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First Substitute S.B. 47

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Mon, Mar 8, 2010 at 12:16 PM by kcallred. --> This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Mon, Mar 8, 2010 at 12:17 PM by rday. -->

Senator Kevin T. Van Tassell proposes the following substitute bill:





Chief Sponsor: Kevin T. Van Tassell

House Sponsor: Melvin R. Brown


             8      LONG TITLE
             9      General Description:
             10          This bill addresses electric energy efficiency and conservation tariffs for electrical
             11      utilities.
             12      Highlighted Provisions:
             13          This bill:
             14          .    addresses Public Service Commission (PSC) approval of a tariff proposed by an
             15      electrical utility for demand side management or energy efficiency programs
             16      including direct load control programs;
             17          .    defines terms;
             18          .    addresses input by various entities before approval of a tariff; and
             19          .    makes technical changes.
             20      Monies Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      REPEALS AND REENACTS:

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Senate 2nd Reading Amendments 3-8-2010 kc/crp
         54-7-12.8, as last amended by Laws of Utah 2009, Chapter 237

             28      Be it enacted by the Legislature of the state of Utah:
             29          Section 1. Section 54-7-12.8 is repealed and reenacted to read:
             30          54-7-12.8. Electric energy efficiency and conservation tariff.
             31          (1) As used in this section:
             32          (a) "Demand side management program" means an activity or program designed to
             33      promote electric energy efficiency S. [ or ] , .S conservation S. [ or more efficient management
             33a      of electric
             34      loads.
] , or direct load control. .S

             35          (b) "Direct load control program" means a demand side management program that
             36      allows an electrical corporation to interrupt a customer's load during a period of high demand
             37      or incremental cost by directly controlling a customer's appliance or equipment S. , if the customer
             37a      is served under a tariff of general applicability
.S .
             38          (2) It is the policy of this state to encourage reasonable demand side management and
             39      direct load control programs.
             40          (3) (a) The commission shall ensure that an electrical corporation recovers all costs
             41      prudently incurred by the electrical corporation for demand side management programs
             42      approved by the commission.
             43          (b) A tariff approved under this section may allow the electrical corporation to recover
             44      the costs under a separate line item charge on a customer's bill, or otherwise as determined by
             45      the commission.
             46          (4) To the extent practicable, before submitting a proposed demand side management
             47      program tariff to the commission for approval, the electric corporation proposing the tariff shall
             48      ask the commission to convene an advisory group of interested public and private stakeholders
             49      to provide input on the proposed tariff.
             50          (5) Before approving a proposed tariff filed by an electric corporation under this
             51      section, the commission shall hold a hearing if:
             52          (a) the proposed tariff includes a rate increase as defined by Subsection 54-7-12 (1)(b);
             53      or
             54          (b) the commission determines that a hearing would be useful.
             55          (6) The commission may approve a tariff proposed under this section either with or
             56      without a provision allowing an end-use customer to receive a credit against the charges

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Senate 2nd Reading Amendments 3-8-2010 kc/crp
     imposed under the tariff for electric energy efficiency measures that:
             58          (a) the customer implements or has implemented at the customer's expense; and
             59          (b) qualify for the credit under criteria established by the commission.
             60          (7) A direct load control program tariff proposed by an electric corporation that passes
             61      the cost benefit test utilized by the commission and that permits a customer to choose not to
             62      participate in the program without adverse consequence to that customer, other than foregoing
             63      a credit or benefit available for participation S. in the program tariff .S , shall be presumed to be
             63a      in the public interest and
             64      shall be approved by the commission absent a showing by a person that may be affected by the
             65      tariff that the proposed tariff is not in the public interest.
             66          (8) A direct load control program may require participation by all customers or all of a
             67      group of customers of the electrical corporation S. served under a tariff of general applicability .S              67a      so long as any customer may affirmatively
             68      choose not to participate in the program.
             69          (9) Before installation of a load control device, a customer shall be informed of:
             70          (a) the nature of the load control program, including how and under what
             71      circumstances it will be applied and the electrical corporation's responsibility relating to
             72      installation, operation, and maintenance of the device;
             73          (b) the manner in which the customer may choose not to participate in the program;
             74      and
             75          (c) the proposed installation date and process.
             76          (10) If a commission order on a proposed tariff submitted under this section includes
             77      any changes or conditions that may reasonably be expected to have a significant impact on the
             78      economics of, or customer participation in, the program, the order may not become effective
             79      for at least 30 days in order to give interested parties an opportunity to notify the commission
             80      of any concerns or objections to the proposed changes or conditions.
             81          (11) Unless otherwise ordered by the commission, a proposed tariff under this section
             82      approved by the commission may take effect no sooner than 30 days after the electrical
             83      corporation files the proposed tariff with the commission.

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