Low carbon thermal energy

AN ACT Relating to encouraging the deployment of low carbon 1
thermal energy networks; amending RCW 80.04.010, 80.04.550, 2
80.28.005, 80.28.010, 80.28.020, 80.28.030, 80.28.040, 80.28.050, 3
80.28.060, 80.28.065, 80.28.068, 80.28.070, 80.28.075, 80.28.080, 4
80.28.090, 80.28.100, 80.28.120, 80.28.130, 80.28.160, 80.28.170, 5
80.28.240, 80.28.430, and 19.280.030; adding new sections to chapter 6
80.28 RCW; adding a new section to chapter 80.04 RCW; and adding a 7
new section to chapter 43.31 RCW. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:9
Sec. 1. RCW 80.04.010 and 2024 c 348 s 1 are each amended to 10
read as follows: 11
The definitions in this section apply throughout this title 12
unless the context clearly requires otherwise. 13
(1) "Automatic location identification" means a system by which 14
information about a caller's location, including the seven-digit 15
number or ten-digit number used to place a 911 call or a different 16
seven-digit number or ten-digit number to which a return call can be 17
made from the public switched network, is forwarded to a public 18
safety answering point for display. 19
H-0682.1
HOUSE BILL 1514
State of Washington 69th Legislature 2025 Regular Session
By Representatives Ramel, Berry, Doglio, Hunt, Reed, and Parshley
Read first time 01/22/25. Referred to Committee on Environment &
Energy.
p. 1 HB 1514
(2) "Automatic number identification" means a system that allows 1
for the automatic display of the seven-digit or ten-digit number used 2
to place a 911 call. 3
(3) "Battery charging facility" includes a "battery charging 4
station" and a "rapid charging station" as defined in RCW 82.08.816.5
(4) "Cogeneration facility" means any machinery, equipment, 6
structure, process, or property, or any part thereof, installed or 7
acquired for the primary purpose of the sequential generation of 8
electrical or mechanical power and useful heat from the same primary 9
energy source or fuel. 10
(5) "Commission" means the utilities and transportation 11
commission. 12
(6) "Commissioner" means one of the members of such commission.13
(7) "Competitive telecommunications company" means a 14
telecommunications company which has been classified as such by the 15
commission pursuant to RCW 80.36.320. 16
(8) "Competitive telecommunications service" means a service 17
which has been classified as such by the commission pursuant to RCW 18
80.36.330. 19
(9) "Corporation" includes a corporation, company, association or 20
joint stock association. 21
(10) "Department" means the department of health.22
(11) "Electric plant" includes all real estate, fixtures and 23
personal property operated, owned, used or to be used for or in 24
connection with or to facilitate the generation, transmission, 25
distribution, sale or furnishing of electricity for light, heat, or 26
power for hire; and any conduits, ducts or other devices, materials, 27
apparatus or property for containing, holding or carrying conductors 28
used or to be used for the transmission of electricity for light, 29
heat or power. 30
(12)(a) "Electrical company" includes any corporation, company, 31
association, joint stock association, partnership and person, their 32
lessees, trustees or receivers appointed by any court whatsoever 33
(other than a railroad or street railroad company generating 34
electricity solely for railroad or street railroad purposes or for 35
the use of its tenants and not for sale to others), and every city or 36
town owning, operating or managing any electric plant for hire within 37
this state. An electrical company may own, operate, or manage any 38
thermal energy network within this state. 39
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(b) "Electrical company" does not include a company or person 1
employing a cogeneration facility solely for the generation of 2
electricity for its own use or the use of its tenants or for sale to 3
an electrical company, state or local public agency, municipal 4
corporation, or quasi municipal corporation engaged in the sale or 5
distribution of electrical energy, but not for sale to others, unless 6
such company or person is otherwise an electrical company.7
(13) "Facilities" means lines, conduits, ducts, poles, wires, 8
cables, cross-arms, receivers, transmitters, instruments, machines, 9
appliances, instrumentalities and all devices, real estate, 10
easements, apparatus, property and routes used, operated, owned or 11
controlled by any telecommunications company to facilitate the 12
provision of telecommunications service. 13
(14) "Gas company" includes every corporation, company, 14
association, joint stock association, partnership and person, their 15
lessees, trustees or receiver appointed by any court whatsoever, and 16
every city or town, owning, controlling, operating or managing any 17
gas plant within this state. A gas company may own, control, operate, 18
or manage any thermal energy network within this state.19
(15) "Gas plant" includes all real estate, fixtures and personal 20
property, owned, leased, controlled, used or to be used for or in 21
connection with the transmission, distribution, sale or furnishing of 22
natural gas, or the manufacture, transmission, distribution, sale or 23
furnishing of other type gas, for light, heat or power.24
(16) "LATA" means a local access transport area as defined by the 25
commission in conformance with applicable federal law.26
(17) "Local exchange company" means a telecommunications company 27
providing local exchange telecommunications service.28
(18) "Noncompetitive telecommunications service" means any 29
service which has not been classified as competitive by the 30
commission. 31
(19) "Person" includes an individual, a firm or partnership.32
(20) "Private shared telecommunications services" includes the 33
provision of telecommunications and information management services 34
and equipment within a user group located in discrete private 35
premises in building complexes, campuses, or high-rise buildings, by 36
a commercial shared services provider or by a user association, 37
through privately owned customer premises equipment and associated 38
data processing and information management services and includes the 39
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provision of connections to the facilities of a local exchange and to 1
interexchange telecommunications companies. 2
(21) "Private switch automatic location identification service" 3
means a service that enables automatic location identification to be 4
provided to a public safety answering point for 911 calls originating 5
from station lines served by a private switch system.6
(22)(a) "Private telecommunications system" means a 7
telecommunications system controlled by a person or entity for the 8
sole and exclusive use of such person, entity, or affiliate thereof, 9
including the provision of private shared telecommunications services 10
by such person or entity. 11
(b) "Private telecommunications system" does not include a system 12
offered for hire, sale, or resale to the general public.13
(23) "Public service company" includes every gas company, 14
electrical company, telecommunications company, wastewater company, 15
and water company. Ownership or operation of a cogeneration facility 16
does not, by itself, make a company or person a public service 17
company. 18
(24) "Radio communications service company" includes every 19
corporation, company, association, joint stock association, 20
partnership, and person, their lessees, trustees, or receivers 21
appointed by any court, and every city or town making available 22
facilities to provide radio communications service, radio paging, or 23
cellular communications service for hire, sale, or resale.24
(25) "Service" is used in this title in its broadest and most 25
inclusive sense. 26
(26) "System of sewerage" means collection, treatment, and 27
disposal facilities and services for sewerage, or storm or surface 28
water runoff. 29
(27) "Telecommunications" is the transmission of information by 30
wire, radio, optical cable, electromagnetic, or other similar means. 31
As used in this definition, "information" means knowledge or 32
intelligence represented by any form of writing, signs, signals, 33
pictures, sounds, or any other symbols. 34
(28) "Telecommunications company" includes every corporation, 35
company, association, joint stock association, partnership and 36
person, their lessees, trustees or receivers appointed by any court 37
whatsoever, and every city or town owning, operating or managing any 38
facilities used to provide telecommunications for hire, sale, or 39
resale to the general public within this state. 40
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(29) "Thermal energy" means piped noncombustible fluids used for 1
transferring heat into and out of buildings for the purpose of 2
either: (a) Eliminating any resultant on-site greenhouse gas 3
emissions of all types of heating and cooling processes including, 4
but not limited to, comfort heating and cooling, domestic hot water, 5
and refrigeration; (b) improving energy efficiency; or (c) both (a) 6
and (b) of this subsection. 7
(30)(a) "Thermal energy company" means any private person, 8
company, association, partnership, joint venture, or corporation 9
engaged in or proposing to engage in transmitting, distributing, 10
delivering, furnishing, or selling to or for the public thermal 11
energy for any beneficial use other than electricity generation, and 12
may additionally engage in developing and producing thermal energy.13
(b) A thermal energy company does not include any gas company, 14
electrical company, or public utility district that owns, controls, 15
operates, or manages a thermal energy network.16
(c) A thermal energy company does not include a homeowners' 17
association providing service to units solely within its own 18
buildings.19
(d) A thermal energy company does not include a company that 20
develops, produces, or provides thermal energy for a thermal energy 21
network independently from the company involved in the thermal energy 22
network distribution system.23
(31) "Thermal energy network" means all real estate, fixtures, 24
and personal property operated, owned, used, or to be used for or in 25
connection with or to facilitate a utility-scale distribution 26
infrastructure project that supplies thermal energy. A thermal energy 27
network may not rely on combustion to create thermal energy, except 28
for emergency backup purposes. 29
(((31))) (32)(a) "Wastewater company" means a corporation, 30
company, association, joint stock association, partnership and 31
person, their lessees, trustees, or receivers that owns or proposes 32
to develop and own a system of sewerage that is designed for a peak 33
flow of 27,000 to 100,000 gallons per day if treatment is by a large 34
on-site sewerage system, or to serve one hundred or more customers.35
(b) For purposes of commission jurisdiction, wastewater company 36
does not include: (i) Municipal, county, or other publicly owned 37
systems of sewerage; or (ii) wastewater company service to customers 38
outside of an urban growth area as defined in RCW 36.70A.030.39
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(((32))) (33)(a) "Water company" includes every corporation, 1
company, association, joint stock association, partnership and 2
person, their lessees, trustees or receivers appointed by any court 3
whatsoever, and every city or town owning, controlling, operating, or 4
managing any water system for hire within this state.5
(b) For purposes of commission jurisdiction, "water company" does 6
not include any water system serving less than 100 customers where 7
the average annual gross revenue per customer does not exceed $300 8
per year, which revenue figure may be increased annually by the 9
commission by rule adopted pursuant to chapter 34.05 RCW to reflect 10
the rate of inflation as determined by the implicit price deflator of 11
the United States department of commerce. The measurement of 12
customers or revenues must include all portions of water companies 13
having common ownership or control, regardless of location or 14
corporate designation. 15
(c) "Control" is defined by the commission by rule and does not 16
include management by a satellite agency as defined in chapter 17
70A.100 RCW if the satellite agency is not an owner of the water 18
company. 19
(d) "Water company" also includes, for auditing purposes only, 20
nonmunicipal water systems which are referred to the commission 21
pursuant to an administrative order from the department, or the city 22
or county as provided in RCW 80.04.110. 23
(e) Water companies exempt from commission regulation are subject 24
to the provisions of chapter 19.86 RCW. A water company cannot be 25
removed from regulation except with the approval of the commission. 26
Water companies subject to regulation may petition the commission for 27
removal from regulation if the number of customers falls below 100 or 28
the average annual revenue per customer falls below $300. The 29
commission is authorized to maintain continued regulation if it finds 30
that the public interest so requires. 31
(((33))) (34) "Water system" includes all real estate, easements, 32
fixtures, personal property, dams, dikes, head gates, weirs, canals, 33
reservoirs, flumes or other structures or appliances operated, owned, 34
used or to be used for or in connection with or to facilitate the 35
supply, storage, distribution, sale, furnishing, diversion, carriage, 36
apportionment or measurement of water for power, irrigation, 37
reclamation, manufacturing, municipal, domestic or other beneficial 38
uses for hire. 39
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Sec. 2. RCW 80.04.550 and 2015 3rd sp.s. c 19 s 12 are each 1
amended to read as follows: 2
(1) It is the intent of the legislature to exempt from commission 3
regulation ((thermal energy services provided by )) thermal energy 4
companies in operation or under development before July 1, 2025, and 5
combined heat and power facilities that are not otherwise regulated 6
under this title. Nothing in this section shall prevent the 7
commission from issuing or enforcing any order affecting combined 8
heat and power facilities owned or operated by an electrical company 9
that are subsidized by a regulated service. 10
(2) Nothing in this title shall authorize the commission to make 11
or enforce any order affecting rates, tolls, rentals, contracts or 12
charges for service rendered, or the adequacy or sufficiency of the 13
facilities, equipment, instrumentalities, or buildings, or the 14
reasonableness of rules or regulations made, furnished, used, 15
supplied, or in force affecting any ((thermal energy system owned and 16
operated by any thermal energy company or by a combined heat and 17
power facility engaged in thermal energy services.18
(3) For the purposes of this section:19
(a) "Thermal energy company" means any private person, company, 20
association, partnership, joint venture, or corporation engaged in or 21
proposing to engage in developing, producing, transmitting, 22
distributing, delivering, furnishing, or selling to or for the public 23
thermal energy services for any beneficial use other than electricity 24
generation;25
(b) "Thermal energy system" means any system that provides 26
thermal energy for space heating, space cooling, or process uses from 27
a central plant or combined heat and power facility, and that 28
distributes the thermal energy to two or more buildings through a 29
network of pipes;30
(c) "Thermal energy" means heat or cold in the form of steam, 31
heated or chilled water, or any other heated or chilled fluid or 32
gaseous medium; and33
(d) "Thermal energy services" means the provision of thermal 34
energy from a thermal energy system and includes such ancillary 35
services as energy audits, metering, billing, maintenance, and 36
repairs related to thermal energy)):37
(a) Thermal energy company operating a thermal energy network 38
that has less than five independent customers and less than 250 39
residential end users.40
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(i) For the purposes of this section, "independent customer" 1
means a unique direct customer receiving thermal energy for one or 2
more buildings through one or more metered services.3
(ii) For the purposes of this section, "residential end user" 4
means a household in a dwelling unit that is not a direct customer of 5
a thermal energy company but is located within a residential 6
multifamily building or residential portion of a mixed-use building 7
served by a thermal energy company.8
(iii) If a thermal energy company's exempted thermal energy 9
network grows to have five or more independent customers and 250 or 10
more residential end users, the thermal energy company must submit 11
the thermal energy system to the commission in a general rate case 12
filing no later than 12 months after surpassing the exemption 13
threshold so the commission can set the rates and charges of the 14
thermal energy company;15
(b) Thermal energy company owning and operating any thermal 16
energy network in operation before July 1, 2025, unless the thermal 17
energy company chooses to opt-in to commission regulation by 18
providing the commission with a request to opt-in to regulation in 19
writing;20
(c) A combined heat and power facility engaged in thermal energy 21
services, unless such a facility chooses to opt-in to commission 22
regulation by providing the commission with a request to opt-in to 23
regulation in writing.24
(3) A thermal energy company that chooses to opt-in to commission 25
regulation as described in subsection (2)(b) of this section must 26
remain under commission regulation and cannot subsequently opt-out of 27
commission regulation.28
(4) A thermal energy company that owns a thermal energy network 29
that is under development but has not commenced operation as of July 30
1, 2025, is not subject to commission regulation if the thermal 31
energy company notifies the commission in writing of the company's 32
plans to operate the thermal energy network. 33
Sec. 3. RCW 80.28.005 and 1994 c 268 s 1 are each amended to 34
read as follows: 35
Unless the context clearly requires otherwise, the definitions in 36
this section apply throughout this chapter. 37
(1) "Bondable conservation investment" means all expenditures 38
made by electrical, gas, or water companies with respect to energy or 39
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water conservation measures and services intended to improve the 1
efficiency of electricity, gas, or water end use, including related 2
carrying costs if: 3
(a) The conservation measures and services do not produce assets 4
that would be bondable utility property under the general utility 5
mortgage of the electrical, gas, or water company; 6
(b) The commission has determined that the expenditures were 7
incurred in conformance with the terms and conditions of a 8
conservation service tariff in effect with the commission at the time 9
the costs were incurred, and at the time of such determination the 10
commission finds that the company has proven that the costs were 11
prudent, that the terms and conditions of the financing are 12
reasonable, and that financing under this chapter is more favorable 13
to the customer than other reasonably available alternatives;14
(c) The commission has approved inclusion of the expenditures in 15
rate base and has not ordered that they be currently expensed; and16
(d) The commission has not required that the measures demonstrate 17
that energy savings have persisted at a certain level for a certain 18
period before approving the cost of these investments as bondable 19
conservation investment. 20
(2) "Conservation bonds" means bonds, notes, certificates of 21
beneficial interests in trusts, or other evidences of indebtedness or 22
ownership that: 23
(a) The commission determines at or before the time of issuance 24
are issued to finance or refinance bondable conservation investment 25
by an electrical, gas or water company; and 26
(b) Rely partly or wholly for repayment on conservation 27
investment assets and revenues arising with respect thereto.28
(3) "Conservation investment assets" means the statutory right of 29
an electrical, gas, or water company: 30
(a) To have included in rate base all of its bondable 31
conservation investment and related carrying costs; and32
(b) To receive through rates revenues sufficient to recover the 33
bondable conservation investment and the costs of equity and debt 34
capital associated with it, including, without limitation, the 35
payment of principal, premium, if any, and interest on conservation 36
bonds. 37
(4) "Finance subsidiary" means any corporation, company, 38
association, joint stock association, or trust that is beneficially 39
owned, directly or indirectly, by an electrical, gas, or water 40
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company, or in the case of a trust issuing conservation bonds 1
consisting of beneficial interests, for which an electrical, gas, or 2
water company or a subsidiary thereof is the grantor, or an 3
unaffiliated entity formed for the purpose of financing or 4
refinancing approved conservation investment, and that acquires 5
conservation investment assets directly or indirectly from such 6
company in a transaction approved by the commission.7
(5) "Thermal energy" has the same definition as in RCW 80.04.010.8
(6) "Thermal energy company" has the same definition as in RCW 9
80.04.010.10
(7) "Thermal energy network" has the same definition as in RCW 11
80.04.010.12
Sec. 4. RCW 80.28.010 and 2023 c 105 s 6 are each amended to 13
read as follows: 14
(1) All charges made, demanded or received by any gas company, 15
electrical company, wastewater company, ((or)) water company , or 16
thermal energy company for gas, electricity ((or)), water, or thermal 17
energy, or for any service rendered or to be rendered in connection 18
therewith, shall be just, fair, reasonable and sufficient. Reasonable 19
charges necessary to cover the cost of administering the collection 20
of voluntary donations for the purposes of supporting the development 21
and implementation of evergreen community management plans and 22
ordinances under RCW 80.28.300 must be deemed as prudent and 23
necessary for the operation of a utility. 24
(2) Every gas company, electrical company, wastewater company, 25
((and)) water company , and thermal energy company shall furnish and 26
supply such service, instrumentalities and facilities as shall be 27
safe, adequate and efficient, and in all respects just and 28
reasonable. 29
(3) All rules and regulations issued by any gas company, 30
electrical company, wastewater company, ((or)) water company, or 31
thermal energy company, affecting or pertaining to the sale or 32
distribution of its product or service, must be just and reasonable.33
(4) Utility service for residential space heating shall not be 34
terminated between November 15 through March 15 if the customer:35
(a) Notifies the utility of the inability to pay the bill. This 36
notice should be provided within five business days of receiving a 37
payment overdue notice unless there are extenuating circumstances. If 38
the customer fails to notify the utility within five business days 39
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and service is terminated, the customer can, by fulfilling the 1
requirements of this section, receive the protections of this 2
chapter; 3
(b) Provides self-certification of household income for the prior 4
twelve months to a grantee of the department of commerce, which 5
administers federally funded energy assistance programs. The grantee 6
shall determine that the household income does not exceed the maximum 7
allowed for eligibility under the state's plan for low-income energy 8
assistance under 42 U.S.C. 8624 and shall provide a dollar figure 9
that is seven percent of household income. The grantee may verify 10
information provided in the self-certification; 11
(c) Has applied for home heating assistance from applicable 12
government and private sector organizations and certifies that any 13
assistance received will be applied to the current bill and future 14
utility bills; 15
(d) Has applied for low-income weatherization assistance to the 16
utility or other appropriate agency if such assistance is available 17
for the dwelling; 18
(e) Agrees to a payment plan and agrees to maintain the payment 19
plan. The plan will be designed both to pay the past due bill by the 20
following October 15th and to pay for continued utility service. If 21
the past due bill is not paid by the following October 15, the 22
customer is not eligible for protections under this chapter until the 23
past due bill is paid. The plan may not require monthly payments in 24
excess of seven percent of the customer's monthly income plus one-25
twelfth of any arrearage accrued from the date application is made 26
and thereafter during November 15 through March 15. A customer may 27
agree to pay a higher percentage during this period, but shall not be 28
in default unless payment during this period is less than seven 29
percent of monthly income plus one-twelfth of any arrearage accrued 30
from the date application is made and thereafter. If assistance 31
payments are received by the customer subsequent to implementation of 32
the plan, the customer shall contact the utility to reformulate the 33
plan; and 34
(f) Agrees to pay the moneys owed even if the customer moves.35
(5) The utility shall: 36
(a) Include in any notice that an account is delinquent and that 37
service may be subject to termination, a description of the 38
customer's duties in this section; 39
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(b) Assist the customer in fulfilling the requirements under this 1
section; 2
(c) Be authorized to transfer an account to a new residence when 3
a customer who has established a plan under this section moves from 4
one residence to another within the same utility service area;5
(d) Be permitted to disconnect service if the customer fails to 6
honor the payment program except on the days indicated in subsection 7
(8) of this section. Utilities may continue to disconnect service for 8
those practices authorized by law other than for nonpayment as 9
provided for in this subsection. Customers who qualify for payment 10
plans under this section who default on their payment plans and are 11
disconnected can be reconnected and maintain the protections afforded 12
under this chapter by paying all amounts that would have been due and 13
owing under the terms of the applicable payment plan, absent default, 14
on the date on which service is reconnected; and 15
(e) Advise the customer in writing at the time it disconnects 16
service that it will restore service if the customer contacts the 17
utility and fulfills the other requirements of this section.18
(6) A payment plan implemented under this section is consistent 19
with RCW 80.28.080. 20
(7) Every gas company ((and)), electrical company , and thermal 21
energy company shall offer residential customers the option of a 22
budget billing or equal payment plan. The budget billing or equal 23
payment plan shall be offered low-income customers eligible under the 24
state's plan for low-income energy assistance prepared in accordance 25
with 42 U.S.C. 8624 (C)(1) without limiting availability to certain 26
months of the year, without regard to the length of time the customer 27
has occupied the premises, and without regard to whether the customer 28
is the tenant or owner of the premises occupied. 29
(8)(a) Every electrical company ((and)), water company , and 30
thermal energy company must have and must abide by the terms of a 31
tariff approved by the commission that prohibits the electrical 32
company ((or)), water company , or thermal energy company from 33
effecting, due to lack of payment, an involuntary termination of 34
electric ((or)), water, or thermal energy utility service to any 35
residential user, including tenants of metered apartment buildings 36
and residents of mobile homes, on any day for which the national 37
weather service has issued or has announced that it intends to issue 38
a heat-related alert, such as an excessive heat warning, a heat 39
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advisory, an excessive heat watch, or a similar alert, for the area 1
in which the residential user's address is located.2
(b) Nothing in this subsection (8) limits the authority of the 3
commission to prohibit an electrical company ((or)), water company , 4
or thermal energy company from terminating electric ((or)), water, or 5
thermal energy utility service in accordance with an approved tariff, 6
rule, or order, in circumstances independent of the weather.7
(9)(a) A residential user at whose dwelling electric ((or)), 8
water, or thermal energy utility service has been disconnected for 9
lack of payment may request that the utility reconnect service on any 10
day for which the national weather service has issued or has 11
announced that it intends to issue a heat-related alert, such as an 12
excessive heat warning, a heat advisory, an excessive heat watch, or 13
a similar alert, for the area in which the residential user's address 14
is located. The utility shall, through a process approved by the 15
commission, inform all customers in the notice of disconnection of 16
the ability to seek reconnection and provide clear and specific 17
information on how to make that request, including how to contact the 18
utility. 19
(b) Upon receipt of a request made pursuant to (a) of this 20
subsection, the utility shall promptly make a reasonable attempt to 21
reconnect service to the dwelling. The utility, in connection with a 22
request made pursuant to (a) of this subsection, may require the 23
residential user to enter into a payment plan prior to reconnecting 24
service to the dwelling. If the utility requires the residential user 25
to enter into a repayment plan, the repayment plan must comply with 26
subsection (10) of this section. 27
(10) A repayment plan required by a utility pursuant to 28
subsection (9)(b) of this section will be designed both to pay the 29
past due bill by the following May 15th, or as soon as possible after 30
May 15th if needed to maintain monthly payments that are no greater 31
than six percent of the customer's monthly income, and to pay for 32
continued utility service. The plan may not require monthly payments 33
in excess of six percent of the customer's monthly income. A customer 34
may agree to pay a higher percentage during this period, but will not 35
be in default unless payment during this period is less than six 36
percent of the customer's monthly income. If assistance payments are 37
received by the customer subsequent to implementation of the plan, 38
the customer shall contact the utility to reformulate the plan.39
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(11) Every gas company, electrical company, wastewater company, 1
((and)) water company, and thermal energy company shall construct and 2
maintain such facilities in connection with the manufacture and 3
distribution of its product, or provision of its services, as will be 4
efficient and safe to its employees and the public.5
(12) An agreement between the customer and the utility, whether 6
oral or written, does not waive the protections afforded under this 7
chapter. 8
(13) In establishing rates or charges for water service, water 9
companies as defined in RCW 80.04.010 may consider the achievement of 10
water conservation goals and the discouragement of wasteful water use 11
practices. 12
(14) On an annual basis, each utility must submit a report to the 13
commission that includes the total number of electric ((or)), water, 14
or thermal energy disconnections that occurred on each day for which 15
the national weather service issued, or announced that it intended to 16
issue, a heat-related alert. 17
Sec. 5. RCW 80.28.020 and 2011 c 214 s 12 are each amended to 18
read as follows: 19
Whenever the commission shall find, after a hearing had upon its 20
own motion, or upon complaint, that the rates or charges demanded, 21
exacted, charged or collected by any gas company, electrical company, 22
wastewater company, ((or)) water company, or thermal energy company, 23
for gas, electricity, wastewater company services, ((or)) water, or 24
thermal energy, or in connection therewith, or that the rules, 25
regulations, practices or contracts affecting such rates or charges 26
are unjust, unreasonable, unjustly discriminatory or unduly 27
preferential, or in any wise in violation of the provisions of the 28
law, or that such rates or charges are insufficient to yield a 29
reasonable compensation for the service rendered, the commission 30
shall determine the just, reasonable, or sufficient rates, charges, 31
regulations, practices or contracts to be thereafter observed and in 32
force, and shall fix the same by order. 33
Sec. 6. RCW 80.28.030 and 2021 c 65 s 96 are each amended to 34
read as follows: 35
(1) Whenever the commission finds, after such hearing, that the 36
illuminating or heating power, purity or pressure of gas, the 37
efficiency of electric lamp supply, the voltage of the current 38
p. 14 HB 1514
supplied for light, heat or power, the quality of wastewater company 1
services, ((or)) the purity, quality, volume, and pressure of water, 2
or the quality or quantity of thermal energy, supplied by any gas 3
company, electrical company, wastewater company, ((or)) water 4
company, or thermal energy company, as the case may be, is 5
insufficient, impure, inadequate or inefficient, it shall order such 6
improvement in the manufacture, distribution or supply of gas, in the 7
manufacture, transmission or supply of electricity, in the operation 8
of the services and facilities of wastewater companies, or in the 9
storage, distribution or supply of water, or in the quality or 10
quantity of thermal energy, or in the methods employed by such gas 11
company, electrical company, wastewater company, ((or)) water 12
company, or thermal energy company, as will in its judgment be 13
efficient, adequate, just and reasonable. Failure of a water company 14
to comply with state board of health standards adopted under RCW 15
43.20.050(2)(a) or department standards adopted under chapter 70A.100 16
RCW for purity, volume, and pressure is prima facie evidence that the 17
water supplied is insufficient, impure, inadequate, or inefficient. 18
Failure of a wastewater company to comply with standards and permit 19
conditions adopted and implemented under chapter 70A.115 or 90.48 RCW 20
for treatment and disposal of sewerage, is prima facie evidence that 21
the system of sewerage is insufficient, inadequate, or inefficient.22
(2) In ordering improvements in the storage, distribution, or 23
supply of water, the commission shall consult and coordinate with the 24
department of health. In the event that a water company fails to 25
comply with an order of the commission within the deadline specified 26
in the order, the commission may request that the department petition 27
the superior court of Thurston county to place the company in 28
receivership pursuant to chapter 7.60 RCW. 29
(3) In ordering improvements to the system of sewerage, the 30
commission shall consult and coordinate with the department of health 31
or the department of ecology, as appropriate to the agencies' 32
jurisdiction. In the event that a wastewater company fails to comply 33
with an order of the commission within the deadline specified in the 34
order, the commission may petition the superior court of Thurston 35
county to place the company in receivership pursuant to chapter 7.60 36
RCW. 37
Sec. 7. RCW 80.28.040 and 2011 c 214 s 14 are each amended to 38
read as follows: 39
p. 15 HB 1514
(1) Whenever the commission finds, after hearing, that any rules, 1
regulations, measurements or the standard thereof, practices, acts or 2
services of any such gas company, electrical company, wastewater 3
company, ((or)) water company, or thermal energy company are unjust, 4
unreasonable, improper, insufficient, inefficient or inadequate, or 5
that any service which may be reasonably demanded is not furnished, 6
the commission shall fix the reasonable rules, regulations, 7
measurements or the standard thereof, practices, acts or service to 8
be thereafter furnished, imposed, observed and followed, and shall 9
fix the same by order or rule. 10
(2) In ordering improvements to the service of any water company, 11
the commission shall consult and coordinate with the department of 12
health. In the event that a water company fails to comply with an 13
order of the commission within the deadline specified in the order, 14
the commission may request that the department petition the superior 15
court of Thurston county to place the company in receivership 16
pursuant to chapter 7.60 RCW. 17
(3) In ordering improvements to the service of any system of 18
sewerage, the commission shall consult and coordinate with the 19
department of health or the department of ecology, as appropriate to 20
the agencies' jurisdiction. In the event that a wastewater company 21
fails to comply with an order of the commission within the deadline 22
specified in the order, the commission may petition the superior 23
court of Thurston county to place the company in receivership 24
pursuant to chapter 7.60 RCW. 25
Sec. 8. RCW 80.28.050 and 2011 c 214 s 15 are each amended to 26
read as follows: 27
Every gas company, electrical company, wastewater company, 28
((and)) water company, and thermal energy company shall file with the 29
commission and shall print and keep open to public inspection 30
schedules in such form as the commission may prescribe, showing all 31
rates and charges made, established or enforced, or to be charged or 32
enforced, all forms of contract or agreement, all rules and 33
regulations relating to rates, charges or service, used or to be 34
used, and all general privileges and facilities granted or allowed by 35
such gas company, electrical company, wastewater company, ((or)) 36
water company, or thermal energy company. 37
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Sec. 9. RCW 80.28.060 and 2011 c 214 s 16 are each amended to 1
read as follows: 2
(1) Unless the commission otherwise orders, no change may be made 3
in any rate or charge or in any form of contract or agreement or in 4
any rule or regulation relating to any rate, charge or service, or in 5
any general privilege or facility which shall have been filed and 6
published by a gas company, electrical company, wastewater company, 7
((or)) water company , or thermal energy company in compliance with 8
the requirements of RCW 80.28.050 except after thirty days' notice to 9
the commission and publication for thirty days, which notice must 10
plainly state the changes proposed to be made in the schedule then in 11
force and the time when the change will go into effect and all 12
proposed changes must be shown by printing, filing and publishing new 13
schedules, or shall be plainly indicated upon the schedules in force 14
at the time and kept open to public inspection. Proposed changes may 15
be suspended by the commission within thirty days or before the 16
stated effective date of the proposed change, whichever is later. The 17
commission, for good cause shown, may allow changes without requiring 18
the thirty days' notice by duly filing, in such manner as it may 19
direct, an order specifying the changes so to be made and the time 20
when it takes effect. All such changes must be immediately indicated 21
upon its schedules by the company affected. When any change is made 22
in any rate or charge, form of contract or agreement, or any rule or 23
regulation relating to any rate or charge or service, or in any 24
general privilege or facility, the effect of which is to increase any 25
rate or charge, then in existence, attention must be directed on the 26
copy filed with the commission to such increase by some character 27
immediately preceding or following the item in such schedule, such 28
character to be in form as designated by the commission.29
(2) During a state of emergency declared under RCW 43.06.010(12), 30
the governor may waive or suspend the operation or enforcement of 31
this section or any portion of this section or under any 32
administrative rule, and issue any orders to facilitate the operation 33
of state or local government or to promote and secure the safety and 34
protection of the civilian population. 35
Sec. 10. RCW 80.28.065 and 1993 c 245 s 2 are each amended to 36
read as follows: 37
(1) Upon request by an electrical ((or)), gas, or thermal energy 38
company, the commission may approve a tariff schedule that contains 39
p. 17 HB 1514
rates or charges for energy conservation measures, services, or 1
payments provided to individual property owners or customers. The 2
tariff schedule shall require the electrical ((or)), gas, or thermal 3
energy company to enter into an agreement with the property owner or 4
customer receiving services at the time the conservation measures, 5
services, or payments are initially provided. The tariff schedule may 6
allow for the payment of the rates or charges over a period of time 7
and for the application of the payment obligation to successive 8
property owners or customers at the premises where the conservation 9
measures or services were installed or performed or with respect to 10
which the conservation payments were made. 11
(2) The electrical ((or)), gas, or thermal energy company shall 12
record a notice of a payment obligation, containing a legal 13
description, resulting from an agreement under this section with the 14
county auditor or recording officer as provided in RCW 65.04.030.15
(3) The commission may prescribe by rule other methods by which 16
an electrical ((or)), gas, or thermal energy company shall notify 17
property owners or customers of any such payment obligation.18
Sec. 11. RCW 80.28.068 and 2021 c 188 s 3 are each amended to 19
read as follows: 20
(1) Upon its own motion, or upon request by an electrical ((or)), 21
gas, or thermal energy company, or other party to a general rate case 22
hearing, or other proceeding to set rates, the commission may approve 23
rates, charges, services, and/or physical facilities at a discount, 24
or through grants, for low-income senior customers and low-income 25
customers. Expenses and lost revenues as a result of these discounts, 26
grants, or other low-income assistance programs shall be included in 27
the company's cost of service and recovered in rates to other 28
customers. Each gas ((or)), electrical, or thermal energy company 29
must propose a low-income assistance program comprised of a discount 30
rate for low-income senior customers and low-income customers as well 31
as grants and other low-income assistance programs. The commission 32
shall approve, disapprove, or approve with modifications each gas 33
((or)), electrical, or thermal energy company's low-income assistance 34
discount rate and grant program. The gas ((or)), electrical, or 35
thermal energy company must use reasonable and good faith efforts to 36
seek approval for low-income program design, eligibility, operation, 37
outreach, and funding proposals from its low-income and equity 38
advisory groups in advance of filing such proposals with the 39
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commission. In order to remove barriers and to expedite assistance, 1
low-income discounts or grants approved under this section must be 2
provided in coordination with community-based organizations in the 3
gas ((or)), electrical, or thermal energy company's service territory 4
including, but not limited to, grantees of the department of 5
commerce, community action agencies, and community-based nonprofit 6
organizations. Nothing in this section may be construed as limiting 7
the commission's authority to approve or modify tariffs authorizing 8
low-income discounts or grants. 9
(2) Eligibility for a low-income discount rate or grant 10
established in this section may be established upon verification of a 11
low-income customer's receipt of any means-tested public benefit, or 12
verification of eligibility for the low-income home energy assistance 13
program, or its successor program, for which eligibility does not 14
exceed the low-income definition set by the commission pursuant to 15
RCW 19.405.020. The public benefits may include, but are not limited 16
to, assistance that provides cash, housing, food, or medical care 17
including, but not limited to, temporary assistance for needy 18
families, supplemental security income, emergency assistance to 19
elders, disabled, and children, supplemental nutrition assistance 20
program benefits, public housing, federally subsidized or state-21
subsidized housing, the low-income home energy assistance program, 22
veterans' benefits, and similar benefits. 23
(3) Each gas ((or)), electrical, or thermal energy company shall 24
conduct substantial outreach efforts to make the low-income discounts 25
or grants available to eligible customers and must provide annual 26
reports to the commission as to the gas ((or)), electrical, or 27
thermal energy company's outreach activities and results. Such 28
outreach: (a) Shall be made at least semiannually to inform customers 29
of available rebates, discounts, credits, and other cost-saving 30
mechanisms that can help them lower their monthly bills for gas 31
((or)), electrical, or thermal energy service; and (b) may be in the 32
form of any customary and usual methods of communication or 33
distribution including, without limitation, widely broadcast 34
communications with customers, direct mailing, telephone calls, 35
electronic communications, social media postings, in-person contacts, 36
websites of the gas ((or)), electrical, or thermal energy company, 37
press releases, and print and electronic media, that are designed to 38
increase access to and participation in bill assistance programs.39
p. 19 HB 1514
(4) Outreach may include establishing an automated program of 1
matching customer accounts with lists of recipients of the means-2
tested public benefit programs and, based on the results of the 3
matching program, to presumptively offer a low-income discount rate 4
or grant to eligible customers so identified. However, the gas 5
((or)), electrical, or thermal energy company must within 60 days of 6
the presumptive enrollment inform such a low-income customer of the 7
presumptive enrollment and all rights and obligations of a customer 8
under the program, including the right to withdraw from the program 9
without penalty. 10
(5) A residential customer eligible for a low-income discount 11
rate must receive the service on demand. 12
(6) A residential customer may not be charged for initiating or 13
terminating low-income discount rates, grants, or any other form of 14
energy assistance. 15
(7) The definitions in this subsection apply throughout this 16
section unless the context clearly requires otherwise.17
(a) "Energy burden" has the same meaning as defined in 18
RCW 19.405.020. 19
(b) "Low-income" has the same meaning as defined in RCW 20
19.405.020. 21
(c) "Physical facilities" includes, but may not be limited to, a 22
community solar project as defined in RCW 80.28.370.23
Sec. 12. RCW 80.28.070 and 1961 c 14 s 80.28.070 are each 24
amended to read as follows: 25
Nothing in this chapter shall be taken to prohibit a gas company, 26
electrical company ((or)), water company , or thermal energy company 27
from establishing a sliding scale of charges, whereby a greater 28
charge is made per unit for a lesser than a greater quantity for gas, 29
electricity ((or)), water, or thermal energy, or any service rendered 30
or to be rendered. 31
Sec. 13. RCW 80.28.075 and 1988 c 166 s 2 are each amended to 32
read as follows: 33
Upon request by a natural gas company ((or)), an electrical 34
company, or a thermal energy company, the commission may approve a 35
tariff that includes banded rates for any nonresidential natural gas 36
((or)), electric, or thermal energy service that is subject to 37
effective competition from energy suppliers not regulated by the 38
p. 20 HB 1514
utilities and transportation commission. "Banded rate" means a rate 1
that has a minimum and maximum rate. Rates may be changed within the 2
rate band upon such notice as the commission may order.3
Sec. 14. RCW 80.28.080 and 2011 c 214 s 17 are each amended to 4
read as follows: 5
(1)(a) Except as provided otherwise in this subsection, no gas 6
company, electrical company, wastewater company, ((or)) water 7
company, or thermal energy company may charge, demand, collect or 8
receive a greater or less or different compensation for any service 9
rendered or to be rendered than the rates and charges applicable to 10
such service as specified in its schedule filed and in effect at the 11
time, nor may any such company directly or indirectly refund or remit 12
in any manner or by any device any portion of the rates or charges so 13
specified, or furnish its product at free or reduced rates except to 14
its employees and their families, and its officers, attorneys, and 15
agents; to hospitals, charitable and eleemosynary institutions and 16
persons engaged in charitable and eleemosynary work; to indigent and 17
destitute persons; to national homes or state homes for disabled 18
volunteer soldiers and soldiers' and sailors' homes.19
For the purposes of this subsection (1): 20
(i) "Employees" includes furloughed, pensioned and superannuated 21
employees, persons who have become disabled or infirm in the service 22
of any such company; and 23
(ii) "Families" includes the families of those persons named in 24
this proviso, the families of persons killed or dying in the service, 25
also the families of persons killed, and the surviving spouse prior 26
to remarriage, and the minor children during minority of persons who 27
died while in the service of any of the companies named in this 28
subsection (1). 29
(b) Water companies may furnish free or at reduced rates water 30
for the use of the state, or for any project in which the state is 31
interested. 32
(c) Gas companies, electrical companies, wastewater companies, 33
((and)) water companies, and thermal energy companies may charge the 34
defendant for treble damages awarded in lawsuits successfully 35
litigated under RCW 80.28.240. 36
(2) No gas company, electrical company, wastewater company, 37
((or)) water company , or thermal energy company may extend to any 38
person or corporation any form of contract or agreement or any rule 39
p. 21 HB 1514
or regulation or any privilege or facility except such as are 1
regularly and uniformly extended to all persons and corporations 2
under like circumstances. 3
Sec. 15. RCW 80.28.090 and 2011 c 214 s 18 are each amended to 4
read as follows: 5
No gas company, electrical company, wastewater company, ((or)) 6
water company, or thermal energy company may make or grant any undue 7
or unreasonable preference or advantage to any person, corporation, 8
or locality, or to any particular description of service in any 9
respect whatsoever, or subject any particular person, corporation or 10
locality or any particular description of service to any undue or 11
unreasonable prejudice or disadvantage in any respect whatsoever.12
Sec. 16. RCW 80.28.100 and 2011 c 214 s 19 are each amended to 13
read as follows: 14
No gas company, electrical company, wastewater company, ((or)) 15
water company, or thermal energy company may, directly or indirectly, 16
or by any special rate, rebate, drawback or other device or method, 17
charge, demand, collect or receive from any person or corporation a 18
greater or less compensation for gas, electricity, wastewater company 19
services, ((or)) water, or thermal energy, or for any service 20
rendered or to be rendered, or in connection therewith, except as 21
authorized in this chapter, than it charges, demands, collects or 22
receives from any other person or corporation for doing a like or 23
contemporaneous service with respect thereto under the same or 24
substantially similar circumstances or conditions. If the commission 25
finds any instance of a thermal energy resource provider injecting 26
thermal energy into a thermal energy network that exceeds system 27
needs and creates system imbalance, the commission may issue rules to 28
address such an issue to ensure ratepayers are not charged for energy 29
that does not provide a benefit.30
Sec. 17. RCW 80.28.120 and 2011 c 214 s 21 are each amended to 31
read as follows: 32
Every gas, water, wastewater, ((or)) electrical, or thermal 33
energy company owning, operating or managing a plant or system for 34
the distribution and sale of gas, water ((or)), electricity, or 35
thermal energy, or the provision of wastewater company services to 36
the public for hire is, and is held to be, a public service company 37
p. 22 HB 1514
as to such plant or system and as to all gas, water, wastewater 1
company services, ((or)) electricity, or thermal energy distributed 2
or furnished therefrom, whether such gas, water, wastewater company 3
services, ((or)) electricity, or thermal energy be sold wholesale or 4
retail or be distributed wholly to the general public or in part as 5
surplus gas, water, wastewater company services, ((or)) electricity, 6
or thermal energy to manufacturing or industrial concerns or to other 7
public service companies or municipalities for redistribution. 8
Nothing in this title may be construed to prevent any gas company, 9
electrical company ((or)), water company , or thermal energy company 10
from continuing to furnish its product or the use of its lines, 11
equipment or service under any contract or contracts in force on June 12
7, 1911, at the rates fixed in such contract or contracts. However, 13
the commission has power, in its discretion, to direct by order that 14
such contract or contracts be terminated by the company party thereto 15
and thereupon such contract or contracts must be terminated by such 16
company as and when directed by such order. 17
Sec. 18. RCW 80.28.130 and 2024 c 351 s 15 are each amended to 18
read as follows: 19
Whenever the commission finds, after hearing had upon its own 20
motion or upon complaint, that repairs or improvements, to, or 21
changes in, any gas plant, electrical plant, system of sewerage, 22
((or)) water system , or thermal energy network ought to be made, or 23
that any additions or extensions should reasonably be made thereto, 24
in order to promote the security or convenience of the public or 25
employees, or in order to secure adequate service or facilities for 26
manufacturing, distributing or supplying gas, electricity, wastewater 27
company services, ((or)) water, or thermal energy, the commission may 28
enter an order directing that such reasonable repairs, improvements, 29
changes, additions or extensions of such gas plant, electrical plant, 30
system of sewerage, ((or)) water system, or thermal energy network be 31
made. The commission may require a large combination utility as 32
defined in RCW 80.86.010 to incorporate any existing pipeline safety 33
and replacement plans under this section into an integrated system 34
plan established under RCW 80.86.020. 35
NEW SECTION. Sec. 19. A new section is added to chapter 80.28 36
RCW to read as follows: 37
p. 23 HB 1514
The commission may appoint inspectors of thermal energy meters 1
who shall, when required by the commission, inspect, examine, prove, 2
and ascertain the accuracy of any and all thermal energy meters used 3
or intended to be used for measuring and ascertaining the quantity of 4
thermal energy, and inspect, examine, and ascertain the accuracy of 5
all apparatus for testing and proving the accuracy of thermal energy 6
meters, and when found to be or made to be correct, stamp or mark all 7
such meters and apparatus with some suitable device to be prescribed 8
by the commission. No public service company may furnish, set, or put 9
in use any thermal energy meters which have not been approved by the 10
commission. 11
Sec. 20. RCW 80.28.160 and 1961 c 14 s 80.28.160 are each 12
amended to read as follows: 13
Every gas company, electrical company ((and)), water company, and 14
thermal energy company shall prepare and maintain such suitable 15
premises, apparatus and facilities as may be required and approved by 16
the commission for testing and proving the accuracy of gas, electric 17
((or)), water, or thermal energy meters furnished for use by it by 18
which apparatus every meter may be tested. 19
Sec. 21. RCW 80.28.170 and 1961 c 14 s 80.28.170 are each 20
amended to read as follows: 21
If any consumer to whom a meter has been furnished shall request 22
the commission in writing to inspect such meter, the commission shall 23
have the same inspected and tested, and if the same, on being so 24
tested, shall be found to be more than four percent if an electric 25
meter, ((or)) more than two percent if a gas meter, ((or)) more than 26
two percent if a water meter, or more than two percent if a thermal 27
energy meter, defective or incorrect to the prejudice of the 28
consumer, the expense of such inspection and test shall be borne by 29
the gas company, electrical company ((or)), water company, or thermal 30
energy company, and if the same, on being so tested shall be found to 31
be correct within the limits of error prescribed by the provisions of 32
this section, the expense of such inspection and test shall be borne 33
by the consumer. 34
Sec. 22. RCW 80.28.240 and 2011 c 214 s 24 are each amended to 35
read as follows: 36
p. 24 HB 1514
(1) A utility may bring a civil action for damages against any 1
person who commits, authorizes, solicits, aids, abets, or attempts 2
to: 3
(a) Divert, or cause to be diverted, utility services by any 4
means whatsoever; 5
(b) Make, or cause to be made, any connection or reconnection 6
with property owned or used by the utility to provide utility service 7
without the authorization or consent of the utility;8
(c) Prevent any utility meter or other device used in determining 9
the charge for utility services from accurately performing its 10
measuring function by tampering or by any other means;11
(d) Tamper with any property owned or used by the utility to 12
provide utility services; or 13
(e) Use or receive the direct benefit of all or a portion of the 14
utility service with knowledge of, or reason to believe that, the 15
diversion, tampering, or unauthorized connection existed at the time 16
of the use or that the use or receipt was without the authorization 17
or consent of the utility. 18
(2) In any civil action brought under this section, the utility 19
may recover from the defendant as damages three times the amount of 20
actual damages, if any, plus the cost of the suit and reasonable 21
attorney's fees, plus the costs incurred on account of the bypassing, 22
tampering, or unauthorized reconnection, including but not limited to 23
costs and expenses for investigation, disconnection, reconnection, 24
service calls, and expert witnesses. 25
(3) Any damages recovered under this section in excess of the 26
actual damages sustained by the utility may be taken into account by 27
the utilities and transportation commission or other applicable rate-28
making agency in establishing utility rates. 29
(4) As used in this section: 30
(a) "Customer" means the person in whose name a utility service 31
is provided; 32
(b) "Divert" means to change the intended course or path of 33
electricity, gas, ((or)) water, or thermal energy without the 34
authorization or consent of the utility; 35
(c) "Person" means any individual, partnership, firm, 36
association, or corporation or government agency; 37
(d) "Reconnection" means the commencement of utility service to a 38
customer or other person after service has been lawfully disconnected 39
by the utility; 40
p. 25 HB 1514
(e) "Tamper" means to rearrange, injure, alter, interfere with, 1
or otherwise prevent from performing the normal or customary 2
function; 3
(f) "Utility" means any electrical company, gas company, 4
wastewater company, ((or)) water company, or thermal energy company, 5
as those terms are defined in RCW 80.04.010, and includes any 6
electrical, gas, system of sewerage, or water system operated by any 7
public agency; and 8
(g) "Utility service" means the provision of electricity, gas, 9
water, wastewater company services, thermal energy, or any other 10
service or commodity furnished by the utility for compensation.11
Sec. 23. RCW 80.28.430 and 2021 c 188 s 4 are each amended to 12
read as follows: 13
(1) A gas company ((or)), electrical company , or thermal energy 14
company shall, upon request, enter into one or more written 15
agreements with organizations that represent broad customer interests 16
in regulatory proceedings conducted by the commission, subject to 17
commission approval in accordance with subsection (2) of this 18
section, including but not limited to organizations representing low-19
income, commercial, and industrial customers, vulnerable populations, 20
or highly impacted communities. The agreement must govern the manner 21
in which financial assistance may be provided to the organization. 22
More than one gas company, electrical company, thermal energy 23
company, or organization representing customer interests may join in 24
a single agreement. Any agreement entered into under this section 25
must be approved, approved with modifications, or rejected by the 26
commission. The commission must consider whether the agreement is 27
consistent with a reasonable allocation of financial assistance 28
provided to organizations pursuant to this section among classes of 29
customers of the gas or electrical company. 30
(2) Before administering an agreement entered into under 31
subsection (1) of this section, the commission shall, by rule or 32
order, determine: 33
(a) The amount of financial assistance, if any, that may be 34
provided to any organization; 35
(b) The manner in which the financial assistance is distributed;36
(c) The manner in which the financial assistance is recovered in 37
the rates of the gas company ((or)), electrical company , or thermal 38
energy company under subsection (3) of this section; and39
p. 26 HB 1514
(d) Other matters necessary to administer the agreement.1
(3) The commission shall allow a gas company ((or)), electrical 2
company, or thermal energy company that provides financial assistance 3
under this section to recover the amounts provided in rates. The 4
commission shall allow a gas company ((or)), electrical company , or 5
thermal energy company to defer inclusion of those amounts in rates 6
if the gas company ((or)), electrical company , or thermal energy 7
company so elects. An agreement under this section may not provide 8
for payment of any amounts to the commission. 9
(4) Organizations representing vulnerable populations or highly 10
impacted communities must be prioritized for funding under this 11
section. 12
NEW SECTION. Sec. 24. A new section is added to chapter 80.28 13
RCW to read as follows: 14
Upon its own motion, or upon request by an electrical company or 15
a thermal energy company, or other party to a general rate case 16
hearing, or other proceeding to set rates, the commission may approve 17
discounted rates from the electric utility to the thermal energy 18
network if a thermal energy network operates in a way that allows the 19
electric utility to deliver electricity more efficiently than an 20
electrical company's standard electric service, including if the 21
thermal energy network shifts load off of peak demand to: (1) Thermal 22
energy network customers of a thermal energy network that an 23
electrical company owns; and (2) a thermal energy company operating a 24
thermal energy network within an electrical company's service area.25
Sec. 25. RCW 19.280.030 and 2024 c 351 s 9 are each amended to 26
read as follows: 27
Each electric utility must develop a plan consistent with this 28
section. 29
(1) Utilities with more than 25,000 customers that are not full 30
requirements customers must develop or update an integrated resource 31
plan by September 1, 2008. At a minimum, progress reports reflecting 32
changing conditions and the progress of the integrated resource plan 33
must be produced every two years thereafter. An updated integrated 34
resource plan must be developed at least every four years subsequent 35
to the 2008 integrated resource plan. The integrated resource plan, 36
at a minimum, must include: 37
p. 27 HB 1514
(a) A range of forecasts, for at least the next 10 years or 1
longer, of projected customer demand which takes into account 2
econometric data and customer usage; 3
(b) An assessment of commercially available conservation and 4
efficiency resources, as informed, as applicable, by the assessment 5
for conservation potential under RCW 19.285.040 for the planning 6
horizon consistent with (a) of this subsection. Such assessment may 7
include, as appropriate, opportunities for development of combined 8
heat and power as an energy and capacity resource, demand response 9
and load management programs, and currently employed and new policies 10
and programs needed to obtain the conservation and efficiency 11
resources; 12
(c) An assessment of commercially available, utility scale 13
renewable and nonrenewable generating technologies including a 14
comparison of the benefits and risks of purchasing power or building 15
new resources; 16
(d) A comparative evaluation of renewable and nonrenewable 17
generating resources, including transmission and distribution 18
delivery costs, and conservation and efficiency resources using 19
"lowest reasonable cost" as a criterion; 20
(e) An assessment of methods, commercially available 21
technologies, or facilities for integrating renewable resources, 22
including but not limited to battery storage and pumped storage, and 23
addressing overgeneration events, if applicable to the utility's 24
resource portfolio; 25
(f) An assessment and 20-year forecast of the availability of and 26
requirements for regional generation and transmission capacity to 27
provide and deliver electricity to the utility's customers and to 28
meet the requirements of chapter 288, Laws of 2019 and the state's 29
greenhouse gas emissions reduction limits in RCW 70A.45.020. The 30
transmission assessment must identify the utility's expected needs to 31
acquire new long-term firm rights, develop new, or expand or upgrade 32
existing, bulk transmission facilities consistent with the 33
requirements of this section and reliability standards;34
(i) If an electric utility operates transmission assets rated at 35
115,000 volts or greater, the transmission assessment must take into 36
account opportunities to make more effective use of existing 37
transmission capacity through improved transmission system operating 38
practices, energy efficiency, demand response, grid modernization, 39
nonwires solutions, and other programs if applicable;40
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(ii) An electric utility that relies entirely or primarily on a 1
contract for transmission service to provide necessary transmission 2
services may comply with the transmission requirements of this 3
subsection by requesting that the counterparty to the transmission 4
service contract include the provisions of chapter 288, Laws of 2019 5
and chapter 70A.45 RCW as public policy mandates in the transmission 6
service provider's process for assessing transmission need, and 7
planning and acquiring necessary transmission capacity;8
(iii) An electric utility may comply with the requirements of 9
this subsection (1)(f) by relying on and incorporating the results of 10
a separate transmission assessment process, conducted individually or 11
jointly with other utilities and transmission system users, if that 12
assessment process meets the requirements of this subsection;13
(g) A determination of resource adequacy metrics for the resource 14
plan consistent with the forecasts; 15
(h) A forecast of distributed energy resources that may be 16
installed by the utility's customers and an assessment of their 17
effect on the utility's load and operations; 18
(i) An identification of an appropriate resource adequacy 19
requirement and measurement metric consistent with prudent utility 20
practice in implementing RCW 19.405.030 through 19.405.050;21
(j) The integration of the demand forecasts, resource 22
evaluations, and resource adequacy requirement into a long -range 23
assessment describing the mix of supply side generating resources and 24
conservation and efficiency resources that will meet current and 25
projected needs, including mitigating overgeneration events and 26
implementing RCW 19.405.030 through 19.405.050, at the lowest 27
reasonable cost and risk to the utility and its customers, while 28
maintaining and protecting the safety, reliable operation, and 29
balancing of its electric system; 30
(k) An assessment, informed by the cumulative impact analysis 31
conducted under RCW 19.405.140, of: Energy and nonenergy benefits and 32
the avoidance and reductions of burdens to vulnerable populations and 33
highly impacted communities; long-term and short-term public health 34
and environmental benefits, costs, and risks; and energy security and 35
risk; 36
(l) A 10-year clean energy action plan for implementing RCW 37
19.405.030 through 19.405.050 at the lowest reasonable cost, and at 38
an acceptable resource adequacy standard, that identifies the 39
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specific actions to be taken by the utility consistent with the 1
long-range integrated resource plan; ((and))2
(m) An analysis of how the plan accounts for: 3
(i) Modeled load forecast scenarios that consider the anticipated 4
levels of zero emissions vehicle use in a utility's service area, 5
including anticipated levels of zero emissions vehicle use in the 6
utility's service area provided in RCW 47.01.520, if feasible;7
(ii) Analysis, research, findings, recommendations, actions, and 8
any other relevant information found in the electrification of 9
transportation plans submitted under RCW 35.92.450, 54.16.430, and 10
80.28.365; and 11
(iii) Assumed use case forecasts and the associated energy 12
impacts. Electric utilities may, but are not required to, use the 13
forecasts generated by the mapping and forecasting tool created in 14
RCW 47.01.520. This subsection (1)(m)(iii) applies only to plans due 15
to be filed after September 1, 2023;16
(n) An assessment of where and how to incorporate the 17
installation and operation of thermal energy networks into the 18
utility's service area. The utility must consider information from 19
the mapping tool developed in section 27 of this act to evaluate 20
opportunities to meet load growth with thermal energy networks; and21
(o) A consideration of providing discounted rates to thermal 22
energy networks by:23
(i) Considering providing discounted rates to thermal energy 24
network customers of a thermal energy network that the utility owns 25
if the thermal energy network serving those customers operates more 26
efficiently than the utility's standard electric service such that it 27
offsets peak electric load demand; and28
(ii) Considering providing discounted rates to a thermal energy 29
company operating a thermal energy network that is not owned by the 30
utility but is operating within the utility's service area if the 31
thermal energy network operates more efficiently than the utility's 32
standard electric service such that it offsets peak electric load 33
demand. 34
(2) The clean energy action plan must: 35
(a) Identify and be informed by the utility's 10-year cost-36
effective conservation potential assessment as determined under RCW 37
19.285.040, if applicable; 38
(b) Establish a resource adequacy requirement;39
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(c) Identify the potential cost-effective demand response and 1
load management programs that may be acquired; 2
(d) Identify renewable resources, nonemitting electric 3
generation, and distributed energy resources that may be acquired and 4
evaluate how each identified resource may be expected to contribute 5
to meeting the utility's resource adequacy requirement;6
(e) Identify any need to develop new, or expand or upgrade 7
existing, bulk transmission and distribution facilities and document 8
existing and planned efforts by the utility to make more effective 9
use of existing transmission capacity and secure additional 10
transmission capacity consistent with the requirements of subsection 11
(1)(f) of this section; and 12
(f) Identify the nature and possible extent to which the utility 13
may need to rely on alternative compliance options under RCW 14
19.405.040(1)(b), if appropriate. 15
(3)(a) An electric or large combination utility shall consider 16
the social cost of greenhouse gas emissions, as determined by the 17
commission for investor-owned utilities pursuant to RCW 80.28.405 and 18
the department for consumer-owned utilities, when developing 19
integrated resource plans and clean energy action plans. An electric 20
utility must incorporate the social cost of greenhouse gas emissions 21
as a cost adder when: 22
(i) Evaluating and selecting conservation policies, programs, and 23
targets; 24
(ii) Developing integrated resource plans and clean energy action 25
plans; and 26
(iii) Evaluating and selecting intermediate term and long-term 27
resource options. 28
(b) For the purposes of this subsection (3): (i) Gas consisting 29
largely of methane and other hydrocarbons derived from the 30
decomposition of organic material in landfills, wastewater treatment 31
facilities, and anaerobic digesters must be considered a nonemitting 32
resource; and (ii) qualified biomass energy must be considered a 33
nonemitting resource. 34
(4) To facilitate broad, equitable, and efficient implementation 35
of chapter 288, Laws of 2019, a consumer-owned energy utility may 36
enter into an agreement with a joint operating agency organized under 37
chapter 43.52 RCW or other nonprofit organization to develop and 38
implement a joint clean energy action plan in collaboration with 39
other utilities. 40
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(5) All other utilities may elect to develop a full integrated 1
resource plan as set forth in subsection (1) of this section or, at a 2
minimum, shall develop a resource plan that: 3
(a) Estimates loads for the next five and 10 years;4
(b) Enumerates the resources that will be maintained and/or 5
acquired to serve those loads; 6
(c) Explains why the resources in (b) of this subsection were 7
chosen and, if the resources chosen are not: (i) Renewable resources; 8
(ii) methods, commercially available technologies, or facilities for 9
integrating renewable resources, including addressing any 10
overgeneration event; or (iii) conservation and efficiency resources, 11
why such a decision was made; 12
(d) By December 31, 2020, and in every resource plan thereafter, 13
identifies how the utility plans over a 10-year period to implement 14
RCW 19.405.040 and 19.405.050; ((and))15
(e) Accounts for: 16
(i) Modeled load forecast scenarios that consider the anticipated 17
levels of zero emissions vehicle use in a utility's service area, 18
including anticipated levels of zero emissions vehicle use in the 19
utility's service area provided in RCW 47.01.520, if feasible;20
(ii) Analysis, research, findings, recommendations, actions, and 21
any other relevant information found in the electrification of 22
transportation plans submitted under RCW 35.92.450, 54.16.430, and 23
80.28.365; and 24
(iii) Assumed use case forecasts and the associated energy 25
impacts. Electric utilities may, but are not required to, use the 26
forecasts generated by the mapping and forecasting tool created in 27
RCW 47.01.520. This subsection (5)(e)(iii) applies only to plans due 28
to be filed after September 1, 2023; and29
(f) Considers the value of thermal energy networks by:30
(i) Considering providing discounted rates to thermal energy 31
network customers of a thermal energy network that the utility owns 32
if the thermal energy network serving those customers operates more 33
efficiently than the utility's standard electric service such that it 34
offsets peak electric load demand; and35
(ii) Considering providing discounted rates to a thermal energy 36
company operating a thermal energy network that is not owned by the 37
utility but is operating within the utility's service area if the 38
thermal energy network operates more efficiently than the utility's 39
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standard electric service such that it offsets peak electric load 1
demand. 2
(6) Assessments for demand-side resources included in an 3
integrated resource plan may include combined heat and power systems 4
as one of the measures in a conservation supply curve. The value of 5
recoverable waste heat resulting from combined heat and power must be 6
reflected in analyses of cost-effectiveness under this subsection.7
(7) An electric utility that is required to develop a resource 8
plan under this section must complete its initial plan by September 9
1, 2008. 10
(8) Plans developed under this section must be updated on a 11
regular basis, on intervals approved by the commission or the 12
department, or at a minimum on intervals of two years.13
(9)(a) Plans shall not be a basis to bring legal action against 14
electric utilities. However, nothing in this subsection (9)(a) may be 15
construed as limiting the commission or any party from bringing any 16
action pursuant to Title 80 RCW, this chapter, or chapter 19.405 RCW 17
against any large combination utility related to an integrated system 18
plan submitted pursuant to RCW 80.86.020. 19
(b) The commission may approve, reject, or approve with 20
conditions, any integrated system plans submitted by a large 21
combination utility as defined in RCW 80.86.010. 22
(10)(a) To maximize transparency, the commission, for investor-23
owned utilities, or the governing body, for consumer-owned utilities, 24
may require an electric utility to make the utility's data input 25
files available in a native format. Each electric utility shall 26
publish its final plan either as part of an annual report or as a 27
separate document available to the public. The report may be in an 28
electronic form. 29
(b) Nothing in this subsection limits the protection of records 30
containing commercial information under RCW 80.04.095.31
(11) The commission may require a large combination utility as 32
defined in RCW 80.86.010 to incorporate the requirements of this 33
section into an integrated system plan established under RCW 34
80.86.020. 35
NEW SECTION. Sec. 26. A new section is added to chapter 80.04 36
RCW to read as follows: 37
The commission must follow the national and international 38
development of interoperability standards for thermal energy networks 39
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and report to the appropriate committees of the legislature by 1
December 1, 2026, on the maturity and readiness for adoption of these 2
standards. 3
NEW SECTION. Sec. 27. A new section is added to chapter 43.31 4
RCW to read as follows: 5
(1) The department of commerce shall award grants to local 6
governments for the purpose of developing thermal energy networks as 7
defined in RCW 80.04.010. 8
(2) Specifically, grants may be awarded to local governments to:9
(a) Map thermal energy resources; or 10
(b) Develop technical expertise to design, plan, or permit 11
thermal energy networks. 12
(3) Local governments may use these grants to pay for contracts 13
to assist with the purposes identified in this section.14
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