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Vantage to Pomona Heights Chapter 3 <br />230 kV Transmission Line Project FEIS Affected Environment <br /> PAGE 3-236 <br />Exemptions from the Public Utility Tax are provided for by Washington State Law for exchanges and re- <br />sales among electricity providers under RCW-82.04-310. These exemptions are for: <br />(11) Exchanges by light and power businesses. There is no specific exemption which applies to an <br />"exchange" of electrical energy or the rights thereto. However, exchanges of electrical energy between <br />light and power businesses do qualify for deduction in computing the Public Utility Tax as being sales of <br />power to another light and power business for resale. An exchange is a transaction which is considered to <br />be a sale and involves a delivery or transfer of energy or the rights thereto by one party to another for <br />which the second party agrees, subject to the terms and conditions of the agreement, to deliver electrical <br />energy at the same or another time. Examples of deductible exchange transactions include, but are not <br />limited to, the following: <br />a) The exchange of electric power for electric power between one light and power business and <br />another light and power business; <br />b) The transmission or transfer of electric power by one light and power business to another light and <br />power business pursuant to the agreement for coordination of operations among power systems of <br />the pacific northwest executed as of September 15, 1964; <br />c) The BPA’s acquisition of electric power for resale to its Washington customers in the light and <br />power business; <br />d) The residential exchange of electric power entered into between a light and power business and the <br />administrator of the BPA pursuant to the Pacific Northwest Electric Power Planning and <br />Conservation Act, Public Law 96-501, Sec. 5(c), 16 United States Code §839(c) (Supp. 1982). In <br />some cases, power is not physically transferred, but the purpose of the residential exchange is for <br />BPA to pay a "subsidy" to the exchanging utilities. For public utility tax reporting purposes, these <br />subsidies will be treated as a nontaxable adjustment (rebate or discount) for purchases of power <br />from BPA.