In an effort to address wildfires, severe storms and other disasters impacting Washingtonians each year, state Rep. Peter Abbarno, R-Centralia, has introduced House Bill 1656, a bipartisan proposal to help utility companies recover emergency costs while protecting families and businesses from higher utility bills, according to a recent news release.
"This bill is about protecting ratepayers while ensuring utilities can continue to respond effectively to emergencies," Abbarno stated in the release. "With the increasing frequency of wildfires and other natural disasters, we need tools that allow utilities to recover costs in a way that minimizes the impact on families and businesses across Washington."
HB 1656 allows electrical, gas and water companies to use a financial mechanism called securitization to manage certain emergency-related costs.
The approach enables utilities to minimize utility bill impacts on customers by financing the costs through bonds so that emergency costs can be recovered over time, rather than over a short period, according to the release.
The bill also requires approval from the Washington Utilities and Transportation Commission to ensure that the securitization process provides the lowest possible cost for utility customers, according to the release.
Additionally, it includes safeguards to maintain the financial stability of the bonds, giving investors confidence while protecting ratepayers from unnecessary risks, Abbarno said.
"HB 1656 reflects a bipartisan commitment to balancing financial accountability, environmental stewardship and public safety," Abbarno said. "This legislation is a win for utility customers, emergency response efforts and fiscal responsibility. It demonstrates how we can come together to address critical issues while protecting families and businesses from rising costs."
The House Environment and Energy Committee is expected to hear the bill next week.
To provide testimony or track its progress, visit leg.wa.gov.
