H.B. 180 Enrolled

EXTENSION OF GAS SERVICE TERRITORIES
1998 GENERAL SESSION
STATE OF UTAH
Sponsor: Thomas Hatch
AN ACT RELATING TO PUBLIC UTILITIES; ENACTING PROVISIONS REQUIRING THE
PUBLIC SERVICE COMMISSION TO APPROVE APPLICATIONS OF GAS
CORPORATIONS TO EXTEND THEIR SYSTEMS TO PREVIOUSLY UNSERVED
MUNICIPALITIES UNDER CERTAIN PRESCRIBED CIRCUMSTANCES; MAKING
TECHNICAL CORRECTIONS; PROVIDING A SUNSET DATE; AND PROVIDING AN
EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
54-3-8, Utah Code Annotated 1953
54-4-8, Utah Code Annotated 1953
63-55-254, as enacted by Chapter 1, Laws of Utah 1990
ENACTS:
54-3-8.1, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 54-3-8 is amended to read:
54-3-8. Preferences forbidden -- Power of commission to determine facts.
(1) No public utility shall, as to rates, charges, service, facilities or in any other respect,
make or grant any preference or advantage to any person, or subject any person to any prejudice
or disadvantage. No public utility shall establish or maintain any unreasonable difference as to
rates, charges, service or facilities, or in any other respect, either as between localities or as
between classes of service.
(2) The commission shall have power to determine any question of fact arising under this
section.
Section 2. Section 54-3-8.1 is enacted to read:
54-3-8.1. Power of commission to approve natural gas applications to previously

unserved areas.
(1) The extension of natural gas service to municipalities without natural gas service is
encouraged as a means to assist in economic development and to promote the safety, health, comfort,
and convenience of citizens residing in these areas. Notwithstanding Sections 54-3-8 and 54-4-8,
the commission shall approve an application of a gas corporation to extend its system to previously
unserved municipalities in its service territories if the application satisfies both of the following
requirements:
(a) the extension of service cannot be economically provided under existing tariff provisions
for extension of service;
(b) the charges to customers in the extension areas will not be less than the charges to
customers in areas where service has been extended under existing tariff provisions on a
per-customer basis; and
(c) any application, together with any increases that could result from previously approved
applications, does not result in an incremental increase in annual rates and charges to existing
customers of more than 1/5% as measured by rates in effect on July 1, 1998.
(2) A gas corporation may not be required to expend funds in any calendar year on
expansions to previously unserved areas through any combination of its tariff provisions in excess
of 1% of the gas corporation's net book value of gas plant in service at the beginning of the calendar
year.
Section 3. Section 54-4-8 is amended to read:
54-4-8. Improvements, extensions, repairs -- Regulations -- Apportioning costs.
[Whenever] (1) Except as provided under Section 54-3-8.1:
(a) whenever the commission shall find that additions, extensions, repairs, or improvements
to or changes in the existing plant, equipment, apparatus, facilities, or other physical property of any
public utility or of any two or more public utilities ought reasonably to be made, or that a new
structure or structures ought to be erected to promote the security or convenience of its employees
or the public or in any way to secure adequate service or facilities, the commission shall make and
serve an order directing that such additions, extensions, repairs, improvements, or changes be made

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or such structure or structures be erected in the manner and within the time specified in [said] the
order[. If]; and
(b) if any additions, extensions, repairs, improvements, or changes, or any new structure or
structures which the commission has ordered to be erected, require joint action by two or more
public utilities, the commission shall notify the [said] public utilities that [such] the additions,
extensions, repairs, improvements, or changes, or new structure or structures have been ordered[,]
and [that the same] shall be made at their joint cost; whereupon the [said] public utilities shall have
[such] reasonable time as the commission may grant within which to agree upon the portion or
division of cost of [such] the additions, extensions, repairs, improvements, or changes or any new
structure or structures which each shall bear.
(2) If at the expiration of [such] the time [such] in Subsection (1)(b) the public utilities shall
fail to file with the commission a statement that an agreement has been made for division or
apportionment of the cost or expense of [such] the additions, extensions, repairs, improvements, or
changes, or of [such] the new structure or structures, the commission shall have authority, after
further hearing, to make an order fixing the proportion of [such] the cost or expense to be borne by
each public utility and the manner in which the [same] cost or expense shall be paid or secured.
Section 4. Section 63-55-254 is amended to read:
63-55-254. Repeal dates, Title 54.
(1) Title 54, Chapter 10, the Committee of Consumer Services, is repealed July 1, 1999.
(2) Section 54-3-8.1 is repealed December 31, 1999.
Section 5. Effective date.
If approved by two-thirds of all the members elected to each house, this act takes effect upon
approval by the governor, or the day following the constitutional time limit of Utah Constitution
Article VII, Section 8, without the governor's signature, or in the case of a veto, the date of veto
override.

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