The bill authorizes electrical, gas, and water companies in Washington State to use securitization financing to recover costs associated with disasters or emergencies, with the goal of reducing customer expenses. It establishes a framework for the utilities and transportation commission to approve financing orders, which may include the issuance of rate recovery bonds that are not considered public debt. The legislation introduces key definitions such as "rate recovery assets," "bondable rate recovery expenditures," and "financing order," and mandates that the commission align its approvals with state climate goals. Additionally, the bill requires companies to submit detailed narratives when applying for financing orders, ensuring transparency regarding the nature of the disaster and associated costs.

The bill also amends existing laws related to the financing and recovery of expenditures, specifying that financing orders must be issued within 180 days of a petition and detailing the maximum bondable rate recovery expenditures. It modifies the process for conservation service tariffs, allowing companies to file these without previous requirements for specific expenditures as bondable conservation investments. The legislation clarifies the handling of rate recovery assets, establishing the priority of security interests and ensuring that transfers of these assets are perfected against third parties. Furthermore, it treats costs for energy or water conservation measures as bondable rate recovery expenditures and mandates that successors to utility companies uphold obligations under approved contracts, even in bankruptcy situations. The act is set to take effect immediately, contingent upon specific funding being secured 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