The bill authorizes electrical, gas, and water companies in Washington State to use securitization financing to recover costs associated with disasters or emergencies, such as severe weather or wildfires. It establishes a framework for these companies to issue rate recovery bonds, which are not considered public debt, and outlines the commission's authority to oversee utility rates and services. New definitions are introduced, including "bondholder," "financing order," and "rate recovery asset," to clarify the roles of stakeholders in the financing process. The bill also ensures that rate recovery assets and charges are protected from state actions, providing certainty to bondholders, and mandates that financing order applications be approved within 180 days.

Additionally, the bill amends existing laws regarding the management of rate recovery assets, establishing a process for transferring these assets to assignees while protecting them from third-party claims. It clarifies that such transfers are treated as true sales and outlines the obligations of successors in cases of bankruptcy. Significant changes include the removal of previous requirements for companies to apply for determinations on bondable conservation investments and the introduction of provisions that emphasize the irrevocable nature of rate recovery assets. The legislation is designed to streamline cost recovery for utility companies while ensuring customer protection against unreasonable charges and takes effect immediately upon passage.

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