Honeyford introduces legislation to protect citizens from soaring utility rate increases

January 15, 2009

OLYMPIA…Sen. Jim Honeyford, R-Sunnyside, has introduced legislation that would improve Washington’s competitiveness in renewable energy and protect utility customers from soaring rate increases. Senate Bill 5137 was referred Wednesday to the Senate Environmental, Water and Energy Committee, on which Honeyford is Republican leader. 

“It’s now time to recognize what hydroelectricity has always been—an eligible renewable resource and the hallmark renewable energy produced in the Northwest. In this economy it is vital we take this step to protect our citizens from having to spend even more money on power when our state has an abundance of inexpensive hydroelectric power. The fact that this has not already been amended is a disservice to those we represent,” said Honeyford, noting approximately 70 percent of electric generation in Washington is hydroelectric. 

In November 2006 voters approved Initiative 937, which mandated that large utilities must obtain 15 percent of their electricity through renewable resources. However, I-937 did not consider hydroelectric power as a renewable source of energy. As a result local utilities must sell their low-cost hydropower to other states that do recognize it as a renewable energy.  

Honeyford’s bill also expands the geographic eligibility for new renewable resources. State law prohibits utilities from purchasing power produced outside certain boundaries. By broadening the reach to the area covered by Western Electricity Coordinating Council Washington could import energy from neighboring states and Canada.  

“The bottom line is that expanding the boundary and ability to diversify will benefit Washington ratepayers with lower electricity rates,” Honeyford said. 

In addition, SB 5137 will: 

• Add an alternative compliance payment option that gives utilities flexibility on how and when to comply with the renewable energy standard. It is up to the utility to decide if a resource is too expensive and set aside money to acquire resources when doing so is more cost-effective.

• Recognize the “black liquor” byproduct of paper mills in Washington as a renewable resource. Honeyford said black liquor is inexpensive, and the cost to use it for energy production is less than the cost of disposal.