News Releases
Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - January 24, 2001
Contact:  Governor's Communications Office, 360-902-4136

Locke and legislators propose bipartisan package to provide plentiful electricity at fair prices

OLYMPIA - Gov. Gary Locke and a bipartisan group of legislative leaders today announced an energy package designed to ensure that Washington has a plentiful supply of electricity at fair prices.

The package focuses on conserving energy, increasing power production and protecting the state's most vulnerable citizens from price increases.

"I'm confident that this package, combined with the other work we're doing, will go a long way toward helping Washington keep available, affordable energy," Locke said.

The bipartisan package unveiled today by the governor and legislators contains several tax incentive proposals to encourage more electricity production. They include:

Extending an existing machinery and equipment sales tax exemption to include those that generate even small amounts of solar and wind power

Creating sales and use tax exemptions for the purchase of pollution control equipment installed on natural gas-fired thermal electric "peaking" power plants at aluminum plants and elsewhere

Creating tax incentives to encourage direct service industries, such as aluminum plants, to build power plants to produce their own electricity

Tax incentives play a big role in the conservation part of the package.

It proposes to exempt the state sales tax on the purchase of energy-efficient lighting, as well as dishwashers and clothes washers with an Energy Star, signifying the federal government considers them highly energy-efficient.

Locke and the legislators also want state utilities to develop "smart metering" which would allow consumers to elect to use power during cheaper off-peak hours.

The proposed legislation also would require utilities to obtain some of their electricity from wind, solar and other alternative sources.

New buildings funded with state money would have to be energy efficient and existing state facilities would undergo energy audits.

Finally, the legislation proposes a tax credit to power and natural gas suppliers which provide lower cost power to qualified low-income ratepayers.

Locke continues to press the Federal Energy Regulatory Commission to cap wholesale energy prices to stabilize the electricity market that has been upset by California's deregulation. He also is working with California Gov. Gray Davis and Oregon Gov. John Kitzhaber on strategies to stabilize West Coast prices.

Locke and the legislators said they also were taking steps to ensure that the Bonneville Power Administration remains a resource dedicated to providing power to the Pacific Northwest.
Related Links:
- Enough Energy for Washington


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