First Substitute H.B. 110

Representative Kraig Powell proposes the following substitute bill:


             1     
RENEWABLE ENERGY AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Kraig Powell

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies Title 54, Public Utilities , Chapter 17, Energy Resource Procurement
             10      Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    authorizes a municipality or county to qualify as a contract customer;
             14          .    describes the requirements for a municipality or county to qualify as a contract
             15      customer;
             16          .    requires the Public Service Commission to make rules to determine appropriate
             17      charges and credits for participating customers within a municipality or county who
             18      do not pay a separate demand charge; and
             19          .    makes technical changes.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:


             26           54-17-802 , as enacted by Laws of Utah 2012, Chapter 182
             27           54-17-805 , as enacted by Laws of Utah 2012, Chapter 182
             28      ENACTS:
             29           54-17-806 , Utah Code Annotated 1953
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 54-17-802 is amended to read:
             33           54-17-802. Contracts for the purchase of electricity from a renewable energy
             34      facility.
             35          (1) Within a reasonable time after receiving a request from a contract customer and
             36      subject to reasonable credit requirements, a qualified utility shall enter into a renewable energy
             37      contract with the requesting contract customer to supply some or all of the contract customer's
             38      electric service from one or more renewable energy facilities selected by the contract customer.
             39          (2) Subject to a contract customer agreeing to pay the qualified utility for all
             40      incremental costs associated with metering facilities, communication facilities, and
             41      administration, a renewable energy contract may provide for electricity to be delivered to a
             42      contract customer:
             43          (a) from one renewable energy facility to a contract customer's single metered delivery
             44      location;
             45          (b) from multiple renewable energy facilities to a contract customer's single metered
             46      delivery location; or
             47          (c) from one or more renewable energy facilities to a single contract customer's
             48      multiple metered delivery locations.
             49          (3) (a) A single contract customer may aggregate multiple metered delivery locations to
             50      satisfy the minimum megawatt limit under Subsection (4).
             51          (b) Multiple contract customers may not aggregate their separate metered delivery
             52      locations to satisfy the minimum megawatt limit under Subsection (4).
             53          (4) The amount of electricity provided to a contract customer under a renewable energy
             54      contract may not be less than 2.0 megawatts.
             55          (5) The amount of electricity provided in any hour to a contract customer under a
             56      renewable energy contract may not exceed the contract customer's metered kilowatt-hour load


             57      in that hour at the metered delivery locations under the contract.
             58          (6) A renewable energy contract that meets the requirements of Subsection (4) may
             59      provide for one or more increases in the amount of electricity to be provided under the contract
             60      even though the amount of electricity to be provided by the increase is less than the minimum
             61      amount required under Subsection (4).
             62          (7) The total amount of electricity to be generated by renewable energy facilities and
             63      delivered to contract customers at any one time under all renewable energy contracts may not
             64      exceed 300 megawatts, unless the commission approves in advance a higher amount.
             65          (8) Electricity generated by a renewable energy facility and delivered to a contract
             66      customer under a renewable energy contract may not be included in a net metering program
             67      under Chapter 15, Net Metering of Electricity.
             68          (9) Subject to Subsections (10) and (11), a municipality or county may be a contract
             69      customer for the benefit of some or all participating customers of a qualified utility located
             70      within that municipality or county if the aggregated loads of all participating customers within
             71      a municipality or county satisfy the minimum megawatt limit under Subsection (4).
             72          (10) (a) The maximum delivery requirement of Subsection (5) shall apply to each
             73      participating customer, provided that a participating customer's metered kilowatt-hour load in
             74      each hour may be based on estimated loads or average loads of similar customers if the
             75      customer does not have a meter capable of measuring hourly load.
             76          (b) The bill credits described under Subsection 54-17-805 (3) shall be credited to each
             77      participating customer.
             78          (11) If a municipality or county becomes a contract customer under Subsection (9), the
             79      obligation to pay some or all of the incremental costs under Subsection (2) and delivery costs
             80      under Subsection 54-17-805 (1) or (2) shall, at the option of the municipality or county, be:
             81          (a) assumed by the municipality or county; or
             82          (b) borne by each participating customer.
             83          Section 2. Section 54-17-805 is amended to read:
             84           54-17-805. Costs associated with delivering electricity from a renewable energy
             85      facility to a contract customer.
             86          (1) To the extent that a renewable energy contract provides for the delivery of
             87      electricity from a renewable energy facility owned by the contract customer, the renewable


             88      energy contract shall require the contract customer to pay for the use of the qualified utility's
             89      transmission or distribution facilities at the qualified utility's applicable rates, which may
             90      include transmission costs at the qualified utility's applicable rate approved by the Federal
             91      Energy Regulatory Commission.
             92          (2) To the extent that a renewable energy contract provides for the delivery of
             93      electricity from a renewable energy facility owned by a person other than the qualified utility or
             94      the contract customer, the renewable energy contract shall require the contract customer to bear
             95      all reasonably identifiable costs that the qualified utility incurs in delivering the electricity from
             96      the renewable energy facility to the contract customer, including all costs to procure and deliver
             97      electricity and for billing, administrative, and related activities, as determined by the
             98      commission.
             99          (3) A qualified utility that enters a renewable energy contract shall charge a contract
             100      customer for all metered electric service delivered to the contract customer, including
             101      generation, transmission, and distribution service, at the qualified utility's applicable tariff
             102      rates, excluding:
             103          (a) any kilowatt hours of electricity delivered from the renewable energy facility, based
             104      on the time of delivery, if applicable, adjusted for transmission losses;
             105          (b) any kilowatts of electricity delivered from the renewable energy facility that
             106      coincide with the contract customer's monthly metered kilowatt demand measurement, if
             107      applicable, adjusted for transmission losses;
             108          (c) any transmission and distribution service that the contract customer pays for under
             109      Subsection (1) or (2); and
             110          (d) any transmission service that the contract customer provides under Subsection (2)
             111      to deliver generation from the renewable energy facility.
             112          Section 3. Section 54-17-806 is enacted to read:
             113          54-17-806. Commission rules.
             114          The commission shall, by rule, determine appropriate charges and credits under this
             115      chapter, including for participating customers who do not pay a separate demand charge.


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