1     
DIGITAL INTEGRATION PROGRESS REPORT FOR

2     
PUBLIC UTILITIES

3     
2020 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Stephen G. Handy

6     
Senate Sponsor: ____________

7     

8     LONG TITLE
9     General Description:
10          This bill enacts provisions relating to electricity and gas customer usage reporting.
11     Highlighted Provisions:
12          This bill:
13          ▸     requires municipal utilities, electrical corporations, and gas corporations to file a
14     report on the status and plans for digital integration between the utility and
15     customers;
16          ▸     provides for the required contents of a report; and
17          ▸     requires the report to be made available to the public.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          10-8-14 (Superseded 01/01/21), as last amended by Laws of Utah 2016, Chapter 419
25     ENACTS:
26          54-3-22.5, Utah Code Annotated 1953
27     


28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 10-8-14 (Superseded 01/01/21) is amended to read:
30          10-8-14 (Superseded 01/01/21). Utility and telecommunications services -- Service
31     beyond municipal limits -- Retainage -- Notice of service and agreement -- Digital
32     integration progress report for municipal utilities.
33          (1) As used in this section[,]:
34          (a) "Data sharing practices" means actions to share with a customer information about
35     the customer's rate of usage of electricity or gas.
36          (b) "Municipal utility" means a municipality that owns, operates, controls, or manages
37     a facility that provides electric power or natural gas for a retail customer, whether domestic,
38     commercial, industrial, or otherwise.
39          (c) ["public] "Public telecommunications service facilities" means the same as that
40     term is defined in Section 10-18-102.
41          (d) "Sharing technology" means digital integration between a municipal utility and a
42     customer allowing the municipal utility to directly share customer electricity or gas usage rates
43     with the customer.
44          (2) A municipality may:
45          (a) construct, maintain, and operate waterworks, sewer collection, sewer treatment
46     systems, gas works, electric light works, telecommunications lines, cable television lines,
47     public transportation systems , or public telecommunications service facilities ;
48          (b) authorize the construction, maintenance and operation of the works or systems
49     listed in Subsection (2)(a) by others;
50          (c) purchase or lease the works or systems listed in Subsection (2)(a) from any person
51     or corporation; and
52          (d) sell and deliver the surplus product or service capacity of any works or system
53     listed in Subsection (2)(a), not required by the municipality or the municipality's inhabitants, to
54     others beyond the limits of the municipality, except the sale and delivery of:
55          (i) retail electricity beyond the municipal boundary is governed by Subsections (3)
56     through (8); and
57          (ii) cable television services or public telecommunications services is governed by
58     Subsection (12).

59          (3) If any payment on a contract with a private person, firm, or corporation to construct
60     waterworks, sewer collection, sewer treatment systems, gas works, electric works,
61     telecommunications lines, cable television lines, public transportation systems , or public
62     telecommunications service facilities is retained or withheld, it shall be retained or withheld
63     and released as provided in Section 13-8-5.
64          (4) (a) Except as provided in Subsection (4)(b), (6), or (10), a municipality may not sell
65     or deliver the electricity produced or distributed by its electric works constructed, maintained,
66     or operated in accordance with Subsection (2) to a retail customer located beyond its municipal
67     boundary.
68          (b) A municipality that provides retail electric service to a customer beyond its
69     municipal boundary on or before June 15, 2013, may continue to serve that customer if:
70          (i) on or before December 15, 2013, the municipality provides the electrical
71     corporation, as defined in Section 54-2-1, that is obligated by its certificate of public
72     convenience and necessity to serve the customer with an accurate and complete verified written
73     notice described in Subsection (4)(c) that identifies each customer served by the municipality
74     beyond its municipal boundary;
75          (ii) no later than June 15, 2014, the municipality enters into a written filing agreement
76     for the provision of electric service with the electrical corporation; and
77          (iii) the Public Service Commission approves the written filing agreement in
78     accordance with Section 54-4-40.
79          (c) The municipality shall include in the written notice required in Subsection (4)(b)(i)
80     for each customer:
81          (i) the customer's meter number;
82          (ii) the location of the customer's meter by street address, global positioning system
83     coordinates, metes and bounds description, or other similar method of meter location;
84          (iii) the customer's class of service; and
85          (iv) a representation that the customer was receiving service from the municipality on
86     or before June 15, 2013.
87          (5) The written filing agreement entered into in accordance with Subsection (4)(b)(ii)
88     shall require the following:
89          (a) The municipality shall provide electric service to a customer identified in

90     accordance with Subsection (4)(b)(i) unless the municipality and the electrical corporation
91     subsequently agree in writing that the electrical corporation will provide electric service to the
92     customer.
93          (b) If a customer who is located outside the municipal boundary and who is not
94     identified in accordance with Subsection (4)(b)(i) requests service from the municipality after
95     June 15, 2013, the municipality may not provide that customer electric service unless the
96     municipality submits a request to and enters into a written agreement with the electric
97     corporation in accordance with Subsection (6).
98          (6) (a) A municipality may submit to the electrical corporation a request to provide
99     electric service to an electric customer described in Subsection (5)(b).
100          (b) If a municipality submits a request, the electrical corporation shall respond to the
101     request within 60 days.
102          (c) If the electrical corporation agrees to allow the municipality to provide electric
103     service to the customer:
104          (i) the electrical corporation and the municipality shall enter into a written agreement;
105          (ii) the municipality shall agree in the written agreement to subsequently transfer
106     service to the customer described in Subsection (5)(b) if the electrical corporation notifies, in
107     writing, the municipality that the electrical corporation has installed a facility capable of
108     providing electric service to the customer; and
109          (iii) the municipality may provide the service if:
110          (A) except as provided in Subsection (6)(c)(iii)(B), the Public Service Commission
111     approves the agreement in accordance with Section 54-4-40; or
112          (B) for an electrical cooperative that meets the requirements of Subsection 54-7-12(7),
113     the governing board of the electrical cooperative approves the agreement.
114          (d) The municipality or the electrical corporation may terminate the agreement for the
115     provision of electric service if the Public Service Commission imposes a condition authorized
116     in Section 54-4-40 that is a material change to the agreement.
117          (7) If the municipality and electrical corporation make a transfer described in
118     Subsection (6)(c)(ii):
119          (a) (i) the municipality shall transfer the electric service customer to the electrical
120     corporation; and

121          (ii) the electrical corporation shall provide electric service to the customer; and
122          (b) the municipality shall transfer a facility in accordance with and for the value as
123     provided in Section 10-2-421.
124          (8) (a) In accordance with Subsection (8)(b), the municipality shall establish a
125     reasonable mechanism for resolving potential future complaints by an electric customer located
126     outside its municipal boundary.
127          (b) The mechanism shall require:
128          (i) that the rates and conditions of service for a customer outside the municipality's
129     boundary are at least as favorable as the rates and conditions of service for a similarly situated
130     customer within the municipality's boundary; and
131          (ii) if the municipality provides a general rebate, refund, or other payment to a
132     customer located within the municipality's boundary, that the municipality also provide the
133     same general rebate, refund, or other payment to a similarly situated customer located outside
134     the municipality's boundary.
135          (9) The municipality is relieved of any obligation to transfer a customer described in
136     Subsection (5)(b) or facility used to serve the customer in accordance with Subsection (6)(c)(ii)
137     if the municipality annexes the property on which the customer is being served.
138          (10) (a) A municipality may provide electric service outside of its municipal boundary
139     to a facility that is solely owned and operated by the municipality for municipal service.
140          (b) A municipality's provision of electric service to a facility that is solely owned and
141     operated by the municipality does not expand the municipality's electric service area.
142          (11) Nothing in this section expands or diminishes the ability of a municipality to enter
143     into a wholesale electrical sales contract with another municipality that serves electric
144     customers to sell and deliver wholesale electricity to the other municipality.
145          (12) A municipality's actions under this section related to works or systems involving
146     public telecommunications services or cable television services are subject to the requirements
147     of Chapter 18, Municipal Cable Television and Public Telecommunications Services Act.
148          (13) (a) On or before September 1, 2020, a municipal utility shall file with the
149     municipal legislative body a report on the municipal utility's data sharing practices.
150          (b) A report under Subsection (13)(a) shall contain:
151          (i) (A) the municipal utility's current status and plans for using or implementing

152     sharing technology; or
153          (B) the reason the municipal utility does not use or plan to use or implement sharing
154     technology;
155          (ii) an analysis of the cost-effectiveness of the municipal utility:
156          (A) using sharing technology; or
157          (B) not using sharing technology;
158          (iii) an explanation of the municipal utility's cost-effectiveness methods used in the
159     analysis under Subsection (13)(a)(ii);
160          (iv) if applicable, the means by which the municipal utility:
161          (A) is protecting customer data in the municipal utility's current use of sharing
162     technology; or
163          (B) plans to protect customer data in the municipal utility's future use of sharing
164     technology; and
165          (v) any other information the municipal utility considers relevant.
166          (c) In a report under Subsection (13)(a), a municipal utility:
167          (i) shall disaggregate customer information by class of service; and
168          (ii) may not include an individual customer's name or address.
169          (d) Within five business days after receiving a report under Subsection (13)(a), the
170     municipal legislative body shall make the report available for public inspection.
171          Section 2. Section 54-3-22.5 is enacted to read:
172          54-3-22.5. Progress report for electrical corporations and gas corporations --
173     Direct and digital integration of customer data sharing.
174          (1) As used in this section:
175          (a) "Data sharing practices" means actions to share with a customer information about
176     the customer's rate of usage of electricity or gas.
177          (b) "Sharing technology" means digital integration between a utility and a customer
178     allowing the utility to directly share customer electricity or gas usage rates with the customer.
179          (c) "Utility" means an electrical corporation or a gas corporation.
180          (2) On or before September 1, 2020, a utility shall file with the commission a report on
181     the utility's data sharing practices.
182          (3) A report under Subsection (2) shall contain:

183          (a) (i) the utility's current status and plans for using or implementing sharing
184     technology; or
185          (ii) the reason the utility does not use or plan to use or implement sharing technology;
186          (b) an analysis of the cost-effectiveness of the utility:
187          (i) using sharing technology; or
188          (ii) not using sharing technology;
189          (c) an explanation of the utility's cost-effectiveness methods used in the analysis under
190     Subsection (3)(b);
191          (d) if applicable, the means by which the utility:
192          (i) is protecting customer data in the utility's current use of sharing technology; or
193          (ii) plans to protect customer data in the utility's future use of sharing technology; and
194          (e) any other information the utility considers relevant.
195          (4) In a report under Subsection (2), a utility:
196          (a) shall disaggregate customer information by class of service; and
197          (b) may not include an individual customer's name or address.
198          (5) Within five business days after receiving a report under Subsection (2), the
199     commission shall make the report available for public inspection.