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7 LONG TITLE
8 General Description:
9 This bill creates a grid enhancing technologies program.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ establishes a grid enhancing technologies program to incentivize electric utilities to
14 deploy technologies that increase transmission system capacity, efficiency, and
15 reliability;
16 ▸ requires utilities to analyze grid enhancing technologies as alternatives in
17 transmission infrastructure proceedings;
18 ▸ allows cost recovery and incentives for grid enhancing technology deployments
19 approved by the Public Service Commission (commission);
20 ▸ provides for expedited review for local permits for grid enhancing technology
21 transmission line projects; and
22 ▸ provides the commission with rulemaking authority to administer incentives for the
23 implementation of grid enhancing technology.
24 Money Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 None
28 Utah Code Sections Affected:
29 ENACTS:
30 54-20-108, Utah Code Annotated 1953
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32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 54-20-108 is enacted to read:
34 54-20-108. Grid enhancing technologies program.
35 (1) (a) As used in this section, "grid enhancing technology" means a technology that
36 increases the capacity, efficiency, or reliability of electric transmission infrastructure.
37 (b) "Grid enhancing technology" includes:
38 (i) technology that dynamically adjusts the rated capacity of transmission lines based
39 on real-time conditions;
40 (ii) advanced power flow controls used to actively control the flow of electricity across
41 transmission lines to optimize usage and relieve congestion;
42 (iii) software and hardware used to identify optimal transmission grid configurations
43 and enable routing power flows around congestion points;
44 (iv) advanced transmission line conductors that increase the power transfer capacity of
45 transmission lines; and
46 (v) energy storage technologies that facilitate energy storage during times of excess
47 generation and discharge of stored energy during times of high demand to support transmission
48 system operation.
49 (c) "Shared savings incentive" means a monetary incentive provided to a large-scale
50 electric utility that has deployed commission-approved grid enhancing technologies, that is
51 calculated based on the quantifiable system-wide cost savings realized as a result of the grid
52 enhancing technologies.
53 (2) There is established a grid enhancing technologies program as an innovative utility
54 program under Section 54-20-105.
55 (3) In a rate case or other proceeding in which a large-scale electric utility proposes the
56 deployment of a grid enhancing technology for implementation or addition to the transmission
57 system, the large-scale electric utility shall:
58 (a) analyze the cost effectiveness and timetable for deployment of grid enhancing
59 technologies as an alternative strategy; and
60 (b) submit the analysis to the commission.
61 (4) If the commission determines, based on the analysis, that deployment of grid
62 enhancing technologies is in the public interest the commission:
63 (a) as part of an overall solutions strategy, may approve providing funds for
64 deployment of grid enhancing technologies;
65 (b) may authorize the large-scale electric utility to:
66 (i) establish a balancing account that includes the commission approved funds to be
67 used for deployment of grid enhancing technologies; and
68 (ii) recover prudently incurred costs associated with commission approved deployment
69 of grid enhancing technologies; and
70 (c) if the large-scale electric utility submits a land use application regarding a
71 transmission line project implementing the approved grid enhancing technologies, require a
72 local government to:
73 (i) expedite review of the land use application, while substantially complying with
74 applicable provisions of Title 10, Chapter 9a, Municipal Land Use, Development, and
75 Management Act; and
76 (ii) make a final decision to approve or deny the land use application within 30 days
77 after the day on which the utility submits a complete land use application.
78 (5) (a) A large-scale electric utility that deploys commission-approved grid enhancing
79 technologies is eligible for a shared savings incentive.
80 (b) The shared savings incentive returns a portion of the quantifiable system-wide cost
81 savings created by the large-scale electric utility's investment in grid enhancing technologies to
82 the utility.
83 (c) The cost savings calculations under Subsection (5)(b) shall be subject to
84 verification by an independent third-party auditor approved by the Public Service Commission.
85 (d) The shared savings incentive amount shall be distributed to the large-scale electric
86 utility according to procedures outlined by the Public Service Commission.
87 (6) An large-scale electric utility that operates a grid enhancing technologies program
88 shall submit a written report annually on or before June 1 to the Public Utilities, Energy. and
89 Technology Interim Committee regarding the program as required under Subsection
90 54-20-105(6).
91 (7) The commission may make rules in accordance with Title 63G, Chapter 3, Utah
92 Administrative Rulemaking Act, to administer the shared savings incentive described in
93 Subsection (5).
94 Section 2. Effective date.
95 This bill takes effect on May 1, 2024.