The bill authorizes electrical, gas, and water companies in Washington State to use securitization financing to recover costs related to disasters or emergencies, potentially reducing customer costs. It establishes a framework for the utilities and transportation commission to approve this financing, ensuring alignment with state climate goals. New definitions and provisions are introduced for "rate recovery assets," "rate recovery bonds," and "financing orders," which are crucial for implementing this financing mechanism. The bill maintains the commission's authority over utility rates and services while outlining the process for companies to petition for financing orders, requiring the commission to find expenditures reasonable and prudent.

Additionally, the bill amends existing laws regarding the handling of rate recovery assets, focusing on the perfection and priority of security interests in these assets. It specifies that multiple security interests will rank according to the time of perfection and establishes that transfers of rate recovery assets to an assignee are perfected against third parties upon filing a notice of transfer. The bill also clarifies that secured parties' rights do not extend to other company assets and mandates that successor companies must honor existing contracts related to rate recovery bonds. It treats costs incurred before the bill's effective date as bondable rate recovery expenditures and ensures the act applies prospectively, preserving the validity of previously issued conservation bonds. The act will take effect immediately, contingent on specific funding being provided by June 30, 2025.

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
Second Substitute: 80.28.005, 80.28.303, 80.28.306, 80.28.309, 80.08.140
Bill as Passed Legislature: 80.28.005, 80.28.303, 80.28.306, 80.28.309, 80.08.140
Session Law: 80.28.005, 80.28.303, 80.28.306, 80.28.309, 80.08.140