Governor signs Abbarno bill to strengthen utility resilience after disasters

Governor Bob Ferguson signed House Bill 1990 into law, marking a bipartisan victory for public safety and utility resilience in Washington state. The bill, sponsored by Rep. Peter Abbarno, R-Centralia, gives utility companies new tools to recover more quickly and affordably after catastrophic events such as wildfires, floods, and earthquakes.

“This bill is about protecting people and making sure that when disaster strikes, our communities can bounce back faster, and without passing the unbearable costs of rebuilding onto families and ratepayers,” said Abbarno, House Republican Caucus Chair. “It is a proactive, smart investment in our communities’ resilience and financial stability.”

HB 1990 authorizes securitization financing for regulated electric, gas, and water utilities, allowing them, with the approval of the Utilities and Transportation Commission, to issue rate recovery bonds for qualifying emergency-related costs. This financing approach reduces the burden on utility customers by spreading costs over time and lowering overall rates compared to traditional recovery methods.

“I appreciated the bipartisan support and effort to get this bill over the finish line,” continued Abbarno. “I hope this policy is never needed; however, Washington will be better prepared in case of a catastrophic event.”

Under this bill, utilities may petition the UTC to designate certain disaster-related expenditures eligible for securitization. The commission must find the costs to be reasonable, prudent, and likely to result in lower long-term costs for customers compared to standard cost recovery approaches. Approved charges must be transparent, fair, and unavoidable for customers within affected service territories. The legislation ensures these rate recovery tools are accompanied by strict oversight, robust consumer protection, and clear guidelines to prioritize affordability and accountability.

“With growing threats from natural disasters, this bill puts Washington on a stronger footing,” Abbarno added, whose community has suffered from catastrophic flooding in the Chehalis Basin. “It ensures we can respond swiftly, rebuild safely, and protect ratepayers from financial shocks.”

HB 1990 passed the Legislature with bipartisan support. It takes effect immediately.

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Washington State House Republican Communications
houserepublicans.wa.gov