The bill authorizes electrical, gas, and water companies in Washington State to use securitization financing for wildfire-related costs and other emergency expenses, aiming to reduce customer costs. It establishes a framework for the utilities and transportation commission to approve financing orders that designate specific expenditures as bondable rate recovery expenditures. The legislation clarifies that securitized debt is not public debt and maintains the commission's authority over utility rates and services. Key provisions include new definitions for rate recovery assets and financing orders, a pledge from the state to protect bondholders' rights, and a structured process for companies to apply for financing orders, ensuring that expenditures are evaluated for reasonableness and prudence.

Significant amendments to existing laws include the removal of requirements for companies to seek determinations on bondable conservation investments and the introduction of provisions that define rate recovery assets as irrevocable until all financial obligations are fulfilled. The bill establishes a process for transferring rate recovery assets, ensuring these transfers are protected from third-party claims and that any liens are terminated upon transfer. It emphasizes that such transfers should be treated as true sales, outlines obligations in bankruptcy situations, and ensures that Washington law governs security interests in these assets. The act is designed to take effect immediately upon passage, highlighting its urgency for public safety and financial stability.

Statutes affected:
Original Bill: 80.28.005, 80.28.303, 80.28.306, 80.28.309, 80.08.140