WMB · 10-Q · 2026Q3 · Full report

Washington Climate Commitment Act

WILLIAMS COMPANIES, INC. · 2026-11-02 · Importance 32 · Surprise 24

Washington’s Climate Commitment Act established a cap-and-invest program effective January 1, 2023, requiring NWP to obtain allowances for covered emissions. NWP began purchasing allowances in 2023 for emissions at nine of its thirteen Washington compressor stations and for certain natural-gas deliveries and facilities. The state’s emissions cap will decline over time, reducing the number of allowances available for purchase. NWP’s latest rate-case settlement permits recovery of allowance-purchasing costs in its next rate case; the filing does not provide the associated dollar amounts.

Key facts

• NWP’s latest rate case settlement allows it to recover Washington Climate Commitment Act allowance-purchase costs in its next rate case.
• In 2023, NWP began purchasing allowances for emissions from nine of its thirteen Washington compressor stations that had exceeded 25,000 metric tons of carbon dioxide equivalent at least once since 2015.
• The Washington Climate Commitment Act took effect January 1, 2023, and requires covered businesses such as NWP to obtain allowances equal to annual covered carbon emissions.
• Washington’s emissions cap will decline over time, reducing the number of carbon-emission allowances available to purchase each year.
• NWP began purchasing allowances for its delivery of natural gas to certain Washington customers and facilities whose annual emissions do not require their direct participation in the program.