Representative Carl R. Albrecht proposes the following substitute bill:




Chief Sponsor: Carl R. Albrecht

Senate Sponsor: Ronald M. Winterton


8     General Description:
9          This bill provides a mechanism for an interim rate as a part of the energy balancing
10     account process.
11     Highlighted Provisions:
12          This bill:
13          ▸     provides the process for establishing an energy balancing account;
14          ▸     describes the process for requesting an interim rate as a part of the energy balancing
15     account process;
16          ▸     establishes a timeline for the interim rate to be requested and granted;
17          ▸     establishes a timeline for finalizing the energy balancing account; and
18          ▸     subjects an interim rate to the commission's authority to order a refund or a
19     surcharge.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:

26          54-7-13.5, as last amended by Laws of Utah 2019, Chapters 61 and 88

28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 54-7-13.5 is amended to read:
30          54-7-13.5. Energy balancing accounts.
31          (1) As used in this section:
32          (a) "Base rates" means the same as that term is defined in Subsection 54-7-12(1).
33          (b) "Energy balancing account" means an electrical corporation account for some or all
34     components of the electrical corporation's incurred actual power costs, including:
35          (i) (A) fuel;
36          (B) purchased power; and
37          (C) wheeling expenses; and
38          (ii) the sum of the power costs described in Subsection (1)(b)(i) less wholesale
39     [revenues] revenue.
40          (c) "Gas balancing account" means a gas corporation account to recover on a
41     dollar-for-dollar basis, purchased gas costs, and gas cost-related expenses.
42          (2) (a) The commission may authorize an electrical corporation to establish an energy
43     balancing account.
44          (b) An energy balancing account shall become effective upon a commission finding
45     that the energy balancing account is:
46          (i) in the public interest;
47          (ii) for prudently-incurred costs; and
48          (iii) implemented at the conclusion of a general rate case.
49          (c) An electrical corporation:
50          (i) may, with approval from the commission, recover costs under this section through:
51          (A) base rates;
52          (B) contract rates;
53          (C) surcredits; or
54          (D) surcharges; and
55          (ii) shall file a reconciliation of the energy balancing account with the commission at
56     least annually with actual costs and [revenues] revenue incurred by the electrical corporation.

57          (d) [Beginning June 1, 2016, for] For an electrical corporation with an energy
58     balancing account established before January 1, 2016, the commission shall allow an electrical
59     corporation to recover 100% of the electrical corporation's prudently incurred costs as
60     determined and approved by the commission under this section.
61          (e) [An] Except in the case of an interim rate request made in accordance with
62     Subsection (2)(k), an energy balancing account may not alter:
63          (i) the standard for cost recovery; or
64          (ii) the electrical corporation's burden of proof.
65          (f) The collection method described in Subsection (2)(c)(i) shall:
66          (i) apply to the appropriate billing components in base rates; and
67          (ii) be incorporated into base rates in an appropriate commission proceeding.
68          (g) The collection of costs related to an energy balancing account from customers
69     paying contract rates shall be governed by the terms of the contract.
70          (h) [Revenues] Revenue collected in excess of prudently incurred actual costs shall:
71          (i) be refunded as a bill surcredit to an electrical corporation's customers over a period
72     specified by the commission; and
73          (ii) include a carrying charge.
74          (i) Prudently incurred actual costs in excess of [revenues] revenue collected shall:
75          (i) be recovered as a bill surcharge over a period to be specified by the commission;
76     and
77          (ii) include a carrying charge.
78          (j) The carrying charge applied to the balance in an energy balancing account shall be:
79          (i) determined by the commission; and
80          (ii) symmetrical for over or under collections.
81          (k) (i) The commission may consider an interim rate request made as a part of an
82     electrical corporation's filing an energy balancing account.
83          (ii) The commission, on the commission's own initiative or in response to an interim
84     rate request by an electrical corporation or another party:
85          (A) shall hold a hearing on an interim rate; and
86          (B) if the electrical corporation or the other party makes the showing required by
87     Subsection (2)(k)(iii), may allow any rate increase or decrease, or a reasonable part of the rate

88     increase or decrease, to take effect on an interim basis, subject to the commission's right to
89     order a refund or surcharge.
90          (iii) The electrical corporation or the other party shall make an adequate prima facie
91     showing that:
92          (A) the proposed interim rate appears consistent with prior years' filings; and
93          (B) the interim rate requested is more likely to reflect actual power costs than the
94     current base rates;
95          (l) The commission may issue a final order establishing and fixing the electrical
96     corporation's energy balancing account:
97          (i) after a hearing; and
98          (ii) before the expiration of 300 days after the day on which the electrical corporation
99     files a complete filing.
100          (m) (i) If the commission in the commission's final decision on an electrical
101     corporation's energy balancing account finds that the interim rate ordered under Subsection
102     (2)(k)(ii) exceeds the rate finally determined in the energy balancing account, the commission
103     shall order the electrical corporation to refund the excess revenue generated by the interim rate
104     to customers.
105          (ii) If the commission in the commission's final decision on an electrical corporation's
106     energy balancing account finds that the interim rate ordered under Subsection (2)(k)(ii) is lower
107     than the rate finally determined in the energy balancing account, the commission shall order the
108     electrical corporation to charge a surcharge to customers to recover the revenue not recovered
109     during that period.
110          (3) (a) The commission may:
111          (i) establish a gas balancing account for a gas corporation; and
112          (ii) set forth procedures for a gas corporation's gas balancing account in the gas
113     corporation's commission-approved tariff.
114          (b) A gas balancing account may not alter:
115          (i) the standard of cost recovery; or
116          (ii) the gas corporation's burden of proof.
117          (4) (a) All allowed costs and [revenues] revenue associated with an energy balancing
118     account or gas balancing account shall remain in the respective balancing account until charged

119     or refunded to customers.
120          (b) The balance of an energy balancing account or gas balancing account may not be:
121          (i) transferred by the electrical corporation or gas corporation; or
122          (ii) used by the commission to impute earnings or losses to the electrical corporation or
123     gas corporation.
124          (c) An energy balancing account or gas balancing account that is formed and
125     maintained in accordance with this section does not constitute impermissible retroactive
126     ratemaking or single-issue ratemaking.
127          (5) This section does not create a presumption for or against approval of an energy
128     balancing account.
129          (6) (a) An electrical corporation that has established an energy balancing account under
130     this section shall report to the Public Utilities, Energy, and Technology Interim Committee
131     before December 1 of each even numbered year[, beginning in 2020].
132          (b) The report required in Subsection (6)(a) shall provide information regarding:
133          (i) the continued 100% recovery of the electrical corporation's prudently incurred costs
134     related to the energy balancing account; and
135          (ii) any determination by the [Public Service Commission] commission of costs not
136     prudently incurred.