Local Franchise Authority Threatened (SB 6003)

This bill replaces local franchise authority for video services (cable television) with a state franchise authority at the Washington Utilities & Transportation Commission. The bill also prohibits build-out requirements, and calls for a more restrictive definition of gross revenue than many cities use, thereby decreasing revenue to local governments.

In addition, the bill places the responsibility for transmission compatibility of PEG channels on the local government, which may have the effect of PEG channels being eliminated in some local communities. Overall, cities are strenuously opposed to this bill. AWC will coordinate a panel of speakers at the Senate Water, Energy & Telecommunications Committee hearing at 10 am on Tuesday, February 20.

Pole Attachment Fees (SB 5740/HB 1857)

These companion bills call for the Washington Utilities & Transportation Commission to adopt procedures to hear and resolve complaints about rates, terms or conditions of public utility district (PUD) pole attachment agreements. The bills reference just PUD pole attachment fees and conditions, and are silent on other public power pole attachment agreements, such as cities or cooperatives. Cities are monitoring these bills closely.

Water Power (Dam) License Fees (SB 5881)

The Department of Ecology is advancing this bill that will increase their license fees for the first time in many decades. Cities that operate dams (Seattle, Tacoma, Centralia) will be affected by the new fee structure. A hearing is scheduled in the Senate Water, Energy & Telecommunications Committee at 1:30 pm on Friday, February 23.

Crane Safety (HB 2171/SB 5990)

These companion bills are being advanced in response to the deadly crane accident in Bellevue in late 2006. The bills define all kinds of cranes and will require cranes to have an annual inspection by a certified third-party crane inspector. In addition, crane operators must be qualified under the rules adopted by the Department of Labor & Industries. Cranes used in electric utility operation and for tree trimming are specifically exempt under this bill. It is unclear whether cranes used in dam maintenance and operations are affected.

HB 2171 is scheduled for hearing in the House Commerce & Labor Committee at 1:30 pm on Tuesday, February 20. SB 5990 will be heard in the Senate Labor, Commerce, Research & Development Committee on Monday, February 19 at 10 am. The City of Bellevue is supportive of these bills.

Mitigating the Impacts of Climate Change (SB 6001)

In part a response to Governor Gregoire’s Executive Order setting green house gas emission goals, this omnibus bill was heard this week in the Senate Water, Environment and Telecommunications Committee. It would:

Establish state goals to reduce greenhouse gases emissions.
Require the Department of Ecology to establish a greenhouse gases emissions performance standard for electric utilities operating in the state.
Authorize the Department of General Administration to purchase 100 plug-in hybrid vehicles when commercially available.
Authorize municipal electric utilities and public utility districts to mitigate greenhouse gases emissions from their electricity operations and purchases.
Create the Office of Washington State Climatologist.
Create a public utility tax credit for consumer-owned utilities that invest in energy efficiency measures.

Regarding the public utility tax (PUT) credit, eligible electric utilities may claim an annual 2% PUT credit, for a period of 30 years, for the cost of:

Cost-effective investments in energy efficiency measures that exceed the requirements of Initiative 937; and
Energy efficiency technologies, such as smart meters.

Eligible electric utilities include municipal utilities, public utility districts, and mutual corporations or cooperatives.

According to the fiscal note, SB 6001 will have a substantial (greater than $1 million per year) although indeterminate impact on local government expenditures. Impacts on special districts and municipal electric utilities are indeterminate because it is difficult to estimate the number and extent of the impact on utility long term financial commitments for power purchase.

Under the measure, utilities would be prohibited from entering into contracts for longer than five years with producers that did not meet the greenhouse gas emission standards. This could impact rates and/or operating costs; however, these costs may be partially offset by tax exemptions.

Other local governments may be impacted by mitigation strategies adopted to meet state emission, petroleum importation or employment goals; however, the mitigation strategies are yet to be determined. It is likely that there will be net negatively-impacted jurisdictions and net positively-impacted jurisdictions.

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