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 costs for customers. It establishes a framework for the utilities and transportation commission to issue financing orders that enable these companies to recover bondable rate recovery expenditures and associated financing costs. Key provisions include definitions for terms such as "bondable rate recovery expenditures," "rate recovery bonds," and "financing order," which are essential for implementing this financing mechanism. The bill ensures that securitized debt is not classified as public debt and maintains the commission's authority over rates and services, while also pledging that the state will not impair bondholders' rights.

Significant amendments to existing laws include the removal of language requiring companies to seek determinations for bondable conservation investments and the introduction of new terms clarifying the nature of rate recovery assets. The bill establishes a process for transferring rate recovery assets, ensuring these transfers are protected against claims and encumbrances. It allows costs for energy or water conservation measures to be classified as bondable rate recovery expenditures under certain conditions and maintains the rights of companies regarding rate recovery bonds during bankruptcy. The act is designed to take effect immediately, highlighting its importance for public safety and state governance.

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