The bill authorizes electrical, gas, and water companies in Washington State to utilize securitization financing for wildfire-related costs and other emergency expenses, aiming to lower 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 amendments include new definitions such as "bondholder," "financing order," and "rate recovery asset," which clarify stakeholder roles in the securitization process. The bill also protects bondholders' rights by ensuring that rate recovery assets or charges are not impaired and outlines the process for companies to petition the commission for financing orders, requiring them to demonstrate the prudence of their expenditures.

Significant changes to existing law include the removal of language requiring companies to apply for determinations regarding bondable conservation investments and the introduction of new terms that clarify the nature of rate recovery assets. The bill establishes a perfected transfer process for rate recovery assets, ensuring protection against third-party claims and automatic termination of liens when transferred to a segregated account. It allows costs for energy or water conservation measures to be classified as bondable rate recovery expenditures under certain conditions and emphasizes that the state is not obligated to guarantee any bonds issued under this act. The bill is designed to take effect immediately upon passage, reflecting 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
Substitute Bill: 80.28.005, 80.28.303, 80.28.306, 80.28.309, 80.08.140