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S.B. 188

             1     

IMPROVEMENT DISTRICT - PROVIDING

             2     
ELECTRIC SERVICE

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Dennis E. Stowell

             6     
House Sponsor: Rebecca D. Lockhart

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies a provision relating to improvement districts that provide electric
             11      service.
             12      Highlighted Provisions:
             13          This bill:
             14          .    authorizes an electric improvement district created after May 11, 2009 to provide
             15      electric service to a specified area if certain conditions are met; and
             16          .    makes technical changes.
             17      Monies Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          17B-2a-406, as last amended by Laws of Utah 2008, Chapter 360
             24     
             25      Be it enacted by the Legislature of the state of Utah:
             26          Section 1. Section 17B-2a-406 is amended to read:
             27           17B-2a-406. Improvement districts providing electric service -- Public Service


             28      Commission jurisdiction -- Exceptions.
             29          (1) As used in this section:
             30          (a) "Commission" means the Public Service Commission of Utah established in
             31      Section 54-1-1 .
             32          (b) "Electric corporation" has the same meaning as defined in Section 54-2-1 .
             33          (c) "Electric improvement district" means an improvement district that provides
             34      electric service as authorized under Subsection 17B-2a-403 (1)(a)(iv).
             35          (d) "Stranded asset" means an asset that:
             36          (i) an electric corporation owns and operates;
             37          (ii) is designed to serve an area that is:
             38          (A) within the electric corporation's certificated service area before the area is removed
             39      from the certificated service area by commission order as provided in Subsection
             40      (3)(b)(i)(B)(II); and
             41          (B) within the boundary of an electric improvement district; and
             42          (iii) will not be useful to or used by the electric corporation after removal of the area
             43      from the electric corporation's certificated service area.
             44          [(1) (a)] (2) An electric improvement district [that provides electric service as
             45      authorized under Subsection 17B-2a-403 (1)(a)(iv): (i)] is a public utility and subject to the
             46      jurisdiction of the [Public Service Commission] commission;
             47          (3) (a) Except as provided in Subsection (3)(b), an electric improvement district:
             48          [(ii)] (i) may include only an area where:
             49          (A) no retail electricity has been provided to commercial, industrial, residential, and
             50      other users of electricity from an investor-owned utility within any part of an area certificated
             51      by the [Public Service Commission] commission or an area adjacent to that area, municipal
             52      agency, or electric cooperative within the five years immediately preceding September 1, 1985;
             53      and
             54          (B) electric service is provided to at least one user of electricity within the electric
             55      service district as of September 1, 1985; and
             56          [(iii)] (ii) shall have filed an application for certification and received approval by the
             57      [Public Service Commission] commission by September 1, 1986.
             58          (b) (i) An electric improvement district created after May 11, 2009 may provide


             59      electric service within the boundary of the improvement district if:
             60          (A) no part of the boundary of the electric improvement district is closer than 40 miles
             61      to an existing service line of an electric corporation;
             62          (B) (I) no part of the area within the boundary of the electric improvement district is
             63      within the certificated service area of an electric corporation; or
             64          (II) the area within the boundary of the electric improvement district that is also within
             65      the certificated service area of an electric corporation is removed from the electric corporation's
             66      certificated service area by commission order in a proceeding initiated by a petition filed by
             67      and at the discretion of the electric corporation; and
             68          (C) before January 1, 2010, the electric improvement district receives a certificate of
             69      public convenience and necessity from the commission authorizing the electric improvement
             70      district to provide electric service to the area within the boundary of the electric improvement
             71      district.
             72          (ii) An electric improvement district that provides electric service as provided in
             73      Subsection (3)(b)(i) shall pay an electric corporation an amount equal to the fair market value
             74      of each stranded asset of the electric corporation.
             75          [(b)] (4) Nothing in this part may be construed to give the [Public Service
             76      Commission] commission jurisdiction over:
             77          [(i)] (a) an improvement district, other than an electric improvement district [that
             78      provides electric service as authorized under Subsection 17B-2a-403 (1)(a)(iv); or];
             79          [(ii)] (b) a municipality; or
             80          (c) an association of municipalities organized under Title 11, Chapter 13, Interlocal
             81      Cooperation Act.
             82          [(c)] (5) Before an electric improvement district [providing electric service] serves any
             83      customer, the electric improvement district shall obtain a certificate of public convenience and
             84      necessity from the [Public Service Commission] commission.
             85          [(2)] (6) (a) Section 54-7-12 does not apply to rate changes of an electric improvement
             86      district [that provides electric service as authorized under Subsection 17B-2a-403 (1)(a)(iv)] if:
             87          (i) the district is organized for the purpose of distributing electricity to customers
             88      within the [boundaries] boundary of the district on a not-for-profit basis;
             89          (ii) the schedule of new rates or other change that results in new rates has been


             90      approved by the board of trustees of the district;
             91          (iii) prior to the implementation of any rate increases, the district first holds a public
             92      meeting for all its customers to whom mailed notice of the meeting is sent at least ten days
             93      prior to the meeting; and
             94          (iv) the district has filed the schedule of new rates or other change with the [Public
             95      Service Commission] commission.
             96          (b) The [Public Service Commission] commission shall make the district's schedule of
             97      new rates or other change available for public inspection.




Legislative Review Note
    as of 2-19-09 6:19 PM


Office of Legislative Research and General Counsel


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