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S.B. 214

             1     

OFFICE OF CONSUMER SERVICES ACT

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: John L. Valentine

             5     
House Sponsor: John Dougall

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to public utilities to recodify provisions related to
             10      the Committee of Consumer Services.
             11      Highlighted Provisions:
             12          This bill:
             13          .    enacts the Office of Consumer Services Act;
             14          .    creates the Office of Consumer Services within the Department of Commerce;
             15          .    establishes a director of the office, including:
             16              .    addressing appointment; and
             17              .    addressing terms;
             18          .    establishes the duties of the office and director;
             19          .    converts the Committee of Consumer Services to an advisory committee; and
             20          .    makes technical and conforming amendments.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      AMENDS:
             27          54-7-12.8, as enacted by Laws of Utah 2002, Chapter 319


             28      ENACTS:
             29          54-10a-101, Utah Code Annotated 1953
             30          54-10a-302, Utah Code Annotated 1953
             31      RENUMBERS AND AMENDS:
             32          54-10a-102, (Renumbered from 54-10-1, as enacted by Laws of Utah 1977, Chapter 54)
             33          54-10a-201, (Renumbered from 54-10-5, as last amended by Laws of Utah 1995,
             34      Chapters 20 and 215)
             35          54-10a-202, (Renumbered from 54-10-2, as last amended by Laws of Utah 2002,
             36      Chapter 176)
             37          54-10a-203, (Renumbered from 54-10-7, as last amended by Laws of Utah 1995,
             38      Chapter 20)
             39          54-10a-301, (Renumbered from 54-10-4, as enacted by Laws of Utah 1977, Chapter 54)
             40          54-10a-303, (Renumbered from 54-10-4.5, as enacted by Laws of Utah 1981, Chapter
             41      216)
             42      REPEALS:
             43          54-10-3, as last amended by Laws of Utah 1996, Chapter 243
             44          54-10-6, as enacted by Laws of Utah 1977, Chapter 54
             45     
             46      Be it enacted by the Legislature of the state of Utah:
             47          Section 1. Section 54-7-12.8 is amended to read:
             48           54-7-12.8. Electric energy efficiency and conservation tariff.
             49          (1) As used in this section, "demand side management" means activities or programs
             50      that promote electric energy efficiency or conservation or more efficient management of
             51      electric energy loads.
             52          (2) As provided in this section, the commission may approve a tariff under which an
             53      electrical corporation includes a line item charge on its customers' bills to recover costs
             54      incurred by the electrical corporation for demand side management.
             55          (3) Each electrical corporation proposing a tariff under this section shall, before
             56      submitting the tariff to the commission for approval, seek and receive input from:
             57          (a) the Division of Public Utilities;
             58          (b) the [Committee of] Office of Consumer Services created in Section 54-10a-201 ;


             59      and
             60          (c) other interested parties.
             61          (4) Before approving a tariff under this section, the commission shall hold a hearing if:
             62          (a) requested in writing by the electrical corporation, a customer of the electrical
             63      corporation, or any other interested party within 15 days after the tariff filing; or
             64          (b) the commission determines that a hearing is appropriate.
             65          (5) The commission may approve a tariff under this section either with or without a
             66      provision allowing an end-use customer to receive a credit against the charges imposed under
             67      the tariff for electric energy efficiency measures that:
             68          (a) the customer implements or has implemented at the customer's expense; and
             69          (b) qualify for the credit under criteria established by the Utah Public Service
             70      Commission.
             71          (6) In approving a tariff under this section, the commission may impose whatever
             72      conditions or limits it considers appropriate, including a maximum annual cost.
             73          (7) Unless otherwise ordered by the commission, each tariff under this section
             74      approved by the commission shall take effect no sooner than 30 days after the electrical
             75      corporation files the tariff with the commission.
             76          Section 2. Section 54-10a-101 is enacted to read:
             77     
CHAPTER 10a. OFFICE OF CONSUMER SERVICES ACT

             78     
Part 1. General Provisions

             79          54-10a-101. Title.
             80          This chapter is known as the "Office of Consumer Services Act."
             81          Section 3. Section 54-10a-102 , which is renumbered from Section 54-10-1 is
             82      renumbered and amended to read:
             83           [54-10-1].     54-10a-102. Definitions.
             84          For the purpose of this [act] chapter:
             85          (1) "Applicable public utility" means a public utility in this state for:
             86          (a) natural gas;
             87          (b) electricity; or
             88          (c) telephone.
             89          (2) "Committee" means the Committee of Consumer Services created in Section


             90      54-10a-202 .
             91          (3) "Director" means the director of the office appointed under Section 54-10a-201 .
             92          (4) "Executive director" means the executive director of the Department of Commerce.
             93          (5) "Office" means the Office of Consumer Services created in Section 54-10a-201 .
             94          [(1)] (6) "Residential consumer" is a customer or user of [a natural gas, electric or
             95      telephone] an applicable public utility who maintains a permanent [place of abode] residence
             96      within the state [of Utah].
             97          [(2)] (7) "Small commercial consumer" is a person [or entity] conducting a business
             98      [or] enterprise, agriculture enterprise, or other enterprise in the state [of Utah having] that has:
             99          (a) less than 25 employees; or
             100          (b) a gross income less than $1,000,000 annually.
             101          Section 4. Section 54-10a-201 , which is renumbered from Section 54-10-5 is
             102      renumbered and amended to read:
             103     
Part 2. Organization

             104           [54-10-5].     54-10a-201. Office of Consumer Services -- Director.
             105          (1) There is created within the Department of Commerce the "Office of Consumer
             106      Services."
             107          [(1)] (2) (a) The governor shall appoint, with the [concurrence of the Committee of
             108      Consumer Services] consent of the Senate, a qualified person in the field of public utilities
             109      [who may carry out the policies and directives of the Committee of Consumer Services.] to be
             110      the director of the office.
             111          [(2) This person shall:]
             112          (b) The director shall serve for a term of four years.
             113          (c) For purposes of the individual who is the director on May 12, 2009, that
             114      individual's four-year term is considered to begin on July 1, 2009.
             115          (3) In accordance with this chapter, the director shall on behalf of the office:
             116          (a) represent residential consumers and small commercial consumers of [natural gas,
             117      electric, or telephone utilities in Utah] an applicable public utility; and
             118          (b) represent the interests of:
             119          (i) residential consumers; and
             120          (ii) small commercial consumers[, as directed by the Committee of Consumer


             121      Services].
             122          Section 5. Section 54-10a-202 , which is renumbered from Section 54-10-2 is
             123      renumbered and amended to read:
             124           [54-10-2].     54-10a-202. Committee of Consumer Services.
             125          (1) (a) There is created within the [Division of Public Utilities of the Department of
             126      Commerce a] office an advisory committee known as the "Committee of Consumer Services."
             127          (b) [All members] A member of the committee shall maintain [their] the member's
             128      principal [place of abode] residence within Utah.
             129          (2) (a) The [six members shall be appointed by the] governor [with the consent of the
             130      Senate] shall appoint nine members to the committee subject to Subsection (3).
             131          (b) Except as required by Subsection (2)(c), as terms of current committee members
             132      expire, the governor shall appoint [each] a new member or reappointed member to a four-year
             133      term.
             134          (c) Notwithstanding the requirements of Subsection (2)(b), the governor shall, at the
             135      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             136      committee members are staggered so that approximately half of the committee is appointed
             137      every two years.
             138          (d) When a vacancy occurs in the membership for any reason, the governor shall
             139      appoint a replacement [shall be appointed] for the unexpired term.
             140          (3) Members of the committee shall represent the following geographic and consumer
             141      interests:
             142          (a) one member shall be from Salt Lake City, Provo, or Ogden;
             143          (b) one member shall be from a city other than Salt Lake City, Provo, or Ogden;
             144          (c) one member shall be from an unincorporated area of the state;
             145          (d) one member shall be a low-income resident;
             146          (e) one member shall be a retired person;
             147          (f) one member shall be a small commercial consumer;
             148          (g) one member shall be a farmer or rancher who uses electric power to pump water in
             149      [his] the member's farming or ranching operation; [and]
             150          (h) one member shall be a residential consumer[.]; and
             151          (i) one member shall be appointed to provide geographic diversity on the committee to


             152      ensure to the extent possible that all areas of the state are represented.
             153          (4) [(a)] No more than [three] five members of the committee shall be from the same
             154      political party.
             155          [(b)] (5) The governor shall designate one member as chair of the committee.
             156          (6) (a) A member of the committee may not receive compensation or benefits for the
             157      member's services, but may receive per diem and expenses incurred in the performance of the
             158      member's official duties at the rates established by the Division of Finance under Sections
             159      63A-3-106 and 63A-3-107 .
             160          (b) A member may decline to receive per diem and expenses for the member's service.
             161          (7) (a) The committee may hold monthly meetings.
             162          (b) The committee may hold other meetings, at the times and places the chair and a
             163      majority of the committee determine.
             164          (8) (a) Five members of the committee constitute a quorum of the committee.
             165          (b) A majority of members voting when a quorum is present constitutes an action of
             166      the committee.
             167          Section 6. Section 54-10a-203 , which is renumbered from Section 54-10-7 is
             168      renumbered and amended to read:
             169           [54-10-7].     54-10a-203. Attorney general to represent office.
             170          (1) The attorney general shall assign [not less than] at least one attorney to the
             171      [Committee of Consumer Services of the Department of Commerce] office to represent the
             172      [Committee of Consumer Services] office. [It shall be the duty of such attorney to represent the
             173      Committee of Consumer Services at all hearings or other proceedings]
             174          (2) An attorney assigned to the office under Subsection (1) shall represent the office at
             175      a hearing or other proceeding affecting the services, rates, or charges of [natural gas, electric or
             176      telephone utilities in the state of Utah. He or she may prosecute all actions which the
             177      Committee of Consumer Services deems necessary] an applicable public utility.
             178          (3) An attorney assigned to the office may prosecute an action that the office considers
             179      necessary to enforce the rights of residential consumers and small commercial consumers of
             180      [such utilities] an applicable public utility.
             181          Section 7. Section 54-10a-301 , which is renumbered from Section 54-10-4 is
             182      renumbered and amended to read:


             183     
Part 3. Powers and Duties of Office

             184           [54-10-4].     54-10a-301. Powers and duties of office.
             185          [The Committee of Consumer Services shall have the following duties and
             186      responsibilities:]
             187          (1) The [committee] office shall:
             188          (a) assess the impact of utility rate changes and other regulatory actions related to an
             189      applicable public utility on:
             190          (i) residential consumers; and [those engaged in]
             191          (ii) small commercial [enterprises in the state of Utah.] consumers;
             192          [(2) The committee shall]
             193          (b) assist a residential [consumers and those engaged in] consumer or a small
             194      commercial [enterprises] consumer in appearing before the [Public Service Commission of the
             195      state of Utah.] commission; and
             196          [(3) The committee shall be an]
             197          (c) through its director, advocate, on [its] the office's own behalf and in its own name,
             198      [of positions] a position most advantageous to [a majority of]:
             199          (i) residential consumers [as determined by the committee and those engaged in]; and
             200          (ii) small commercial [enterprises, and] consumers.
             201          (2) (a) The director may bring an original [actions in its own] action in the name of the
             202      office before [the Public Service Commission of this state or any]:
             203          (i) the commission; or
             204          (ii) a court having appellate jurisdiction over [orders or decisions of the Public Service
             205      Commission, as the committee in its discretion may direct] an order or decision of the
             206      commission.
             207          (b) The director on behalf of the office may:
             208          (i) commence an original proceeding, file a complaint, appear as a party, appeal, or
             209      otherwise represent residential consumers or small commercial consumers in a matter or a
             210      proceeding involving regulation of an applicable public utility pending before one or more of
             211      the following of the federal government:
             212          (A) an officer, department, board, agency, commission, or governmental authority; or
             213          (B) a court; or


             214          (ii) intervene in, protest, resist, or advocate the granting, denial, or modification of a
             215      petition, application, complaint, or other proceeding, decision, or order of a governmental
             216      authority of the federal government.
             217          Section 8. Section 54-10a-302 is enacted to read:
             218          54-10a-302. Committee is advisory.
             219          The committee shall advise the director as to any duty or power of the office under
             220      Section 54-10a-301 .
             221          Section 9. Section 54-10a-303 , which is renumbered from Section 54-10-4.5 is
             222      renumbered and amended to read:
             223           [54-10-4.5].     54-10a-303. Representation of electric power utility prohibited.
             224          The [Committee of Consumer Services shall] office, director, or committee may not
             225      represent, assist, or be an advocate on behalf of [any city or municipal electric power utility] a
             226      municipality, as defined in Section 10-1-104 , that generates, transmits, or distributes electrical
             227      energy.
             228          Section 10. Repealer.
             229          This bill repeals:
             230          Section 54-10-3, Per diem and expenses of members -- Meetings.
             231          Section 54-10-6, Review of public utility accounting procedures and expenditures.




Legislative Review Note
    as of 2-20-09 1:35 PM


Office of Legislative Research and General Counsel


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