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H.B. 19

             1     

ELECTRIC VEHICLE BATTERY CHARGING SERVICE

             2     
AMENDMENTS

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Patrice M. Arent

             6     
Senate Sponsor: Ralph Okerlund

             7     
             8      LONG TITLE
             9      Committee Note:
             10          The Public Utilities and Technology Interim Committee recommended this bill.
             11      General Description:
             12          This bill amends Title 54, Public Utilities.
             13      Highlighted Provisions:
             14          This bill:
             15          .    provides that the definition of "public utility" does not include certain entities that
             16      sell electric vehicle battery charging services.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23           54-2-1 , as last amended by Laws of Utah 2010, Chapters 302 and 390
             24     
             25      Be it enacted by the Legislature of the state of Utah:
             26          Section 1. Section 54-2-1 is amended to read:
             27           54-2-1. Definitions.


             28          As used in this title:
             29          (1) "Avoided costs" means the incremental costs to an electrical corporation of electric
             30      energy or capacity or both that, due to the purchase of electric energy or capacity or both from
             31      small power production or cogeneration facilities, the electrical corporation would not have to
             32      generate itself or purchase from another electrical corporation.
             33          (2) "Cogeneration facility":
             34          (a) means a facility that produces:
             35          (i) electric energy; and
             36          (ii) steam or forms of useful energy, including heat, that are used for industrial,
             37      commercial, heating, or cooling purposes; and
             38          (b) is a qualifying cogeneration facility under federal law.
             39          (3) "Commission" means the Public Service Commission of Utah.
             40          (4) "Commissioner" means a member of the commission.
             41          (5) (a) "Corporation" includes an association and a joint stock company having any
             42      powers or privileges not possessed by individuals or partnerships.
             43          (b) "Corporation" does not include towns, cities, counties, conservancy districts,
             44      improvement districts, or other governmental units created or organized under any general or
             45      special law of this state.
             46          (6) "Distribution electrical cooperative" includes an electrical corporation that:
             47          (a) is a cooperative;
             48          (b) conducts a business that includes the retail distribution of electricity the cooperative
             49      purchases or generates for the cooperative's members; and
             50          (c) is required to allocate or distribute savings in excess of additions to reserves and
             51      surplus on the basis of patronage to the cooperative's:
             52          (i) members; or
             53          (ii) patrons.
             54          (7) "Electrical corporation" includes every corporation, cooperative association, and
             55      person, their lessees, trustees, and receivers, owning, controlling, operating, or managing any
             56      electric plant, or in any way furnishing electric power for public service or to its consumers or
             57      members for domestic, commercial, or industrial use, within this state, except independent
             58      energy producers, and except where electricity is generated on or distributed by the producer


             59      solely for the producer's own use, or the use of the producer's tenants, or for the use of
             60      members of an association of unit owners formed under Title 57, Chapter 8, Condominium
             61      Ownership Act, and not for sale to the public generally, and except where the electricity
             62      generated is consumed by an owner, lessor, or interest holder, or by an affiliate of an owner,
             63      lessor, or interest holder, who has provided at least $25,000,000 in value, including credit
             64      support, relating to the electric plant furnishing the electricity and whose consumption does not
             65      exceed its long-term entitlement in the plant under a long-term arrangement other than a power
             66      purchase agreement, except a power purchase agreement with an electrical corporation.
             67          (8) "Electric plant" includes all real estate, fixtures, and personal property owned,
             68      controlled, operated, or managed in connection with or to facilitate the production, generation,
             69      transmission, delivery, or furnishing of electricity for light, heat, or power, and all conduits,
             70      ducts, or other devices, materials, apparatus, or property for containing, holding, or carrying
             71      conductors used or to be used for the transmission of electricity for light, heat, or power.
             72          (9) "Gas corporation" includes every corporation and person, their lessees, trustees, and
             73      receivers, owning, controlling, operating, or managing any gas plant for public service within
             74      this state or for the selling or furnishing of natural gas to any consumer or consumers within the
             75      state for domestic, commercial, or industrial use, except in the situation that:
             76          (a) gas is made or produced on, and distributed by the maker or producer through,
             77      private property:
             78          (i) solely for the maker's or producer's own use or the use of the maker's or producer's
             79      tenants; and
             80          (ii) not for sale to others;
             81          (b) gas is compressed on private property solely for the owner's own use or the use of
             82      the owner's employees as a motor vehicle fuel; or
             83          (c) gas is compressed by a retailer of motor vehicle fuel on the retailer's property solely
             84      for sale as a motor vehicle fuel.
             85          (10) "Gas plant" includes all real estate, fixtures, and personal property owned,
             86      controlled, operated, or managed in connection with or to facilitate the production, generation,
             87      transmission, delivery, or furnishing of gas, natural or manufactured, for light, heat, or power.
             88          (11) "Heat corporation" includes every corporation and person, their lessees, trustees,
             89      and receivers, owning, controlling, operating, or managing any heating plant for public service


             90      within this state.
             91          (12) (a) "Heating plant" includes all real estate, fixtures, machinery, appliances, and
             92      personal property controlled, operated, or managed in connection with or to facilitate the
             93      production, generation, transmission, delivery, or furnishing of artificial heat.
             94          (b) "Heating plant" does not include either small power production facilities or
             95      cogeneration facilities.
             96          (13) "Independent energy producer" means every electrical corporation, person,
             97      corporation, or government entity, their lessees, trustees, or receivers, that own, operate,
             98      control, or manage an independent power production or cogeneration facility.
             99          (14) "Independent power production facility" means a facility that:
             100          (a) produces electric energy solely by the use, as a primary energy source, of biomass,
             101      waste, a renewable resource, a geothermal resource, or any combination of the preceding
             102      sources; or
             103          (b) is a qualifying power production facility.
             104          (15) "Private telecommunications system" includes all facilities for the transmission of
             105      signs, signals, writing, images, sounds, messages, data, or other information of any nature by
             106      wire, radio, lightwaves, or other electromagnetic means, excluding mobile radio facilities, that
             107      are owned, controlled, operated, or managed by a corporation or person, including their lessees,
             108      trustees, receivers, or trustees appointed by any court, for the use of that corporation or person
             109      and not for the shared use with or resale to any other corporation or person on a regular basis.
             110          (16) (a) "Public utility" includes every railroad corporation, gas corporation, electrical
             111      corporation, distribution electrical cooperative, wholesale electrical cooperative, telephone
             112      corporation, telegraph corporation, water corporation, sewerage corporation, heat corporation,
             113      and independent energy producer not described in Subsection (16)(d), where the service is
             114      performed for, or the commodity delivered to, the public generally, or in the case of a gas
             115      corporation or electrical corporation where the gas or electricity is sold or furnished to any
             116      member or consumers within the state for domestic, commercial, or industrial use.
             117          (b) (i) If any railroad corporation, gas corporation, electrical corporation, telephone
             118      corporation, telegraph corporation, water corporation, sewerage corporation, heat corporation,
             119      or independent energy producer not described in Subsection (16)(d), performs a service for or
             120      delivers a commodity to the public, it is considered to be a public utility, subject to the


             121      jurisdiction and regulation of the commission and this title.
             122          (ii) If a gas corporation, independent energy producer not described in Subsection
             123      (16)(d), or electrical corporation sells or furnishes gas or electricity to any member or
             124      consumers within the state, for domestic, commercial, or industrial use, for which any
             125      compensation or payment is received, it is considered to be a public utility, subject to the
             126      jurisdiction and regulation of the commission and this title.
             127          (c) Any corporation or person not engaged in business exclusively as a public utility as
             128      defined in this section is governed by this title in respect only to the public utility owned,
             129      controlled, operated, or managed by the corporation or person, and not in respect to any other
             130      business or pursuit.
             131          (d) An independent energy producer is exempt from the jurisdiction and regulations of
             132      the commission with respect to an independent power production facility if it meets the
             133      requirements of Subsection (16)(d)(i), (ii), (iii), or (iv), or any combination of these:
             134          (i) the commodity or service is produced or delivered, or both, by an independent
             135      energy producer solely for the uses exempted in Subsection (7) or for the use of state-owned
             136      facilities;
             137          (ii) the commodity or service is sold by an independent energy producer solely to an
             138      electrical corporation or other wholesale purchaser;
             139          (iii) (A) the commodity or service produced or delivered by the independent energy
             140      producer is delivered to an entity that controls, is controlled by, or affiliated with the
             141      independent energy producer or to a user located on real property managed or controlled by the
             142      independent energy producer; and
             143          (B) the real property on which the service or commodity is used is contiguous to real
             144      property which is owned or controlled by the independent energy producer. Parcels of real
             145      property separated solely by public roads or easements for public roads shall be considered as
             146      contiguous for purposes of this Subsection (16); or
             147          (iv) the independent energy producer:
             148          (A) supplies energy for direct consumption by a customer that is:
             149          (I) a county, municipality, city, town, other political subdivision, local district, special
             150      service district, state institution of higher education, school district, charter school, or any
             151      entity within the state system of public education; or


             152          (II) an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3)
             153      operated for religious, charitable, or educational purposes that is exempt from federal income
             154      tax and able to demonstrate its tax-exempt status;
             155          (B) supplies energy to the customer through use of a customer generation system, as
             156      defined in Section 54-15-102 , for use on the real property where the customer generation
             157      system is located;
             158          (C) supplies energy using a customer generation system designed to supply the lesser
             159      of:
             160          (I) no more than 90% of the average annual consumption of electricity by the customer
             161      at that site, based on an annualized billing period; or
             162          (II) the maximum size allowable under net metering provisions, defined in Section
             163      54-15-102 ;
             164          (D) notifies the customer before installing the customer generation system of:
             165          (I) all costs the customer is required to pay for the customer generation system,
             166      including any interconnection costs; and
             167          (II) the potential for future changes in amounts paid by the customer for energy
             168      received from the public utility and the possibility of changes to the customer fees or charges to
             169      the customer associated with net metering and generation;
             170          (E) enters into and performs in accordance with an interconnection agreement with a
             171      public utility providing retail electric service where the real property on which the customer
             172      generation system is located, with the rates, terms, and conditions of the retail service and
             173      interconnection agreement subject to approval by the governing authority of the public utility,
             174      as defined in Subsection 54-15-102 (8); and
             175          (F) installs the relevant customer generation system by December 31, 2015.
             176          (e) Any person or corporation defined as an electrical corporation or public utility
             177      under this section may continue to serve its existing customers subject to any order or future
             178      determination of the commission in reference to the right to serve those customers.
             179          (f) (i) "Public utility" does not include any person that is otherwise considered a public
             180      utility under this Subsection (16) solely because of that person's ownership of an interest in an
             181      electric plant, cogeneration facility, or small power production facility in this state if all of the
             182      following conditions are met:


             183          (A) the ownership interest in the electric plant, cogeneration facility, or small power
             184      production facility is leased to:
             185          (I) a public utility, and that lease has been approved by the commission;
             186          (II) a person or government entity that is exempt from commission regulation as a
             187      public utility; or
             188          (III) a combination of Subsections (16)(f)(i)(A)(I) and (II);
             189          (B) the lessor of the ownership interest identified in Subsection (16)(f)(i)(A) is:
             190          (I) primarily engaged in a business other than the business of a public utility; or
             191          (II) a person whose total equity or beneficial ownership is held directly or indirectly by
             192      another person engaged in a business other than the business of a public utility; and
             193          (C) the rent reserved under the lease does not include any amount based on or
             194      determined by revenues or income of the lessee.
             195          (ii) Any person that is exempt from classification as a public utility under Subsection
             196      (16)(f)(i) shall continue to be so exempt from classification following termination of the
             197      lessee's right to possession or use of the electric plant for so long as the former lessor does not
             198      operate the electric plant or sell electricity from the electric plant. If the former lessor operates
             199      the electric plant or sells electricity, the former lessor shall continue to be so exempt for a
             200      period of 90 days following termination, or for a longer period that is ordered by the
             201      commission. This period may not exceed one year. A change in rates that would otherwise
             202      require commission approval may not be effective during the 90-day or extended period
             203      without commission approval.
             204          (g) "Public utility" does not include any person that provides financing for, but has no
             205      ownership interest in an electric plant, small power production facility, or cogeneration facility.
             206      In the event of a foreclosure in which an ownership interest in an electric plant, small power
             207      production facility, or cogeneration facility is transferred to a third-party financer of an electric
             208      plant, small power production facility, or cogeneration facility, then that third-party financer is
             209      exempt from classification as a public utility for 90 days following the foreclosure, or for a
             210      longer period that is ordered by the commission. This period may not exceed one year.
             211          (h) (i) The distribution or transportation of natural gas for use as a motor vehicle fuel
             212      does not cause the distributor or transporter to be a "public utility," unless the commission,
             213      after notice and a public hearing, determines by rule that it is in the public interest to regulate


             214      the distributers or transporters, but the retail sale alone of compressed natural gas as a motor
             215      vehicle fuel may not cause the seller to be a "public utility."
             216          (ii) In determining whether it is in the public interest to regulate the distributors or
             217      transporters, the commission shall consider, among other things, the impact of the regulation
             218      on the availability and price of natural gas for use as a motor fuel.
             219          (i) "Public utility" does not include any corporation, cooperative association, or person,
             220      their affiliates, lessees, trustees, or receivers, owning, controlling, operating, or managing an
             221      electric plant or in any way furnishing electricity if the electricity is consumed by an owner,
             222      lessor, or interest holder or by an affiliate of an owner, lessor, or interest holder, who has
             223      provided at least $25,000,000 in value, including credit support, relating to the electric plant
             224      furnishing the electricity and whose consumption does not exceed its long-term entitlement in
             225      the plant under a long-term arrangement other than a power purchase agreement, except a
             226      power purchase agreement with an electrical corporation.
             227          (j) "Public utility" does not include an entity that sells electric vehicle battery charging
             228      services, unless the entity conducts another activity in the state that subjects the entity to the
             229      jurisdiction and regulation of the commission as a public utility.
             230          (17) "Purchasing utility" means any electrical corporation that is required to purchase
             231      electricity from small power production or cogeneration facilities pursuant to the Public Utility
             232      Regulatory Policies Act, 16 U.S.C. Section 824a-3.
             233          (18) "Qualifying power producer" means a corporation, cooperative association, or
             234      person, or the lessee, trustee, and receiver of the corporation, cooperative association, or
             235      person, who owns, controls, operates, or manages any qualifying power production facility or
             236      cogeneration facility.
             237          (19) "Qualifying power production facility" means a facility that:
             238          (a) produces electrical energy solely by the use, as a primary energy source, of biomass,
             239      waste, a renewable resource, a geothermal resource, or any combination of the preceding
             240      sources;
             241          (b) has a power production capacity that, together with any other facilities located at
             242      the same site, is no greater than 80 megawatts; and
             243          (c) is a qualifying small power production facility under federal law.
             244          (20) "Railroad" includes every commercial, interurban, and other railway, other than a


             245      street railway, and each branch or extension of a railway, by any power operated, together with
             246      all tracks, bridges, trestles, rights-of-way, subways, tunnels, stations, depots, union depots,
             247      yards, grounds, terminals, terminal facilities, structures, and equipment, and all other real
             248      estate, fixtures, and personal property of every kind used in connection with a railway owned,
             249      controlled, operated, or managed for public service in the transportation of persons or property.
             250          (21) "Railroad corporation" includes every corporation and person, their lessees,
             251      trustees, and receivers, owning, controlling, operating, or managing any railroad for public
             252      service within this state.
             253          (22) (a) "Sewerage corporation" includes every corporation and person, their lessees,
             254      trustees, and receivers, owning, controlling, operating, or managing any sewerage system for
             255      public service within this state.
             256          (b) "Sewerage corporation" does not include private sewerage companies engaged in
             257      disposing of sewage only for their stockholders, or towns, cities, counties, conservancy
             258      districts, improvement districts, or other governmental units created or organized under any
             259      general or special law of this state.
             260          (23) "Telegraph corporation" includes every corporation and person, their lessees,
             261      trustees, and receivers, owning, controlling, operating, or managing any telegraph line for
             262      public service within this state.
             263          (24) "Telegraph line" includes all conduits, ducts, poles, wires, cables, instruments, and
             264      appliances, and all other real estate, fixtures, and personal property owned, controlled,
             265      operated, or managed in connection with or to facilitate communication by telegraph, whether
             266      that communication be had with or without the use of transmission wires.
             267          (25) (a) "Telephone corporation" means any corporation or person, and their lessees,
             268      trustee, receivers, or trustees appointed by any court, who owns, controls, operates, manages, or
             269      resells a public telecommunications service as defined in Section 54-8b-2 .
             270          (b) "Telephone corporation" does not mean a corporation, partnership, or firm
             271      providing:
             272          (i) intrastate telephone service offered by a provider of cellular, personal
             273      communication systems (PCS), or other commercial mobile radio service as defined in 47
             274      U.S.C. Sec. 332 that has been issued a covering license by the Federal Communications
             275      Commission;


             276          (ii) Internet service; or
             277          (iii) resold intrastate toll service.
             278          (26) "Telephone line" includes all conduits, ducts, poles, wires, cables, instruments,
             279      and appliances, and all other real estate, fixtures, and personal property owned, controlled,
             280      operated, or managed in connection with or to facilitate communication by telephone whether
             281      that communication is had with or without the use of transmission wires.
             282          (27) "Transportation of persons" includes every service in connection with or
             283      incidental to the safety, comfort, or convenience of the person transported, and the receipt,
             284      carriage, and delivery of that person and that person's baggage.
             285          (28) "Transportation of property" includes every service in connection with or
             286      incidental to the transportation of property, including in particular its receipt, delivery,
             287      elevation, transfer, switching, carriage, ventilation, refrigeration, icing, dunnage, storage, and
             288      hauling, and the transmission of credit by express companies.
             289          (29) "Water corporation" includes every corporation and person, their lessees, trustees,
             290      and receivers, owning, controlling, operating, or managing any water system for public service
             291      within this state. It does not include private irrigation companies engaged in distributing water
             292      only to their stockholders, or towns, cities, counties, water conservancy districts, improvement
             293      districts, or other governmental units created or organized under any general or special law of
             294      this state.
             295          (30) (a) "Water system" includes all reservoirs, tunnels, shafts, dams, dikes, headgates,
             296      pipes, flumes, canals, structures, and appliances, and all other real estate, fixtures, and personal
             297      property owned, controlled, operated, or managed in connection with or to facilitate the
             298      diversion, development, storage, supply, distribution, sale, furnishing, carriage, appointment,
             299      apportionment, or measurement of water for power, fire protection, irrigation, reclamation, or
             300      manufacturing, or for municipal, domestic, or other beneficial use.
             301          (b) "Water system" does not include private irrigation companies engaged in
             302      distributing water only to their stockholders.
             303          (31) "Wholesale electrical cooperative" includes every electrical corporation that is:
             304          (a) in the business of the wholesale distribution of electricity it has purchased or
             305      generated to its members and the public; and
             306          (b) required to distribute or allocate savings in excess of additions to reserves and


             307      surplus to members or patrons on the basis of patronage.




Legislative Review Note
    as of 11-20-13 12:25 PM


Office of Legislative Research and General Counsel


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