(1) In
establishing rates for each gas and electric company regulated by
this chapter, the commission shall adopt policies to encourage
meeting or reducing energy demand through cogeneration as defined
in *RCW 82.35.020, measures which improve the efficiency of
energy end use, and new projects which produce or generate energy
from renewable resources, such as solar energy, wind energy,
hydroelectric energy, geothermal energy, wood, wood waste,
municipal wastes, agricultural products and wastes, and end-use
waste heat. These policies shall include but are not limited to
allowing a return on investment in measures to improve the
efficiency of energy end use, cogeneration, or projects which
produce or generate energy from renewable resources which return
is established by adding an increment of two percent to the rate
of return on common equity permitted on the company's other
investment. Measures or projects encouraged under this section
are those for which construction or installation is begun after
June 12, 1980, and before January 1, 1990, and which, at the time
they are placed in the rate base, are reasonably expected to
save, produce, or generate energy at a total incremental system
cost per unit of energy delivered to end use which is less than
or equal to the incremental system cost per unit of energy
delivered to end use from similarly available conventional energy
resources which utilize nuclear energy or fossil fuels and which
the gas or electric company could acquire to meet energy demand
in the same time period. The rate of return increment shall be
allowed for a period not to exceed thirty years after the measure
or project is first placed in the rate base.
(2) In establishing rates for water companies regulated by
this chapter, the commission may consider the achievement of
water conservation goals and the discouragement of wasteful water
use practices.
[1991 c 347 § 23; 1980 c 149 § 2.]
NOTES:
*Reviser's note: RCW 82.35.020 was repealed by 2005 c 443 § 7, effective July 1, 2006.
Purposes -- 1991 c 347: See note following RCW 90.42.005.
Severability -- 1991 c 347: See RCW 90.42.900.
Public utility tax exemptions relating to energy conservation and production from renewable resources: RCW 82.16.055.