WashingtonHB 15142025-2026 Regular SessionHouseWALLET

Encouraging the deployment of low carbon thermal energy networks.

Sponsored By: Alex Ramel (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

13 provisions identified: 4 benefits, 1 costs, 8 mixed.

Heat alerts protect household thermal service

Thermal energy companies cannot shut off residential service for nonpayment on days with National Weather Service heat alerts for the area. Customers already disconnected for nonpayment can request reconnection on those days. A repayment plan required for reconnection cannot charge more than 6% of monthly income each month. The plan must aim to clear overdue bills by the following May 15, or as soon afterward as the cap allows.

Thermal service tampering brings larger liability

Thermal companies can sue people who divert service, make unauthorized connections, tamper with equipment, or attempt those acts. Liability also covers people who authorize or help the conduct. People receiving service while knowing, or having reason to believe, it was obtained improperly can also be sued. Companies can recover three times actual damages, if any, plus lawsuit costs, reasonable attorney fees, and specified investigation and service costs.

Thermal bill help for low-income households

Thermal energy companies must propose commission-reviewed programs with discounts, grants, and other help for low-income customers, including seniors. Customers must meet the state's low-income definition; public benefit receipt or energy assistance eligibility can verify eligibility within allowed limits. Eligible customers must receive discounts when they ask. Companies must work with community groups and reach out at least twice a year. Program costs and revenue lost from discounts can be recovered through rates paid by other customers.

Households can spread thermal bills evenly

Thermal energy companies must offer residential customers budget billing or equal payment plans. For customers eligible for state low-income energy assistance, access cannot depend on season, length of residence, or renting versus owning. These plans spread payments more evenly but do not reduce the total bill.

More oversight for thermal energy customers

Companies selling thermal energy to the public, wholesale or retail, become public service companies, subject to the law's exemptions. Regulated companies must provide reasonable rates, safe facilities, published rate schedules, and notice before changing rates or service rules. They must follow filed charges, avoid unfair treatment, and charge alike for comparable service unless the law allows differences. Exceptions permit free or reduced service for specified employees and related people, charities, people in need, and veterans' homes. After a hearing, the commission can order needed system improvements; it can also make rules against charging for useless excess energy. Successful lawsuits over unauthorized charges or refunds may result in three times actual damages.

Efficient thermal networks can get discounts

The commission can approve discounted electricity rates for thermal networks in an electric company's service area. Networks must help deliver electricity more efficiently, such as by shifting use away from peak hours. Future thermal network rate reviews must consider the benefit of lower electricity costs from approved discounts. Household bill savings are not guaranteed.

Customer groups gain funding through rates

Thermal companies must enter written financial-assistance agreements when groups representing broad customer interests request them for regulatory proceedings. The commission can approve, change, or reject agreements and decides funding amounts and distribution. Groups representing vulnerable people or highly impacted communities receive priority. Approved costs can be recovered through customer rates immediately or deferred for later recovery.

Smaller thermal users can pay more

The law allows sliding-scale thermal charges with higher per-unit prices for smaller amounts than for larger amounts. Smaller users can face higher unit prices, while larger users can receive lower unit prices under that structure. Companies do not have to adopt this pricing, and the law sets no price.

Thermal meter checks can cost customers

Thermal companies can only install or use commission-approved meters and must maintain required, approved facilities for testing meter accuracy. The commission can inspect and test meters. Customers must request their own commission meter test in writing. The company pays if the meter is more than 2% wrong against the customer's interests; otherwise, the customer pays.

Energy-saving charges can follow your property

At a thermal company's request, the commission can approve charges for energy-saving work, services, or payments. Customers can pay over time, and the payment obligation can pass to later owners or customers at the property. The company must make an agreement with the owner or customer when the help is first provided. It must also record notice of the payment obligation with the county auditor.

Utilities gain networks with combustion limits

Washington electric and gas companies can own or operate thermal energy networks. The law does not require them to build networks. Thermal networks cannot rely on combustion to create thermal energy, except for emergency backup.

Some thermal providers avoid state oversight

Systems with fewer than five independent customers and fewer than 250 residential users are exempt from state utility commission regulation. Companies owning and operating systems running before July 1, 2025, and combined heat and power facilities also receive exemptions. Systems under development but not operating as of July 1, 2025, avoid regulation by giving written notice of operating plans. Exempt providers can choose oversight in writing, but thermal energy companies that opt in cannot later opt out. A system reaching both five independent customers and 250 residential users must be submitted for rate review within 12 months.

Flexible thermal rates for business customers

Companies can request flexible rate ranges for nonresidential thermal service facing effective competition from suppliers outside commission regulation. The commission can approve the ranges, set minimum and maximum rates, and require notice of rate changes. Rates can move up or down within approved ranges; this rule does not cover household service.

Sponsors & Cosponsors

Sponsor

  • Alex Ramel

    Democratic • House

Cosponsors

  • Beth Doglio

    Democratic • House

  • Julia Reed

    Democratic • House

  • Lisa Parshley

    Democratic • House

  • Liz Berry

    Democratic • House

  • Victoria Hunt

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 204 • No: 35

House vote • 4/22/2025

Final Passage as Amended by the Senate

Yes: 70 • No: 26 • Other: 2

Senate vote • 4/15/2025

3rd Reading & Final Passage as Amended by the Senate

Yes: 48 • No: 0 • Other: 1

House vote • 3/10/2025

3rd Reading & Final Passage

Yes: 86 • No: 9 • Other: 3

Actions Timeline

  1. Effective date 7/27/2025.

    5/13/2025House
  2. Chapter 263, 2025 Laws.

    5/13/2025House
  3. Governor signed.

    5/13/2025legislature
  4. Delivered to Governor.

    4/25/2025legislature
  5. President signed.

    4/24/2025legislature
  6. Speaker signed.

    4/23/2025legislature
  7. Passed final passage; yeas, 70; nays, 26; absent, 0; excused, 2.

    4/22/2025House
  8. House concurred in Senate amendments.

    4/22/2025House
  9. Third reading, passed; yeas, 48; nays, 0; absent, 0; excused, 1.

    4/15/2025House
  10. Rules suspended. Placed on Third Reading.

    4/15/2025House
  11. Committee amendment(s) adopted with no other amendments.

    4/15/2025House
  12. Placed on second reading by Rules Committee.

    4/11/2025House
  13. Passed to Rules Committee for second reading.

    4/8/2025House
  14. Minority; without recommendation.

    4/7/2025House
  15. Minority; do not pass.

    4/7/2025House
  16. WM - Majority; do pass with amendment(s) by Environment, Energy & Technology.

    4/7/2025House
  17. Referred to Ways & Means.

    4/2/2025House
  18. And refer to Ways & Means.

    4/1/2025House
  19. ENET - Majority; do pass with amendment(s).

    4/1/2025House
  20. First reading, referred to Environment, Energy & Technology.

    3/12/2025House
  21. Third reading, passed; yeas, 86; nays, 9; absent, 0; excused, 3.

    3/10/2025House
  22. Rules suspended. Placed on Third Reading.

    3/10/2025House
  23. 2nd substitute bill substituted.

    3/10/2025House
  24. Rules Committee relieved of further consideration. Placed on second reading.

    3/9/2025House
  25. Referred to Rules 2 Review.

    2/28/2025House

Bill Text

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