Study 6560 Background Information

Overview of 6560 Study Requirements

In ESSB 6560, the legislature directed that the utilities and transportation commission and the department of community, trade and economic development jointly study the following issues:

(a) Variations in retail electricity rates within the state and in comparison with national averages, trends affecting the electricity service costs for all customers in the state, and strategies available to minimize those costs in the future;

(b) Demographics of retail electric customers in the state to include the distribution of customers by size of load;

(c) The potential for cost-shifting among customer classes and among customers within the same class, and strategies available to minimize inappropriate cost shifts;

(d) The consumer protection policies and procedures of electric utilities, including areas of consistency and inconsistency among the utilities in those policies and procedures;

(e) The status, number, and primary characteristics of service territory agreements between electric utilities;

(f) The current level of service quality and reliability as measured by available statistics, trends affecting quality of service and the integrity and reliability of the distribution system, and ways to ensure high service quality and reliability in the future; and

(g) Current levels of investment in conservation, non-hydrorenewable resources, and low-income energy assistance programs, trends affecting such investment, and ways to fairly, efficiently, and effectively foster future achievement of the purposes of such investment.

The Legislature further directed that:

The utilities and transportation commission and the department of community, trade, and economic development shall consult with the chair and ranking minority member of the senate and house of representatives energy and utilities committees, electric utilities, retail electric customers, and other interested parties throughout the course of the study and shall report the results of this study to the legislature and the governor no later than December 31, 1998.

And,

Except as otherwise provided in section 6 of this act, each electric utility shall cooperate with the commission and the department in the preparation of the study and report required by this section, and shall provide all information requested by the commission or the department in a timely manner so that the study and report will be as thorough as possible and completed on schedule. The commission and department shall coordinate and cooperate with each other in preparing the study and report, particularly in requesting information from, or the assistance of, electric utilities, to minimize the potential for redundant requests.

 

Project Timing, Consultative Process

• Report to be presented to the Legislature by December 31, 1998.
• Flexible process that maximizes stakeholder consultation, while minimizing number of group meetings. Potentially interested parties surveyed to determine desired level of involvement.
• Master mailing list of interested parties established from survey responses to allow for notice of general or study component meetings.
• General Meeting to describe study and data needs scheduled for early July.
• Issue specific meetings to be held on 4 areas beginning in late July. Areas include: 1) Rates, trends, strategies to minimize costs; 2) cost-shifting; 3) reliability; 4) public purposes.
• Advisory committee established for review of contractors (pursuant to budget proviso).
• General Meeting to present draft study results in late November.

Scope of the Report

• Report will present facts and retail electrical system data in multiple graphical and narrative formats.
• Logically related information reported in thematic chapters, rather than seven "stand alone" studies.
• Where they are required by direction of the statute, description of alternative strategies and policies will be an inventory of options, not a single or preferred recommendation.

Research and Analysis

• Seven interrelated study components.
• Interagency teams (WUTC/CTED) established to accomplish research, analysis and report writing.
• Information requested from utilities if available and if relevant and necessary to complete analysis. Information requests to be consolidated in a limited number of letters and surveys.
• Information to be collected from utilities during July and August.
• Some information necessary for this study will be reported under legislative direction in separate bill (E2SHB 2831).
• Small utilities (less than 25,000 meters serviced) not required to participate in the study.