BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Application of PUGET SOUND ENERGY, INC. For Authority to Implement a Special Contract for Electric Service with King County, a Political Subdivision of the State of Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) ) ) ) ) ) ) ) ) DOCKET UE-010772 ORDER APPROVING SPECIAL CONTRACT ON LESS THAN STATUTORY NOTICE BACKGROUND 1 On May 25, 2001, Puget Sound Energy, Inc. (“PSE” or “Company”) filed with the Commission a Special Contract between PSE and King County (“County”) for electric service at the County’s wastewater treatment facilities located in Renton, Washington. The Special Contract provides the County with an alternative to taking electric service under the existing Schedule 48 indexed rates. The Special Contract has a Base Load component that effectively gives the County the same terms for loads up to 9.46 MWs per hour as the “Small Customer Agreement” filed in Docket Nos. UE-001952 et al. The County participated in that docket but was not a signatory to the Stipulation. The Special Contract also contains rates that will be applied to certain Peaking Loads that the County experiences throughout the year based on its wastewater treatment needs. 2 The Special Contract meets the requirements set forth in WAC 480-80-335. The County’s Renton wastewater treatment facility has unique load characteristics and electric service requirements that distinguish it from other PSE customers. The facility experiences peak load requirements significantly above its normal load levels. These peak loads occur randomly throughout the year based on wastewater treatment needs. In addition, these requirements must be met with resources that ensure physical delivery of the necessary peaking capacity to assure that the public interest in wastewater treatment is served. Finally, the County has expressed an interest in obtaining a path to return to core electric service tariffs from its existing non-core Schedule 48 service. 3 The Special Contract also is consistent with the provisions in the Commission’ s Eleventh Supplemental Order in Docket Nos. UE-001952 et al. specifically preserving the County’s rights. 4 WAC 480-80-335(4) requires thirty days’ notice prior to the effective date of a special contract. The Special Contract bears an inserted effective date of June 25, 2001. This date recognizes statutory notice as required. The Company requests, however, that statutory notice be waived as authorized in WAC 480-80-240, and that the Special Contract become effective May 30, 2001. WAC 480-80-335(4) further provides that the Commission for good cause shown may approve an earlier effective date. Expedited approval of this Special Contract will benefit the customer by removing most of the customer’s load from index-based pricing under Schedule 48. The Special Contract also allows the County to return to core electric service tariffs under the terms of this Special Contract. 5 For purposes of this contract, customers receiving core electric service are responsible for the costs of the service received by their customer class, as determined by the Commission under cost-of-service ratemaking principles. 6 Since the Special Contract provides for service terms and rates that are fair, just, and reasonable, and waiver of statutory notice is not inconsistent with the public interest, it is appropriate that the Commission grant the waiver PSE requests with an effective date of May 30, 2001. FINDINGS 7 (1) Puget Sound Energy, Inc. is an electric company subject to the jurisdiction of the Commission. 8 (2) The Special Contract for electric service with King County filed by Puget Sound Energy, Inc. is in compliance with WAC 480-80-335. 9 (3) After careful examination of the Special Contract filed by Puget Sound Energy, Inc. on May 25, 2001, and giving consideration to all relevant matters and for good cause shown, the Commission finds that the Special Contract should become effective May 30, 2001, with less than statutory notice. 10 (4) This matter was brought before the Commission at its regularly scheduled open meeting on May 30, 2001. The Commissioners, having been fully advised in the matter, and having determined this order to be consistent with the public interest, enter the following order. O R D E R 11 THE COMMISSION GRANTS the requested waiver of statutory notice in connection with the Special Contract filed by PSE on May 25, 2001, and approves the Special Contract for electric service to King County filed on that date by Puget Sound Energy, Inc., which shall become effective on May 30, 2001. DATED at Olympia, Washington, and effective this 30th day of May, 2001. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION MARILYN SHOWALTER, Chairwoman RICHARD HEMSTAD, Commissioner