Fourth Substitute H.B. 44
This document includes Senate 2nd and 3rd Reading Floor Amendments incorporated into the bill on Thu, Mar 13, 2014 at 9:49 PM by bhansen. -->
7 LONG TITLE
8 General Description:
9 This bill enacts language related to a merchant electric transmission line.
10 Highlighted Provisions:
11 This bill:
12 . defines terms;
13 . requires a merchant electric transmission line to file an open solicitation notice with
14 the Office of Energy Development;
15 . requires the Office of Energy Development to post notice of receipt of the open
16 solicitation notice;
17 . permits an in-state merchant generator to submit an expression of need to the Office
18 of Energy Development;
19 . requires the Office of Energy Development to prepare a certificate of in-state need;
20 . requires a merchant electric transmission line to provide to the Federal Energy
21 Regulatory Commission a copy of the certificate of in-state need; and
22 . requires a merchant electric transmission line to report to the Office of Energy
23 Development whether a merchant in-state generator has entered into a transmission
24 service agreement with the merchant electric transmission line.
25 Money Appropriated in this Bill:
27 Other Special Clauses:
29 Utah Code Sections Affected:
31 63M-4-402 , Utah Code Annotated 1953
33 Be it enacted by the Legislature of the state of Utah:
34 Section 1. Section 63M-4-402 is enacted to read:
35 63M-4-402. In-state generator need -- Merchant electric transmission line.
36 (1) As used in this section:
37 (a) "Capacity allocation process" means the process outlined by the Federal Energy
38 Regulatory Commission in its final policy statement dated January 17, 2013, "Allocation of
39 Capacity on New Merchant Transmission Projects and New Cost-Based, Participant-Funded
40 Transmission Projects, Priority Rights to New Participant-Funded Transmission," 142 F.E.R.C.
41 P61,038 (2013).
42 (b) "Certificate of in-state need" means a certificate issued by the office in accordance
43 with this section identifying an in-state generator that meets the requirements and qualifications
44 of this section.
45 (c) "Expression of need" means a document prepared and submitted to the office by an
46 in-state merchant generator that describes or otherwise documents the transmission needs of
47 the in-state merchant generator in conformance with the requirements of this section.
48 (d) "In-state merchant generator" means an electric power provider that generates
49 power in Utah and does not provide service to retail customers within the boundaries of Utah.
50 (e) "Merchant electric transmission line" means a transmission line that does not
51 provide electricity to retail customers within the boundaries of Utah.
52 (f) "Office" means the Office of Energy Development established in Section
53 63M-4-401 .
54 (g) "Open solicitation notice" means a document prepared and submitted to the office
55 by a merchant electric transmission line regarding the commencement of the line's open
56 solicitation in compliance with 142 F.E.R.C. P61,038 (2013).
57 (2) As part of the capacity allocation process, a merchant electric transmission line
58 shall file an open solicitation notice with the office containing a description of the merchant
59 electric transmission line, including:
60 (a) the proposed capacity;
61 (b) the location of potential interconnection for in-state merchant generators;
62 (c) the planned date for commencement of construction; and
63 (d) the planned commercial operations date.
64 (3) Upon receipt of the open solicitation notice, the office shall:
65 (a) publish the notice on the Utah Public Notice Website created under Section
66 63F-1-701 ;
67 (b) include in the notice contact information; and
68 (c) provide the deadline date for submission of an expression of need.
69 (4) (a) In response to the open solicitation notice published by the office, and no later
70 than 30 days after publication of the notice, an in-state merchant generator may submit an
71 expression of need to the office.
72 (b) An expression of need submitted under Subsection (4)(a) shall include:
73 (i) a description of the in-state merchant generator; and
74 (ii) a schedule of transmission capacity requirement provided in megawatts, by point of
75 receipt and point of delivery and by operating year.
76 (5) No later than 60 days after notice is published under Subsection (3), the office shall
77 prepare a certificate of in-state need identifying the in-state merchant generators.
78 (6) Within five days of preparing the certificate of in-state need, the office shall:
79 (a) publish the certificate on the Utah Public Notice Website created under Section
80 63F-1-701 ; and
81 (b) provide the certificate to the merchant electric transmission line for consideration in
82 the capacity allocation process.
83 (7) The merchant electric transmission line shall:
84 (a) provide the Federal Energy Regulatory Commission with a copy of the certificate of
85 in-state need; and
86 (b) certify that the certificate is being provided to the Federal Energy Regulatory
87 Commission in accordance with the requirements of this section, including a citation to this
89 (8) At the conclusion of the capacity allocation process, and unless prohibited by a
90 contractual obligation of confidentiality, the merchant electric transmission line shall report to
91 the office whether a merchant in-state generator reflected on the certificate of in-state need has
92 entered into a transmission service agreement with the merchant electric transmission line.
93 (9) This section may not be interpreted to:
94 (a) create an obligation of a merchant electric transmission line to pay for, or construct
95 any portion of, the transmission line on behalf of an in-state merchant generator; or
96 (b) preempt, supersede, or otherwise conflict with Federal Energy Regulatory
97 Commission rules and regulations applicable to a commercial transmission agreement,
98 including agreements, or terms of agreements, as to cost, terms, transmission capacity, or key
99a S. (10) Subsections (2) through (9) do not apply to a project entity as defined in Section 11-13- 99b 103. .S
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