Transmission capacity

AN ACT Relating to increasing transmission capacity; amending RCW 1
19.280.030; adding a new section to chapter 80.28 RCW; adding a new 2
section to chapter 43.21C RCW; and creating a new section.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 19.280.030 and 2024 c 351 s 9 are each amended to 5
read as follows: 6
Each electric utility must develop a plan consistent with this 7
section. 8
(1) Utilities with more than 25,000 customers that are not full 9
requirements customers must develop or update an integrated resource 10
plan by September 1, 2008. At a minimum, progress reports reflecting 11
changing conditions and the progress of the integrated resource plan 12
must be produced every two years thereafter. An updated integrated 13
resource plan must be developed at least every four years subsequent 14
to the 2008 integrated resource plan. The integrated resource plan, 15
at a minimum, must include: 16
(a) A range of forecasts, for at least the next 10 years or 17
longer, of projected customer demand which takes into account 18
econometric data and customer usage; 19
(b) An assessment of commercially available conservation and 20
efficiency resources, as informed, as applicable, by the assessment 21
H-0383.3
HOUSE BILL 1819
State of Washington 69th Legislature 2025 Regular Session
By Representatives Barnard, Doglio, Parshley, Ramel, and Fitzgibbon
Read first time 02/04/25. Referred to Committee on Environment &
Energy.
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for conservation potential under RCW 19.285.040 for the planning 1
horizon consistent with (a) of this subsection. Such assessment may 2
include, as appropriate, opportunities for development of combined 3
heat and power as an energy and capacity resource, demand response 4
and load management programs, and currently employed and new policies 5
and programs needed to obtain the conservation and efficiency 6
resources; 7
(c) An assessment of commercially available, utility scale 8
renewable and nonrenewable generating technologies including a 9
comparison of the benefits and risks of purchasing power or building 10
new resources; 11
(d) A comparative evaluation of renewable and nonrenewable 12
generating resources, including transmission and distribution 13
delivery costs, and conservation and efficiency resources using 14
"lowest reasonable cost" as a criterion; 15
(e) An assessment of methods, commercially available 16
technologies, or facilities for integrating renewable resources, 17
including but not limited to battery storage and pumped storage, and 18
addressing overgeneration events, if applicable to the utility's 19
resource portfolio; 20
(f) An assessment and 20-year forecast of the availability of and 21
requirements for regional generation and transmission capacity to 22
provide and deliver electricity to the utility's customers and to 23
meet the requirements of chapter 288, Laws of 2019 and the state's 24
greenhouse gas emissions reduction limits in RCW 70A.45.020. The 25
transmission assessment must identify the utility's expected needs to 26
acquire new long-term firm rights, develop new, or expand or upgrade 27
existing, bulk transmission facilities consistent with the 28
requirements of this section and reliability standards;29
(i) If an electric utility operates transmission assets rated at 30
115,000 volts or greater, the transmission assessment must take into 31
account opportunities to make more effective use of existing 32
transmission capacity through improved transmission system operating 33
practices, energy efficiency, demand response, grid modernization, 34
nonwires solutions, and other programs if applicable . The 35
transmission assessment for such an electric utility must examine 36
which of the utility's transmission lines can be reconductored with 37
advanced conductors; 38
(ii) An electric utility that relies entirely or primarily on a 39
contract for transmission service to provide necessary transmission 40
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services may comply with the transmission requirements of this 1
subsection by requesting that the counterparty to the transmission 2
service contract include the provisions of chapter 288, Laws of 2019 3
and chapter 70A.45 RCW as public policy mandates in the transmission 4
service provider's process for assessing transmission need, and 5
planning and acquiring necessary transmission capacity;6
(iii) An electric utility may comply with the requirements of 7
this subsection (1)(f) by relying on and incorporating the results of 8
a separate transmission assessment process, conducted individually or 9
jointly with other utilities and transmission system users, if that 10
assessment process meets the requirements of this subsection;11
(g) A determination of resource adequacy metrics for the resource 12
plan consistent with the forecasts; 13
(h) A forecast of distributed energy resources that may be 14
installed by the utility's customers and an assessment of their 15
effect on the utility's load and operations; 16
(i) An identification of an appropriate resource adequacy 17
requirement and measurement metric consistent with prudent utility 18
practice in implementing RCW 19.405.030 through 19.405.050;19
(j) The integration of the demand forecasts, resource 20
evaluations, and resource adequacy requirement into a long -range 21
assessment describing the mix of supply side generating resources and 22
conservation and efficiency resources that will meet current and 23
projected needs, including mitigating overgeneration events and 24
implementing RCW 19.405.030 through 19.405.050, at the lowest 25
reasonable cost and risk to the utility and its customers, while 26
maintaining and protecting the safety, reliable operation, and 27
balancing of its electric system; 28
(k) An assessment, informed by the cumulative impact analysis 29
conducted under RCW 19.405.140, of: Energy and nonenergy benefits and 30
the avoidance and reductions of burdens to vulnerable populations and 31
highly impacted communities; long-term and short-term public health 32
and environmental benefits, costs, and risks; and energy security and 33
risk; 34
(l) A 10-year clean energy action plan for implementing RCW 35
19.405.030 through 19.405.050 at the lowest reasonable cost, and at 36
an acceptable resource adequacy standard, that identifies the 37
specific actions to be taken by the utility consistent with the 38
long-range integrated resource plan; and 39
(m) An analysis of how the plan accounts for: 40
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(i) Modeled load forecast scenarios that consider the anticipated 1
levels of zero emissions vehicle use in a utility's service area, 2
including anticipated levels of zero emissions vehicle use in the 3
utility's service area provided in RCW 47.01.520, if feasible;4
(ii) Analysis, research, findings, recommendations, actions, and 5
any other relevant information found in the electrification of 6
transportation plans submitted under RCW 35.92.450, 54.16.430, and 7
80.28.365; and 8
(iii) Assumed use case forecasts and the associated energy 9
impacts. Electric utilities may, but are not required to, use the 10
forecasts generated by the mapping and forecasting tool created in 11
RCW 47.01.520. This subsection (1)(m)(iii) applies only to plans due 12
to be filed after September 1, 2023. 13
(2) The clean energy action plan must: 14
(a) Identify and be informed by the utility's 10-year cost-15
effective conservation potential assessment as determined under RCW 16
19.285.040, if applicable; 17
(b) Establish a resource adequacy requirement;18
(c) Identify the potential cost-effective demand response and 19
load management programs that may be acquired; 20
(d) Identify renewable resources, nonemitting electric 21
generation, and distributed energy resources that may be acquired and 22
evaluate how each identified resource may be expected to contribute 23
to meeting the utility's resource adequacy requirement;24
(e) Identify any need to develop new, or expand or upgrade 25
existing, bulk transmission and distribution facilities and document 26
existing and planned efforts by the utility to make more effective 27
use of existing transmission capacity and secure additional 28
transmission capacity consistent with the requirements of subsection 29
(1)(f) of this section; and 30
(f) Identify the nature and possible extent to which the utility 31
may need to rely on alternative compliance options under RCW 32
19.405.040(1)(b), if appropriate. 33
(3)(a) An electric or large combination utility shall consider 34
the social cost of greenhouse gas emissions, as determined by the 35
commission for investor-owned utilities pursuant to RCW 80.28.405 and 36
the department for consumer-owned utilities, when developing 37
integrated resource plans and clean energy action plans. An electric 38
utility must incorporate the social cost of greenhouse gas emissions 39
as a cost adder when: 40
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(i) Evaluating and selecting conservation policies, programs, and 1
targets; 2
(ii) Developing integrated resource plans and clean energy action 3
plans; and 4
(iii) Evaluating and selecting intermediate term and long-term 5
resource options. 6
(b) For the purposes of this subsection (3): (i) Gas consisting 7
largely of methane and other hydrocarbons derived from the 8
decomposition of organic material in landfills, wastewater treatment 9
facilities, and anaerobic digesters must be considered a nonemitting 10
resource; and (ii) qualified biomass energy must be considered a 11
nonemitting resource. 12
(4) To facilitate broad, equitable, and efficient implementation 13
of chapter 288, Laws of 2019, a consumer-owned energy utility may 14
enter into an agreement with a joint operating agency organized under 15
chapter 43.52 RCW or other nonprofit organization to develop and 16
implement a joint clean energy action plan in collaboration with 17
other utilities. 18
(5) All other utilities may elect to develop a full integrated 19
resource plan as set forth in subsection (1) of this section or, at a 20
minimum, shall develop a resource plan that: 21
(a) Estimates loads for the next five and 10 years;22
(b) Enumerates the resources that will be maintained and/or 23
acquired to serve those loads; 24
(c) Explains why the resources in (b) of this subsection were 25
chosen and, if the resources chosen are not: (i) Renewable resources; 26
(ii) methods, commercially available technologies, or facilities for 27
integrating renewable resources, including addressing any 28
overgeneration event; or (iii) conservation and efficiency resources, 29
why such a decision was made; 30
(d) By December 31, 2020, and in every resource plan thereafter, 31
identifies how the utility plans over a 10-year period to implement 32
RCW 19.405.040 and 19.405.050; and 33
(e) Accounts for: 34
(i) Modeled load forecast scenarios that consider the anticipated 35
levels of zero emissions vehicle use in a utility's service area, 36
including anticipated levels of zero emissions vehicle use in the 37
utility's service area provided in RCW 47.01.520, if feasible;38
(ii) Analysis, research, findings, recommendations, actions, and 39
any other relevant information found in the electrification of 40
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transportation plans submitted under RCW 35.92.450, 54.16.430, and 1
80.28.365; and 2
(iii) Assumed use case forecasts and the associated energy 3
impacts. Electric utilities may, but are not required to, use the 4
forecasts generated by the mapping and forecasting tool created in 5
RCW 47.01.520. This subsection (5)(e)(iii) applies only to plans due 6
to be filed after September 1, 2023. 7
(6) Assessments for demand-side resources included in an 8
integrated resource plan may include combined heat and power systems 9
as one of the measures in a conservation supply curve. The value of 10
recoverable waste heat resulting from combined heat and power must be 11
reflected in analyses of cost-effectiveness under this subsection.12
(7) An electric utility that is required to develop a resource 13
plan under this section must complete its initial plan by September 14
1, 2008. 15
(8) Plans developed under this section must be updated on a 16
regular basis, on intervals approved by the commission or the 17
department, or at a minimum on intervals of two years.18
(9)(a) Plans shall not be a basis to bring legal action against 19
electric utilities. However, nothing in this subsection (9)(a) may be 20
construed as limiting the commission or any party from bringing any 21
action pursuant to Title 80 RCW, this chapter, or chapter 19.405 RCW 22
against any large combination utility related to an integrated system 23
plan submitted pursuant to RCW 80.86.020. 24
(b) The commission may approve, reject, or approve with 25
conditions, any integrated system plans submitted by a large 26
combination utility as defined in RCW 80.86.010. 27
(10)(a) To maximize transparency, the commission, for investor-28
owned utilities, or the governing body, for consumer-owned utilities, 29
may require an electric utility to make the utility's data input 30
files available in a native format. Each electric utility shall 31
publish its final plan either as part of an annual report or as a 32
separate document available to the public. The report may be in an 33
electronic form. 34
(b) Nothing in this subsection limits the protection of records 35
containing commercial information under RCW 80.04.095.36
(11) The commission may require a large combination utility as 37
defined in RCW 80.86.010 to incorporate the requirements of this 38
section into an integrated system plan established under RCW 39
80.86.020. 40
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NEW SECTION. Sec. 2. A new section is added to chapter 80.28 1
RCW to read as follows: 2
(1) In establishing rates for each electrical company regulated 3
under this title, the commission may allow an incentive rate of 4
return on investment through December 31, 2040, on capital 5
expenditures for reconductoring transmission lines with advanced 6
conductors for the benefit of ratepayers. The commission must 7
consider and may adopt other policies to incentivize electrical 8
companies to make investments that significantly increase the 9
capacity of existing transmission infrastructure. 10
(2) An incentive rate of return on investment under this section 11
may be allowed only if the electrical company chooses to pursue 12
capital investments in advanced conductor reconductoring. In the case 13
of an incentive rate of return on investment allowed under this 14
section, an increment of up to two percent may be added to the rate 15
of return on common equity allowed on the company's other 16
investments. 17
(3) The incentive rate of return on investment authorized in 18
subsection (2) of this section applies only to projects which have 19
been installed after July 1, 2025. 20
(4) The incentive rate of return on investment increment pursuant 21
to this section may be earned only for a period up to the depreciable 22
life of the investment as defined in the depreciation schedules 23
approved by the commission for review. 24
(5) By December 31, 2029, the commission must report to the 25
appropriate committees of the legislature on the use of any 26
incentives allowed under this section, the quantifiable impacts of 27
the incentives on increasing the capacity of existing electric 28
transmission infrastructure, and any recommendations to the 29
legislature about further utility investments in existing electric 30
transmission corridors. 31
NEW SECTION. Sec. 3. A new section is added to chapter 43.21C 32
RCW to read as follows: 33
The following utility-related actions are categorically exempt 34
from compliance with this chapter: 35
(1) Upgrading or rebuilding an existing transmission line by 36
reconductoring the line with advanced conductors within existing 37
rights-of-way; 38
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(2) Widening existing rights-of-way to meet electrical standards 1
if the widening remains within previously disturbed or developed 2
lands and only extends into an area beyond such rights-of-way as 3
needed to comply with applicable electrical standards.4
NEW SECTION. Sec. 4. This act may be known and cited as the 5
Washington incentives for reconductoring in existing developed 6
transmission corridors act.7
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