Title 54 Public Utilities
Chapter 7 Hearings, Practice, and Procedure
Section 13.4 Alternative cost recovery for major plant addition -- Procedure.
54-7-13.4. Alternative cost recovery for major plant addition -- Procedure.
(1) As used in this section:
(a) (i) "Complete filing" means an application filed by a gas corporation or electrical
corporation that substantially complies with minimum filing requirements established by the
commission, by rule, for cost recovery of a major plant addition.
(ii) The commission shall within 180 days after March 25, 2009 create and finalize rules
concerning the minimum requirements to be met for an application to be considered a complete
filing.
(b) "In-service date" means the first day that a gas corporation or an electrical corporation
is no longer allowed to accrue an allowance for funds used during construction for a major plant
addition.
(c) "Major plant addition" means any single capital investment project of a gas
corporation or an electrical corporation that in total exceeds 1% of the gas corporation's or
electrical corporation's rate base, based on the gas corporation's or electrical corporation's most
recent general rate case determination, that is:
(i) used to serve Utah customers; and
(ii) assigned or allocated to Utah.
(2) A gas corporation or an electrical corporation may file with the commission a
complete filing for cost recovery of a major plant addition if the commission has, in accordance
with Section 54-7-12, entered a final order in a general rate case proceeding of the gas
corporation or electrical corporation within 18 months of the projected in-service date of a major
plant addition.
(3) (a) A gas corporation or an electrical corporation may not file for cost recovery of a
major plant addition more than 150 days before the projected in-service date of the major plant
addition.
(b) If the commission determines that the gas corporation or electrical corporation has
not submitted a complete filing for cost recovery of a major plant addition, the commission shall
determine:
(i) what information the electrical corporation or gas corporation needs to provide to the
commission; and
(ii) the materiality of an application deficiency.
(c) With respect to the applicable 90 or 150-day time period under Subsection (4) for the
commission to enter an order as described in Subsection (4)(a)(iii), the commission may:
(i) if the deficiencies are not material:
(A) continue without delay; or
(B) suspend the applicable 90 or 150-day time period and resume when the electrical
corporation or gas corporation has filed the required information; or
(ii) if the deficiencies are material, start the applicable 90 or 150-day time period over
when the electrical corporation or gas corporation has filed the required information.
(4) (a) The commission shall:
(i) review the application for cost recovery of a major plant addition;
(ii) after a hearing, approve, approve with conditions, or deny cost recovery of the major
plant addition; and
(iii) enter an order on cost recovery of a major plant addition within:
(A) 90 days after the day on which a complete filing is made with respect to a significant
energy resource approved by the commission under Section 54-17-302 or resource decision
under Section 54-17-402; or
(B) 150 days after the day on which a complete filing is made for any other major plant
addition.
(b) (i) If the commission approves cost recovery of a major plant addition, the
commission shall determine the state's share of projected net revenue requirement impacts of the
major plant addition, including prudently-incurred capital costs and other reasonably projected
costs, savings, and benefits.
(ii) The gas corporation or electrical corporation shall have the burden to prove a major
plant addition's impacts as described in Subsection (4)(b)(i).
(c) If the commission has previously issued an order and approved the major plant
addition as a significant energy resource under Section 54-17-302 or resource decision under
Section 54-17-402, the commission shall presume the prudence of the utility's capital costs up to
the projected costs specified in the commission's previous significant energy resource order or
resource decision order.
(5) If the commission approves or approves with conditions cost recovery of a major
plant addition, the commission shall do one or all of the following:
(a) subject to Subsection (6)(c), authorize the gas corporation or electrical corporation to
defer the state's share of the net revenue requirement impacts of the major plant addition for
recovery in general rate cases; or
(b) adjust rates or otherwise establish a collection method for the state's share of the net
revenue requirement impacts that will apply to the appropriate billing components.
(6) (a) Deferral or collection of the state's share of the net revenue requirement impacts
of a major plant addition under this section shall commence upon the later of:
(i) the day on which a commission order is issued approving the deferral or collection
amount; or
(ii) the in-service date of the major plant addition.
(b) The deferral described in this section shall terminate upon a final commission order
that provides for recovery in rates of all or any part of the net revenue requirement impacts of the
major plant addition.
(c) If the commission authorizes deferral under Subsection (5)(a), the amount deferred
shall accrue a carrying charge on the net revenue requirement impacts as determined by the
commission.
Enacted by Chapter 319, 2009 General Session
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