Bill > HB1656

This bill authorizes electrical, gas, and water companies to securitize certain wildfire-related and emergency-related costs to lower expenses for customers. The legislation creates a comprehensive framework for "rate recovery bonds," which allow utility companies to finance extraordinary costs related to events like wildfires, earthquakes, or pandemics through a specialized financial mechanism. Under the bill, utility companies can petition the Washington Utilities and Transportation Commission for a financing order that allows them to issue bonds to recover costs associated with emergency events, with several key protections: the bonds are not considered public debt, rate recovery charges cannot be avoided by customers, and the commission's ability to regulate rates remains intact. The bill establishes detailed provisions for how these bonds can be created, transferred, and secured, including specific requirements for filing, perfecting security interests, and protecting bondholders. Importantly, the legislation aims to provide a lower-cost financing option for utilities dealing with extraordinary expenses, potentially reducing the financial burden on customers compared to traditional rate recovery methods. The bill includes safeguards to ensure that any surplus funds are returned to customers and that the process remains transparent and regulated by the commission.

Agriculture and Natural Resources

https://app.leg.wa.gov/billsummary?BillNumber=1656&Year=2025&Initiative=false