2
3
4
5
6 Cosponsor:
7 Jeffrey D. Stenquist
8
9 LONG TITLE
10 General Description:
11 This bill amends provisions related to energy efficiency programs for large-scale natural
12 gas utilities and large-scale electric utilities.
13 Highlighted Provisions:
14 This bill:
15 ▸ modifies the definition of "demand side management" in the context of an
16 authorized tariff relating to energy efficiency and conservation, to include the use of
17 heat pumps; and
18 ▸ requires the Public Service Commission to allow an end-use customer of a
19 large-scale electric utility or a large-scale natural gas utility to continue to receive a
20 credit or rebate under an approved demand side management tariff or schedule
21 under certain circumstances.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:
28 54-7-12, as last amended by Laws of Utah 2009, Chapter 319
29 54-7-12.8, as last amended by Laws of Utah 2016, Chapter 393
30
31 Be it enacted by the Legislature of the state of Utah:
32 Section 1. Section 54-7-12 is amended to read:
33 54-7-12. Rate increase or decrease -- Procedure -- Effective dates -- Electrical or
34 telephone cooperative.
35 (1) As used in this section:
36 (a) (i) "Base rates" means those charges included in a public utility's generally
37 applicable rate tariffs, including:
38 (A) a fare;
39 (B) a rate;
40 (C) a rental;
41 (D) a toll; or
42 (E) any other charge generally applicable to a public utility's rate tariffs.
43 (ii) Unless included by a commission order, "base rates" does not include charges
44 included in:
45 (A) a deferred account;
46 (B) a balancing account;
47 (C) a major plant addition surcharge;
48 (D) a major plant addition surcredit;
49 (E) a special contract; or
50 (F) a public utility program offering.
51 (b) (i) "Complete filing" means an application filed by a public utility that substantially
52 complies with minimum filing requirements established by the commission, by rule, for a
53 general rate increase or decrease.
54 (ii) The commission shall within 180 days after March 25, 2009 create and finalize
55 rules concerning the minimum requirements to be met for an application to be considered a
56 complete filing.
57 (c) "General rate decrease" means:
58 (i) any direct decrease to a public utility's base rates; or
59 (ii) any modification of a classification, contract, practice, or rule that decreases a
60 public utility's base rates.
61 (d) "General rate increase" means:
62 (i) any direct increase to a public utility's base rates; or
63 (ii) any modification of a classification, contract, practice, or rule that increases a
64 public utility's base rates.
65 (2) (a) A public utility that files for a general rate increase or general rate decrease shall
66 file a complete filing with the commission setting forth the proposed rate increase or decrease.
67 (b) (i) For purposes of this Subsection (2), a public utility's application for a general
68 rate increase or decrease shall be considered a complete filing unless within 30 days after the
69 day on which the commission receives the public utility's application, the commission issues an
70 order describing information that the public utility must provide for the application to be
71 considered a complete filing.
72 (ii) Subject to Subsection (2)(b)(iii) and within 14 days after the day on which the
73 application is received by the commission, a party or a person may file a motion to challenge
74 whether an application for a general rate increase or decrease is a complete filing.
75 (iii) A party or a person may not file a motion described in Subsection (2)(b)(ii) unless
76 the person or party has first filed a motion to intervene with the commission.
77 (c) If, in accordance with Subsection (2)(b)(i), the commission issues an order that an
78 application is not a complete filing, the commission shall:
79 (i) determine the materiality of an application deficiency; and
80 (ii) (A) if the deficiencies are not material, issue an order that the 240-day period
81 described in Subsection (3)(a) shall continue without delay or be suspended and resume when
82 the public utility files the required information; or
83 (B) if the deficiencies are material, issue an order that the 240-day period described in
84 Subsection (3)(a) shall start over when the public utility files the required information.
85 (d) (i) The commission shall, after reasonable notice, hold a hearing to determine
86 whether the proposed rate increase or decrease, or some other rate increase or decrease, is just
87 and reasonable.
88 (ii) If a rate decrease is proposed by a public utility, the commission may waive a
89 hearing unless it seeks to suspend, alter, or modify the rate decrease.
90 (e) Except as otherwise provided in Subsection (2)(d), (3), or (4), a proposed rate
91 increase or decrease is not effective until after completion of the hearing and issuance of a final
92 order by the commission concerning the proposed increase or decrease.
93 (3) (a) Within 240 days after a public utility submits a complete filing, the commission
94 shall issue a final order to:
95 (i) grant the proposed general rate increase or decrease;
96 (ii) grant a different general rate increase or decrease; or
97 (iii) deny the proposed general rate increase or decrease.
98 (b) If the commission does not issue a final written order within 240 days after the
99 public utility submits a complete filing in accordance with Subsection (3)(a):
100 (i) the public utility's proposed rate increase or decrease is final; and
101 (ii) the commission may not order a refund of any amount already collected or returned
102 by the public utility under Subsection [
103 (4) (a) (i) A request for interim rates shall be made within 90 days after the day on
104 which a public utility files a complete filing for a general rate increase or a general rate
105 decrease.
106 (ii) The commission, on its own initiative or in response to an application by a public
107 utility or other party, may, after a hearing, allow any rate increase or decrease proposed by a
108 public utility, or a reasonable part of the rate increase or decrease, to take effect on an interim
109 basis within 45 days after the day on which the request is filed, subject to the commission's
110 right to order a refund or surcharge.
111 (iii) The evidence presented in the hearing held pursuant to this Subsection (4) need
112 not encompass all issues that may be considered in a rate case hearing held pursuant to
113 Subsection (2)(d), but shall establish an adequate prima facie showing that the interim rate
114 increase or decrease is justified.
115 (b) The commission may, after a hearing, issue a final order before the expiration of
116 240 days after the day on which the public utility files a complete filing establishing the utility's
117 revenue requirement and fixing the utility's allowable rates before the commission determines
118 the final allocation of the increase or decrease among categories of customers and classes of
119 service.
120 (c) (i) If the commission in the commission's final order on a public utility's revenue
121 requirement finds that the interim increase ordered under Subsection (4)(a)(ii) exceeds the
122 increase finally ordered, the commission shall order the public utility to refund the excess to
123 customers.
124 (ii) If the commission in the commission's final order on a public utility's revenue
125 requirement finds that the interim decrease ordered under Subsection (4)(a)(ii) exceeds the
126 decrease finally ordered, the commission shall order a surcharge to customers to recover the
127 excess decrease.
128 (5) (a) Notwithstanding any other provisions of this title, any schedule, classification,
129 practice, or rule filed by a public utility with the commission that does not result in any rate
130 increase shall take effect 30 days after the date of filing or within any lesser time the
131 commission may grant, subject to its authority after a hearing to suspend, alter, or modify that
132 schedule, classification, practice, or rule.
133 (b) When the commission suspends a schedule, classification, practice, or rule, the
134 commission shall hold a hearing on the schedule, classification, practice, or rule before issuing
135 its final order.
136 (c) For purposes of this Subsection (5), any schedule, classification, practice, or rule
137 that introduces a service or product not previously offered may not result in a rate increase.
138 (6) Notwithstanding any other provision of this title, whenever a public utility files
139 with the commission any schedule, classification, practice, or rule that does not result in an
140 increase in any rate, fare, toll, rental, or charge, the schedule, classification, practice, or rule
141 shall take effect 30 days after the date of filing or at any earlier time the commission may grant,
142 subject to the authority of the commission, after a hearing, to suspend, alter, or modify the
143 schedule, classification, practice, or rule.
144 (7) This section does not apply to any rate changes of an electrical or telephone
145 cooperative that meets all of the requirements of this Subsection (7).
146 (a) (i) The cooperative is organized for the purpose of either distributing electricity or
147 providing telecommunication services to its members and the public at cost.
148 (ii) "At cost" includes interest costs and a reasonable rate of return as determined by
149 the cooperative's board of directors.
150 (b) The cooperative's board of directors and any appropriate agency of the federal
151 government have approved the rate increase or other rate change and all necessary tariff
152 revisions reflecting the increased rate or rate change.
153 (c) Before implementing any rate increases, the cooperative has held a public meeting
154 for all its customers and members. The cooperative shall mail a notice of the meeting to all of
155 the cooperative's customers and members not less than 10 days prior to the date that the
156 meeting is held.
157 (d) The cooperative has filed its tariff revisions reflecting the rate increase or other rate
158 change with the commission, who shall make the tariffs available for public inspection.
159 (8) Notwithstanding Subsections (2) and (4), the procedures for implementing a
160 proposed rate increase by a telephone corporation having less than 30,000 subscriber access
161 lines in the state are provided in this Subsection (8).
162 (a) (i) The proposed rate increase by a telephone corporation subject to this Subsection
163 (8) may become effective on the day the telephone corporation files with the commission the
164 proposed tariff revisions and necessary information to support a determination by the
165 commission that the proposed rate increase is just and reasonable.
166 (ii) The telephone corporation shall notify the commission and all potentially affected
167 access line subscribers of the proposed rate increase 30 days before filing the proposed rate
168 increase or change.
169 (b) (i) The commission may investigate whether the proposed rate increase is just and
170 reasonable.
171 (ii) If the commission determines, after notice and hearing, that the rate increase is
172 unjust or unreasonable in whole or in part, the commission may establish the rates, charges, or
173 classifications that the commission finds to be just and reasonable.
174 (c) The commission shall investigate and hold a hearing to determine whether any
175 proposed rate increase is just and reasonable if 10% or more of the telephone corporation's
176 potentially affected access line subscribers file a request for agency action requesting an
177 investigation and hearing.
178 (9) For a rebate received by an end-use customer under a demand side management
179 program of a large-scale natural gas utility's approved schedule, the commission shall allow the
180 end-use customer to continue receiving the rebate for up to one calendar year if:
181 (a) the end-use customer:
182 (i) is currently participating in the demand side management program; and
183 (ii) has completed new construction within the previous 12 months; and
184 (b) the schedule under which the rebate was created is modified due to a change in:
185 (i) standards adopted under Title 15A, State Construction and Fire Codes Act; or
186 (ii) 10 C.F.R. Chapter 2, Chapter 3, and Chapter 5.
187 Section 2. Section 54-7-12.8 is amended to read:
188 54-7-12.8. Electric energy efficiency, sustainable transportation and energy, and
189 conservation tariff.
190 (1) As used in this section:
191 (a) "Demand side management" means an activity or program that promotes electric
192 energy efficiency or conservation, the use of heat pumps, or more efficient management of
193 electric energy loads.
194 (b) "Pilot program period" means a period of five years, beginning on January 1, 2017,
195 during which the sustainable transportation and energy plan is effective.
196 (c) "Sustainable transportation and energy plan" means the same as that term is defined
197 in Section 54-20-102.
198 (d) "Utah solar incentive program" means the eligible utility rooftop solar pilot
199 program established by commission order in 2012.
200 (2) (a) As provided in this section, the commission may approve a tariff under which
201 an electrical corporation includes a line item charge on the electrical corporation's customers'
202 bills to recover costs incurred by the electrical corporation for demand side management.
203 (b) The commission shall authorize a large-scale electric utility that is allowed to
204 charge a customer for demand side management under Subsection (2)(a) to:
205 (i) if requested by the large-scale electric utility, capitalize the annual costs incurred for
206 demand side management provided in Subsection (2)(a);
207 (ii) amortize the annual cost for demand side management over a period of 10 years;
208 (iii) apply a carrying charge to the unamortized balance that is equal to the large-scale
209 electric utility's pretax weighted average cost of capital approved by the commission in the
210 large-scale electric utility's most recent general rate proceeding; and
211 (iv) recover the amortization cost described in Subsection (2)(b)(ii) and the carrying
212 charge described in Subsection (2)(b)(iii) in customer rates.
213 (3) The commission shall, before January 1, 2017, authorize a large-scale electric
214 utility to implement a combined line item charge on the large-scale electric utility's customers'
215 bills to recover the cost to the large-scale electric utility of:
216 (a) demand side management, including the cost of amortizing a deferred balance;
217 (b) the sustainable transportation and energy plan; and
218 (c) the additional expense described in Subsection (5)(a)(i).
219 (4) On December 31, 2016, the commission shall end the Utah solar incentive program
220 and surcharge tariff and the large-scale electric utility shall stop accepting new applications for
221 solar incentive program incentives.
222 (5) (a) The commission may authorize a large-scale electric utility that capitalizes
223 demand side management costs under Subsection (2)(b) to:
224 (i) recognize the difference between the annual revenues the large-scale electric utility
225 collects for demand side management and the annual amount of the large-scale electric utility's
226 demand side management cost amortization expense as an additional expense;
227 (ii) establish and fund, via the additional expense described in Subsection (5)(a)(i), a
228 regulatory liability; and
229 (iii) use the regulatory liability described in Subsection (5)(a)(ii) to depreciate thermal
230 generation plant.
231 (b) (i) The commission may authorize the large-scale electric utility to use the
232 regulatory liability described in Subsection (5)(a)(ii) to depreciate thermal generation plant for
233 which the commission determines depreciation is in the public interest for compliance with an
234 environmental regulation or another purpose.
235 (ii) The commission may not consider the existence of the regulatory liability described
236 in Subsection (5)(a)(ii) in a determination to accelerate depreciation under Subsection (5)(b)(i).
237 (c) The commission shall allow the large-scale electric utility to apply a carrying
238 charge to the regulatory liability described in Subsection (5)(a)(ii) in an amount equal to the
239 large-scale electric utility's pretax average weighted cost of capital approved by the
240 commission in the large-scale electric utility's most recent general rate proceeding.
241 (d) The commission may allow a large-scale electric utility to use the regulatory
242 liability carrying charge described in Subsection (5)(c) to offset the carrying charge described
243 in Subsection (2)(b)(iii).
244 (e) The large-scale electric utility shall apply the carrying charge described in
245 Subsection (5)(c) to funds that a large-scale electric utility is authorized to use to depreciate
246 thermal generation plant under Subsection (5)(a) until the reduction in the large-scale electric
247 utility's rate base associated with the thermal generation plant depreciation for which the funds
248 are used is reflected in the large-scale electric utility's customers' rates.
249 (f) If the commission determines that funds established in the regulatory liability under
250 Subsection (5)(a) are no longer needed for the purpose of depreciating thermal generation
251 plant, the large-scale electric utility shall use the balance of the funds in the regulatory liability
252 to offset the capitalized demand side management costs described in Subsection (2)(b)(i).
253 (6) (a) During the pilot program period, of the funds a large-scale electric utility
254 collects via the line item charge described in Subsection (3), the commission shall authorize the
255 large-scale electric utility to allocate on an annual basis:
256 (i) $10,000,000 to the sustainable transportation and energy plan; and
257 (ii) the funds not allocated to the sustainable transportation and energy plan to demand
258 side management.
259 (b) The commission shall authorize a large-scale electric utility to spend up to:
260 (i) $2,000,000 annually for the electric vehicle incentive program described in Section
261 54-20-103; and
262 (ii) an annual average of:
263 (A) $1,000,000 for the clean coal technology program described in Section 54-20-104;
264 and
265 (B) $3,400,000 for the innovative utility programs described in Section 54-20-105.
266 (c) The commission shall authorize a large-scale electric utility to recoup the
267 large-scale electric utility's unrecovered costs paid through the Utah solar incentive program
268 from the funds allocated under Subsection (6)(a)(i).
269 (d) The commission may authorize a large-scale electric utility to allocate funds the
270 large-scale electric utility collects via the line item charge described in Subsection (3) not spent
271 under this Subsection (6) to a conservation, efficiency, or new technology program if the
272 conservation, efficiency, or new technology program is cost-effective and in the public interest.
273 (7) A large-scale electric utility shall establish a balancing account that includes:
274 (a) funds allocated under Subsection (6)(a)(i);
275 (b) the program expenditures described in Subsection (6)(b);
276 (c) the unrecovered Utah solar incentive program costs described in Subsection (6)(c);
277 and
278 (d) a carrying charge in an amount determined by the commission.
279 (8) A customer that is paying a contract rate under an agreement with a large-scale
280 electric utility as of January 1, 2016, is exempt from the costs recovered under Subsection (3),
281 except for costs created by or arising from the Utah solar incentive program included in
282 Subsection 54-7-12.8(3)(b).
283 (9) (a) In any proceeding commenced under Section 54-3-32, the commission may not
284 consider or assess to an eligible customer an expenditure, cost, amortization, charge, or liability
285 of any kind that is created by or arises in whole or in part from:
286 (i) any program created under Title 54, Chapter 20, Sustainable Transportation and
287 Energy Plan Act; or
288 (ii) this section, except for costs created by or arising from the Utah solar incentive
289 program included in Subsection 54-7-12.8(3)(b).
290 (b) Except as provided in Subsection (9)(a) and in Section 54-3-33, this section and
291 Title 54, Chapter 20, Sustainable Transportation and Energy Plan Act, do not:
292 (i) amend or repeal any provision of Section 54-3-32; or
293 (ii) affect any right, defense, or credit available to an eligible customer under Section
294 54-3-32.
295 (10) Each electrical corporation proposing a tariff under this section shall, before
296 submitting the tariff to the commission for approval, seek input from:
297 (a) the Division of Public Utilities;
298 (b) the Office of Consumer Services; and
299 (c) a person that files a request for notice with the commission.
300 (11) Before approving a tariff under this section, the commission shall hold a hearing
301 if:
302 (a) requested in writing by the electrical corporation, a customer of the electrical
303 corporation, or any other interested party within 15 days after the tariff filing; or
304 (b) the commission determines that a hearing is appropriate.
305 (12) (a) The commission may approve a demand side management tariff under this
306 section either with or without a provision allowing an end-use customer to receive a credit
307 against the charges imposed under the tariff for electric energy efficiency measures that:
308 [
309 [
310 (b) For a credit that an end-use customer receives under an approved demand side
311 management tariff pursuant to Subsection (12)(a), the commission shall allow the end-use
312 customer to continue receiving the credit for up to one calendar year if:
313 (i) the end-use customer:
314 (A) is currently participating in the demand side management tariff; and
315 (B) has completed new construction within the previous 12 months; and
316 (ii) the tariff under which the credit was created is modified due to a change in:
317 (A) standards adopted under Title 15A, State Construction and Fire Codes Act; or
318 (B) 10 C.F.R. Chapter 2, Chapter 3, and Chapter 5.
319 (13) In approving a tariff under this section, the commission may impose whatever
320 conditions or limits it considers appropriate, including a maximum annual cost.
321 (14) Unless otherwise ordered by the commission, each tariff under this section
322 approved by the commission shall take effect no sooner than 30 days after the electrical
323 corporation files the tariff with the commission.