2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to an electric utility.
10 Highlighted Provisions:
11 This bill:
12 ▸ prohibits a purchasing utility from charging a qualifying power producer to pay for
13 transmission or distribution system upgrades under certain circumstances;
14 ▸ allows certain cost impacts on purchasing utilities to be included in the purchasing
15 utility's avoided costs;
16 ▸ prohibits a qualified utility from charging a customer for transmission or
17 distribution of renewable energy under certain circumstances; and
18 ▸ allows a qualified utility to assess a nondiscriminatory charge under certain
19 circumstances.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 AMENDS:
26 54-12-2, as last amended by Laws of Utah 2008, Chapter 374
27 54-17-806, as enacted by Laws of Utah 2016, Chapter 393
28
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 54-12-2 is amended to read:
31 54-12-2. Purchase of power from a qualifying power producer.
32 (1) A purchasing [
33 power [
34 (2) (a) The commission shall establish reasonable rates, terms, and conditions for the
35 purchase or sale of electricity or electrical generating capacity[
36 utility and a qualifying power producer.
37 (b) In establishing [
38 (2)(a), the commission shall [
39 (i) establish a procedure under which qualifying power producers offer competitive
40 bids for the sale of power to a purchasing [
41 (ii) [
42 considers the purchasing utility's avoided costs.
43 (c) The capacity component of a purchasing utility's avoided costs shall reflect the
44 purchasing utility's long-term deferral or cancellation of generating units [
45 result from the purchase of power from a qualifying power [
46 (3) [
47 producer may agree to rates, terms, or conditions for the sale of electricity or electrical capacity
48 [
49 under Subsection (2).
50 (4) A purchasing utility shall use or dispose of electricity provided by a qualifying
51 power producer to the greatest extent possible using the purchasing utility's existing
52 transmission and distribution capacity.
53 (5) A purchasing utility may not require a qualifying power producer to cover the cost
54 of an upgrade to the purchasing utility's transmission or distribution system as a condition of
55 purchasing electricity or electrical generating capacity from the qualifying power producer
56 under Subsection (2).
57 (6) The commission may consider, in calculating a purchasing utility's avoided costs
58 under Subsection (2), the cost to the purchasing utility to upgrade the purchasing utility's
59 transmission or distribution capacity in order to use or dispose of electricity provided by a
60 qualifying power producer.
61 (7) A purchasing utility may, with commission approval, impose a nondiscriminatory
62 charge on a qualifying power producer to interconnect the qualifying power producer with the
63 purchasing utility's transmission or distribution facilities.
64 [
65 small power production and cogeneration facilities.
66 Section 2. Section 54-17-806 is amended to read:
67 54-17-806. Qualified utility renewable energy tariff.
68 (1) The commission may authorize a qualified utility to implement a renewable energy
69 tariff in accordance with this section if the commission determines the tariff that the qualified
70 utility proposes is reasonable and in the public interest.
71 (2) If a tariff is authorized under Subsection (1), a qualified utility customer with an
72 aggregated electrical load of at least five megawatts and who agrees to service that is subject to
73 the renewable energy tariff shall pay:
74 (a) the customer's normal tariff rate;
75 (b) an incremental charge in an amount equal to the difference between the cost to the
76 qualified utility to supply renewable generation to the renewable energy tariff customer and the
77 qualified utility's avoided costs as defined in Subsection 54-2-1(1), or a different methodology
78 recommended by the qualified utility; and
79 (c) an administrative fee in an amount approved by the commission.
80 (3) A qualified utility shall use or dispose of electricity purchased on behalf of a
81 qualified utility customer under this section to the greatest extent possible using the qualified
82 utility's existing transmission and distribution capacity.
83 (4) If a qualified utility has not utilized the qualified utility's existing transmission and
84 distribution capacity as provided in Subsection (3), the qualified utility may not require a
85 qualified utility customer to cover the cost of an upgrade to the qualified utility's transmission
86 or distribution system as a condition of purchasing electricity on behalf of the qualified utility
87 customer.
88 (5) A qualified utility may, with commission approval, impose a nondiscriminatory
89 charge on a qualified utility customer to interconnect a renewable energy facility with the
90 qualified utility's transmission or distribution facilities.
91 [
92 prudently incurred cost of renewable generation procured pursuant to the tariff established in
93 this section that is not otherwise recovered from the proceeds of the tariff paid by customers
94 agreeing to service that is subject to the renewable energy tariff.
Legislative Review Note
Office of Legislative Research and General Counsel