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WashingtonHB 19902025-2026 Regular SessionHouse

Authorizing utility companies to securitize certain costs related to disasters or emergencies to lower costs to customers.

Sponsored By: Peter Abbarno (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

Utility bonds must favor customer costs

Utilities choose whether to seek bond financing; the Washington Utilities and Transportation Commission does not have to require it. The commission must decide petitions within 180 days and consider state climate goals. Approval requires reasonable, prudent costs, likely investment-grade bonds, and lower expected costs for customers than reasonable alternatives, measured in today’s dollars. Each order sets the recoverable amount, a maximum bond principal and financing-cost cap, and an issuance deadline at least one year after it becomes final. Orders can allow a utility return on money advanced to bond reserves, using its latest general rate case’s cost of capital.

Customers must keep paying bond charges

Customers in an approved service area pay bond-recovery charges, either separately or through utility rates. Switching providers or customer classes does not avoid them, and orders can cover customers in expanded service areas. Charges continue until principal, interest, premiums, other bond amounts, and financing costs—including legal, servicing, and issuance fees—are fully paid. Orders allocate costs among customer classes based on what causes those costs and adjust collections for overpayments, shortfalls, efficiency, and electrification. State and local governments cannot weaken the charges or their collection while amounts remain unpaid, except as the law or order allows.

Utilities can finance more recovery costs

Washington electric, gas, and water utilities can seek bond financing for costs from declared disasters or emergencies causing widespread damage. Eligible costs include money owed to customers and costs incurred through the financing order date, but exclude fines, enforcement costs, and court-found negligence. Qualifying energy and water conservation costs also qualify, including carrying costs, when approved as utility investments rather than immediate expenses. Conservation costs must follow an approved tariff, be prudently incurred, and not qualify for bonds under the utility’s general mortgage; financing must favor customers, without required proof of savings lasting a set period. Costs incurred before May 17, 2025, also qualify with commission approval, expanding the costs customers can repay through utility bills.

Utility bond protections without government guarantees

Utilities and finance subsidiaries can issue or refinance approved bonds backed only by recovery rights and customer-charge revenue. The law protects transfers, lender priority, and bond payments during utility bankruptcy; successors must keep collecting, and lenders can seek commission-directed payments after default. Washington and local governments do not pay or guarantee these bonds or other covered utility financing instruments. Earlier conservation bonds keep their prior rules, and good-faith actions under earlier financing orders remain protected; the law otherwise applies prospectively. The act took effect May 17, 2025, and required implementing funding in the omnibus appropriations act, naming its bill or chapter number, by June 30, 2025; its terms make it null and void without that funding.

Sponsors & Cosponsors

Sponsor

  • Peter Abbarno

    Republican • House

Cosponsors

  • Beth Doglio

    Democratic • House

  • Lisa Parshley

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 216 • No: 23

House vote • 4/21/2025

Final Passage as Amended by the Senate

Yes: 93 • No: 4 • Other: 1

Senate vote • 4/8/2025

3rd Reading & Final Passage as Amended by the Senate

Yes: 45 • No: 3 • Other: 1

House vote • 3/10/2025

3rd Reading & Final Passage

Yes: 78 • No: 16 • Other: 4

Actions Timeline

  1. Effective date 5/17/2025.

    5/17/2025House

  2. Chapter 310, 2025 Laws.

    5/17/2025House

  3. Governor signed.

    5/17/2025legislature

  4. Delivered to Governor.

    4/24/2025legislature

  5. President signed.

    4/23/2025legislature

  6. Speaker signed.

    4/22/2025legislature

  7. Passed final passage; yeas, 93; nays, 4; absent, 0; excused, 1.

    4/21/2025House

  8. House concurred in Senate amendments.

    4/21/2025House

  9. Third reading, passed; yeas, 45; nays, 3; absent, 0; excused, 1.

    4/8/2025House

  10. Rules suspended. Placed on Third Reading.

    4/8/2025House

  11. Floor amendment(s) adopted.

    4/8/2025House

  12. Committee amendment not adopted.

    4/8/2025House

  13. Placed on second reading by Rules Committee.

    4/2/2025House

  14. Passed to Rules Committee for second reading.

    3/31/2025House

  15. Minority; without recommendation.

    3/28/2025House

  16. Minority; do not pass.

    3/28/2025House

  17. ENET - Majority; do pass with amendment(s).

    3/28/2025House

  18. First reading, referred to Environment, Energy & Technology.

    3/12/2025House

  19. Third reading, passed; yeas, 78; nays, 16; absent, 0; excused, 4.

    3/10/2025House

  20. Rules suspended. Placed on Third Reading.

    3/10/2025House

  21. 2nd substitute bill substituted.

    3/10/2025House

  22. Rules Committee relieved of further consideration. Placed on second reading.

    3/4/2025House

  23. Referred to Rules 2 Review.

    2/28/2025House

  24. APP - Executive action taken by committee.

    2/27/2025House

  25. APP - Majority; 2nd substitute bill be substituted, do pass.

    2/27/2025House

Bill Text

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