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S.B. 180 Enrolled

             1     

PUBLIC UTILITIES AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Kevin T. Van Tassell

             5     
House Sponsor: Stephen G. Handy

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill enacts language related to the service territory of an electrical corporation and
             10      municipality.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    prohibits a municipality from providing electric service to a customer in an annexed
             15      area with certain exceptions;
             16          .    enacts procedures for transferring an electric facility;
             17          .    enacts language related to the reimbursement for the transfer of an electric facility;
             18          .    requires a party that cannot agree on the transfer of an electric facility to submit the
             19      dispute for mediation or arbitration;
             20          .    authorizes a municipality to provide retail electric service to a customer beyond its
             21      municipal boundary on or before June 15, 2013, if the municipality enters into a
             22      written filing agreement with an electrical corporation and the agreement is
             23      approved by the Public Service Commission (commission);
             24          .    allows a municipality to submit a request to an electrical corporation to provide
             25      service to a customer located outside the municipal boundary if a customer requests
             26      the service;
             27          .    in certain circumstances, prohibits an electrical corporation from providing electric
             28      service to a customer located within a municipal boundary unless the electrical
             29      corporation enters into a written agreement with the municipality and the agreement


             30      is approved by the commission;
             31          .    authorizes an electrical corporation to provide, on or before June 15, 2013, electric
             32      service to a customer within the municipal boundary of a municipality that provides
             33      electric service if the electrical corporation enters into an agreement with the
             34      municipality and the agreement is approved by the commission;
             35          .    authorizes the commission to review certain agreements between an electrical
             36      corporation and a municipality; and
             37          .    makes technical and conforming amendments.
             38      Money Appropriated in this Bill:
             39          None
             40      Other Special Clauses:
             41          None
             42      Utah Code Sections Affected:
             43      AMENDS:
             44          10-8-14, as last amended by Laws of Utah 2001, Chapter 83
             45      ENACTS:
             46          54-3-30, Utah Code Annotated 1953
             47          54-3-31, Utah Code Annotated 1953
             48          54-4-40, Utah Code Annotated 1953
             49      REPEALS AND REENACTS:
             50          10-2-421, as last amended by Laws of Utah 2001, Chapter 206
             51     
             52      Be it enacted by the Legislature of the state of Utah:
             53          Section 1. Section 10-2-421 is repealed and reenacted to read:
             54          10-2-421. Electric utility service in annexed area -- Reimbursement for value of
             55      facilities -- Liability -- Arbitration.
             56          (1) As used in this section:
             57          (a) "Commission" means the Public Service Commission established in Section


             58      54-1-1 .
             59          (b) "Current replacement cost" means the cost the transferring party would incur to
             60      construct the facility at the time of transfer using the transferring party's:
             61          (i) standard estimating rates and standard construction methodologies for the facility;
             62      and
             63          (ii) standard estimating process.
             64          (c) "Depreciation" means an amount calculated:
             65          (i) based on:
             66          (A) the life and depreciation mortality curve most recently set for the type of facility in
             67      the depreciation rates set by the commission or other governing regulatory authority for the
             68      electrical corporation; or
             69          (B) a straight-line depreciation rate that represents the expended life if agreed to by the
             70      transferring and receiving parties; and
             71          (ii) to include the gross salvage value of the type of facility based on the latest
             72      depreciation life approved by the commission or other governing regulatory authority for the
             73      electrical corporation, with a floor at the gross salvage value of the asset and in no case less
             74      than zero.
             75          (d) "Electrical corporation" means:
             76          (i) an entity as defined in Section 54-2-1 ; and
             77          (ii) an improvement district system described in Subsection 17B-2a-403 (1)(a)(iv).
             78          (e) "Facility" means electric equipment or infrastructure used to serve an electric
             79      customer, above ground or underground, including:
             80          (i) a power line, transformer, switch gear, pole, wire, guy anchor, conductor, cable, or
             81      other related equipment; or
             82          (ii) a right-of-way, easement, or any other real property interest or legal right or interest
             83      used to operate and maintain the electric equipment or infrastructure.
             84          (f) "Facility transfer" means the transfer of a facility from a transferring party to a
             85      receiving party in accordance with Subsection (3).


             86          (g) "Lost or stranded facility" means a facility that is currently used by a transferring
             87      party that will no longer be used, whether in whole or in part, as a result of a facility transfer.
             88          (h) "Receiving party" means a municipality or electrical corporation to whom a facility
             89      is transferred.
             90          (i) "Transferring party" means a municipality or electrical corporation that transfers a
             91      facility.
             92          (2) If an electric customer in an area being annexed by a municipality receives electric
             93      service from an electrical corporation, the municipality may not, without the agreement of the
             94      electrical corporation, furnish municipal electric service to the electric customer in the annexed
             95      area until the municipality has reimbursed the electrical corporation for the value of each
             96      facility used to serve each electric customer within the annexed area, including the value of any
             97      facility owned by a wholesale electric cooperative affiliated with the electrical corporation,
             98      dedicated to provide service to the annexed area.
             99          (3) The following procedures shall apply if a municipality transfers a facility to an
             100      electrical corporation in accordance with Section 10-8-14 or if an electrical corporation
             101      transfers a facility to a municipality in accordance with Subsection (2), Section 54-3-30 , or
             102      54-3-31 :
             103          (a) The transferring party shall provide a written estimate of the transferring party's
             104      cost of preparing the inventory required in Subsection (3)(c) to the receiving party no later than
             105      60 days after the date of notice from the receiving party.
             106          (b) (i) The receiving party shall pay the estimated cost of preparing the inventory to the
             107      transferring party no later than 60 days after the day that the receiving party receives the written
             108      estimate.
             109          (ii) If the actual cost of preparing the inventory differs from the estimated cost, the
             110      transferring party shall include the difference between the actual cost and the estimated cost in
             111      the reimbursement described in Subsection (5).
             112          (c) Except as provided in Subsection (3)(f), the transferring party shall prepare, in
             113      accordance with Subsection (4), and deliver the inventory to the receiving party no later than


             114      180 days after the day that the transferring party receives the payment specified in Subsection
             115      (3)(b).
             116          (d) (i) At any time, the parties may by agreement correct or update the inventory.
             117          (ii) If the parties are unable to reach an agreement on an updated inventory, they shall:
             118          (A) proceed with the facility transfer and reimbursement based on the inventory as
             119      submitted in accordance with Subsection (3)(c); and
             120          (B) resolve their dispute as provided in Subsection (6).
             121          (e) Except as provided in Subsection (3)(f), the parties shall complete each facility
             122      transfer and reimbursement contemplated by this Subsection (3) no later than 180 days after the
             123      date that the transferring party delivers the inventory to the receiving party in accordance with
             124      Subsection (3)(c).
             125          (f) The periods specified in Subsections (3)(c) and (e) may be extended for up to an
             126      additional 90 days by agreement of the parties.
             127          (4) (a) The inventory prepared by a transferring party in accordance with Subsection
             128      (3)(c) shall include an identification of each facility to be transferred and the amount of
             129      reimbursement as provided in Subsection (5).
             130          (b) The transferring party may not include in the inventory a facility that the
             131      transferring party removed from service for at least 36 consecutive months prior to the date of
             132      the inventory, unless the facility was taken out of service as a result of an action by the
             133      receiving party.
             134          (5) (a) Unless otherwise agreed by the parties, the reimbursement for the transfer of
             135      each facility shall include:
             136          (i) the cost of preparing the inventory as provided in Subsection (3)(b);
             137          (ii) subject to Subsection (5)(b)(i), the value of each transferred facility calculated by
             138      the current replacement cost of the facility less depreciation based on facility age;
             139          (iii) the cost incurred by the transferring party for:
             140          (A) the physical separation of each facility from its system, including the cost of any
             141      facility constructed or installed that is necessary for the transferring party to continue to provide


             142      reliable electric service to its remaining customers;
             143          (B) administrative, engineering, and record keeping expenses incurred by the
             144      transferring party for the transfer of each facility to the receiving party, including any difference
             145      between the actual cost of preparing the inventory and the estimated cost of preparing the
             146      inventory; and
             147          (C) reimbursement for any tax consequences to the transferring party resulting from
             148      each facility transfer;
             149          (iv) the value of each lost or stranded facility of the transferring party based on the
             150      valuation formula described in Subsection (5)(a)(ii) or as otherwise agreed by the parties;
             151          (v) the diminished value of each transferring party facility that will not be transferred
             152      based on the percentage of the facility that will no longer be used as a result of the facility
             153      transfer; and
             154          (vi) the transferring party's book value of a right-of-way or easement transferred with
             155      each facility.
             156          (b) (i) (A) The receiving party may review the estimation of the current replacement
             157      costs of each facility, including the wage rates, material costs, overhead assumptions, and other
             158      pricing used to establish the estimation of the current replacement costs of the facility.
             159          (B) Prior to reviewing the estimation, the receiving party shall enter into a
             160      nondisclosure agreement acceptable to the transferring party.
             161          (C) The nondisclosure agreement shall restrict the use of the information provided by
             162      the transferring party solely for the purpose of reviewing the estimation of the current
             163      replacement cost and preserve the confidentiality of the information to prevent any effect on a
             164      competitive bid received by either party.
             165          (ii) (A) If the age of a facility may be readily determined by the transferring party, the
             166      transferring party shall use that age to determine the facility's depreciation.
             167          (B) If the age of a facility cannot be readily determined, the transferring party shall
             168      estimate the age of the facility based on the average remaining life approved for the same type
             169      of facility in the most current depreciation rates set by the commission or other governing


             170      regulatory authority for the electrical corporation.
             171          (c) (i) (A) A transferring party that transfers a facility in accordance with this section
             172      shall, upon delivery of a document conveying title to the receiving party, transfer the facility
             173      without any express or implied warranties.
             174          (B) A receiving party that receives a facility in accordance with this section shall, upon
             175      receipt of a document conveying title, accept the facility in its existing condition and assume
             176      any and all liability, fault, risk, or potential loss arising from or related to the facility.
             177          (ii) Notwithstanding Subsection (5)(c)(i), if, within six months after the date that any
             178      oil filled equipment is transferred, the receiving party discovers that a transferred oil filled
             179      equipment contains polychlorinated biphenyl, the transferring party shall reimburse the
             180      receiving party for the cost of testing and disposal of that oil filled equipment.
             181          (6) (a) If the parties cannot agree on each facility to be transferred or the respective
             182      reimbursement amount, the parties shall:
             183          (i) proceed with the facility transfer and the reimbursement based on the inventory as
             184      submitted by the transferring party in accordance with Subsection (3)(c) and in accordance with
             185      the schedule provided in Subsection (3)(e); and
             186          (ii) submit the dispute for mediation or arbitration.
             187          (b) The parties shall share equally in the costs of mediation or arbitration.
             188          (c) If the parties are unable to resolve the dispute through mediation or arbitration,
             189      either party may bring an action in the state court of jurisdiction.
             190          (d) The arbitrator, or state court if the parties cannot agree on arbitration, shall
             191      determine each facility to be transferred and the amount to be reimbursed in accordance with
             192      Subsection (5).
             193          (e) If the arbitrator or state court determines that:
             194          (i) a transferring party transferred a facility that should not have been transferred, the
             195      receiving party shall return the facility;
             196          (ii) a party did not transfer a facility that should have been transferred, the party that
             197      should have transferred the facility shall transfer the facility to the party to whom the facility


             198      should have been transferred;
             199          (iii) the amount reimbursed by the receiving party is insufficient, the receiving party
             200      shall pay the difference to the transferring party; or
             201          (iv) the amount reimbursed by the receiving party is more than the amount that should
             202      have been reimbursed, the transferring party shall pay the difference to the receiving party.
             203          (7) Unless otherwise agreed upon in writing by the parties:
             204          (a) a party shall transfer a facility to be transferred in accordance with Subsection (6)(e)
             205      no later than 60 days after the day that the arbitrator or court issues a determination unless the
             206      parties mutually agree to a longer time to complete the transfer; and
             207          (b) a party shall:
             208          (i) pay an amount required to be paid in accordance with Subsection (6)(e) no later than
             209      30 days after the day that the arbitrator or court issues a determination; and
             210          (ii) include interest in the payment at the overall rate of return on the rate base most
             211      recently authorized by the commission or other governing regulatory agency for the electrical
             212      corporation from the date the reimbursement was originally paid until the difference is paid.
             213          (8) (a) Nothing in this section limits the availability of other damages under law arising
             214      by virtue of an agreement between the municipality and the electrical corporation.
             215          (b) Notwithstanding Subsection (8)(a), a party described in this section is not entitled
             216      to an award for:
             217          (i) damages that are indirect, incidental, punitive, exemplary, or consequential;
             218          (ii) lost profits; or
             219          (iii) other business interruption damages.
             220          (9) Nothing in this section or Section 10-8-14 , 54-3-30 , or 54-3-31 applies to a transfer
             221      of facilities from an electrical corporation to a municipality in accordance with a decision by a
             222      municipality that did not previously provide electric service and seeks to commence providing
             223      electric service to a customer currently served by an electrical corporation within the municipal
             224      boundary.
             225          Section 2. Section 10-8-14 is amended to read:


             226           10-8-14. Water, sewer, gas, electricity, and public transportation -- Service
             227      beyond municipal limits -- Retainage -- Notice of service and agreement -- Cable
             228      television and public telecommunications services.
             229          (1) A [city] municipality may:
             230          (a) construct, maintain, and operate waterworks, sewer collection, sewer treatment
             231      systems, gas works, electric light works, telecommunications lines, cable television lines, or
             232      public transportation systems;
             233          (b) authorize the construction, maintenance and operation of the works or systems
             234      listed in Subsection (1)(a) by others;
             235          (c) purchase or lease the works or systems listed in Subsection (1)(a) from any person
             236      or corporation; and
             237          (d) sell and deliver the surplus product or service capacity of any works or system
             238      listed in Subsection (1)(a), not required by the [city] municipality or the [city's] municipality's
             239      inhabitants, to others beyond the limits of the [city] municipality, except the sale and delivery
             240      of:
             241          (i) retail electricity beyond the municipal boundary is governed by Subsections (3)
             242      through (8); and
             243          (ii) cable television services or public telecommunications services is governed by
             244      Subsection [(3)] (11).
             245          (2) If any payment on a contract with a private person, firm, or corporation to construct
             246      waterworks, sewer collection, sewer treatment systems, gas works, electric [light] works,
             247      telecommunications lines, cable television lines, or public transportation systems is retained or
             248      withheld, it shall be retained or withheld and released as provided in Section 13-8-5 .
             249          (3) (a) Except as provided in Subsection (3)(b), (5), or (9), a municipality may not sell
             250      or deliver the electricity produced or distributed by its electric works constructed, maintained,
             251      or operated in accordance with Subsection (1) to a retail customer located beyond its municipal
             252      boundary.
             253          (b) A municipality that provides retail electric service to a customer beyond its


             254      municipal boundary on or before June 15, 2013, may continue to serve that customer if:
             255          (i) on or before December 15, 2013, the municipality provides the electrical
             256      corporation, as defined in Section 54-2-1 , that is obligated by its certificate of public
             257      convenience and necessity to serve the customer with an accurate and complete verified written
             258      notice described in Subsection (3)(c) that identifies each customer served by the municipality
             259      beyond its municipal boundary;
             260          (ii) no later than June 15, 2014, the municipality enters into a written filing agreement
             261      for the provision of electric service with the electrical corporation; and
             262          (iii) the Public Service Commission approves the written filing agreement in
             263      accordance with Section 54-4-40 .
             264          (c) The municipality shall include in the written notice required in Subsection (3)(b)(i)
             265      for each customer:
             266          (i) the customer's meter number;
             267          (ii) the location of the customer's meter by street address, global positioning system
             268      coordinates, metes and bounds description, or other similar method of meter location;
             269          (iii) the customer's class of service; and
             270          (iv) a representation that the customer was receiving service from the municipality on
             271      or before June 15, 2013.
             272          (4) The written filing agreement entered into in accordance with Subsection (3)(b)(ii)
             273      shall require the following:
             274          (a) The municipality shall provide electric service to a customer identified in
             275      accordance with Subsection (3)(b)(i) unless the municipality and the electrical corporation
             276      subsequently agree in writing that the electrical corporation will provide electric service to the
             277      customer.
             278          (b) If a customer who is located outside the municipal boundary and who is not
             279      identified in accordance with Subsection (3)(b)(i) requests service from the municipality after
             280      June 15, 2013, the municipality may not provide that customer electric service unless the
             281      municipality submits a request to and enters into a written agreement with the electric


             282      corporation in accordance with Subsection (5).
             283          (5) (a) A municipality may submit to the electrical corporation a request to provide
             284      electric service to an electric customer described in Subsection (4)(b).
             285          (b) If a municipality submits a request, the electrical corporation shall respond to the
             286      request within 60 days.
             287          (c) If the electrical corporation agrees to allow the municipality to provide electric
             288      service to the customer:
             289          (i) the electrical corporation and the municipality shall enter into a written agreement;
             290          (ii) the municipality shall agree in the written agreement to subsequently transfer
             291      service to the customer described in Subsection (4)(b) if the electrical corporation notifies, in
             292      writing, the municipality that the electrical corporation has installed a facility capable of
             293      providing electric service to the customer; and
             294          (iii) the municipality may provide the service if the Public Service Commission
             295      approves the agreement in accordance with Section 54-4-40 .
             296          (d) The municipality or the electrical corporation may terminate the agreement for the
             297      provision of electric service if the Public Service Commission imposes a condition authorized
             298      in Section 54-4-40 that is a material change to the agreement.
             299          (6) If the municipality and electrical corporation make a transfer described in
             300      Subsection (5)(c)(ii):
             301          (a) (i) the municipality shall transfer the electric service customer to the electrical
             302      corporation; and
             303          (ii) the electrical corporation shall provide electric service to the customer; and
             304          (b) the municipality shall transfer a facility in accordance with and for the value as
             305      provided in Section 10-2-421 .
             306          (7) (a) In accordance with Subsection (7)(b), the municipality shall establish a
             307      reasonable mechanism for resolving potential future complaints by an electric customer located
             308      outside its municipal boundary.
             309          (b) The mechanism shall require:


             310          (i) that the rates and conditions of service for a customer outside the municipality's
             311      boundary are at least as favorable as the rates and conditions of service for a similarly situated
             312      customer within the municipality's boundary; and
             313          (ii) if the municipality provides a general rebate, refund, or other payment to a
             314      customer located within the municipality's boundary, that the municipality also provide the
             315      same general rebate, refund, or other payment to a similarly situated customer located outside
             316      the municipality's boundary.
             317          (8) The municipality is relieved of any obligation to transfer a customer described in
             318      Subsection (4)(b) or facility used to serve the customer in accordance with Subsection (5)(c)(ii)
             319      if the municipality annexes the property on which the customer is being served.
             320          (9) (a) A municipality may provide electric service outside of its municipal boundary to
             321      a facility that is solely owned and operated by the municipality for municipal service.
             322          (b) A municipality's provision of electric service to a facility that is solely owned and
             323      operated by the municipality does not expand the municipality's electric service area.
             324          (10) Nothing in this section expands or diminishes the ability of a municipality to enter
             325      into a wholesale electrical sales contract with another municipality that serves electric
             326      customers to sell and deliver wholesale electricity to the other municipality.
             327          [(3)] (11) A [city's] municipality's actions under this section related to works or
             328      systems involving public telecommunications services or cable television services are subject
             329      to the requirements of Chapter 18, Municipal Cable Television and Public
             330      Telecommunications Services Act.
             331          Section 3. Section 54-3-30 is enacted to read:
             332          54-3-30. Electric utility service within a provider municipality -- Electrical
             333      corporation prohibited as provider -- Exceptions -- Notice and agreement -- Transfer of
             334      customer.
             335          (1) This section applies to an electrical corporation that intends to provide electric
             336      service to a customer:
             337          (a) who is located within the municipal boundary of a municipality that provides


             338      electric service; and
             339          (b) who is not described in Subsection 54-3-31 (2).
             340          (2) (a) If an electrical corporation is authorized by the commission to provide electric
             341      service to a customer in an area adjacent to a municipality, and the municipality provides
             342      electric service to a customer located within its municipal boundary, the electrical corporation
             343      may not provide electric service to a customer within the municipal boundary unless:
             344          (i) the electrical corporation has entered into a written agreement with the municipality
             345      authorizing the electrical corporation to provide electric service:
             346          (A) to a specified customer within the municipal boundary; and
             347          (B) in accordance with the terms and conditions of the electrical corporation's tariffs
             348      and regulations approved by the commission; and
             349          (ii) the commission approves the agreement in accordance with Section 54-4-40 .
             350          (b) The municipality or the electrical corporation may terminate the agreement for the
             351      provision of electric service if the commission imposes a condition authorized in Section
             352      54-4-40 that is a material change to the agreement.
             353          (3) An electrical corporation that enters into an agreement described in Subsection
             354      (2)(a) shall transfer service to a customer described in Subsection (2):
             355          (a) at the conclusion of a term specified in the agreement; or
             356          (b) upon termination of the agreement by the electrical corporation in accordance with
             357      Subsection (4).
             358          (4) Unless otherwise agreed in writing by the electrical corporation and the
             359      municipality, the electrical corporation may terminate an agreement entered into in accordance
             360      with Subsection (2)(a) by giving written notice of termination to the municipality:
             361          (a) no earlier than two years before the day of termination; or
             362          (b) within a period of time shorter than two years if otherwise agreed to with the
             363      municipality.
             364          (5) Upon termination of an agreement in accordance with Subsection (3)(a), (3)(b), or
             365      (4):


             366          (a) (i) the electrical corporation shall transfer the electric service customer to the
             367      municipality; and
             368          (ii) the municipality shall provide electric service to the customer; and
             369          (b) the electrical corporation shall transfer a facility in accordance with and for the
             370      value as provided in Section 10-2-421 .
             371          (6) This section may not be construed to modify or terminate any written franchise
             372      agreement or other agreement that expressly provides for electric service by an electrical
             373      corporation to a customer within a municipality that was entered into between an electrical
             374      corporation and a municipality on or before June 15, 2013.
             375          Section 4. Section 54-3-31 is enacted to read:
             376          54-3-31. Electric utility service within a provider municipality -- Electrical
             377      corporation authorized as continuing provider for service provided on or before June 15,
             378      2013 -- Notice of service and agreement -- Transfer of customer.
             379          (1) This section applies to an electrical corporation that:
             380          (a) provides electric service to a customer on or before June 15, 2013, within the
             381      municipal boundary of a municipality that provides electric service; and
             382          (b) intends to continue providing service to that customer.
             383          (2) Notwithstanding Section 54-3-30 , if an electrical corporation provides electric
             384      service to a customer within the municipal boundary of a municipality on or before June 15,
             385      2013, and the municipality provides electric service to another customer within its municipal
             386      boundary, the electrical corporation may continue to provide electric service to the customer
             387      within the municipality's boundary if:
             388          (a) the electrical corporation provides, on or before December 15, 2013, the
             389      municipality with an accurate and complete verified written notice, in accordance with
             390      Subsection (3), identifying each customer within the municipality served by the electrical
             391      corporation on or before June 15, 2013;
             392          (b) the electrical corporation enters into a written agreement with the municipality no
             393      later than June 15, 2014; and


             394          (c) the commission approves the agreement in accordance with Section 54-4-40 .
             395          (3) The written notice provided in accordance with Subsection (2)(a) shall include for
             396      each customer:
             397          (a) the customer's meter number;
             398          (b) the location of the customer's meter by street address, global positioning system
             399      coordinates, metes and bounds description, or other similar method of meter location;
             400          (c) the customer's class of service; and
             401          (d) a representation that the customer was receiving service from the electrical
             402      corporation on or before June 15, 2013.
             403          (4) The agreement entered into in accordance with Subsection (2) shall require the
             404      following:
             405          (a) The electrical corporation is the exclusive electric service provider to a customer
             406      identified in the notice described in Subsection (2)(a) unless the municipality and electrical
             407      corporation subsequently agree, in writing, that the municipality may provide electric service to
             408      the identified customer.
             409          (b) If a customer who is located within the municipal boundary and who is not
             410      identified in Subsection (2)(a) requests service after June 15, 2013, from the electrical
             411      corporation, the electrical corporation may not provide that customer electric service unless the
             412      electrical corporation subsequently submits a request to and enters into a written agreement
             413      with the municipality in accordance with Section 54-4-30 .
             414          (5) (a) Unless otherwise agreed in writing by the electrical corporation and the
             415      municipality, the electrical corporation may terminate an agreement entered into in accordance
             416      with Subsection (2)(b) by giving written notice of termination to the municipality:
             417          (i) no earlier than two years before the day of termination; or
             418          (ii) within a period of time shorter than two years if otherwise agreed to with the
             419      municipality.
             420          (b) Upon termination of an agreement in accordance with Subsection (5)(a):
             421          (i) (A) the electrical corporation shall transfer an electric service customer located


             422      within the municipality to the municipality; and
             423          (B) the municipality shall provide electric service to the customer; and
             424          (ii) the electrical corporation shall transfer a facility in accordance with and for the
             425      value as provided in Section 10-2-421 .
             426          (6) This section may not be construed to modify or terminate any written franchise
             427      agreement or other agreement that expressly provides for electric service by an electrical
             428      corporation to a customer within a municipality that was entered into between an electrical
             429      corporation and a municipality on or before June 15, 2013.
             430          Section 5. Section 54-4-40 is enacted to read:
             431          54-4-40. Approval of certain agreements between an electrical corporation and
             432      municipality.
             433          (1) The commission shall review an agreement entered into between an electrical
             434      corporation and a municipality if the electrical corporation is required to obtain commission
             435      approval in accordance with Section 10-8-14 , 54-3-30 , or 54-3-31 .
             436          (2) The requirements of Subsection (1) do not confer jurisdiction on the commission to
             437      regulate any electric service provided by a municipality.
             438          (3) Unless the commission determines that additional time is warranted and is in the
             439      public interest, no later than 120 days after the day on which an application to approve an
             440      agreement described in Subsection (1) is filed by an electrical corporation, the commission
             441      shall:
             442          (a) approve the agreement;
             443          (b) approve the agreement subject to conditions imposed by the commission; or
             444          (c) reject the agreement.


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