commission may deny registration to any community solar company that:
(a) Does not provide the information required by this section;
(b) Fails to provide a performance bond or other mechanism, if required;
(c) Does not possess adequate financial resources to provide the proposed service; or
(d) Does not possess adequate technical competency to provide the proposed service.
(5) The commission must take action to approve or issue a notice of hearing concerning any application for registration within thirty days after receiving the application. The commission may approve an application with or without a hearing. The commission may deny an application after a hearing.
(6) The commission may charge a community solar company an annual application fee to recover the cost of processing applications for registration under this section.
(7) The commission may adopt rules that describe the manner by which it will register a community solar company, ensure that the terms and conditions of community solar projects or community solar project services comply with the requirements of chapter 36, Laws of 2017 3rd sp. sess., establish the community solar company's responsibilities for responding to customer complaints and disputes, and adopt annual reporting requirements. In addition to the application fee authorized under subsection (6) of this section, the commission may adopt regulatory fees applicable to community solar companies pursuant to RCW 80.04.080, 80.24.010, and 80.24.020. Such fees may not exceed the cost of ensuring compliance with this chapter.
(8) The commission may suspend or revoke a registration upon complaint by any interested party, or upon the commission's own motion after notice and opportunity for hearing, when it finds that a registered community solar company or its agent has violated this chapter or the rules of the commission, or that the community solar company or its agent has been found by a court or governmental agency to have violated the laws of a state or the United States.
(9) For the purpose of ensuring compliance with this chapter, the commission may issue penalties against community solar companies for violations of this chapter as provided for public service companies pursuant to chapter 80.04 RCW.
(10) Upon request of the commission, a community solar company registered under this section must provide information about its community solar projects or community solar project services.
(11) A violation of this section constitutes an unfair or deceptive act in trade or commerce in violation of chapter 19.86 RCW, the consumer protection act. Acts in violation of chapter 36, Laws of 2017 3rd sp. sess. are not reasonable in relation to the development and preservation of business, and constitute matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW.
(12) For the purposes of RCW 19.86.170, actions or transactions of a community solar company may not be deemed otherwise permitted, prohibited, or regulated by the commission.
[ 2017 3rd sp.s. c 36 s 11.]
Notes:
Findings—Intent—Effective date—2017 3rd sp.s. c 36: See notes following RCW 82.16.130.

catchline: Community solar companies—Requirements to engage in business—Registration.


title: RCW 80.28.380

text:
(1) Each gas company must identify and acquire all conservation measures that are available and cost-effective. Each company must establish an acquisition target every two years and must demonstrate that the target will result in the acquisition of all resources identified as available and cost-effective. The cost-effectiveness analysis required by this section must include the costs of greenhouse gas emissions established in RCW 80.28.395. The targets must be based on a conservation potential assessment prepared by an independent third party and approved by the commission. Conservation targets must be approved by order by the commission. The initial conservation target must take effect by 2022.
(2) The commission may require a large combination utility as defined in RCW 80.86.010 to incorporate the requirements of this section into an integrated system plan established under RCW 80.86.020.
[ 2024 c 351 s 17; 2019 c 285 s 11.]
Notes:
Effective date—2024 c 351: See note following RCW 80.86.010.
Findings—2019 c 285: "(1) The legislature finds and declares that:
(a) Renewable natural gas provides benefits to natural gas utility customers and to the public; and
(b) The development of renewable natural gas resources should be encouraged to support a smooth transition to a low carbon energy economy in Washington.
(2) It is the policy of the state to provide clear and reliable guidelines for gas companies that opt to supply renewable natural gas resources to serve their customers and that ensure robust ratepayer protections." [ 2019 c 285 s 12.]

catchline: Gas companies—Conservation targets.


title: RCW 80.28.385

text:
(1) A natural gas company may propose a renewable natural gas program under which the company would supply renewable natural gas for a portion of the natural gas sold or delivered to its retail customers. The renewable natural gas program is subject to review and approval by the commission. The customer charge for a renewable natural gas program may not exceed five percent of the amount charged to retail customers for natural gas.
(2) The environmental attributes of renewable natural gas provided under this section must be retired using procedures established by the commission and may not be used for any other purpose. The commission must approve procedures for banking and transfer of environmental attributes.
(3) As used in this section, "renewable natural gas" includes renewable natural gas as defined in RCW 54.04.190. The commission may approve inclusion of other sources of gas if those sources are produced without consumption of fossil fuels.
[ 2019 c 285 s 13.]
Notes:
Findings—2019 c 285: See note following RCW 80.28.380.

catchline: Renewable natural gas program.


title: RCW 80.28.390

text:
(1) Each gas company must offer by tariff a voluntary renewable natural gas service available to all customers to replace any portion of the natural gas that would otherwise be provided by the gas company. The tariff may provide reasonable limits on participation based on the availability of renewable natural gas and may use environmental attributes of renewable natural gas combined with natural gas. The voluntary renewable natural gas service must include delivery to, or the retirement on behalf of, the customer of all environmental attributes associated with the renewable natural gas.
(2) For the purposes of this section, "renewable natural gas" includes renewable natural gas as defined in RCW 54.04.190. The commission may approve inclusion of other sources of gas if those sources are produced without consumption of fossil fuels.
[ 2019 c 285 s 14.]
Notes:
Findings—2019 c 285: See note following RCW 80.28.380.

catchline: Tariff—Voluntary renewable natural gas service.


title: RCW 80.28.395

text:
For the purposes of RCW 80.28.380, the cost of greenhouse gas emissions resulting from the use of natural gas, including the effect of emissions occurring in the gathering, transmission, and distribution of natural gas to the end user is equal to the cost per metric ton of carbon dioxide emissions, using the two and one-half percent discount rate, listed in table 2, Technical Support Document: Technical update of the social cost of carbon for regulatory impact analysis under Executive Order 12866, published by the interagency working group on social cost of greenhouse gases of the United States government, August 2016. The commission must adjust the costs established in this section to reflect the effect of inflation.
[ 2019 c 285 s 15.]
Notes:
Findings—2019 c 285: See note following RCW 80.28.380.

catchline: Natural gas—Cost of greenhouse gas emissions—Calculation.


title: RCW 80.28.400

text:
The commission must monitor the greenhouse gas emissions resulting from natural gas and renewable natural gas delivered by each gas company to its customers, relative to a proportionate share of the state's greenhouse gas emissions reduction goal. The commission must report to the governor by January 1, 2020, and every three years thereafter, an assessment of whether the gas companies are on track to meet a proportionate share of the state's greenhouse gas emissions reduction goal. The commission may rely on reports submitted by gas companies to the United States environmental protection agency or other governmental agencies in complying with this section.
[ 2019 c 285 s 16.]
Notes:
Findings—2019 c 285: See note following RCW 80.28.380.

catchline: Commission—Monitoring greenhouse gas emissions—Report.


title: RCW 80.28.405

text:
For the purposes of chapter 288, Laws of 2019, the cost of greenhouse gas emissions resulting from the generation of electricity, including the effect of emissions, is equal to the cost per metric ton of carbon dioxide equivalent emissions, using the two and one-half percent discount rate, listed in table 2, technical support document: Technical update of the social cost of carbon for regulatory impact analysis under Executive Order No. 12866, published by the interagency working group on social cost of greenhouse gases of the United States government, August 2016. The commission must adjust the costs established in this section to reflect the effect of inflation.
[ 2019 c 288 s 15.]
Notes:
Findings—Intent—Effective date—2019 c 288: See RCW 19.405.010 and 19.405.901.

catchline: Clean energy action plan—Greenhouse gas emissions—Calculation of cost.


title: RCW 80.28.410

text:
(1) An electrical company may account for and defer for later consideration by the commission costs incurred in connection with major projects in the electrical company's clean energy action plan pursuant to RCW 19.280.030(1)(l), or selected in the electrical company's solicitation of bids for delivering electric capacity, energy, capacity and energy, or conservation. The deferral in this subsection begins with the date on which the resource begins commercial operation or the effective date of the power purchase agreement and continues for a period not to exceed thirty-six months. However, if during such a period the electrical company files a general rate case or other proceeding for the recovery of such costs, deferral ends on the effective date of the final decision by the commission in such a proceeding. Creation of such a deferral account does not by itself determine the actual costs of the resource or power purchase agreement, whether recovery of any or all of these costs is appropriate, or other issues to be decided by the commission in a general rate case or other proceeding.
(2) The costs that an electrical company may account for and defer for later consideration by the commission pursuant to subsection (1) of this section include all operating and maintenance costs, depreciation, taxes, cost of capital associated with the applicable resource or the execution of a power purchase agreement. Such costs of capital include:
(a) The electrical company's authorized return on equity for any resource acquired or developed by the electrical company; or
(b) For the duration of a power purchase agreement, a rate of return of no less than the authorized cost of debt and no greater than the authorized rate of return of the electrical company, which would be multiplied by the operating expense incurred by the electrical company under the power purchase agreement.
[ 2019 c 288 s 21.]
Notes:
Findings—Intent—Effective date—2019 c 288: See RCW 19.405.010 and 19.405.901.

catchline: Clean energy action plan—Account for and defer costs.


title: RCW 80.28.420

text:
(1) The commission must initiate a proceeding to provide conditions concerning the interim recovery between rate cases by a gas company of the costs associated with replacing pipeline facilities that are demonstrated to have an elevated risk of failure and the costs associated with measures to expedite the reduction of hazardous leaks and reduce as practicable nonhazardous leaks from the gas company's gas pipelines.
(2) A gas company seeking an interim recovery between rate cases may submit to the commission, as part of a general rate case or a commission-approved interim rate treatment mechanism regarding the replacement of pipeline facilities, a description of equipment and new facilities that aid in the reduction of methane emissions and a list of projects and changes to operational procedures including, but not limited to, venting, blowdowns, and others, to expedite the replacement of pipeline facilities that present an elevated risk of failure and expedite the repairs of hazardous leaks and nonhazardous leaks. Items on the list must be ranked according to risk, severity, complexity, and impact to the environment and public health. A gas company may also include in its filing methods to implement and deploy leak detection technology capable of rapidly identifying leaks. As part of its filing, the gas company must include a cost-effectiveness analysis and propose a cap for annual expenditures recoverable through a cost recovery mechanism to be approved by the commission. The cost-effectiveness analysis must include considerations of risk and impacts to the environment and public health. A gas company may consider a percent of rate base, percent of revenues, total expenditures, or other basis for its proposed cap. As part of the proposal, the gas company must address the expected impact to ratepayers and other factors that may be required by the commission by rule.
(3) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Gas pipeline" has the same meaning as defined in RCW 81.88.010.
(b) "Hazardous leak" means a leak that represents an existing or probable hazard to persons or property and requires immediate repair or continuous action until the conditions are no longer hazardous.
(c) "Nonhazardous leak" includes a leak that is:
(i) Recognized as being not hazardous at the time of detection but justifies scheduled repair based on the potential for creating a future hazard; and
(ii) Not hazardous at the time of detection and can reasonably be expected to remain not hazardous.
(4) Nothing in this section may be construed to preempt the process by which a gas company is required to petition relevant state or local authorities when seeking to expand the capacity of the company's gas transmission or distribution lines.
(5) Nothing in this section may be construed to impose requirements or restrictions on or otherwise regulate interstate pipelines.
[ 2020 c 32 s 2.]
Notes:
Intent—2020 c 32: "It is the intent of the legislature to encourage a safer and more efficient natural gas transmission and distribution system through investments that address and minimize leaks in the natural gas pipeline system." [ 2020 c 32 s 1.]

catchline: Gas company recovery of costs associated with replacing certain pipeline facilities—Information to be submitted to the commission—Definitions.


title: RCW 80.28.425

text:
(1) Beginning January 1, 2022, every general rate case filing of a gas or electrical company must include a proposal for a multiyear rate plan as provided in this chapter. The commission may, by order after an adjudicative proceeding as provided by chapter 34.05 RCW, approve, approve with conditions, or reject, a multiyear rate plan proposal made by a gas or electrical company or an alternative proposal made by one or more parties, or any combination thereof. The commission's consideration of a proposal for a multiyear rate plan is subject to the same standards applicable to other rate filings made under this title, including the public interest and fair, just, reasonable, and sufficient rates. In determining the public interest, the commission may consider such factors including, but not limited to, environmental health and greenhouse gas emissions reductions, health and safety concerns, economic development, and equity, to the extent such factors affect the rates, services, and practices of a gas or electrical company regulated by the commission.
(2) The commission may approve, disapprove, or approve with modifications any proposal to recover from ratepayers up to five percent of the total revenue requirement approved by the commission for each year of a multiyear rate plan for tariffs that reduce the energy burden of low-income residential customers including, but not limited to: (a) Bill assistance programs; or (b) one or more special rates. For any multiyear rate plan approved under this section resulting in a rate increase, the commission must approve an increase in the amount of low-income bill assistance to take effect in each year of the rate plan where there is a rate increase. At a minimum, the amount of such low-income assistance increase must be equal to double the percentage increase, if any, in the residential base rates approved for each year of the rate plan. The commission may approve a larger increase to low-income bill assistance based on an appropriate record.
(3)(a) If it approves a multiyear rate plan, the commission shall separately approve rates for each of the initial rate year, the second rate year and, if applicable, the third rate year, and the fourth rate year.
(b) The commission shall ascertain and determine the fair value for rate-making purposes of the property of any gas or electrical company that is or will be used and useful under RCW 80.04.250 for service in this state by or during each rate year of the multiyear rate plan. For the initial rate year, the commission shall, at a minimum, ascertain and determine the fair value for rate-making purposes of the property of any gas or electrical company that is used and useful for service in this state as of the rate effective date. The commission may order refunds to customers if property expected to be used and useful by the rate effective date when the commission approves a multiyear rate plan is in fact not used and useful by such a date.
(c) The commission shall ascertain and determine the revenues and operating expenses for rate-making purposes of any gas or electrical company for each rate year of the multiyear rate plan.
(d) In ascertaining and determining the fair value of property of a gas or electrical company pursuant to (b) of this subsection and projecting the revenues and operating expenses of a gas or electrical company pursuant to (c) of this subsection, the commission may use any standard, formula, method, or theory of valuation reasonably calculated to arrive at fair, just, reasonable, and sufficient rates.
(e) If the commission approves a multiyear rate plan with a duration of three or four years, then the electrical company must update its power costs as of the rate effective date of the third rate year. The proceeding to update the electrical company's power costs is subject to the same standards that apply to other rate filings made under this title.
(4) Subject to subsection (5) of this section, the commission may by order establish terms, conditions, and procedures for a multiyear rate plan and ensure that rates remain fair, just, reasonable, and sufficient during the course of the plan.
(5) Notwithstanding subsection (4) of this section, a gas or electrical company is bound by the terms of the multiyear rate plan approved by the commission for each of the initial rate year and the second rate year. A gas or electrical company may file a new multiyear rate plan in accordance with this section for the third rate year and fourth rate year, if any, of a multiyear rate plan.
(6) If the annual commission basis report for a gas or electrical company demonstrates that the reported rate of return on rate base of the company for the 12-month period ending as of the end of the period for which the annual commission basis report is filed is more than .5 percent higher than the rate of return authorized by the commission in the multiyear rate plan for such a company, the company shall defer all revenues that are in excess of .5 percent higher than the rate of return authorized by the commission for refunds to customers or another determination by the commission in a subsequent adjudicative proceeding. If a multistate electrical company with fewer than 250,000 customers in Washington files a multiyear rate plan that provides for no increases in base rates in consecutive years beyond the initial rate year, the commission shall waive the requirements of this subsection provided that such a waiver results in just and reasonable rates.
(7) The commission must, in approving a multiyear rate plan, determine a set of performance measures that will be used to assess a gas or electrical company operating under a multiyear rate plan. These performance measures may be based on proposals made by the gas or electrical company in its initial application, by any other party to the proceeding in its response to the company's filing, or in the testimony and evidence admitted in the proceeding. In developing performance measures, incentives, and penalty mechanisms, the commission may consider factors including, but not limited to, lowest reasonable cost planning, affordability, increases in energy burden, cost of service, customer satisfaction and engagement, service reliability, clean energy or renewable procurement, conservation acquisition, demand side management expansion, rate stability, timely execution of competitive procurement practices, attainment of state energy and emissions reduction policies, rapid integration of renewable energy resources, and fair compensation of utility employees.
(8) Nothing in this section precludes any gas or electrical company from making filings required or permitted by the commission.
(9) The commission shall align, to the extent practical, the timing of approval of a multiyear rate plan of an electrical company submitted pursuant to this section with the clean energy implementation plan of the electrical company filed pursuant to RCW 19.405.060.
(10) The provisions of this section may not be construed to limit the existing rate-making authority of the commission.
(11) The commission may require a large combination utility as defined in RCW 80.86.010 to incorporate the requirements of this section into an integrated system plan established under RCW 80.86.020.
(12) The commission shall not approve, or approve with conditions, a multiyear rate plan that requires or incentivizes a gas company or large combination utility to terminate natural gas service to customers.
(13) The commission shall not approve, or approve with conditions, a multiyear rate plan that authorizes a gas company or large combination utility to require a customer to involuntarily switch fuel use either by restricting access to natural gas service or by implementing planning requirements that would make access to natural gas service cost-prohibitive.
[ 2025 c 1 s 4 (Initiative Measure No. 2066, approved November 5, 2024); 2024 c 351 s 18; 2021 c 188 s 2.]
Notes:
Findings—2025 c 1 (Initiative Measure No. 2066): See note following RCW 80.28.110.
Effective date—2024 c 351: See note following RCW 80.86.010.
Legislative directive—2021 c 188: "(1) To provide clarity and certainty to stakeholders on the details of performance-based regulation, the utilities and transportation commission is directed to conduct a proceeding to develop a policy statement addressing alternatives to traditional cost of service rate making, including performance measures or goals, targets, performance incentives, and penalty mechanisms. As part of such a proceeding, the utilities and transportation commission must consider factors including, but not limited to, lowest reasonable cost planning, affordability, increases in energy burden, cost of service, customer satisfaction and engagement, service reliability, clean energy or renewable procurement, conservation acquisition, demand side management expansion, rate stability, timely execution of competitive procurement practices, attainment of state energy and emissions reduction policies, rapid integration of renewable energy resources, and fair compensation of utility employees.
(2) In developing its policy statement, the utilities and transportation commission must in its proceeding allow for participation and consultation with regulated utilities, the attorney general's office, and other interested stakeholders including, but not limited to, residential, industrial, commercial, and low-income customers and organizations, as well as environmental or community organizations and stakeholders.
(3) By January 1, 2022, the utilities and transportation commission shall notify the chairs and ranking members of the appropriate committees of the legislature of the process to date, the expected duration of, and work plan associated with this proceeding." [ 2021 c 188 s 1.]

catchline: Multiyear rate plan.


title: RCW 80.28.430

text:
(1) A gas company, electrical company, or thermal energy company shall, upon request, enter into one or more written agreements with organizations that represent broad customer interests in regulatory proceedings conducted by the commission, subject to commission approval in accordance with subsection (2) of this section, including but not limited to organizations representing low-income, commercial, and industrial customers, vulnerable populations, or highly impacted communities. The agreement must govern the manner in which financial assistance may be provided to the organization. More than one gas company, electrical company, thermal energy company, or organization representing customer interests may join in a single agreement. Any agreement entered into under this section must be approved, approved with modifications, or rejected by the commission. The commission must consider whether the agreement is consistent with a reasonable allocation of financial assistance provided to organizations pursuant to this section among classes of customers of the gas or electrical company.
(2) Before administering an agreement entered into under subsection (1) of this section, the commission shall, by rule or order, determine:
(a) The amount of financial assistance, if any, that may be provided to any organization;
(b) The manner in which the financial assistance is distributed;
(c) The manner in which the financial assistance is recovered in the rates of the gas company, electrical company, or thermal energy company under subsection (3) of this section; and
(d) Other matters necessary to administer the agreement.
(3) The commission shall allow a gas company, electrical company, or thermal energy company that provides financial assistance under this section to recover the amounts provided in rates. The commission shall allow a gas company, electrical company, or thermal energy company to defer inclusion of those amounts in rates if the gas company, electrical company, or thermal energy company so elects. An agreement under this section may not provide for payment of any amounts to the commission.
(4) Organizations representing vulnerable populations or highly impacted communities must be prioritized for funding under this section.
[ 2025 c 263 s 23; 2021 c 188 s 4.]
Notes:
Legislative directive—2021 c 188: See note following RCW 80.28.425.

catchline: Authority to enter into agreements with certain organizations—Agreement to govern manner in which financial assistance is provided to an organization—Requirements.


title: RCW 80.28.435

text:
(1) A gas company must file a notice with the utilities and transportation commission prior to replacing natural gas with renewable hydrogen or green electrolytic hydrogen to serve customers. The notice must establish that the company has received all necessary siting and permitting approvals. The notice must also include a description of the following:
(a) Whether the use of clean electricity to produce hydrogen is consistent with the company's most recent integrated resource plan;
(b) Potential impacts to electrical grid reliability, including resource adequacy, resulting from renewable hydrogen and green electrolytic hydrogen production and deployment; and
(c) Standards, including safety standards, for blending of green electrolytic hydrogen and renewable hydrogen into natural gas distribution infrastructure.
(2) The commission shall consider the recommendations made by the department of commerce through its work outlined in RCW 43.330.570(1)(d), the information contained in the notice, and additional relevant data and analyses when making a determination on a company's request for approval of any tariff related to the use of green electrolytic hydrogen or renewable hydrogen as a replacement for natural gas.
[ 2022 c 292 s 601.]
Notes:
Findings—Intent—2022 c 292: See note following RCW 43.330.565.

catchline: Replacement of natural gas with hydrogen—Notice to commission—Tariff approval.


title: RCW 80.28.445

text:
(1)(a) Each electrical company must file a wildfire mitigation plan with the commission as soon as practicable after July 27, 2025, unless the company has previously filed a wildfire mitigation plan with the commission prior to July 27, 2025. An electrical company that has previously filed a wildfire plan with the commission must file a plan update as soon as practicable after July 27, 2025. To the extent practicable, a company should try to align the timing of filing a plan and plan updates with the filing of a multiyear rate plan under RCW 80.28.425. The company shall update a plan no less frequently than every three years. The company shall provide a copy of its wildfire mitigation plan and updates to the department of natural resources and the utility wildland fire prevention advisory committee created in RCW 76.04.780 in the format prescribed under RCW 76.04.185 to be posted on the committee's website.
(b) Nothing in this subsection prohibits an electrical company from updating its wildfire mitigation plan more often than required under subsection (1)(a) of this section.
(2) The commission, after holding at least one public workshop and a hearing, must by order approve, reject, or approve with conditions, an electrical company's wildfire mitigation plan within 120 days or plan update within 90 days of the filing of such plan or plan update. The commission may, in its order, recommend or require additional elements or practices to be included in the company's plan. The commission may, in approving with conditions the plan or plan update, make modifications to the plan or plan update that the commission reasonably finds represent a reasonable balancing of mitigation costs with the resulting reduction of wildfire risk. The commission shall issue an order explaining any modifications at the time the plan or plan update is approved. In evaluating a plan or plan update, the commission may consult with and consider information from federal, tribal, state, or local governmental entities, utilities, industry organizations, and groups representing utility customers. The commission shall describe the nature of its consultations with third parties in its order approving or approving with conditions a plan or plan update.
(3) The commission must adopt rules to implement this section. The rules must:
(a) Provide that a workshop be held pursuant to subsection (2) of this section that will involve local fire protection districts, utilities, affected landowners, and groups representing utility customers; and
(b) Include, but need not be limited to, procedures and standards regarding vegetation management, including guidelines for determining fair market landowner compensation when appropriate, public safety power shutoffs and service restoration, pole materials, circuitry, and monitoring systems.
(4) The commission is not liable for an electrical company's implementation of its wildfire mitigation plan. There is no liability on the part of, and no cause of action of any nature may arise against, the state, commission, commissioners, commission staff, or commission representatives, agents, or consultants for the death of or injury to persons, or property damage, for any action taken by them in the performance of their powers and duties exercised under this section.
[ 2025 c 156 s 2.]
Notes:
Intent—2025 c 156: "It is the intent of the legislature to provide for the safe, efficient, and reliable transmission and distribution of electric power at affordable rates. Preparation for and response to wildfire risk is an increasingly important element of planning conducted by electric utilities. Proper preparation is crucial to position electric utilities to respond to wildfire risk. It is essential to make sure these risks are addressed, as needed, but also within appropriate cost parameters to keep electric power affordable to the public. This legislation is designed to direct the prudent use of resources by electric utilities to mitigate and respond to wildfire risk within costs that can be justified as fair, just, and reasonable in order to balance wildfire risk with affordable electric rates. This act relates to planning only and shall not be construed to create or alter any cause of action or alter the burden of proof in any cause of action." [ 2025 c 156 s 1.]

catchline: Wildfire mitigation plan—Filing requirements.


title: RCW 80.28.450

text:
(1) Any gas company and any electrical company may deploy a thermal energy network within their service territories, in accordance with RCW 80.28.460. If a gas company or electrical company intends to deploy a thermal energy network, the company must submit the project for review and validation of costs assessments to the commission, in the case of an investor-owned gas company or electrical company, or to the governing body of the utility, in the case of a consumer-owned gas company or electrical company.
(2) For an investor-owned gas company or investor-owned electrical company, if the commission validates the costs assessments selection of a thermal energy network, the company may propose to recover the costs of building and operating the project from ratepayers in a rate case filing before the commission. The commission's validation of the utility's costs assessment of a thermal energy network resource does not constitute a prudency finding by the commission or a finding that the resource is used and useful for rate-making purposes.
(3) Companies exempt from commission oversight under RCW 80.04.550 are not subject to regulation by the commission under this chapter.
[ 2024 c 348 s 2.]

catchline: Thermal energy networks.


title: RCW 80.28.460

text:
A thermal energy network pilot project program is established.
(1) The department of commerce may award grants for the thermal energy network pilot project program in accordance with RCW 43.31.033.
(2)(a) A gas company has priority for developing thermal energy network pilot projects in the gas company's service territory, but the gas company must announce in writing to the commission its intention to deploy a pilot project in a specific location within 12 months of June 6, 2024, and then must deploy a pilot project within 30 months of June 6, 2024, to maintain this priority. The gas company may request an extension of these deadlines and the commission may approve the extension if the commission determines the gas company is making substantial progress towards deploying a thermal energy network.
(b) In a specific location where an existing thermal energy company has deployed or is developing a thermal energy network, the commission may opt to not provide priority to the gas company for that location.
(3) When reviewing a thermal energy network pilot project for approval, the commission must consider the following information related to the pilot project:
(a) The number and type of customers served, including the percent of low-income customers served;
(b) The use of the existing natural gas workforce and other labor considerations, such as efforts to transition the natural gas workforce to thermal energy work, training, recruiting, job creation and retention, payment of prevailing wages, and state-registered apprenticeship utilization;
(c) The ability to maintain infrastructure safety and reliability;
(d) The ability to meet 100 percent of the pilot project customers' demand for space heating;
(e) Whether the pilot project creates benefits to customers, communities, and society at large including, but not limited to, public health benefits such as improved air quality in areas with disproportionate environmental or public health burdens and disadvantaged communities as identified by the environmental health disparities map described in RCW 43.70.815, and increased affordability of thermal energy options;
(f) Coordination with any electric utility providing electrical service to areas served by the pilot project;
(g) Whether the pilot project furthers the climate justice mandates of chapter 70A.02 RCW and the emissions reduction mandates of chapter 70A.45 RCW;
(h) Whether the pilot project advances financial and technical approaches to equitable and affordable building electrification;
(i) Whether the pilot project will develop information useful for the commission's adoption of rules governing thermal energy networks;
(j) Enrollment in an electric utility demand response program;
(k) The potential to enable gas pipeline decommissioning and its potential to supplant the need for gas pipeline replacement and the need to spend on gas pipeline replacement programs; and
(l) Whether the thermal energy network is a distributed system that uses ambient temperature fluid and high-efficiency heat pump equipment in each building in the network.
(4) When reviewing a thermal energy network pilot project for approval, the commission may also consider the following information related to the pilot project:
(a) Greenhouse gas emissions reductions;
(b) The use of waste heat, ground-source heat, geothermal resources, or other nonfossil fuel and noncombustion sources, and the use of electric heat pumps;
(c) The ability to provide the pilot project customers' hot water demands;
(d) The ability to provide the pilot project customers' cooling demands; and
(e) The consideration of options to provide thermal energy storage.
(5) Thermal energy network pilot projects under review by the commission are subject to a public comment period of no less than 30 days.
(6) When submitting a thermal energy network pilot project to the commission for review, a gas or electrical company must include specific metrics that the company proposes to use to evaluate the pilot project. These metrics are intended to help inform the commission's rule making and rate making and specifically to help inform any future standardized metrics that the commission may adopt for thermal energy network pilot projects.
[ 2024 c 348 s 3.]

catchline: Thermal energy network pilot project program.


title: RCW 80.28.470

text:
(1) Prior to deploying a thermal energy network pilot project, an investor-owned gas company must issue a request for proposals for a thermal energy network pilot project. When reviewing the proposals, the investor-owned gas company must compare the cost of deployment of a proposed thermal energy network pilot project to the lowest reasonable cost alternative resource for heating services under the gas company's current business practices. This cost comparison must be shared with the commission and considered in calculating grant award amounts as determined pursuant to RCW 43.31.033(4).
(2) An investor-owned gas company may petition the commission to use an alternative process from the process described in subsection (1) of this section to estimate the cost to deploy a thermal energy network pilot project. The commission must review such a petition and then accept, deny, or accept with modifications such an alternative process.
[ 2024 c 348 s 5.]

catchline: Thermal energy network pilot project—Request for proposals.


title: RCW 80.28.480

text:
(1) In any multiyear rate plan proposed by a natural gas company or combination utility, the company may propose a merger into a single rate base of its regulated gas operations with its operation of a thermal energy network. The commission may approve the merger of gas and thermal energy rate bases if the commission finds that such a merger is in the public interest.
(2) For a natural gas company or combination utility that has merged gas and thermal energy rate bases, the natural gas company or combination utility must monetize benefits received from any applicable federal and state tax and other incentives for the benefit of customers. These benefits must be separately accounted for and amortized on a schedule designed to mitigate the rate impacts to customers after the rate bases are combined. These credits may not be used for any other purpose, unless directed by the commission.
[ 2024 c 348 s 7.]

catchline: Merger of gas and thermal energy rate bases.


title: RCW 80.28.485

text:
The commission may appoint inspectors of thermal energy meters who shall, when required by the commission, inspect, examine, prove, and ascertain the accuracy of any and all thermal energy meters used or intended to be used for measuring and ascertaining the quantity of thermal energy, and inspect, examine, and ascertain the accuracy of all apparatus for testing and proving the accuracy of thermal energy meters, and when found to be or made to be correct, stamp or mark all such meters and apparatus with some suitable device to be prescribed by the commission. No thermal energy company may furnish, set, or put in use any thermal energy meters which have not been approved by the commission.
[ 2025 c 263 s 19.]

catchline: Thermal energy meters—Inspectors.


title: RCW 80.28.487

text:
(1) Upon its own motion, or upon request by an electrical company or a thermal energy company, or other party to a general rate case hearing, or other proceeding to set rates, the commission may authorize an electrical company to provide discounted rates to a company operating a thermal energy network in the electrical company's service area.
(2) The commission may authorize an electrical company to provide such discounted rates if the thermal energy network operates in a way that allows the electrical company to deliver electricity more efficiently than an electrical company's standard electric service, including if the thermal energy network shifts load off of peak demand.
(3) If the commission approves discounted rates as described in this section, the commission must consider the benefits of reduced input costs to operate thermal energy networks in future proceedings to set rates for thermal energy networks.
[ 2025 c 263 s 24.]

catchline: Thermal energy networks—Commission authority to provide discounted rates.


title: RCW 80.28.490

text:
(1) It is the policy of the state of Washington to encourage the financing of certain costs and expenses by electrical, gas, and water companies at the lowest, reasonable, and prudent cost to customers of such companies including, but not limited to, bondable rate recovery expenditures.
(2) To carry out the policy described in subsection (1) of this section, the state of Washington and all agencies, instrumentalities, political subdivisions, and local governments thereof:
(a) Acknowledge that owners of rate recovery assets, bondholders, and financing parties require certainty with respect to the owners, bondholders, and financing parties' rights to enter into financing transactions that offer the lowest, reasonable, and prudent cost; and
(b) Pledge and agree with electrical, gas, and water companies; assignees; bondholders; and financing parties not to reduce, alter, or impair, in a manner that is adverse to the electrical, gas, and water companies; assignees; bondholders; or financing parties:
(i) Rate recovery assets;
(ii) Rate recovery bonds or the security for rate recovery bonds; or
(iii) Rate recovery charges or the collection of rate recovery charges.
(3) The pledge and agreement described under subsection (2)(b) of this section includes the pledge and agreement not to reduce, alter, or impair rate recovery assets, rate recovery bonds or the security for rate recovery bonds, or rate recovery charges or the collection of rate recovery charges by taking any of the following actions:
(a) Altering the provisions of this section or RCW 80.28.005, 80.28.303, 80.28.306, or 80.28.309 to the extent that those provisions authorize the commission to issue financing orders that:
(i) Create rate recovery assets;
(ii) Establish rate recovery charges that may not be avoided by electrical, gas, or water company customers, as described under RCW 80.28.500(4); or
(iii) Provide rights and remedies to electrical, gas, and water companies; assignees; bondholders; and financing parties;
(b) Impairing the rights or remedies of electrical, gas, and water companies; assignees; bondholders; or financing parties that are created under this section and RCW 80.28.005, 80.28.303, 80.28.306, and 80.28.309 or by a financing order, including reducing the amount of or impairing the collection of rate recovery charges until all principal, interest, premium, if any, and other amounts due on the rate recovery bonds and financing costs have been paid in full and except as provided under RCW 80.28.500; or
(c) Taking any action listed under RCW 80.28.500(5)(b).
(4) An electrical, gas, or water company or financing subsidiary that issues rate recovery bonds may include the pledge and provisions of this section in the bonds and related documentation.
[ 2025 c 310 s 3.]
Notes:
Purpose—Intent—Severability—Validity of actions taken pursuant to financing orders—Application—Effective date—2025 c 310: See notes following RCW 80.28.005.

catchline: Financing certain costs and expenses by utility companies—Bondable rate recovery expenditures.