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S.B. 75

This document includes House Floor Amendments incorporated into the bill on Wed, Mar 11, 2009 at 11:27 AM by jeyring. -->              1     

UTILITY AMENDMENTS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Stephen H. Urquhart

             5     
House Sponsor: Kevin S. Garn

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill amends the rate-setting process for a public utility.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    amends the rate-setting process for a public utility, including:
             14              .    authorizes a public utility's complete filing with the Public Service Commission
             15      (PSC) to initiate a 240-day time period for rate case decisions;
             16              .    authorizes the PSC to approve or deny an electrical corporation's or a gas
             17      corporation's application for cost recovery of a major plant addition;
             18              .    allows the PSC to authorize an electrical corporation or a gas corporation energy
             19      balancing account;
             20              .    authorizes the PSC to approve a bill payment assistance program for
             21      low-income residential customers of an electrical corporation or a gas
             22      corporation; and
             23          .    makes technical corrections.
             24      Monies Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          This bill provides an immediate effective date.



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             28
         This bill provides revisor instructions.
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          54-4-4.1, as enacted by Laws of Utah 1990, Chapter 29
             32          54-7-12, as last amended by Laws of Utah 2002, Chapter 319
             33      ENACTS:
             34          54-7-13.4, Utah Code Annotated 1953
             35          54-7-13.5, Utah Code Annotated 1953
             36          54-7-13.6, Utah Code Annotated 1953
             37          54-7-14.5, Utah Code Annotated 1953
             38      REPEALS:
             39          54-7-13, as last amended by Laws of Utah 1987, Chapter 161
             40     

             41      Be it enacted by the Legislature of the state of Utah:
             42          Section 1. Section 54-4-4.1 is amended to read:
             43           54-4-4.1. Rules to govern rates.
             44          (1) The commission may, by rule or order, adopt any method of rate regulation that is:
             45          (a) consistent with this title[, including a method whereby revenues or earnings of a
             46      public utility above a specified level are equitably shared between the public utility and its
             47      customers.];
             48          (b) in the public interest; and
             49          (c) just and reasonable.
             50          [(2) Not later than 60 days from the entry of an order or adoption of a rule adopting a
             51      method of rate regulation whereby revenues or earnings of a public utility above a specified
             52      level are equitably shared between the public utility and its customers, the public utility may
             53      elect not to proceed with the method of rate regulation by filing with the commission a notice
             54      that it does not intend to proceed with the method of rate regulation.]
             55          (2) In accordance with Subsection (1), a method of rate regulation may include:
             56          (a) rate designs utilizing:
             57          (i) volumetric rate components;
             58          (ii) demand rate components;



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         (iii) fixed rate components; and
             60          (iv) variable rate components;
             61          (b) rate stabilization methods;
             62          (c) decoupling methods;
             63          (d) incentive-based mechanisms; and
             64          (e) other components, methods, or mechanisms approved by the commission.
             65          Section 2. Section 54-7-12 is amended to read:
             66           54-7-12. Rate increase or decrease -- Procedure -- Effective dates -- Electrical or
             67      telephone cooperative.
             68          (1) As used in this section:
             69          (a) (i) "Base rates" means those charges included in a public utility's generally
             70      applicable rate tariffs, including:
             71          (A) a fare;
             72          (B) a rate;
             73          (C) a rental;
             74          (D) a toll; or
             75          (E) any other charge generally applicable to a public utility's rate tariffs.
             76          (ii) Unless included by a commission order, "base rates" does not include charges
             77      included in:
             78          (A) a deferred account;
             79          (B) a balancing account;
             80          (C) a major plant addition surcharge;
             81          (D) a major plant addition surcredit;
             82          (E) a special contract; or
             83          (F) a public utility program offering.
             84          (b) (i) "Complete filing" means an application filed by a public utility that substantially
             85      complies with minimum filing requirements established by the commission, by rule, for a
             86      general rate increase or decrease.
             87          (ii) The commission shall H. within .H 180 days after the effective date of this
             87a      section create and
             88      finalize rules concerning the minimum requirements to be met for an application to be
             89      considered a complete filing.



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             90
         [(a) "Rate] (c) "General rate decrease" means:
             91          (i) any direct decrease [in a rate, fare, toll, rental, or other charge of a public utility] to a
             92      public utility's base rates; or
             93          (ii) any modification of a classification, contract, practice, or rule that decreases a [rate,
             94      fare, toll, rental, or other charge of a public utility] public utility's base rates.
             95          [(b)] (d) ["Rate] "General rate increase" means:
             96          [(i) means:]
             97          [(A)] (i) any direct increase [in a rate, fare, toll, rental, or other charge of a public
             98      utility] to a public utility's base rates; or
             99          [(B)] (ii) any modification of a classification, contract, practice, or rule that increases a
             100      [rate, fare, toll, rental, or other charge of a public utility; and] public utility's base rates.
             101          [(ii) does not include a tariff under Section 54-7-12.8 .]
             102          (2) (a) [Any] A public utility [or other party that proposes to increase or decrease rates]
             103      that files for a general rate increase or general rate decrease shall file [appropriate schedules] a
             104      complete filing with the commission setting forth the proposed rate increase or decrease.
             105          (b) (i) For purposes of this Subsection (2), a public utility's application for a general
             106      rate increase or decrease shall be considered a complete filing unless within 30 days after the
             107      day on which the commission receives the public utility's application, the commission issues an
             108      order describing information that the public utility must provide for the application to be
             109      considered a complete filing.
             110          (ii) Subject to Subsection (2)(b)(iii) and within 14 days after the day on which the
             111      application is received by the commission, a party or a person may file a motion to challenge
             112      whether an application for a general rate increase or decrease is a complete filing.
             113          (iii) A party or a person may not file a motion described in Subsection (2)(b)(ii) unless
             114      the person or party has first filed a motion to intervene with the commission.
             115          (c) If, in accordance with Subsection (2)(b)(i), the commission issues an order that an
             116      application is not a complete filing, the commission shall:
             117          (i) determine the materiality of an application deficiency; and
             118          (ii) (A) if the deficiencies are not material, issue an order that the 240-day period
             119      described in Subsection (3)(a) shall continue without delay or be suspended and resume when
             120      the public utility files the required information; or



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         (B) if the deficiencies are material, issue an order that the 240-day period described in
             122      Subsection (3)(a) shall start over when the public utility files the required information.
             123          [(b)] (d) (i) The commission shall, after reasonable notice, hold a hearing to determine
             124      whether the proposed rate increase or decrease, or some other rate increase or decrease, is just
             125      and reasonable.
             126          (ii) If a rate decrease is proposed by a public utility, the commission may waive a
             127      hearing unless it seeks to suspend, alter, or modify the rate decrease.
             128          [(c)] (e) Except as otherwise provided in [Subsections] Subsection (2)(d), (3) [and], or
             129      (4), a proposed rate increase or decrease is not effective until after completion of the hearing
             130      and issuance of a final order by the commission concerning the proposed increase or decrease.
             131          (3) (a) Within 240 days after a public utility submits a complete filing, the commission
             132      shall issue a final order to:
             133          (i) grant the proposed general rate increase or decrease;
             134          (ii) grant a different general rate increase or decrease; or
             135          (iii) deny the proposed general rate increase or decrease.
             136          (b) If the commission does not issue a final written order within 240 days after the
             137      public utility submits a complete filing in accordance with Subsection (3)(a):
             138          (i) the public utility's proposed rate increase or decrease is final; and
             139          (ii) the commission may not order a refund of any amount already collected or returned
             140      by the public utility under Subsection (4)(a).
             141          [(3) The following rules apply to the implementation of any proposed rate increase or
             142      decrease filed by a utility or proposed by any other party and to the implementation of any
             143      other increase or decrease in lieu of that proposed by a utility or other party that is determined
             144      to be just and reasonable by the commission.]
             145          [(a) On its own initiative or in response to an application by a public utility or other
             146      party, the commission, after a hearing, may allow any proposed rate increase or decrease, or a
             147      reasonable part of the rate increase or decrease, to take effect, subject to the commission's right
             148      to order a refund or surcharge, upon the filing of the utility's schedules or at any time during the
             149      pendency of the commission's hearing proceedings.]
             150          (4) (a) (i) A request for interim rates shall be made within 90 days after the day on
             151      which a public utility files a complete filing for a general rate increase or a general rate



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     decrease.
             153          (ii) The commission, on its own initiative or in response to an application by a public
             154      utility or other party, may, after a hearing, allow any rate increase or decrease proposed by a
             155      public utility, or a reasonable part of the rate increase or decrease, to take effect on an interim
             156      basis within 45 days after the day on which the request is filed, subject to the commission's
             157      right to order a refund or surcharge.
             158          (iii) The evidence presented in the hearing held pursuant to this Subsection (4) need
             159      not encompass all issues that may be considered in a rate case hearing held pursuant to
             160      Subsection (2)[(b)](d), but shall establish an adequate prima facie showing that the interim rate
             161      increase or decrease is justified.
             162          (b) [(i) If the] The commission [completes a hearing concerning a utility's revenue
             163      requirement] may, after a hearing, issue a final order before the expiration of 240 [days from
             164      the date the rate increase or decrease proposal is filed, the commission may issue a final order
             165      within that period] days after the day on which the public utility files a complete filing
             166      establishing the utility's revenue requirement and fixing the utility's [interim] allowable rates
             167      before the commission determines the final allocation of the increase or decrease among
             168      categories of customers and classes of service.
             169          [(ii)] (c) (i) If the commission in the commission's final order on a public utility's
             170      revenue requirement finds that the interim increase [order] ordered under Subsection [(3)(a)]
             171      (4)(a)(ii) exceeds the increase finally ordered, the commission shall order the public utility to
             172      refund the excess to customers.
             173          (ii) If the commission in the commission's final order on a public utility's revenue
             174      requirement finds that the interim decrease [order] ordered under Subsection [(3)(a)] (4)(a)(ii)
             175      exceeds the decrease finally ordered, the commission shall order a surcharge to customers to
             176      recover the excess decrease.
             177          [(c) If the commission fails to enter the commission's order granting or revising a
             178      revenue increase within 240 days after the utility's schedules are filed, the rate increase
             179      proposed by the utility is final and the commission may not order a refund of any amount
             180      already collected by the utility under its filed rate increase.]
             181          [(d) (i) When a public utility files a proposed rate increase based upon an increased
             182      cost to the utility for fuel or energy purchased or obtained from independent contractors, other



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             183
     independent suppliers, or any supplier whose prices are regulated by a governmental agency,
             184      the commission shall issue a tentative order with respect to the proposed increase within ten
             185      days after the proposal is filed, unless it issues a final order with respect to the rate increase
             186      within 20 days after the proposal is filed.]
             187          [(ii) The commission shall hold a public hearing within 30 days after it issues the
             188      tentative order to determine if the proposed rate increase is just and reasonable.]
             189          [(4)] (5) (a) Notwithstanding any other provisions of this title, any schedule,
             190      classification, practice, or rule filed by a public utility with the commission that does not result
             191      in any rate increase shall take effect 30 days after the date of filing or within any lesser time the
             192      commission may grant, subject to its authority after a hearing to suspend, alter, or modify that
             193      schedule, classification, practice, or rule.
             194          (b) When the commission suspends a schedule, classification, practice, or rule, the
             195      commission shall hold a hearing on the schedule, classification, practice, or rule before issuing
             196      its final order.
             197          (c) For purposes of this Subsection [(4)] (5), any schedule, classification, practice, or
             198      rule that introduces a service or product not previously offered may not result in a rate increase.
             199          [(5) (a)] (6) Notwithstanding any other provision of this title, whenever a public utility
             200      files with the commission any schedule, classification, practice, or rule that does not result in
             201      an increase in any rate, fare, toll, rental, or charge, the schedule, classification, practice, or rule
             202      shall take effect 30 days after the date of filing or at any earlier time the commission may grant,
             203      subject to the authority of the commission, after a hearing, to suspend, alter, or modify the
             204      schedule, classification, practice, or rule.
             205          [(b) (i) Notwithstanding any other provision of this title, whenever a public utility files
             206      with the commission a request for an increase in rates, fares, tolls, rentals, or charges based
             207      solely upon cost increases to the public utility of fuel supplied by an independent contractor or
             208      independent source of supply, the requested increase shall take effect ten days after the filing of
             209      the request with the commission or at any earlier time after the filing of the request as the
             210      commission may by order permit.]
             211          [(ii) The commission shall order the increase to take effect only after a showing has
             212      been made by the public utility to the commission that the increase is justified.]
             213          [(iii) The commission may, after a hearing, suspend, alter, or modify the increase.]



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         [(6)] (7) This section does not apply to any rate changes of an electrical or telephone
             215      cooperative that meets all of the requirements of this Subsection [(6)] (7).
             216          (a) (i) The cooperative is organized for the purpose of either distributing electricity or
             217      providing telecommunication services to its members and the public at cost.
             218          (ii) "At cost" includes interest costs and a reasonable rate of return as determined by
             219      the cooperative's board of directors.
             220          (b) The cooperative's board of directors and any appropriate agency of the federal
             221      government have approved the rate increase or other rate change and all necessary tariff
             222      revisions reflecting the increased rate or rate change.
             223          (c) Before implementing any rate increases, the cooperative has held a public meeting
             224      for all its customers and members. The cooperative shall mail a notice of the meeting to all of
             225      the cooperative's customers and members not less than ten days prior to the date that the
             226      meeting is held.
             227          (d) The cooperative has filed its tariff revisions reflecting the rate increase or other rate
             228      change with the commission, who shall make the tariffs available for public inspection.
             229          [(7)] (8) Notwithstanding Subsections (2) and [(3)] (4), the procedures for
             230      implementing a proposed rate increase by a telephone corporation having less than 30,000
             231      subscriber access lines in the state are provided in this Subsection [(7)] (8).
             232          (a) (i) The proposed rate increase by a telephone corporation subject to this Subsection
             233      [(7)] (8) may become effective on the day the telephone corporation files with the commission
             234      the proposed tariff revisions and necessary information to support a determination by the
             235      commission that the proposed rate increase is just and reasonable.
             236          (ii) The telephone corporation shall notify the commission and all potentially affected
             237      access line subscribers of the proposed rate increase 30 days before filing the proposed rate
             238      increase or change.
             239          (b) (i) The commission may investigate whether the proposed rate increase is just and
             240      reasonable.
             241          (ii) If the commission determines, after notice and hearing, that the rate increase is
             242      unjust or unreasonable in whole or in part, the commission may establish the rates, charges, or
             243      classifications that the commission finds to be just and reasonable.
             244          (c) The commission shall investigate and hold a hearing to determine whether any



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     proposed rate increase is just and reasonable if 10% or more of the telephone corporation's
             246      potentially affected access line subscribers file a request for agency action requesting an
             247      investigation and hearing.
             248          Section 3. Section 54-7-13.4 is enacted to read:
             249          54-7-13.4. Alternative cost recovery for major plant addition -- Procedure.
             250          (1) As used in this section:
             251          (a) (i) "Complete filing" means an application filed by a gas corporation or electrical
             252      corporation that substantially complies with minimum filing requirements established by the
             253      commission, by rule, for cost recovery of a major plant addition.
             254          (ii) The commission shall within 180 days after the effective date of this section create
             255      and finalize rules concerning the minimum requirements to be met for an application to be
             256      considered a complete filing.
             257          (b) "In-service date" means the first day that a gas corporation or an electrical
             258      corporation is no longer allowed to accrue an allowance for funds used during construction for
             259      a major plant addition.
             260          (c) "Major plant addition" means any single capital investment project of a gas
             261      corporation or an electrical corporation that in total exceeds 1% of the gas corporation's or
             262      electrical corporation's rate base, based on the gas corporation's or electrical corporation's most
             263      recent general rate case determination, that is:
             264          (i) used to serve Utah customers; and
             265          (ii) assigned or allocated to Utah.
             266          (2) A gas corporation or an electrical corporation may file with the commission a
             267      complete filing for cost recovery of a major plant addition if the commission has, in accordance
             268      with Section 54-7-12 , entered a final order in a general rate case proceeding of the gas
             269      corporation or electrical corporation within 18 months of the projected in-service date of a
             270      major plant addition.
             271          (3) (a) A gas corporation or an electrical corporation may not file for cost recovery of a
             272      major plant addition more than 150 days before the projected in-service date of the major plant
             273      addition.
             274          (b) If the commission determines that the gas corporation or electrical corporation has
             275      not submitted a complete filing for cost recovery of a major plant addition, the commission



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     shall determine:
             277          (i) what information the electrical corporation or gas corporation needs to provide to
             278      the commission; and
             279          (ii) the materiality of an application deficiency.
             280          (c) With respect to the applicable 90 or 150-day time period under Subsection (4) for
             281      the commission to enter an order as described in Subsection (4)(a)(iii), the commission may:
             282          (i) if the deficiencies are not material:
             283          (A) continue without delay; or
             284          (B) suspend the applicable 90 or 150-day time period and resume when the electrical
             285      corporation or gas corporation has filed the required information; or
             286          (ii) if the deficiencies are material, start the applicable 90 or 150-day time period over
             287      when the electrical corporation or gas corporation has filed the required information.
             288          (4) (a) The commission shall:
             289          (i) review the application for cost recovery of a major plant addition;
             290          (ii) after a hearing, approve, approve with conditions, or deny cost recovery of the
             291      major plant addition; and
             292          (iii) enter an order on cost recovery of a major plant addition within:
             293          (A) 90 days after the day on which a complete filing is made with respect to a
             294      significant energy resource approved by the commission under Section 54-17-302 or resource
             295      decision under Section 54-17-402 ; or
             296          (B) 150 days after the day on which a complete filing is made for any other major plant
             297      addition.
             298          (b) (i) If the commission approves cost recovery of a major plant addition, the
             299      commission shall determine the state's share of projected net revenue requirement impacts of
             300      the major plant addition, including prudently-incurred capital costs and other reasonably
             301      projected costs, savings, and benefits.
             302          (ii) The gas corporation or electrical corporation shall have the burden to prove a major
             303      plant addition's impacts as described in Subsection (4)(b)(i).
             304          (c) If the commission has previously issued an order and approved the major plant
             305      addition as a significant energy resource under Section 54-17-302 or resource decision under
             306      Section 54-17-402 , the commission shall presume the prudence of the utility's capital costs up



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     to the projected costs specified in the commission's previous significant energy resource order
             307a      H. or resource decision order .H .
             308          (5) If the commission approves or approves with conditions cost recovery of a major
             309      plant addition, the commission shall do one or all of the following:
             310          (a) subject to Subsection (6)(c), authorize the gas corporation or electrical corporation
             311      to defer the state's share of the net revenue requirement impacts of the major plant addition for
             312      recovery in general rate cases; or
             313          (b) adjust rates or otherwise establish a collection method for the state's share of the net
             314      revenue requirement impacts that will apply to the appropriate billing components.
             315          (6) (a) Deferral or collection of the state's share of the net revenue requirement impacts
             316      of a major plant addition under this section shall commence upon the later of:
             317          (i) the day on which a commission order is issued approving the deferral or collection
             318      amount; or
             319          (ii) the in-service date of the major plant addition.
             320          (b) The deferral described in this section shall terminate upon a final commission order
             321      that provides for recovery in rates of all or any part of the net revenue requirement impacts of
             322      the major plant addition.
             323          (c) If the commission authorizes deferral under Subsection (5)(a), the amount deferred
             324      shall accrue a carrying charge on the net revenue requirement impacts as determined by the
             325      commission.
             326          Section 4. Section 54-7-13.5 is enacted to read:
             327          54-7-13.5. Energy balancing accounts.
             328          (1) As used in this section:
             329          (a) "Base rates" is as defined in Subsection 54-7-12 (1).
             330          (b) "Energy balancing account" means an electrical corporation account for some or all
             331      components of the electrical corporation's incurred actual power costs, including:
             332          (i) (A) fuel;
             333          (B) purchased power; and
             334          (C) wheeling expenses; and
             335          (ii) the sum of the power costs described in Subsection (1)(b)(i) less wholesale
             336      revenues.
             337          (c) "Gas balancing account" means a gas corporation account to recover on a



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     dollar-for-dollar basis, purchased gas costs, and gas cost-related expenses.
             339          (2) (a) The commission may authorize an electrical corporation to establish an energy
             340      balancing account.
             341          (b) An energy balancing account shall become effective upon a commission finding
             342      that the energy balancing account is:
             343          (i) in the public interest;
             344          (ii) for prudently-incurred costs; and
             345          (iii) implemented at the conclusion of a general rate case.
             346          (c) An electrical corporation:
             347          (i) may, with approval from the commission, recover costs under this section through:
             348          (A) base rates;
             349          (B) contract rates;
             350          (C) surcredits; or
             351          (D) surcharges; and
             352          (ii) shall file a reconciliation of the energy balancing account with the commission at
             353      least annually with actual costs and revenues incurred by the electrical corporation.
             354          (d) An energy balancing account may not alter:
             355          (i) the standard for cost recovery; or
             356          (ii) the electrical corporation's burden of proof.
             357          (e) The collection method described in Subsection (2)(c)(i) shall:
             358          (i) apply to the appropriate billing components in base rates; and
             359          (ii) be incorporated into base rates in an appropriate commission proceeding.
             360          (f) The collection of costs related to an energy balancing account from customers
             361      paying contract rates shall be governed by the terms of the contract.
             362          (g) Revenues collected in excess of prudently incurred actual costs shall:
             363          (i) be refunded as a bill surcredit to an electrical corporation's customers over a period
             364      specified by the commission; and
             365          (ii) include a carrying charge.
             366          (h) Prudently incurred actual costs in excess of revenues collected shall:
             367          (i) be recovered as a bill surcharge over a period to be specified by the commission;
             368      and



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             369
         (ii) include a carrying charge.
             370          (i) The carrying charge applied to the balance in an energy balancing account shall be:
             371          (i) determined by the commission; and
             372          (ii) symmetrical for over or under collections.
             373          (3) (a) The commission may:
             374          (i) establish a gas balancing account for a gas corporation; and
             375          (ii) set forth procedures for a gas corporation's gas balancing account in the gas
             376      corporation's commission-approved tariff.
             377          (b) A gas balancing account may not alter:
             378          (i) the standard of cost recovery; or
             379          (ii) the gas corporation's burden of proof.
             380          (4) (a) All allowed costs and revenues associated with an energy balancing account or
             381      gas balancing account shall remain in the respective balancing account until charged or
             382      refunded to customers.
             383          (b) The balance of an energy balancing account or gas balancing account may not be:
             384          (i) transferred by the electrical corporation or gas corporation; or
             385          (ii) used by the commission to impute earnings or losses to the electrical corporation or
             386      gas corporation.
             387          (c) An energy balancing account or gas balancing account that is formed and
             388      maintained in accordance with this section does not constitute impermissible retroactive
             389      ratemaking or single-issue ratemaking.
             390          (5) This section does not create a presumption for or against approval of an energy
             391      balancing account.
             392          Section 5. Section 54-7-13.6 is enacted to read:
             393          54-7-13.6. Low-income assistance program.
             394          (1) As used in this section, "eligible customer" means an electrical corporation or a gas
             395      corporation customer:
             396          (a) that earns no more than:
             397          (i) 125% of the federal poverty level; or
             398          (ii) another percentage of the federal poverty level as determined by the commission by
             399      order; and



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             400
         (b) whose eligibility is certified by the Utah Department of Community and Culture.
             401          (2) A customer's income eligibility for the program described in this section shall be
             402      renewed annually.
             403          (3) An eligible customer may not receive assistance at more than one residential
             404      location at any one time.
             405          (4) Notwithstanding Section 54-3-8 , the commission may approve a low-income
             406      assistance program to provide bill payment assistance to low-income residential customers of:
             407          (a) an electrical corporation with more than 50,000 customers; or
             408          (b) a gas corporation with more than 50,000 customers.
             409          (5) (a) (i) Subject to Subsection (5)(a)(ii), low-income assistance program funding
             410      from each rate class may be in an amount determined by the commission.
             411          (ii) Low-income assistance program funding described in Subsection (5)(a)(i) may not
             412      exceed 0.5% of the rate class's retail revenues.
             413          (b) (i) Low-income assistance program funding for bill payment assistance shall be
             414      provided through a surcharge on the monthly bill of each Utah retail customer of the electrical
             415      corporation or gas corporation providing the program.
             416          (ii) The surcharge described in Subsection (5)(b)(i) may not be collected from
             417      customers currently participating in the low-income assistance program.
             418          (c) (i) Subject to Subsection (c)(ii), the monthly surcharge described in Subsection
             419      (5)(b)(i) shall be calculated as an equal percentage of revenues from all rate schedules.
             420          (ii) The monthly surcharge described in Subsection (5)(b)(i) may not exceed $50 per
             421      month for any customer, adjusted periodically as the commission determines appropriate for
             422      inflation.
             423          (6) (a) An eligible customer shall receive a billing credit on the monthly electric or gas
             424      bill for the customer's residence.
             425          (b) The amount of the billing credit described in Subsection (6)(a) shall be determined
             426      by the commission based on:
             427          (i) the projected funding of the low-income assistance program;
             428          (ii) the projected customer participation in the low-income assistance program; and
             429          (iii) other factors that the commission determines relevant.
             430          (c) The monthly billing credit and the monthly surcharge shall be adjusted concurrently



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             431
     with the final order in a general rate increase or decrease case under Section 54-7-12 for the
             432      electrical corporation or gas corporation providing the program or as determined by the
             433      commission.
             434          Section 6. Section 54-7-14.5 is enacted to read:
             435          54-7-14.5. Rescission or amendment of orders or decisions.
             436          (1) The commission may, at any time after providing an affected utility notice and an
             437      opportunity to be heard, rescind, alter, or amend any order or decision made by the
             438      commission.
             439          (2) An order rescinding, altering, or amending an original commission order or
             440      decision shall have the same effect on the public utility as the original order or decision.
             441          Section 7. Repealer.
             442          This bill repeals:
             443          Section 54-7-13, Rescission or amendment of orders or decisions.
             444          Section 8. Effective date.
             445          If approved by two-thirds of all the members elected to each house, this bill takes effect
             446      upon approval by the governor, or the day following the constitutional time limit of Utah
             447      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             448      the date of veto override.
             449          Section 9. Revisor instructions.
             450          It is the intent of the Legislature that, in preparing the Utah Code database for
             451      publication, the Office of Legislative Research and General Counsel shall replace the reference
             452      in Subsections 54-7-12 (1)(b)(ii) and 54-7-13.4 (1)(a)(ii) from "the effective date of this section"
             453      with the bill's actual effective date.





Legislative Review Note
    as of 2-13-09 11:15 AM


Office of Legislative Research and General Counsel


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