H.B. 44 Enrolled

             1     

INTERSTATE ELECTRIC TRANSMISSION LINES
             2      2014 GENERAL SESSION
             3      STATE OF UTAH
             4      Chief Sponsor: Stephen G. Handy
             5      Senate Sponsor: Curtis S. Bramble
             6     
             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:
             26          None
             27      Other Special Clauses:
             28          None
             29      Utah Code Sections Affected:

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             30      ENACTS:
             31           63M-4-402 , Utah Code Annotated 1953
             32     
             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

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             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

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             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
             88      section.
             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
             99      rates.
             100           (10) Subsections (2) through (9) do not apply to a project entity as defined in Section
             101      11-13-103 .

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