Original Notice.

Preproposal statement of inquiry was filed as WSR 00-02-011.

Title of Rule: WAC 480-80-335 Utilities general -- Tariff -- Special contracts for electric, water, and natural gas utilities, Commission Docket No. U-991928.

Purpose: To implement the requirements of Executive Order 97-02, requiring agencies to review significant rules for need; effectiveness and efficiency; clarity; intent and statutory authority; cost and fairness. The proposed rule describes and defines the essential terms and conditions of a special contract for the sale of regulated utility services subject to the approval of the commission under WAC 480-80-335. The essential terms and conditions of a special contract under this section will be made available to the public.

Statutory Authority for Adoption: RCW 80.01.040 General, 80.04.160 Utility.

Statute Being Implemented: RCW 80.28.010, [80.28.]020, [80.28.]050, [80.28.]100, [80.28.]120, and [80.28.]270.

Summary: See Explanation of Rule below.

Name of Agency Personnel Responsible for Drafting: Fred Ottavelli, 1300 South Evergreen Park Drive S.W., Olympia, WA 98503, (360) 664-1297; Implementation and Enforcement: Carole J. Washburn, Secretary, 1300 South Evergreen Park Drive S.W., Olympia, WA 98503, (360) 664-1174.

Name of Proponent: Washington Utilities and Transportation Commission, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The proposed rule addresses how the Washington Utilities and Transportation Commission regulates special contracts for electric, water, and natural gas utilities. This rule review complies with Executive Order 97-02 and reviews the chapter for clarity, intent and statutory authority, need, effectiveness and efficiency, coordination, cost and fairness. The proposed rule incorporates and formalizes policies. In addition, the proposed rule describes the essential terms and conditions that must be provided by an applicant, and that will be made public by the commission.

Proposal Changes the Following Existing Rules: Many proposed changes include language and format. The proposed rule describes the terms and conditions that must be provided by an applicant, and that will be made public by the commission during its review under WAC 480-80-335.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The agency does not believe that any increase in cost will result from adopting these rules.

RCW 34.05.328 does not apply to this rule adoption. The commission is not an agency to which RCW 34.05.328 applies.

Hearing Location: Commission Hearing Room, Second Floor, Chandler Plaza Building, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504, on Wednesday, July 12, 2000, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Pat Valentine by Monday, July 10, 2000, TDD (360) 586-8203, or (360) 664-1133.

Submit Written Comments to: Carole J. Washburn, Secretary, P.O. Box 47250, Olympia, WA 98504 or e-mail to <records@wutc.wa.gov>, fax (360) 586-1150, by Wednesday, June 14, 2000. Please include Docket No. U-991928 in your communication.

Date of Intended Adoption: July 12, 2000.

May 11, 2000

Carole Washburn

Secretary

OTS-4035.2

AMENDATORY SECTION(Amending Order 291, Docket No. U-88-2337-R, filed 10/28/88)

WAC 480-80-335
Special contracts for electric, water, and natural gas ((utilities)) companies.

(1) Contracts to be filed. Electric, water, and natural gas companies must file with the commission all contracts for the retail sale of regulated utility services ((by electric, water, or natural gas utilities)) to end-use customers ((which contain or)) that:

(a) State ((rates)) charges or conditions ((which)) that do not conform to any ((applicable)) existing tariff; or ((which))

(b) Provide for utility services ((which are)) not specifically addressed in the ((utility's published)) company's existing tariffs ((shall be filed with the commission)).

(2) ((This rule shall apply prospectively to all contracts, as defined in subsection (1), executed after (the effective date of this rule).)) Significant modification of a previously executed contract will be treated as a new contract for purposes of this section.

(3) Essential terms and conditions of all contracts filed pursuant to this section ((have the same effect as)) are considered a part of the company's filed tariffs and are subject to enforcement, supervision, regulation, ((and)) control, and public inspection as such.      The provisions of this chapter ((shall)) will apply except for those provisions governing the filing, notice, and form of tariffs, including those stated in WAC 480-80-060 through 480-80-320.

(4) ((Each such contract shall be filed with the commission not less than thirty days prior to the proposed effective date of the contract, and shall become effective according to its terms the thirty-first day from the date of its filing unless earlier approved, suspended, or rejected by the commission: Provided, That upon application and for good cause shown, the commission may approve the contract as of an effective date prior to the date that the contract would have become effective in accordance with this rule.)) Filing and effective dates. The contract will become effective on the effective date stated on the contract or thirty days after the filing date, whichever occurs later, unless suspended or rejected by the commission. The commission, for good cause shown, may approve an earlier effective date. In no event may a contract become effective on a date that precedes commission approval. The request for an earlier effective date must include a complete explanation of why an earlier effective date is appropriate.

(5) Each ((contract)) application filed for commission approval ((shall be accompanied by such documentation as may be necessary to)) of a contract must:

(a) Include a complete copy of the proposed contract;

(b) Show that the contract does not result in discrimination ((between)) among customers receiving like and contemporaneous service under the same or substantially similar circumstances ((and provides for the recovery of));

(c) Demonstrate, at a minimum, that the contract charges recover all costs ((associated with the provision of the service.      In addition, the utility shall file the following information in conjunction with each contract submitted for commission approval:

(a) A statement summarizing the)) resulting from providing the service during its term, and, in addition, provide a contribution to the company's fixed costs;

(d) Summarize the basis of the ((rate or)) charge(s) proposed in the contract and ((an explanation of)) explain the derivation of the proposed ((rate or)) charge(s) including all cost computations involved;

(((b) An explanation of all cost computations involved in arriving at the derivation of the level of the rate or charge in the contract;)) and

(((c) A statement indicating)) (e) Indicate the basis for ((the use of)) using a contract rather than a filed tariff for the specific service involved. If the basis for using a contract is the availability of an alternative service provider, identify that provider.

(6) All contracts ((shall)) must be for a stated time period.      The commission may approve terms and conditions ((which)) that prescribe the ((rate or rates)) charge(s) to be applied during the time period, if such ((rates)) charge(s) are found to be appropriate.      Unless otherwise provided by the commission, such approval ((shall)) will not be determinative with respect to the expenses and revenues of the ((utility)) company for subsequent ratemaking considerations.

(7) Filings under this section may be submitted with portions designated "confidential" pursuant to WAC 480-09-015. However, any filing that designates the essential terms and conditions of the contract as "confidential" shall be rejected by the commission as not in compliance with the public inspection requirement of RCW 80.28.050. Essential terms and conditions are:

(a) Identity of the customer;

(b) Nature and characteristics of the service provided, including interruptible, firm, or peak delivery;

(c) Duration of the contract, including any options to renew;

(d) Charge(s) for service, including minimum charge provisions;

(e) Geographic location where service will be provided; and

(f) Additional obligations specified in the contract, if any.

[Statutory Authority: RCW 80.01.040.      88-22-037 (Order 291, Docket No. U-88-2337-R), § 480-80-335, filed 10/28/88.]

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