54-17 - Energy Resource Procurement Act

Title 54 > 54-17

Sections (44)

General Provisions

54-17-101 - Title.

This chapter is known as the “Energy Resource Procurement Act.”

Enacted by Chapter 11, 2005 General Session

54-17-102 - Definitions.

As used in this chapter:

(1) “Affected electrical utility” means an electrical corporation with at least 200,000 retail customers in the state.

(2) “Benchmark option” means an energy resource against which bids in an open bid process may be evaluated that:could be constructed or owned by:an affected electrical utility; oran affiliate of an affected electrical utility; ormay be a purchase of:electricity;electric generating capacity; orelectricity and electric generating capacity.

(3) “Dispatchability” means the extent to which an energy resource is dispatchable.

(4) “Dispatchable” means available for use on demand and generally available to be delivered at a time and quantity of the operator’s choosing.

(5) “Integrated resource plan” means a plan that contains:the demand and energy forecast by the affected electrical utility for at least a ten-year period;the affected electrical utility’s options for meeting the requirements shown in the affected electrical utility’s load and resource forecast in an economic and reliable manner, including:demand-side and supply-side options; anda brief description and summary cost-benefit analysis, if available, of each option that was considered;the affected electrical utility’s assumptions and conclusions with respect to the effect of the plan on the cost and reliability of energy service;a description of the external environmental and economic consequences of the plan to the extent practicable; andany other data and analyses as the commission may require.

(6) “Intermittent resource” means an energy resource that relies on a variable fuel source that interrupts energy generation, resulting in periods of non-production or reduced production.

(7) “Proven dispatchable generation resource” means a significant energy resource that has demonstrated the capability to provide dispatchable energy.

(8) “Risk” means the probability that an energy resource will produce negative consequences that outweigh anticipated positive results and undermine the public interest.”Risk” includes the probability that:overreliance on intermittent resources will create instability or inadequacy in meeting electricity demand;the energy resource will be unable to provide a consistent and resilient supply of electricity to consumers; andelectricity costs will become unsustainable for consumers.

(9) “Significant energy resource” for an affected electrical utility means a resource that consists of:a total of 100 megawatts or more of new generating capacity that has a dependable life of 10 or more years;a purchase of the following if the contract is for a term of 10 or more years and not less than 100 megawatts:electricity;electric generating capacity; orelectricity and electrical generating capacity;the purchase or lease by an affected electrical utility from an affiliated company of:a generating facility;electricity;electrical generating capacity; orelectricity and electrical generating capacity;a contract with an option for the affected electrical utility or an affiliate to purchase a resource that consists of not less than 100 megawatts or more of new generating capacity that has a remaining dependable life of 10 or more years; ora type of resource designated by the commission as a significant energy resource in rules made by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, after considering the affected electrical utility’s integrated resource plan and action plan.

(10) “Solicitation” means a request for proposals or other invitation for persons to submit a bid or proposal through an open bid process for construction or acquisition of a significant energy resource.

Amended by Chapter 214, 2024 General Session

54-17-103 - Rulemaking.

(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission: shall make rules when required by this chapter; andin addition to the rules required under Subsection (1)(a), may make rules necessary for the implementation of this chapter.

(2) Notwithstanding a requirement that the commission make rules, the commission may take action under this chapter before the commission makes a required rule including: approving a solicitation process under Part 2, Solicitation Process;approving a significant energy resource under Section 54-17-302;issuing an order under Section 54-17-304 regarding whether an affected electrical utility should proceed with implementing a significant energy resource decision;approving an energy resource under Section 54-17-402; orissuing an order under Section 54-17-404 regarding whether an energy utility should proceed with implementing a resource decision.

Amended by Chapter 382, 2008 General Session

Solicitation Process

54-17-201 - Solicitation process required — Exception.

(1) An affected electrical utility shall comply with this chapter to acquire or construct a significant energy resource after February 25, 2005.Notwithstanding Subsection (1)(a), this chapter does not apply to a significant energy resource for which the affected electrical utility has issued a solicitation before February 25, 2005.

(2) Except as provided in Subsection (3), to acquire or construct a significant energy resource, an affected electrical utility shall conduct a solicitation process that is approved by the commission.To obtain the approval of the commission of a solicitation process, the affected electrical utility shall file with the commission a request for approval that includes:a description of the solicitation process the affected electrical utility will use;a complete proposed solicitation; andany other information the commission requires by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.In ruling on the request for approval of a solicitation process, the commission shall determine whether the solicitation process:complies with this chapter and rules made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; andis in the public interest, taking into consideration:the dispatchability of the significant energy resource;the state’s desire to have proven dispatchable generation resources operating within the state to ensure adequate resources to reliably meet the state’s energy needs;whether the proposal is consistent with the state energy policy described in Section 79-6-301;whether it will most likely result in the acquisition, production, and delivery of electricity at the lowest reasonable cost to the retail customers of an affected electrical utility located in this state, including any lowered costs resulting from the ability to sell excess energy generated in an interstate energy market;long-term and short-term impacts;risk;reliability;financial impacts on the affected electrical utility; andother factors determined by the commission to be relevant.Before approving a solicitation process under this section the commission:may hold a public hearing; andshall provide an opportunity for public comment.As part of the commission’s review of a solicitation process, the commission may provide the affected electrical utility guidance on any additions or changes to the commission’s proposed solicitation process.Unless the commission determines that additional time to analyze a solicitation process is warranted and is in the public interest, within 60 days of the day on which the affected electrical utility files a request for approval of the solicitation process, the commission shall:approve a proposed solicitation process;suggest modifications to a proposed solicitation process; orreject a proposed solicitation process.

(3) Notwithstanding Subsection (2), an affected electrical utility may acquire or construct a significant energy resource without conducting a solicitation process if it obtains a waiver of the solicitation requirement in accordance with Section 54-17-501.

(4) In accordance with the commission’s authority under Subsection 54-Ch54_12|54-12-2], the commission shall determine:whether this chapter or another competitive bidding procedure shall apply to a purchase of a significant energy resource by an affected electrical utility from a small power producer or cogenerator; andif this chapter applies as provided in Subsection (4)(a), the manner in which this chapter applies to a purchase of a significant energy resource by an affected electrical utility from a small power producer or cogenerator.

Amended by Chapter 214, 2024 General Session

54-17-202 - Requirements for solicitation.

(1) The commission shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, outlining the requirements for a solicitation process. The rules required by this Subsection (1) shall include: the type of screening criteria an affected electrical utility may use in a solicitation process including the risks an affected electrical utility may consider;the required disclosures by an affected electrical utility if a solicitation includes a benchmark option;the required disclosures by an affected electrical utility related to the methodology the affected electrical utility uses to evaluate bids; andthe participation of an independent evaluator in a manner consistent with Section 54-17-203.

(2) If an affected electrical utility is subject to regulation in more than one state regarding the acquisition, construction, or cost recovery of a significant energy resource, in making the rules required by Subsection (1), the commission may consider the impact of the multistate regulation including requirements imposed by other states as to: the solicitation process;cost recovery of resources; andmethods by which the affected electrical utility may be able to mitigate the potential for cost disallowances.

Amended by Chapter 382, 2008 General Session

54-17-203 - Independent evaluator.

(1) The commission shall:appoint an independent evaluator to monitor any solicitation conducted by an affected electrical utility under this chapter; andoversee or direct the division to oversee the independent evaluator in monitoring any solicitation conducted by an affected electrical utility under this chapter.The commission, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall make rules setting the qualifications of an independent evaluator.

(2) The commission shall determine the method used to pay the fees and expenses for the independent evaluator which may include: the payment of a bid fee by bidders to a solicitation; orrequiring the affected electrical utility to pay the fees and expenses; andpermitting an affected electrical utility to recover the amounts paid under this Subsection (2)(b).

(3) The independent evaluator may not make the decision as to which bid should be awarded under the solicitation.The independent evaluator shall:actively monitor the solicitation process for fairness and compliance with commission rules;report regularly to: the commission; andothers as directed by the commission;develop one or more reports addressing: the solicitation process;any concerns of the independent evaluator related to the solicitation process; andthe ultimate results of the solicitation process, including the opinions and conclusions of the independent evaluator;provide ongoing input regarding issues, concerns, and improvements in the solicitation process with the objective of correcting ongoing deficiencies in the solicitation process to the following: the commission;the affected electrical utility; andothers as directed by the commission;render an opinion as to whether: the solicitation process is:fair; andin compliance with this part; andany modeling used by the affected electrical utility to evaluate bids is sufficient;testify in any proceeding under Section 54-17-302; andperform other functions and provide other input and reports as the commission may direct, including periodic presentations to interested parties regarding the solicitation process.

Amended by Chapter 382, 2008 General Session

Resource Plans and Significant Energy Resource Approval

54-17-301 - Review of integrated resource plan action plans.

(1) As used in this part:“Baseload capacity” means the amount of baseload power that electricity generation resources can reliably produce through continuous or nearly continuous operation.”Baseload electricity resource” means an electricity generation resource that operates continuously or nearly continuously to maintain a stable power supply at the electricity generation resource’s rated capacity.”Baseload power” means the minimum amount of electric power continuously needed to meet basic system demand.”Demand management program” means any incentive or technology designed to modify the timing or amount of customer electricity consumption.”Expected deliverable energy” means the amount of electrical energy that a resource can reliably deliver to the grid based on historical performance data and operational constraints.”Firming capacity” means the amount of electric power that electricity generation resources can produce, at the system operator’s discretion, to reliably meet peak load and balance fluctuations in electrical demand or supply.”Plant factor” means the same as that term is defined in Section 79-6-303.”Resource adequacy program” means a program that establishes capacity contribution values for generation resources based on historical performance data.”Supplemental resource” means a utility asset or operational control required to maintain reliable power delivery when a variable energy resource is not operating at full capacity.”Supplemental resource” includes:generation resources;transmission resources;energy balancing measures; andmarket purchases.”Variable capacity” means the amount of electric power that electricity generation resources can produce when operating on a variable basis due to elements outside of operator control.”Variable energy resource” means an electricity generation facility that cannot consistently deliver power at the facility’s rated capacity due to elements outside of the operator’s control.”Voluntary conservation program” means a program that:provides customers financial incentives or cost-saving opportunities to reduce energy consumption;maintains the customer’s control over the customer’s energy usage decisions; andallows customers to opt out of any offered programs without restrictive penalties or length commitments.

(2) An affected electrical utility shall file with the commission any action plan developed as part of the affected electrical utility’s integrated resource plan to enable the commission to review and provide guidance to the affected electrical utility.

(3) An affected electrical utility’s action plan shall:report baseload energy resources as baseload capacity, specifying the expected deliverable energy;report variable energy resources as variable capacity, specifying the expected deliverable energy;report energy storage systems, including batteries and other storage devices, as firming capacity;report variable energy resources paired with energy storage as firming capacity, subject to the energy storage system requirements in Subsection (3)(g)(ii);separately report any expected curtailment of baseload and variable energy resources resulting from regulations, costs, or demand constraints; andattribute relevant costs of supplemental resources to the variable energy resources that necessitate the use of supplemental resources;for generation capacity calculations:exclude energy conservation measures and demand reduction programs;reflect actual delivery capability for energy storage systems, accounting for:charging requirements;duration limitations; andseasonal performance variations in capacity and duration; andfor variable energy resources, use:capacity assumptions for long-term planning; andcapacity and plant factor values established by a resource adequacy program in which the affected electrical utility’s resource adequacy participates.

(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules providing a process for its review of an action plan.The rules required under Subsection (4)(a) shall provide sufficient flexibility to permit changes in an action plan between the periodic filings of the affected electrical utility’s integrated resource plan.

Amended by Chapter 222, 2025 General Session

54-17-302 - Approval of a significant energy resource decision required.

(1) If pursuant to Part 2, Solicitation Process, an affected electrical utility is required to conduct a solicitation for a significant energy resource or obtains a waiver of the requirement to conduct a solicitation under Section 54-17-501, but does not obtain a waiver of the requirement to obtain approval of the significant energy resource decision under Section 54-17-501, the affected electrical utility shall obtain approval of the affected electrical utility’s significant energy resource decision:after the completion of the solicitation process, if the affected electrical utility is required to conduct a solicitation; andbefore an affected electrical utility may construct or enter into a binding agreement to acquire the significant energy resource.

(2) To obtain the approval required by Subsection (1), the affected electrical utility shall file a request for approval with the commission.The request for approval required by this section shall include any information required by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(3) In ruling on a request for approval of a significant energy resource decision, the commission shall determine whether the significant energy resource decision:is reached in compliance with this chapter and rules made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;is reached in compliance with the solicitation process approved by the commission in accordance with Part 2, Solicitation Process; oris reached after the waiver of the solicitation process as provided in Subsection 54-Ch54_17|54-17-201]; andis in the public interest, taking into consideration:the dispatchability of the significant energy resource;the state’s desire to have proven dispatchable generation resources operating within the state to ensure adequate resources to reliably meet the state’s energy needs;whether the proposal is consistent with the state energy policy described in Section 79-6-301;whether it will most likely result in the acquisition, production, and delivery of electricity at the lowest reasonable cost to the retail customers of an affected electrical utility located in this state, including any lowered costs resulting from the ability to sell excess energy generated in an interstate energy market;long-term and short-term impacts;risk;reliability;financial impacts on the affected electrical utility; andother factors determined by the commission to be relevant.

(4) The commission may not approve a significant energy resource decision under this section before holding a public hearing.

(5) Unless the commission determines that additional time to analyze a significant energy resource decision is warranted and is in the public interest, within 120 days of the day on which the affected electrical utility files a request for approval, the commission shall:approve the significant energy resource decision;approve the significant energy resource decision subject to conditions imposed by the commission; ordisapprove the significant energy resource decision.

(6) The commission shall include in the commission’s order under this section:findings as to the total projected costs for construction or acquisition of an approved significant energy resource; andthe basis upon which the findings described in Subsection (6)(a) are made.

(7) Notwithstanding any other provision of this part, an affected electrical utility may acquire a significant energy resource without obtaining approval pursuant to this section if it obtains a waiver of the requirement for approval in accordance with Section 54-17-501.

(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules regarding the process for approval of a significant energy resource decision under this section.

Amended by Chapter 214, 2024 General Session

54-17-303 - Cost recovery.

(1) Except as otherwise provided in this section, and excluding cost recovery for costs associated with proven dispatchable generation resources, which is governed by Section 54-17-1002, if the commission approves a significant energy resource decision under Section 54-17-302, the commission shall, in a general rate case or other appropriate commission proceeding, include in the affected electrical utility’s retail electric rates the state’s share of costs:relevant to the proceeding;incurred by the affected electrical utility in constructing or acquiring the approved significant energy resource; andup to the projected costs specified in the commission’s order issued under Section 54-17-302.The commission shall, in a general rate case or other appropriate commission proceeding, include in the affected electrical utility’s retail electric rates the state’s share of the incremental cost relevant to the proceeding that were prudently incurred by the affected electrical utility to identify, evaluate, and submit a reasonable benchmark option, whether or not the benchmark option is selected or becomes operational.A recoverable cost under Subsection (1)(b)(i) shall be included in the affected electrical utility’s project costs for the purpose of evaluating the project’s cost-effectiveness.A recoverable cost under Subsection (1)(b)(i) may not be added to the cost or otherwise considered in the evaluation of a project proposed by any person other than the affected electrical utility for the purpose of evaluating that person’s proposal.Except to the extent that the commission enters an order under Section 54-17-304, an increase from the projected costs specified in the commission’s order issued under Section 54-17-302 shall be subject to review by the commission as part of a rate hearing under Section 54-7-12.

(2) Subsequent to the commission issuing an order described in Subsection (2)(a)(i) or (ii), the commission may disallow some or all costs incurred in connection with an approved significant energy resource decision if the commission finds that an affected electrical utility’s actions in implementing an approved significant energy resource decision are not prudent because of new information or changed circumstances that occur after:the commission’s approval of the significant energy resource decisions under Section 54-17-302; ora commission order to proceed under Section 54-17-304.In making a determination of prudence under Subsection (2)(a), the commission shall use the standards identified in Section 54-4-4.

(3) Notwithstanding any other provision of this chapter, the commission may disallow some or all of the costs incurred by an affected electrical utility in connection with an approved significant energy resource decision upon a finding by the commission that the affected electrical utility is responsible for a material misrepresentation or concealment in connection with an approval process under this chapter.

Amended by Chapter 214, 2024 General Session

54-17-304 - Order to proceed.

(1) In the event of a change in circumstances or projected costs, an affected electrical utility may seek a commission review and determination of whether the affected electrical utility should proceed with the implementation of an approved significant energy resource decision.In making a determination under this Subsection (1), the commission shall use the standards identified in Subsection 54-17-302(3)(c).Before making a determination under this Subsection (1) the commission:may hold a public hearing; andshall provide an opportunity for public comment.

(2) Unless the commission determines that additional time is warranted and is in the public interest, within 60 days of the day on which the affected electrical utility files a request for commission review and determination under this section, the commission shall: issue an order:determining that the affected electrical utility should proceed with the implementation of the significant energy resource decision;making findings as to the total projected costs for construction or acquisition of the approved significant energy resource; andstating the basis upon which the findings described in Subsection (2)(a)(ii) are made; orissue an order determining that the affected electrical utility should not proceed with the implementation of the significant energy resource decision.

(3) If the commission determines that the affected electrical utility should proceed with the implementation of the approved significant energy resource decision, the commission shall, in a general rate case or other appropriate commission proceeding, include in the affected electrical utility’s retail electric rates the state’s share of costs: relevant to that proceeding;incurred by the affected electrical utility in constructing or acquiring the approved significant energy resource; andup to the projected costs as specified in the commission’s order issued under Subsection (2)(a).

(4) If the commission determines that the affected electrical utility should not proceed with the implementation of the approved significant energy resource decision, the commission shall, in a general rate case or other appropriate commission proceeding, include in the affected electrical utility’s retail electric rates the state’s share of costs: relevant to that proceeding; andincurred by the affected electrical utility in constructing or acquiring the approved significant energy resource before issuance of a determination not to proceed, including any prudently incurred costs of terminating the approved significant energy resource decision.

(5) A commission order under this section not to proceed with the implementation of a significant energy resource may not prejudice: the right of an affected electrical utility to:continue to implement the significant energy resource decision; andseek recovery of costs incurred after a determination not to proceed in a future rate proceeding; orthe right of any other party to support or oppose recovery of costs sought under Subsection (5)(a)(ii).

(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules regarding the process for the commission’s review and determination on a request for an order to proceed under this section.

Amended by Chapter 382, 2008 General Session

54-17-305 - Demand management programs.

(1) An affected electrical utility may not:implement a demand management program unless:the consumer voluntarily participates; andthe consumer provides written or electronic consent; orcount anticipated demand reductions from any demand management program as equivalent to generation capacity in an integrated resource plan.

(2) Notwithstanding Subsection (1), an integrated resource plan may account for load decrease from a demand management program if:the affected electrical utility demonstrates the load decrease is:within the utility’s sole control; orotherwise reliable; andthe load decrease will not result in a supply shortage during the period for which the decrease is anticipated.

(3) This section does not prohibit an affected electrical utility from:offering voluntary conservation programs that provide customers direct financial benefits; orimplementing emergency procedures necessary to maintain system reliability.

Enacted by Chapter 222, 2025 General Session

Voluntary Request for Resource Decision Review

54-17-401 - Definitions — Rules.

(1) As used in this part: “Energy utility” means one of the following with 200,000 retail customers in the state:an electrical corporation; ora gas corporation.”Resource decision” means a decision, other than a decision to construct or acquire a significant energy resource, involving:an energy utility’s acquisition, management, or operation of energy production, processing, transmission, or distribution facilities or processes including: a facility or process for the efficient, reliable, or safe provision of energy to retail customers;an energy efficiency and conservation program; orrural gas infrastructure development; ora decision determined by the commission to be appropriate for review under this part.”Rural gas infrastructure development” means the acquisition, planning, development, extension, expansion, and construction of natural gas utility facilities to serve previously unserved rural areas of the state.

(2) The commission may adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to specify the nature of resource decisions subject to approval under Section 54-17-402.

Amended by Chapter 16, 2020 General Session

54-17-402 - Request for review of resource decision.

(1) Beginning on February 25, 2005, before implementing a resource decision, an energy utility may request that the commission approve all or part of a resource decision in accordance with this part.

(2) To obtain the approval permitted by Subsection (1), the energy utility shall file a request for approval with the commission.The request for approval required by this section shall include any information required by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.A request for approval of natural gas infrastructure development shall include:a description of the proposed rural gas infrastructure development project;an explanation of projected benefits from the proposed rural gas infrastructure development project;the estimated costs of the rural gas infrastructure development project; andany other information the commission requires.

(3) In ruling on a request for approval of a resource decision, the commission shall determine whether the decision:is reached in compliance with this chapter and rules made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; andis in the public interest, taking into consideration:the dispatchability of the energy resource;the state’s desire to have proven dispatchable generation resources operating within the state to ensure adequate resources to reliably meet the state’s energy needs and to make needed dispatchable generation from proven dispatchable energy generation resources available to the bulk electric system to support reliability;whether the proposal is consistent with the state energy policy described in Section 79-6-301;whether it will most likely result in the acquisition, production, and delivery of utility services at the lowest reasonable cost to the retail customers of an energy utility located in this state, including any lowered costs resulting from the ability to sell excess energy generated in an interstate energy market;long-term and short-term impacts;risk;reliability;financial impacts on the energy utility; andother factors determined by the commission to be relevant; orfor a request for approval of rural gas infrastructure development:the potential benefits to previously unserved rural areas;the potential number of new customers;natural gas consumption; andrevenues, costs, and other factors determined by the commission to be relevant.

(4) In a decision relating to a request for approval of rural gas infrastructure development, the commission may determine that spreading all or a portion of the costs of the rural gas infrastructure development to the larger customer base is in the public interest.

(5) If the commission approves a proposed resource decision only in part, the commission shall explain in the order issued under this section why the commission does not approve the resource decision in total.Recovery of expenses incurred in connection with parts of a resource decision that are not approved is subject to the review of the commission as part of a rate hearing under Section 54-7-12.

(6) The commission may not approve a resource decision in whole or in part under this section before holding a public hearing.

(7) Unless the commission determines that additional time to analyze a resource decision is warranted and is in the public interest, within 180 days of the day on which the energy utility files a request for approval, the commission shall:approve all or part of the resource decision;approve all or part of the resource decision subject to conditions imposed by the commission; ordisapprove all or part of the resource decision.

(8) The commission shall include in the commission’s order under this section:findings as to the approved projected costs of a resource decision; andthe basis upon which the findings described in Subsection (8)(a) are made.

(9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules regarding the process for approval of a resource decision under this section.

Amended by Chapter 214, 2024 General Session

54-17-403 - Cost recovery.

(1) Except as otherwise provided in this section, and excluding cost recovery for costs associated with proven dispatchable generation resources, which is governed by Section 54-17-1002, if the commission approves any portion of an energy utility’s resource decision under Section 54-17-402, the commission shall, in a general rate case or other appropriate commission proceeding, include in the energy utility’s retail rates the state’s share of costs:relevant to that proceeding;incurred by the energy utility in implementing the approved resource decision; andup to the projected costs specified in the commission’s order issued under Section 54-17-402.Except to the extent that the commission issues an order under Section 54-17-404, any increase from the projected costs specified in the commission’s order issued under Section 54-17-402 shall be subject to review by the commission as part of a rate hearing under Section 54-7-12.If the commission approves a request for approval of rural gas infrastructure development under Section 54-17-402, the commission may approve the inclusion of rural gas infrastructure development costs within the gas corporation’s base rates if:the inclusion of those costs will not increase the base distribution non-gas revenue requirement by more than 2% in any three-year period;the distribution non-gas revenue requirement increase related to the infrastructure development costs under Subsection (1)(c)(i) does not exceed 5% in the aggregate; andthe applicable distribution non-gas revenue requirement is the annual revenue requirement determined in the gas corporation’s most recent rate case.

(2) Subsequent to the commission issuing an order described in Subsection (2)(a)(i) or (ii), the commission may disallow some or all costs incurred in connection with an approved resource decision if the commission finds that an energy utility’s actions in implementing an approved resource decision are not prudent because of new information or changed circumstances that occur after:the commission approves the resource decision under Section 54-17-402; orthe commission issues an order to proceed under Section 54-17-404.In making a determination of prudence under Subsection (2)(a), the commission shall use the standards identified in Section 54-4-4.

(3) Notwithstanding any other provision of this chapter, the commission may disallow some or all of the costs incurred by an energy utility in connection with an approved resource decision upon a finding by the commission that the energy utility is responsible for a material misrepresentation or concealment in connection with an approval process under this chapter.

Amended by Chapter 214, 2024 General Session

54-17-404 - Order to proceed.

(1) In the event of a change in circumstances or projected costs, an energy utility may seek a commission review and determination of whether the energy utility should proceed with the implementation of an approved resource decision.In making a determination under this Subsection (1), the commission shall use the standards identified in Subsection 54-17-402(3)(b).Before making a determination under this Subsection (1) the commission:may hold a public hearing; andshall provide an opportunity for public comment.

(2) Unless the commission determines that additional time is warranted and is in the public interest, within 60 days of the day on which the energy utility files a request for commission review and determination under this section, the commission shall: issue an order:determining that the energy utility should proceed with the implementation of the resource decision;making findings as to the total projected costs of the approved resource decision; andstating the basis upon which the findings described in Subsection (2)(a)(ii) are made; orissue an order determining that the energy utility should not proceed with the implementation of the resource decision.

(3) If the commission determines that the energy utility should proceed with the implementation of the approved resource decision, the commission shall, in a general rate case or other appropriate commission proceeding, include in the energy utility’s retail rates the state’s share of costs: relevant to that proceeding;incurred by the energy utility in implementing the approved resource decision; andup to the projected costs as specified in the commission’s order issued under Subsection (2)(a).

(4) If the commission determines that the energy utility should not proceed with the implementation of the approved resource decision, the commission shall, in a general rate case or other appropriate commission proceeding, include in the energy utility’s retail rates the state’s share of costs: relevant to that proceeding; andincurred by the energy utility in implementing the approved resource decision before issuance of a determination not to proceed, including any prudently incurred costs of terminating the approved resource decision.

(5) A commission order under this section not to proceed with the implementation of a resource decision may not prejudice: the right of an energy utility to:continue to implement the resource decision; andseek recovery of costs incurred after a determination not to proceed in a future rate proceeding; orthe right of any other party to support or oppose the recovery sought under Subsection (5)(a)(ii).

(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules regarding the process for the commission’s review and determination on a request for an order to proceed under this section.

Amended by Chapter 382, 2008 General Session

Waiver of Energy Resource Procurement Requirements

54-17-501 - Waiver of requirement for solicitation or approval.

(1) An affected electrical utility may obtain a waiver of the requirement that it conduct a solicitation process under Part 2, Solicitation Process, or the requirement that it obtain approval of a significant energy resource decision under Part 3, Resource Plans and Significant Energy Resource Approval, if the commission determines that waiving the requirement is in the public interest because there exists: a clear emergency;a time-limited commercial or technical opportunity that provides value to the customers of the affected electrical utility; orany other factor that makes waiving the requirement in the public interest.

(2) To obtain a finding from the commission under Subsection (1), the affected electrical utility shall, as soon as practicable after learning of the existence of a circumstance specified in Subsection (1): file a verified application with the commission; andserve an electronic and paper copy of the verified application, including all associated exhibits and attachments, on each person reflected on a list to be maintained and published by the commission on its Internet website that has requested service of waiver requests and has signed a generic protective order issued by the commission limiting the use of information contained in or attached to a waiver request.

(3) A verified application filed pursuant to Subsection (2) shall: identify any waiver requested;explain the basis for each waiver requested;specify any time sensitivity associated with the verified application;explain why the waiver requested is in the public interest; andcontain other information required by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(4) Upon receipt of a verified application filed under Subsection (2), the commission shall, before the end of the next business day, provide public notice of a technical conference to be held no sooner than three business days and no later than seven calendar days following the day on which the verified application is filed and served.

(5) At the technical conference held under Subsection (4), the affected electrical utility shall provide adequate support for its verified application and shall respond to questions of the commission, an independent evaluator if one is participating, and any other interested person.The commission shall prepare and retain a transcript of the technical conference.

(6) No less than three business days and no more than seven calendar days following the technical conference, the independent evaluator and any interested person may file and serve comments concerning the verified application.

(7) The commission shall issue a written decision either granting, granting with conditions, or denying each waiver requested no later than seven calendar days following the deadline for the independent evaluator and any interested person to file comments under Subsection (6).

(8) If confidential or trade secret information is provided or used in the verified application, in the technical conference, in comments filed on the verified application or otherwise in the process, that information shall be clearly identified by the providing person as confidential and shall be provided on a confidential basis subject to the terms of a protective order issued by the commission.The commission shall issue a generic protective order to govern access to and use of confidential information in connection with a request for waiver under this part.Upon request by the affected electrical utility or any interested person, the commission may issue a supplemental protective order in connection with any verified application.The generic protective order and any supplemental protective order restrict use of confidential information to the proceeding on the verified application, however, use of the confidential information in the proceeding is not considered a competitive purpose under Subsection (8)(c)(ii).The generic protective order and any supplemental protective order shall forbid the use of confidential information for competitive purposes.An interested person may gain access to and use confidential information in accordance with the terms of a protective order issued by the commission.

(9) Notwithstanding the time frames in Subsections (4), (6), and (7), the commission: shall take action or schedule proceedings as soon as reasonably practicable in light of the circumstances and urgency demonstrated by the verified application and any subsequent information provided during the process; andmay shorten or lengthen the time frames if the commission determines that changing them is warranted and in the public interest, except that a time frame may not be lengthened solely because an independent evaluator is not available to participate or to complete a recommendation.

(10) If an affected electrical utility is granted a waiver to acquire or construct a significant energy resource in accordance with this section: the provisions of Sections 54-17-303 and 54-17-304 do not apply to the significant energy resource decision;any cost recovery that an affected electrical utility seeks in connection with that significant energy resource is subject to a future prudence review by the commission under Subsection 54-4-4(4); andthe waiver grant does not create any presumption that the affected electrical utility’s action in acquiring or constructing a significant energy resource was prudent.

(11) Subject to Subsection (11)(b), the commission shall use reasonable efforts to have an independent evaluator available to participate in any application for a waiver under this part.The commission may decline to use an independent evaluator in the consideration of a waiver application if the commission determines the use of an independent evaluator is:not appropriate under the circumstances;not available under terms or conditions the commission considers reasonable; ornot available to participate or complete a recommendation within any time frame established under Subsection (4), (6), (7), or (9).The validity of an order entered under this part is not affected by:the unavailability of an independent evaluator; orthe failure of an independent evaluator to participate or complete a recommendation within any time frame established under Subsection (4), (6), (7), or (9).

(12) The commission shall issue a generic protective order as provided in Subsections (2)(b) and (8)(b).

(13) By September 1, 2007, the commission shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules concerning the process for obtaining a waiver of the solicitation or approval process consistent with this section.

Amended by Chapter 382, 2008 General Session

54-17-502 - Clean energy source — Solicitation — Consultant.

(1) Sections 54-17-102 through 54-17-404 do not apply to a significant energy resource that is a clean energy source as defined in Section 54-17-601 if the nameplate capacity of the clean energy source does not exceed 300 megawatts or, if applicable, the quantity of capacity that is the subject of a contract for the purchase of electricity from a clean energy source does not exceed 300 megawatts.

(2) An affected electrical utility shall issue a public solicitation of bids for a clean energy source up to 300 megawatts in size by January 31 of each year in which it reasonably anticipates that it will need to acquire or commence construction of a clean energy resource.A solicitation for a clean energy source issued by January 31, 2008 for up to 99 megawatts satisfies the requirement of this Subsection (2) for the year 2008 if:not later than 30 days after the day on which this section takes effect, the affected electrical utility amends the solicitation or initiates a new solicitation to seek bids for clean energy source projects up to 300 megawatts in size; andwithin 60 days after the day on which this section takes effect and as soon as practicable, the commission retains a consultant in accordance with Subsection (3).A consultant hired under Subsection (2)(a)(ii)(B) shall perform the consultant’s duties under Subsection (3) in relation to the status of the solicitation process at the time the consultant is retained and may not unreasonably delay the solicitation process.For a solicitation issued after January 31, 2008:the affected electrical utility shall develop a reasonable process for pre-approval of bidders; andin addition to publicly issuing the solicitation in Subsection (2)(a)(i), the affected electrical utility shall send copies of the solicitation to each potential bidder who is pre-approved.The affected electrical utility shall evaluate in good faith each bid that is received and negotiate in good faith with each bidder whose bid appears to be cost effective, as defined in Section 54-17-602.Beginning on August 1, 2008, and on each August 1 thereafter, the affected electrical utility shall file a notice with the commission indicating whether it reasonably anticipates that it will need to acquire or commence construction of a clean energy resource during the following year.

(3) If the commission receives a notice under Subsection (2)(e) that the affected electrical utility reasonably anticipates that it will need to acquire or commence construction of a clean energy source during the following year, the commission shall promptly retain a consultant to:validate that the affected electrical utility is following the bidder pre-approval process developed pursuant to Subsection (2)(c) and make recommendations for changes to the pre-approval process for future solicitations;monitor and document all material aspects of the bids, bid evaluations, and bid negotiations between the affected electrical utility and any bidders in the solicitation process;maintain adequate documentation of each bid, including the solicitation, evaluation, and negotiation processes and the reason for the conclusion of negotiations, which documentation shall be transmitted to the commission at the conclusion of all negotiations in the solicitation; andbe available to testify under oath before the commission in any relevant proceeding concerning all aspects of the public solicitation process.The commission and the consultant shall use all reasonable efforts to not delay the solicitation process.

(4) Documentation provided to the commission by the consultant shall be available to the affected electrical utility, any bidder, or other interested person under terms and conditions and at times determined appropriate by the commission.

(5) The commission and the consultant shall execute a contract approved by the commission with terms and conditions approved by the commission.Unless otherwise provided by contract, an invoice for the consultant’s services shall be sent to the Division of Public Utilities for review and approval.After approval under Subsection (5)(b), the invoice shall be forwarded to the affected electrical utility for payment to the consultant.The affected electrical utility may, in a general rate case or other appropriate commission proceeding, include, and the commission shall allow, recovery by the affected electrical utility of any amount paid by the affected electrical utility for the consultant.

(6) Nothing in this section precludes an affected electrical utility from constructing or acquiring any clean energy source project outside the solicitation process provided for in this section, including purchasing electricity from any clean energy source project that chooses to self-certify as a qualifying facility under the federal Public Utility Regulatory Policies Act of 1978.An affected electrical utility that constructs a clean energy source outside the solicitation process of this section or Section 54-17-201 shall file a notice with the commission at least 60 days before the date of commencement of construction, indicating the size and location of the clean energy source.The date of commencement of construction under Subsection (6)(b) is the date of any directive from an affected electrical utility to the person responsible for the construction of the clean energy source authorizing or directing the person to proceed with construction.For an affected electrical utility whose rates are regulated by the commission, the utility has the burden of proving in a rate case or other appropriate commission proceeding the prudence, reasonableness, and cost-effectiveness of construction under this Subsection (6), including the method used to evaluate the risks and value of any bid submitted in the solicitation under this section.

(7) Nothing in this section requires an affected electrical utility to enter into any transaction that it reasonably believes is not cost effective or otherwise is not in the public interest.

Amended by Chapter 53, 2024 General Session

Carbon Emission Reductions for Electrical Corporations

54-17-601 - Definitions.

As used in this part:

(1) “Adjusted retail electric sales” means the total kilowatt-hours of retail electric sales of an electrical corporation to customers in this state in a calendar year, reduced by:the amount of those kilowatt-hours attributable to electricity generated or purchased in that calendar year from qualifying zero carbon emissions generation and qualifying carbon sequestration generation;the amount of those kilowatt-hours attributable to electricity generated or purchased in that calendar year from generation located within the geographic boundary of the Western Electricity Coordinating Council that derives its energy from one or more of the following but that does not satisfy the definition of a clean energy source or that otherwise has not been used to satisfy Subsection 54-Ch54_17|54-17-602]:wind energy;solar photovoltaic and solar thermal energy;wave, tidal, and ocean thermal energy;except for combustion of wood that has been treated with chemical preservatives such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass byproducts, including:organic waste;forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and to reduce wildfire risk;agricultural residues;dedicated energy crops; andlandfill gas or biogas produced from organic matter, wastewater, anaerobic digesters, or municipal solid waste;geothermal energy;hydroelectric energy; orwaste gas and waste heat capture or recovery; andthe number of kilowatt-hours attributable to reductions in retail sales in that calendar year from demand side management as defined in Section 54-7-12.8, with the kilowatt-hours for an electrical corporation whose rates are regulated by the commission and adjusted by the commission to exclude kilowatt-hours for which a renewable energy certificate is issued under Subsection 54-Ch54_17|54-17-603](b).

(2) “Amount of kilowatt-hours attributable to electricity generated or purchased in that calendar year from qualifying carbon sequestration generation,” for qualifying carbon sequestration generation, means the kilowatt-hours supplied by a facility during the calendar year multiplied by the ratio of the amount of carbon dioxide captured from the facility and sequestered to the sum of the amount of carbon dioxide captured from the facility and sequestered plus the amount of carbon dioxide emitted from the facility during the same calendar year.

(3) “Banked renewable energy certificate” means a bundled or unbundled renewable energy certificate that is:not used in a calendar year to comply with this part or with a renewable energy program in another state; andcarried forward into a subsequent year.

(4) “Bundled renewable energy certificate” means a renewable energy certificate for qualifying electricity that is acquired:by an electrical corporation by a trade, purchase, or other transfer of electricity that includes the renewable energy attributes of, or certificate that is issued for, the electricity; orby an electrical corporation by generating the electricity for which the renewable energy certificate is issued.

(5) “Clean energy source” means:an electric generation facility or generation capability or upgrade that becomes operational on or after January 1, 1995, that derives its energy from one or more of the following:wind energy;solar photovoltaic and solar thermal energy;wave, tidal, and ocean thermal energy;except for combustion of wood that has been treated with chemical preservatives such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass byproducts, including:organic waste;forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and to reduce wildfire risk;agricultural residues;dedicated energy crops; andlandfill gas or biogas produced from organic matter, wastewater, anaerobic digesters, or municipal solid waste;geothermal energy located outside the state;waste gas and waste heat capture or recovery, including methane gas from:an abandoned coal mine; ora coal degassing operation associated with a state-approved mine permit;efficiency upgrades to a hydroelectric facility, without regard to the date upon which the facility became operational, if the upgrades become operational on or after January 1, 1995;compressed air, if:the compressed air is taken from compressed air energy storage; andthe energy used to compress the air is a clean energy source;municipal solid waste; orenergy derived from nuclear fuel;any of the following:up to 50 average megawatts of electricity per year per electrical corporation from a certified low-impact hydroelectric facility, without regard to the date upon which the facility becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after January 1, 1995, by a national certification organization;geothermal energy if located within the state, without regard to the date upon which the facility becomes operational; orhydroelectric energy if located within the state, without regard to the date upon which the facility becomes operational;hydrogen gas derived from any source of energy described in Subsection (5)(a) or (b);if an electric generation facility employs multiple energy sources, that portion of the electricity generated that is attributable to energy sources described in Subsections (5)(a) through (c); andany of the following located in the state and owned by a user of energy:a demand side management measure, as defined by Subsection 54-Ch54_7|54-7-12.8], with the quantity of renewable energy certificates to which the user is entitled determined by the equivalent energy saved by the measure;a solar thermal system that reduces the consumption of fossil fuels, with the quantity of renewable energy certificates to which the user is entitled determined by the equivalent kilowatt-hours saved, except to the extent the commission determines otherwise with respect to net-metered energy;a solar photovoltaic system that reduces the consumption of fossil fuels with the quantity of renewable energy certificates to which the user is entitled determined by the total production of the system, except to the extent the commission determines otherwise with respect to net-metered energy;a hydroelectric or geothermal facility with the quantity of renewable energy certificates to which the user is entitled determined by the total production of the facility, except to the extent the commission determines otherwise with respect to net-metered energy;a waste gas or waste heat capture or recovery system, other than from a combined cycle combustion turbine that does not use waste gas or waste heat, with the quantity of renewable energy certificates to which the user is entitled determined by the total production of the system, except to the extent the commission determines otherwise with respect to net-metered energy; andthe station use of solar thermal energy, solar photovoltaic energy, hydroelectric energy, geothermal energy, waste gas, or waste heat capture and recovery.

(6) “Electrical corporation”:is as defined in Section 54-2-1; anddoes not include a person generating electricity that is not for sale to the public.

(7) “Qualifying carbon sequestration generation” means a fossil-fueled generating facility located within the geographic boundary of the Western Electricity Coordinating Council that:becomes operational or is retrofitted on or after January 1, 2008; andreduces carbon dioxide emissions into the atmosphere through permanent geological sequestration or through another verifiably permanent reduction in carbon dioxide emissions through the use of technology.

(8) “Qualifying electricity” means electricity generated on or after January 1, 1995, from a clean energy source if:the renewable energy source is located within the geographic boundary of the Western Electricity Coordinating Council; orthe qualifying electricity is delivered to the transmission system of an electrical corporation or a delivery point designated by the electrical corporation for the purpose of subsequent delivery to the electrical corporation; andthe renewable energy attributes of the electricity are not traded, sold, transferred, or otherwise used to satisfy another state’s renewable energy program.

(9) “Qualifying zero carbon emissions generation”:means a generation facility located within the geographic boundary of the Western Electricity Coordinating Council that:becomes operational on or after January 1, 2008; anddoes not produce carbon as a byproduct of the generation process;includes generation powered by nuclear fuel; anddoes not include renewable energy sources used to satisfy the requirement established under Subsection 54-Ch54_17|54-17-602].

(10) “Renewable energy certificate” means a certificate issued under Section 54-17-603.

(11) “Unbundled renewable energy certificate” means a renewable energy certificate associated with:qualifying electricity that is acquired by an electrical corporation or other person by trade, purchase, or other transfer without acquiring the electricity for which the certificate was issued; oractivities listed in Subsection (5)(e).

Amended by Chapter 53, 2024 General Session

54-17-602 - Target amount of qualifying electricity — Renewable energy certificate — Cost-effectiveness — Cooperatives.

(1) To the extent that it is cost effective to do so, beginning in 2025 the annual retail electric sales in this state of each electrical corporation shall consist of qualifying electricity or renewable energy certificates in an amount equal to at least 20% of adjusted retail electric sales.The amount under Subsection (1)(a) is computed based upon adjusted retail electric sales for the calendar year commencing 36 months before the first day of the year for which the target calculated under Subsection (1)(a) applies.Notwithstanding Subsections (1)(a) and (b), an increase in the annual target from one year to the next may not exceed the greater of:17,500 megawatt-hours; or20% of the prior year’s amount under Subsections (1)(a) and (b).

(2) Cost-effectiveness under Subsection (1) for other than a cooperative association is determined in comparison to other viable resource options using the criteria provided by Subsection 54-Ch54_17|54-17-201](c)(ii).For an electrical corporation that is a cooperative association, cost-effectiveness is determined using criteria applicable to the cooperative association’s acquisition of a significant energy resource established by the cooperative association’s board of directors.

(3) This section does not require an electrical corporation to:substitute qualifying electricity for electricity from a generation source owned or contractually committed, or from a contractual commitment for a power purchase;enter into any additional electric sales commitment or any other arrangement for the sale or other disposition of electricity that is not already, or would not be, entered into by the electrical corporation; oracquire qualifying electricity in excess of its adjusted retail electric sales.

(4) For the purpose of Subsection (1), an electrical corporation may combine the following:qualifying electricity from a renewable energy source owned by the electrical corporation;qualifying electricity acquired by the electrical corporation through trade, power purchase, or other transfer; anda bundled or unbundled renewable energy certificate, including a banked renewable energy certificate.

(5) For an electrical corporation whose rates the commission regulates, the following rules concerning renewable energy certificates apply:a banked renewable energy certificate with an older issuance date shall be used before any other banked renewable energy certificate issued at a later date is used; andthe total of all unbundled renewable energy certificates, including unbundled banked renewable energy certificates, may not exceed 20% of the amount of the annual target provided for in Subsection (1).

(6) An electrical corporation that is a cooperative association may count towards Subsection (1) any of the following:electric production allocated to this state from hydroelectric facilities becoming operational after December 31, 2007, if the facilities are located in any state in which the cooperative association, or a generation and transmission cooperative with which the cooperative association has a contract, provides electric service;qualifying electricity generated or acquired or renewable energy certificates acquired for a program that permits a retail customer to voluntarily contribute to a clean energy source; andnotwithstanding Subsection 54-Ch54_17|54-17-601], an unbundled renewable energy certificate purchased from a renewable energy source located outside the geographic boundary of the Western Electricity Coordinating Council if the electricity on which the unbundled renewable energy certificate is based would be considered qualifying electricity if the renewable energy source was located within the geographic boundary of the Western Electricity Coordinating Council.

(7) The use of the renewable attributes associated with qualifying electricity to satisfy any federal renewable energy requirement does not preclude the electricity from being qualifying electricity for the purpose of this chapter.

Amended by Chapter 53, 2024 General Session

54-17-603 - Renewable energy certificate — Issuance — Use to satisfy other requirements.

(1) The commission shall establish a process for issuance or recognition of a renewable energy certificate.

(2) The commission process under Subsection (1) shall provide for the issuance, monitoring, accounting, transfer, and use of a renewable energy certificate, including in electronic form.

(3) The commission may: consult with another state or a federal agency and any regional system or trading program to fulfill Subsection (1); andallow use of a renewable energy certificate that is issued, monitored, accounted for, or transferred by or through a regional system or trading program, including the Western Renewable Energy Generation Information System, to fulfill this part’s provisions.

(4) A renewable energy certificate shall be issued for: qualifying electricity generated on and after January 1, 1995; andthe activities of an energy user described in Subsections 10-19-102(11)(e) and 54-17-601(10)(e) on and after January 1, 1995.

(5) The person requesting a renewable energy certificate shall affirm that the renewable energy attributes of the electricity have not been traded, sold, transferred, or otherwise used to satisfy another state’s renewable energy requirements.

(6) For the purpose of satisfying Subsection 54-17-602(1) and the issuance of a renewable energy certificate under this section, a renewable energy source located in this state that derives its energy from solar photovoltaic or solar thermal energy shall be credited for 2.4 kilowatt-hours of qualifying electricity for each 1.0 kilowatt-hour generated.Notwithstanding Subsection (6)(a), the acquisition or construction by an electrical corporation of a renewable energy source that derives its energy from solar photovoltaic or solar thermal energy shall comply with the cost-effectiveness criteria of Subsection 54-17-201(2)(c)(ii).

(7) A renewable energy certificate issued under this section: does not expire; andmay be banked.

(8) The commission may recognize a renewable energy certificate that is issued, monitored, accounted for, or transferred by or through another state or a regional system or trading program, including the Western Renewable Energy Generation Information System, if the renewable energy certificate is for qualifying electricity.

(9) A renewable energy certificate: may be used only once to satisfy Subsection 54-17-602(1);may be used for the purpose of Subsection 54-17-602(1) and the qualifying electricity on which the renewable energy certificate is based may be used to satisfy any federal renewable energy requirement; andmay not be used if it has been used to satisfy any other state’s renewable energy requirement.

(10) The commission shall establish procedures and reasonable rates permitting an electrical corporation that is a purchasing utility under Section 54-12-2 to acquire or retain a renewable energy certificate associated with the purchase of power from an independent energy producer.

Amended by Chapter 140, 2009 General Session

54-17-604 - Plans and reports.

(1) An electrical corporation shall develop and maintain a plan for implementing Subsection 54-Ch54_17|54-17-602], consistent with the cost-effectiveness criteria of Subsection 54-Ch54_17|54-17-201](c)(ii).

(2) A progress report concerning a plan under Subsection (1) for other than a cooperative association shall be filed with the commission by January 1 of each of the years 2010, 2015, 2020, and 2024.For an electrical corporation that is a cooperative association, a progress report shall be filed with the cooperative association’s board of directors by January 1 of each of the years 2010, 2015, 2020, and 2024.

(3) The progress report under Subsection (2) shall contain:the actual and projected amount of qualifying electricity through 2025;the source of qualifying electricity;an analysis of the cost-effectiveness of clean energy sources for other than a cooperative association; oran estimate of the cost of achieving the target for an electrical corporation that is a cooperative association;a discussion of conditions impacting the clean energy source and qualifying electricity markets;any recommendation for a suggested legislative or program change; andfor other than a cooperative association, any other information requested by the commission or considered relevant by the electrical corporation.

(4) The plan and progress report required by Subsections (1) and (2) may include procedures that will be used by the electrical corporation to identify and select any clean energy resource and qualifying electricity that satisfy the criteria of Subsection 54-Ch54_17|54-17-201](c)(ii).

(5) By July 1, 2026, each electrical corporation shall file a final progress report demonstrating:how Subsection 54-Ch54_17|54-17-602] is satisfied for the year 2025; orthe reason why Subsection 54-Ch54_17|54-17-602] is not satisfied for the year 2025, if it is not satisfied.

(6) By January 1 of each of the years 2011, 2016, 2021, and 2025, the Division of Public Utilities shall submit to the Legislature a report containing a summary of any progress report filed under Subsections (2) through (5).

(7) The summary required by Subsection (6) shall include any recommendation for legislative changes.

(8) By July 1, 2027, the commission shall submit to the Legislature a report summarizing the final progress reports and recommending any legislative changes.The 2027 summary may contain a recommendation to the Legislature concerning any action to be taken with respect to an electrical corporation that does not satisfy Subsection 54-Ch54_17|54-17-602] for 2025.The commission shall provide an opportunity for public comment and take evidence before recommending any action to be taken with respect to an electrical corporation that does not satisfy Subsection 54-Ch54_17|54-17-602] for 2025.

(9) If a recommendation containing a penalty for failure to satisfy Subsection 54-Ch54_17|54-17-602] is made under Subsection (8), the proposal shall require that any amount paid by an electrical corporation as a penalty be utilized to fund demand-side management for the retail customers of the electrical corporation paying the penalty.

(10) A penalty may not be proposed under this section if an electrical corporation’s failure to satisfy Subsection 54-Ch54_17|54-17-602] is due to:a lack of cost-effective means to satisfy the requirement; orforce majeure.

(11) By July 1, 2026, an electrical corporation that is a cooperative association shall file a final progress report demonstrating:how Subsection 54-Ch54_17|54-17-602] is satisfied for the year 2025; orthe reason why Subsection 54-Ch54_17|54-17-602] is not satisfied for the year 2025 if it is not satisfied.

(12) The plan and any progress report file under this section by an electrical corporation that is cooperative association shall be publicly available at the cooperative association’s office or posted on the cooperative association’s website.

Amended by Chapter 53, 2024 General Session

54-17-605 - Recovery of costs for clean energy activities.

(1) In accordance with other law, the commission shall include in the retail electric rates of an electrical corporation whose rates the commission regulates the state’s share of any of the costs listed in Subsection (2) that are relevant to the proceeding in which the commission is considering the electrical corporation’s rates:if the costs are prudently incurred by the electrical corporation in connection with:the acquisition of a renewable energy certificate;the acquisition of qualifying electricity for which a renewable energy certificate will be issued after the acquisition; andthe acquisition, construction, and use of a clean energy source; andto the extent any qualifying electricity or clean energy source under Subsection (1)(a) satisfies the cost-effectiveness criteria of Subsection 54-Ch54_17|54-17-201](c)(ii).

(2) The following are costs that may be recoverable under Subsection (1):a cost of siting, acquisition of property rights, equipment, design, licensing, permitting, construction, owning, operating, or otherwise acquiring a clean energy source and any associated asset, including transmission;a cost to acquire qualifying electricity through trade, power purchase, or other transfer;a cost to acquire a bundled or unbundled renewable energy certificate, if any net revenue from the sale of a renewable energy certificate allocable to this state is also included in rates;a cost to interconnect a clean energy source to the electrical corporation’s transmission and distribution system;a cost associated with using a physical or financial asset to integrate, firm, or shape a clean energy source on a firm annual basis to meet a retail electricity need; andany cost associated with transmission and delivery of qualifying electricity to a retail electricity consumer.

(3) The commission may allow an electrical corporation to use an adjustment mechanism or reasonable method other than a rate case under Sections 54-4-4 and 54-7-12 to allow recovery of costs identified in Subsection (2).If the commission allows the use of an adjustment mechanism, both the costs and any associated benefit shall be reflected in the mechanism, to the extent practicable.This Subsection (3) creates no presumption for or against the use of an adjustment mechanism.

(4) The commission may permit an electrical corporation to include in its retail electric rates the state’s share of costs prudently incurred by the electrical corporation in connection with a clean energy source, whether or not the clean energy source ultimately becomes operational, including costs of:siting;property acquisition;equipment;design;licensing;permitting; andother reasonable items related to the clean energy source.Subsection (4)(a) creates no presumption concerning the prudence or recoverability of the costs identified.To the extent deferral is consistent with other applicable law, the commission may allow an electrical corporation to defer costs recoverable under Subsection (4)(a) until the recovery of the deferred costs can be considered in a rate proceeding or an adjustment mechanism created under Subsection (3).An application to defer costs shall be filed within 60 days after the day on which the electrical corporation determines that the clean energy source project is impaired under generally accepted accounting principles and will not become operational.Notwithstanding the opportunity to defer costs under Subsection (4)(c), a cost incurred by an electrical corporation for siting, property acquisition, equipment, design, licensing, and permitting of a clean energy source that the electrical corporation proposes to construct shall be included in the electrical corporation’s project costs for the purpose of evaluating the project’s cost-effectiveness.A deferred cost under Subsection (4)(a) may not be added to, or otherwise considered in the evaluation of, the cost of a project proposed by any person other than the electrical corporation for the purpose of evaluating that person’s proposal.

Amended by Chapter 53, 2024 General Session

54-17-606 - Commission rules.

The commission shall make rules as necessary to implement this part.

Enacted by Chapter 374, 2008 General Session

54-17-607 - Procedure and appeals under this chapter.

(1) The governing authority, as defined in Section 54-15-102, has primary jurisdiction concerning issues of interpretation, implementation, and administration of this chapter.

(2) An appeal of a commission order under this chapter is governed by Chapter 7, Hearings, Practice, and Procedure.

Enacted by Chapter 374, 2008 General Session

Carbon Sequestration

54-17-701 - Rules for carbon capture and geological storage.

(1) By January 1, 2011, the Division of Water Quality and the Division of Air Quality, on behalf of the Board of Water Quality and the Board of Air Quality, respectively, in collaboration with the commission and the Division of Oil, Gas, and Mining and the Utah Geological Survey, shall present recommended rules to the Legislature’s Rules Review and General Oversight Committee for the following in connection with carbon capture and accompanying geological sequestration of captured carbon:site characterization approval;geomechanical, geochemical, and hydrogeological simulation;risk assessment;mitigation and remediation protocols;issuance of permits for test, injection, and monitoring wells;specifications for the drilling, construction, and maintenance of wells;issues concerning ownership of subsurface rights and pore space;allowed composition of injected matter;testing, monitoring, measurement, and verification for the entirety of the carbon capture and geologic sequestration chain of operations, from the point of capture of the carbon dioxide to the sequestration site;closure and decommissioning procedure;short- and long-term liability and indemnification for sequestration sites;conversion of enhanced oil recovery operations to carbon dioxide geological sequestration sites; andother issues as identified.

(2) The entities listed in Subsection (1) shall report to the Legislature’s Rules Review and General Oversight Committee any proposals for additional statutory changes needed to implement rules contemplated under Subsection (1).

(3) On or before July 1, 2009, the entities listed in Subsection (1) shall submit to the Legislature’s Public Utilities, Energy, and Technology and Natural Resources, Agriculture, and Environment Interim Committees a progress report on the development of the recommended rules required by this part.

(4) The recommended rules developed under this section apply to the injection of carbon dioxide and other associated injectants in allowable types of geological formations for the purpose of reducing emissions to the atmosphere through long-term geological sequestration as required by law or undertaken voluntarily or for subsequent beneficial reuse.

(5) The recommended rules developed under this section do not apply to the injection of fluids through the use of Class II injection wells as defined in 40 C.F.R. 144.6(b) for the purpose of enhanced hydrocarbon recovery.

(6) Rules recommended under this section shall:ensure that adequate health and safety standards are met;minimize the risk of unacceptable leakage from the injection well and injection zone for carbon capture and geologic sequestration; andprovide adequate regulatory oversight and public information concerning carbon capture and geologic sequestration.

Amended by Chapter 178, 2024 General Session

Renewable Energy Contracts

54-17-801 - Definitions.

As used in this part:

(1) “Clean energy contract” means a contract under this part for the delivery of electricity from one or more clean energy facilities to a contract customer requiring the use of a qualified utility’s transmission or distribution system to deliver the electricity from a clean energy facility to the contract customer.

(2) “Clean energy facility” means a clean energy source as defined in Section 54-17-601 that:is located in the state; oris located outside the state; andprovides energy from baseload clean resources.”Clean energy facility” does not include an electric generating facility for which the electric generating facility’s costs are included in a qualified utility’s rates as a facility that provides electric service to the qualified utility’s system.

(3) “Clean energy tariff” means a tariff offered by a qualified utility that allows the qualified utility to procure clean generation on behalf of and to serve its customers.

(4) “Contract customer” means a person who executes or will execute a clean energy contract with a qualified utility.

(5) “Qualified utility” means an electric corporation that serves more than 200,000 retail customers in the state.

Amended by Chapter 53, 2024 General Session

54-17-802 - Contracts for the purchase of electricity from a clean energy facility.

(1) Within a reasonable time after receiving a request from a contract customer and subject to reasonable credit requirements, a qualified utility shall enter into a clean energy contract with the requesting contract customer to supply some or all of the contract customer’s electric service from one or more clean energy facilities selected by the contract customer.

(2) Subject to a contract customer agreeing to pay the qualified utility for all incremental costs associated with metering facilities, communication facilities, and administration, a clean energy contract may provide for electricity to be delivered to a contract customer:from one clean energy facility to a contract customer’s single metered delivery location;from multiple clean energy facilities to a contract customer’s single metered delivery location; orfrom one or more clean energy facilities to a single contract customer’s multiple metered delivery locations.

(3) A single contract customer may aggregate multiple metered delivery locations to satisfy the minimum megawatt limit under Subsection (4).Multiple contract customers may not aggregate their separate metered delivery locations to satisfy the minimum megawatt limit under Subsection (4).

(4) The amount of electricity provided to a contract customer under a clean energy contract may not be less than 2.0 megawatts.

(5) The amount of electricity provided in any hour to a contract customer under a clean energy contract may not exceed the contract customer’s metered kilowatt-hour load in that hour at the metered delivery locations under the contract.

(6) A clean energy contract that meets the requirements of Subsection (4) may provide for one or more increases in the amount of electricity to be provided under the contract even though the amount of electricity to be provided by the increase is less than the minimum amount required under Subsection (4).

(7) The total amount of electricity to be generated by clean energy facilities and delivered to contract customers at any one time under all clean energy contracts may not exceed 300 megawatts, unless the commission approves in advance a higher amount.

(8) Electricity generated by a clean energy facility and delivered to a contract customer under a clean energy contract may not be included in a net metering program under Chapter 15, Net Metering of Electricity.

Amended by Chapter 53, 2024 General Session

54-17-803 - Ownership of a clean energy facility — Joint ownership — Ownership of environmental attributes.

(1) A clean energy facility may be owned:by a person who will be a contract customer receiving electricity from the clean energy facility;by a qualified utility;by a person other than a contract customer or qualified utility; orjointly by any combination of Subsections (1)(a), (b), and (c), whether in equal shares or otherwise.

(2) A qualified utility may be a joint owner of a clean energy facility only if:the qualified utility consents to being a joint owner; andthe joint ownership agreement requires the qualified utility to recover from contract customers receiving electricity from the clean energy facility all of the qualified utility’s costs associated with its ownership of the clean energy facility, including administrative, acquisition, operation, and maintenance costs, unless the commission, in an order issued in a separate regulatory proceeding:authorizes the qualified utility to recover some of those costs from customers other than contract customers;determines that the rate to be paid for electricity from the clean energy facility by customers other than contract customers is cost effective; andapproves the inclusion of the rate determined under Subsection (2)(b)(ii) in general rates or through a commission approved cost recovery mechanism.

(3) To the extent that any electricity from a clean energy facility to be delivered to a contract customer is owned by a person other than the contract customer:the qualified utility shall, by contract with the owner of the electricity to be sold from the clean energy facility, purchase electricity for resale to one or more contract customers;the qualified utility shall sell that electricity to the contract customer or customers under clean energy contracts with the same duration and pricing as the contract between the qualified utility and the owner of the electricity to be sold from the clean energy facility; andthe qualified utility’s contract with the owner of the electricity to be sold from the clean energy facility shall provide that the qualified utility’s obligation to purchase electricity under that contract ceases if the contract customer defaults in its obligation to purchase and pay for the electricity under the contract with the qualified utility.

(4) The right to any environmental attribute associated with a clean energy facility shall remain the property of the clean energy facility’s owner, except to the extent that a contract to which the owner is a party provides otherwise.

Amended by Chapter 53, 2024 General Session

54-17-804 - Exemption from certificate of convenience and necessity requirements.

(1) A qualified utility is not required to comply with Section 54-4-25 with respect to a clean energy facility that is the subject of a clean energy contract if:each contract necessary for the commission to determine compliance with this part is filed with the commission; andthe commission determines that each contract relating to the clean energy facility complies with this part.

(2) In making its determination under Subsection (1)(b), the commission may process and consider together multiple clean energy contracts between the same contract customer and the qualified utility providing for the delivery of electricity from a clean energy facility to the contract customer’s multiple metered delivery locations.

Amended by Chapter 53, 2024 General Session

54-17-805 - Costs associated with delivering electricity from a clean energy facility to a contract customer.

(1) To the extent that a clean energy contract provides for the delivery of electricity from a clean energy facility owned by the contract customer, the clean energy contract shall require the contract customer to pay for the use of the qualified utility’s transmission or distribution facilities at the qualified utility’s applicable rates, which may include transmission costs at the qualified utility’s applicable rate approved by the Federal Energy Regulatory Commission.

(2) To the extent that a clean energy contract provides for the delivery of electricity from a clean energy facility owned by a person other than the qualified utility or the contract customer, the clean energy contract shall require the contract customer to bear all reasonably identifiable costs that the qualified utility incurs in delivering the electricity from the clean energy facility to the contract customer, including all costs to procure and deliver electricity and for billing, administrative, and related activities, as determined by the commission.

(3) A qualified utility that enters a clean energy contract shall charge a contract customer for all metered electric service delivered to the contract customer, including generation, transmission, and distribution service, at the qualified utility’s applicable tariff rates, excluding:any kilowatt hours of electricity delivered from the clean energy facility, based on the time of delivery, adjusted for transmission losses;any kilowatts of electricity delivered from the clean energy facility that coincide with the contract customer’s monthly metered kilowatt demand measurement, adjusted for transmission losses;any transmission and distribution service that the contract customer pays for under Subsection (1) or (2); andany transmission service that the contract customer provides under Subsection (2) to deliver generation from the clean energy facility.

Amended by Chapter 53, 2024 General Session

54-17-806 - Qualified utility clean energy tariff.

(1) The commission may authorize a qualified utility to implement a clean energy tariff in accordance with this section if the commission determines the tariff that the qualified utility proposes is reasonable and in the public interest.

(2) The commission may authorize a tariff under Subsection (1) to apply to:a qualified utility customer with an aggregated electrical load of at least five megawatts; ora combination of qualified utility customers who are separately metered if:the aggregated electrical load of the qualified utility customers is at least five megawatts; andeach of the qualified utility customers is located within a project area, as defined in Section 11-58-102.

(3) A customer who agrees to take service that is subject to the clean energy tariff under this section shall pay:the customer’s normal tariff rate;an incremental charge in an amount equal to the difference between the cost to the qualified utility to supply clean generation to the clean energy tariff customer and the qualified utility’s avoided costs as defined in Subsection 54-Ch54_2|54-2-1], or a different methodology recommended by the qualified utility; andan administrative fee in an amount approved by the commission.

(4) The commission shall allow a qualified utility to recover the qualified utility’s prudently incurred cost of clean generation procured pursuant to the tariff established in this section that is not otherwise recovered from the proceeds of the tariff paid by customers agreeing to service that is subject to the clean energy tariff.

Amended by Chapter 53, 2024 General Session

54-17-807 - Solar photovoltaic or thermal solar energy facilities.

(1) As used in this section, “acquire” means to purchase, construct, or purchase the output from a photovoltaic or thermal solar energy resource.

(2) In accordance with this section, a qualified utility may file an application with the commission for approval to acquire a photovoltaic or thermal solar energy resource using rate recovery based on a competitive market price, except as provided in Subsection (2)(b).A qualified utility may not, under this section, acquire a photovoltaic or thermal solar energy resource with a generating capacity that is two megawatts or less per meter if that resource is located on the customer’s side of the meter.

(3) The energy resource acquired pursuant to this section may be owned solely or jointly by a qualified utility or another entity:to provide clean energy to a contract customer as provided in Section 54-17-803;to serve energy to a qualified utility customer as provided in Section 54-17-806;to serve energy to any customers of the qualified utility if the proposed energy resource’s nameplate capacity does not exceed 300 megawatts or, if applicable, the quantity of capacity that is the subject of a contract for the purchase of electricity does not exceed 300 megawatts, so long as the qualified utility proceeds under and complies with Part 4, Voluntary Request for Resource Decision Review; orto serve energy to any customers of the qualified utility if the proposed energy resource’s nameplate capacity exceeds 300 megawatts or, if applicable, the quantity of capacity that is the subject of a contract for the purchase of electricity exceeds 300 megawatts, so long as the qualified utility complies with this chapter.

(4) Except as provided in Subsections (3)(c) and (d), the following do not apply to an application submitted under Subsection (2):Part 1, General Provisions;Part 2, Solicitation Process;Part 3, Resource Plans and Significant Energy Resource Approval;Part 4, Voluntary Request for Resource Decision Review; andSection 54-17-502.

(5) The application described in Subsection (2) shall include:a proposed solicitation process for the energy resource;the criteria proposed to be used to evaluate the responses to the solicitation:as determined by the customer, if the energy resource is sought to serve a customer pursuant to Subsection (3)(a) or (b); oras proposed by the qualified utility, if the energy resource is sought to serve the customers of the qualified utility pursuant to Subsection (3)(c) or (d); andany other information the commission may require.

(6) Before approving a solicitation process under this section for an energy resource to serve customers of the qualified utility pursuant to Subsection (3)(c) or (d), the commission shall:hold a public hearing; andprovide an opportunity for public comment.The commission may approve a solicitation process under this section only if the commission determines that the solicitation and evaluation processes to be used will create a level playing field in which the qualified utility and other bidders can compete fairly, including with respect to interconnection and transmission requirements imposed on bidders by the solicitation within the control of the commission and the qualified utility, excluding its federally regulated transmission function, and will otherwise serve the public interest.

(7) Upon completion of the solicitation process approved under Subsection (6), the qualified utility may seek approval from the commission to acquire the energy resource identified through the solicitation process as the winning bid.Before approving acquisition of an energy resource acquired pursuant to this section, the commission shall:hold a public hearing;provide an opportunity for public comment;determine whether the solicitation and evaluation processes complied with this section, commission rules, and the commission’s order approving the solicitation process; anddetermine whether the acquisition of the energy resource is just and reasonable, and in the public interest.The commission may approve a qualified utility’s ownership of an energy resource or a power purchase agreement containing a purchase option under Subsection (3)(c) or (d) with rate recovery based on a competitive market price only if the commission determines that the qualified utility’s bid is the lowest cost ownership option for the qualified utility.If the commission approves a qualified utility’s acquisition of an energy resource under Subsection (3), including entering into a power purchase agreement containing a purchase option, using rate recovery based on a competitive market price:the prices approved by the commission shall constitute competitive market prices for purposes of this section; andassets owned by the qualified utility and used to provide service as approved under this section are not public utility property.

(8) If upon completion of a solicitation process approved under Subsection (6) the qualified utility proposes not to acquire an energy resource, the qualified utility shall file with the commission a report explaining its reasons for not acquiring the lowest cost resource bid into the solicitation, along with any other information the commission requires.

(9) Within six months after a competitive market price for a solar energy resource acquired under Subsection (3)(c) or (d) has been identified pursuant to this section, or for such longer period as the commission may determine to be in the public interest, a qualified utility may file an application with the commission seeking approval to acquire another energy resource similar to the energy resource for which a competitive market price was established without going through a new solicitation process. The commission may approve the application if the qualified utility demonstrates a need to acquire the energy resource, that the competitive market price remains reasonable, and that the acquisition is in the public interest.

(10) No later than 180 days before the end of the term approved by the commission for an energy resource acquired under this section and owned by the qualified utility, the qualified utility shall file with the commission a request for determination of an appropriate disposition of the energy resource asset, except that the qualified utility is permitted to retain the benefits or proceeds and shall be required to assume the costs and risks of ownership of the energy resource.

(11) The commission shall adopt rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:addressing the content and filing of an application under this section;to establish the solicitation process and criteria to be used to identify the competitive market price and select an energy resource; andaddressing other factors determined by the commission to be relevant to protect the public interest and to implement this section.

Amended by Chapter 53, 2024 General Session

Community Renewable Energy Act

54-17-901 - Community Clean Energy Act.

This part is known as the “Community Clean Energy Act.”

Amended by Chapter 53, 2024 General Session

54-17-902 - Definitions.

As used in this part:

(1) “Auxiliary services” means those services necessary to safely and reliably:interconnect and transmit electric power from any clean energy resource constructed or acquired for a community clean energy program; andintegrate and supplement electric power from any clean energy resource.”Auxiliary services” shall include applicable Federal Energy Regulatory Commission requirements governing transmission and interconnection services.

(2) “Clean electric energy supply” means incremental clean energy resources that are developed to meet the annual electric energy consumption of participating customers within a participating community.

(3) “Clean energy resource” means:electric energy generated by a source that is naturally replenished and includes one or more of the following:wind;solar photovoltaic or thermal solar technology;a geothermal resource; ora hydroelectric plant including a pumped storage hydropower facility;use of an energy efficient and sustainable technology the commission has approved for implementation that:increases efficient energy usage;is capable of being used for demand response;facilitates the use and development of clean generation resources through electrical grid management or energy storage; oruses carbon capture utilization and sequestration; orenergy derived from nuclear fuel.

(4) “Commission” means the Public Service Commission created in Section 54-1-1.

(5) “Community clean energy program” means the program approved by the commission under Section 54-17-904 that allows a qualified utility to provide electric service from one or more clean energy resources to a participating customer within a participating community.

(6) “County” means the unincorporated area of a county.

(7) “Division” means the Division of Public Utilities created in Section 54-4a-1.

(8) “Initial opt-out period” means the period of time immediately after the community clean energy program’s commencement, as established by the commission by rule made pursuant to Section 54-17-909, during which a participating customer may elect to leave the program without penalty.”Initial opt-out period” may not be shorter than three typical billing cycles of the qualified utility.

(9) “Municipality” means a city or a town as defined in Section 10-1-104.

(10) “Office” means the Office of Consumer Services created in Section 54-10a-101.

(11) “Ongoing costs” means the costs allocated to the state for transmission and distribution facilities, retail services, and generation assets that are not replaced assets.

(12) “Participating community” means a municipality or a county:whose residents are served by a qualified utility; andthe municipality or county meets the requirements in Section 54-17-903.

(13) “Participating customer” means:a customer of a qualified utility located within the boundary of a municipality or county where a community clean energy program has been approved by the commission; andthe customer has not exercised the right to not participate in the community clean energy program as provided in Section 54-17-905.

(14) “Qualified utility” means the same as that term is defined in Section 54-17-801.

(15) “Replaced asset” means an existing thermal energy resource:that was built or acquired, in whole or in part, by a qualified utility to serve the qualified utility’s customers, including customers within a participating community;that was built or acquired prior to commission approval and the effective date of the community clean energy program; andto the extent the asset is no longer used to serve participating customers.

Amended by Chapter 53, 2024 General Session

54-17-903 - Program requirement for a municipality or county.

(1) As used in this section, “renewable energy resource” means the same as the term “clean energy resource” is defined in Section 54-17-902.Customers of a qualified utility may be served by the community clean energy program described in this part if the municipality or county satisfies the requirements of Subsection (2).

(2) The municipality or county in which the customer resides shall:enter into an agreement with a qualified utility:with the stipulation of payment by the municipality or county to the qualified utility for the costs of:third-party expertise contracted for by the division and the office, for assistance with activities associated with initial approval of the community clean energy program; andproviding notice to the municipality’s or county’s customers as provided in Section 54-17-905;determining the obligation for the payment of any termination charges under Subsection 54-Ch54_17|54-17-905] that are not paid by a participating customer and not included in participating customer rates under Subsections 54-Ch54_17|54-17-904] and (4); andidentifying any initially proposed replaced asset;adopt a local ordinance that:establishes participation in the clean energy program; andis consistent with the terms of the agreement entered into with the qualified utility under Subsection (2)(a); andcomply with any other terms or conditions required by the commission.

(3) The local ordinance required in Subsection (2)(b) shall be adopted by the municipality or county within 90 days after the date of the commission order approving the community clean energy program.

Amended by Chapter 53, 2024 General Session

54-17-904 - Authority of commission to approve a community clean energy program.

(1) After the commission has adopted administrative rules as required under Section 54-17-909, a qualified utility may file an application with the commission for approval of a community clean energy program.

(2) The application shall include:the names of each municipality and county to be served by the community clean energy program;a map of the geographic boundaries of each municipality and county;the number of customers served by the qualified utility within those boundaries;projected rates for participating customers that take into account:the estimated number of customers expected to participate in the program;the quantifiable costs and benefits to the qualified utility and all of the qualified utility’s customers in their capacity as ratepayers of the qualified utility, excluding costs or benefits that do not directly affect the qualified utility, including as applicable:replaced assets;auxiliary services; andnew clean energy resources used to serve the community clean energy program; andthe ongoing costs at the time of the application;the agreement entered into with the qualified utility under Section 54-17-903;a proposed plan established by the participating community addressing low-income programs and assistance;a proposed solicitation process for the acquisition of clean energy resources as provided in Section 54-17-908; andany other information the commission may require by rule.

(3) The commission may approve an application for a community clean energy program if the commission finds:the application meets all of the requirements in this section and administrative rules adopted by the commission in accordance with Sections 54-17-908 and 54-17-909 to implement this part; andthe community clean energy program is in the public interest.

(4) The rates approved by the commission for participating customers:shall be based on the factors included in Subsection (2)(d) and any other factor determined by the commission to be in the public interest;may not result in any shift of costs or benefits to any nonparticipating customer, or any other customer of the qualified utility beyond the participating community boundaries; andshall take into account any quantifiable benefits to the qualified utility, and the qualified utility’s customers, including participating customers in their capacity as ratepayers of the qualified utility, excluding costs or benefits that do not directly affect the qualified utility’s costs of service.

(5) Each municipality or county included in the application shall be a party to the regulatory proceeding.A municipality or county identified in the application shall provide information to all relevant parties in accordance with the commission’s rules for discovery, notwithstanding Title 63G, Chapter 2, Government Records Access and Management Act.

(6) The community clean energy program may not be implemented until after the municipality or county adopts the ordinance required in Section 54-17-903.

Amended by Chapter 53, 2024 General Session

54-17-905 - Customer participation — Election not to participate.

(1) After commission approval of a community clean energy program and adoption of the ordinance by the participating community as required in Section 54-17-903, a qualified utility shall provide notice to each of its customers within the participating community that includes:the projected rates and terms of participation in the community clean energy program approved by the commission;an estimated comparison to otherwise applicable existing rates;an explanation that the customer may elect to not participate in the community clean energy program by notifying the qualified utility; andany other information required by the commission.The qualified utility shall provide the notice required under Subsection (1)(a) to each customer:no less than twice within the period of 60 days immediately preceding the date required to opt out of the community clean energy program; andseparately from the customer’s monthly billing.The qualified utility shall provide the information required under Subsection (1)(a) in person to each customer with an electric load of one megawatt or greater measured at a single meter.

(2) An existing customer of the qualified utility may elect to not participate in the community clean energy program and continue to pay applicable existing rates by giving notice to the qualified utility in the manner and within the time period determined by the commission.After implementation of the community clean energy program:a customer that previously elected not to participate in the program may become a participating customer as allowed by commission rules and by giving notice to the qualified utility in the manner required by the commission; anda customer of the qualified utility that begins taking electric service within a participating community after the date of implementation of the community clean energy program shall:be given notice as determined by the commission; andshall become a participating customer unless the person elects not to participate by giving notice to the qualified utility in the manner and within the time period determined by the commission.

(3) A customer that does not opt out of the community clean energy program under Subsection (2) may later discontinue participation in the community clean energy program as allowed by the commission as described in Subsection (3)(b) or (c).During the initial opt-out period, a participating customer may elect to leave the program by giving notice to the qualified utility in the manner determined by the commission.A participating customer that opts out as described in Subsection (3)(b)(i) is not subject to a termination charge.After the community clean energy program’s initial opt-out period, a participating customer may elect to leave the program by:giving notice to the qualified utility in the manner determined by the commission; andpaying a termination charge as determined by the commission that may include the cost of clean energy resources acquired or constructed for the community clean energy program that are not being utilized by participating customers as necessary to prevent shifting costs to other customers of the qualified utility.

(4) A customer of a qualified utility that is annexed into the boundaries of a participating community after the effective date of the community clean energy program shall be given notice as provided in Subsection (1) advising the customer of the option to opt out of the program.A participating customer located in a portion of a county that is annexed into a municipality that is not a participating community shall continue to be included in the clean energy program if the customer remains a customer of the qualified utility.If a participating customer is annexed into a municipality that provides electric service to the municipality’s residents:the customer may continue to be served by the qualified utility under the community clean energy program if the qualified utility enters into an agreement with the municipality under Section 54-3-30; orthe municipality shall pay the termination charge for each participating customer that is no longer served by the qualified utility.

(5) A residential customer that is participating in the net metering program under Title 54, Chapter 15, Net Metering of Electricity, may not be a participating customer under this part.

(6) The cost of providing notice under Subsection (1) shall be paid by the participating communities.All other notices required under this section shall be paid for as program costs and recovered through participating customers’ rates.

Amended by Chapter 53, 2024 General Session

54-17-906 - Customer billing.

The qualified utility shall:

(1) include information on its monthly bills to participating customers identifying the community clean energy program cost; and

(2) provide notice to participating customers of any change in rate for participation in the community clean energy program.

Amended by Chapter 53, 2024 General Session

54-17-907 - Rate adjustment filing — Modification of rates for participating customers.

(1) The qualified utility may make a rate adjustment filing, not more than annually, with the commission to adjust rates for participating customers to reflect any changes in the quantifiable costs and benefits of the community renewable energy program.The rate adjustment filing may not include any changes to ongoing costs.

(2) The commission shall determine the content and filing requirements for the filing by administrative rules as described in Section 54-17-909.

(3) The commission shall determine rate changes which shall become effective within 90 days after the date of the filing, unless otherwise determined by the commission for good cause.

Enacted by Chapter 471, 2019 General Session

54-17-908 - Acquisition of clean energy resources.

(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules outlining a competitive solicitation process for the acquisition of clean assets acquired by the qualified utility for purposes of this act.

(2) The solicitation rules shall include the following provisions:solar photovoltaic or thermal solar energy facilities may be acquired under the provisions of Section 54-17-807;clean energy resources developed under this part shall be constructed or acquired subject to an option by the qualified utility to own the clean energy resource so long as including the option in a solicitation is in the interest of participating customers and other customers of the qualified utility; andany other requirement determined by the commission to be in the public interest.

(3) Upon completion of a solicitation under this section and the rules adopted by the commission to implement this section, the commission may approve cost recovery for a clean energy resource for the community clean energy program if approval of the clean energy resource:complies with the provisions of this part;does not result in shifting of costs or benefits to other customers of the qualified utility; andis in the public interest.

Amended by Chapter 53, 2024 General Session

54-17-909 - Commission rulemaking authority.

In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act , the commission shall adopt rules to implement this part, including:

(1) establishing the initial opt-out period;

(2) the terms and conditions of the agreement under Section 54-17-903;

(3) the content and filing of an application under Section 54-17-904;

(4) the notice requirements under Section 54-17-905;

(5) the standards for determining when a termination charge is applicable and the amount and timing of a termination charge under Subsection 54-17-905(3);

(6) the content and filing requirements for the annual filing under Subsection 54-17-907(2);

(7) the solicitation requirements under Section 54-17-908; and

(8) any other requirements determined by the commission necessary to protect the public interest and to implement this part.

Enacted by Chapter 471, 2019 General Session

Acquisition and Cost Recovery for Proven Dispatchable Generation Resources

54-17-1001 - Acquiring excess proven dispatchable generation capacity.

(1) As used in this section:“Allocation agreement” means a multi-state agreement that allocates the costs and benefits from energy resources serving multiple states to each participating state.”Division” means the Division of Public Utilities established in Section 54-4a-1.”Excess proven dispatchable generation capacity” means electric generation capacity from a proven dispatchable generating resource located in the state that is subject to an allocation agreement, where excess capacity becomes available as another state transitions away from the use of proven dispatchable generation resources.”Office” means the Office of Energy Development created in Section 79-6-401.

(2) If the affected electrical utility becomes aware that the affected electrical utility will have excess proven dispatchable generation capacity at an in-state proven dispatchable generation resource, the affected electrical utility shall provide notice to:the commission;the division;the office;the president of the Senate; andthe speaker of the House of Representatives.

(3) An affected electrical utility that becomes aware of excess proven dispatchable generation capacity shall provide the notice described in Subsection (2):by July 1, 2024, for any excess capacity the utility is aware of on or before May 1, 2024; orwithin 60 days after the day the utility becomes aware of the excess capacity, for any excess capacity the utility becomes aware of after May 1, 2024.

(4) An affected electrical utility may not offer excess proven dispatchable generation capacity for sale outside of the state unless the affected electrical utility has complied with Subsection (2).

(5) After receiving the notice described in Subsection (2), the division shall immediately begin negotiations through an allocation agreement process for excess proven dispatchable generation capacity.The division shall provide regular updates on the status of negotiations under Subsection (5)(a) to the president of the Senate, the speaker of the House of Representatives, and other relevant stakeholders as determined by the commission.

(6) When reviewing an affected electrical utility’s application seeking approval of an agreement to allocate another state’s existing share of excess proven dispatchable generation capacity, the commission shall consider:the state energy policy described in Section 79-6-301;recommendations made by the president of the Senate, the speaker of the House of Representatives, and the office;current and forecasted electricity needs within the state and the region;the potential impact on long-term electricity costs for ratepayers in the state;the potential to resell excess electricity on interstate energy markets to lower costs for state ratepayers;the additional operating costs borne by the state as the sole purchaser of capacity or energy from the proven dispatchable generation resource;opportunities to coordinate with neighboring states with similar energy policies and goals;that any excess capacity allocated and approved in rates under an agreement described in Subsection (5) shall be operated in a manner that prioritizes the interests of ratepayers in the state;that all revenues from the sale of excess capacity that is allocated and approved in rates under an agreement described in Subsection (5) shall be credited to ratepayers in the state; andany other factors the commission determines relevant.

Enacted by Chapter 214, 2024 General Session

54-17-1002 - Cost recovery for proven dispatchable generation assets.

(1) Notwithstanding any other provision of law, the recovery of costs associated with the acquisition, expansion, maintenance, retrofitting, fueling, or operation of a proven dispatchable generation resource, as well as the reasonable legal fees and costs associated with efforts to preserve the continued operation of a proven dispatchable generation resource, is governed by this section.

(2) To recover costs described in Subsections (3) and (5), an affected electrical utility is required to demonstrate, to the commission’s satisfaction:the amount sought to be recovered that is attributable to the state;a detailed description of the actions taken by the affected electrical utility resulting in the costs sought to be recovered;that the actions taken by the affected electrical utility resulting in the costs sought to be recovered were:reasonable when considering available dispatchable resources; andnecessary to acquire, operate, and maintain dispatchable resources; andthat the recovery of costs for the actions taken by the affected electrical utility is in the public interest.

(3) Subject to requirements of Subsection (2), the commission shall allow an affected electrical utility to recover through the affected electrical utility’s rates, as established in a general rate case or other appropriate commission proceeding, the reasonable costs associated with:any commission approved significant energy resource decision relating to a proven dispatchable generation resource within the state;any commission approved voluntary resource decision relating to a proven dispatchable generation resource within the state;costs necessary to acquire, expand, retrofit, or maintain proven dispatchable generation resources located within the state to comply with federal law or ensure the efficient operation of those resources;costs to obtain needed generation due to a federal decision or mandate requiring the closure, retirement, or decommission of a proven dispatchable generation resource within the state until permanent replacement generation can be obtained or constructed;stranded costs due to any federal decision or mandate to close, retire, or decommission proven dispatchable generation resources located within the state; andreasonable legal fees and costs arising out of efforts to preserve the continued operation of proven dispatchable generation resources that are either located within the state or that provide generation to the state.

(4) An affected electrical utility may recover fuel-related costs associated with acquiring and transporting fuel necessary for operating a proven dispatchable generation resource located within the state if the affected electrical utility demonstrates to the commission’s satisfaction that:any fuel purchase for the proven dispatchable generation resource is at a cost less than or equal to the lower of:the current market price for that fuel in the general geographic area from which the resource is extracted; orthe cost to purchase that fuel from an affiliate company of the affected electrical utility;any fuel transportation costs are reasonable in comparison to current fuel transportation market rates;the term of collective fuel supply contracts entered into by the affected electrical utility is reasonable to ensure necessary fuel supply for the affected electrical utility; andthat the cost for the affected electrical utility to maintain a reasonable stockpile of fuel for up to one year for the proven dispatchable generation resource is reasonable according to prudent utility practice.

(5) An affected electrical utility:may recover reasonable ongoing operating costs incurred in connection with the operation of a proven dispatchable generation resource located within the state; andhas a presumption that the ongoing operating costs described in Subsection (5)(a)(i) are reasonable as determined by the commission in a general rate case or other appropriate commission proceeding.A party may submit evidence in a commission proceeding to challenge the reasonableness of the affected electrical utility’s operating costs.If an affected electrical utility’s operating costs are unchallenged or the commission determines after a commission proceeding that a challenging party has failed to demonstrate that the affected electrical utility’s operating costs are not reasonable, the affected electrical utility is entitled to recover operating costs associated with a proven dispatchable generation resource in rates.If the commission determines, after hearing evidence from a challenging party, that the affected electrical utility’s operating costs are not reasonable, the commission shall establish reasonable rates that allow the affected electrical utility to recover only reasonable operating costs associated with a proven dispatchable generation resource.

(6) Upon filing of a request for recovery under this section from an affected electrical utility that is expected to result in a rate increase, the commission shall provide a written notice of the request to the Executive Appropriations Committee and the Public Utilities, Energy, and Technology Interim Committee.Upon receiving the notice described in Subsection (6)(a), the Executive Appropriations Committee may review the affected utility’s request for cost recovery and determine whether to direct committee staff, or an otherwise qualified third party to intervene and advocate on behalf of the Legislature.

Enacted by Chapter 214, 2024 General Session

Advanced Transmission Technologies

54-17-1101 - Advanced transmission technologies.

(1) As used in this section: “Advanced transmission technology” means a technology that increases the capacity, efficiency, or reliability of electric transmission infrastructure.”Advanced transmission technology” includes:technology that dynamically adjusts the rated capacity of transmission lines based on real-time conditions;advanced power flow controls used to actively control the flow of electricity across transmission lines to optimize usage and relieve congestion;software and hardware used to identify optimal transmission grid configurations and enable routing power flows around congestion points;advanced transmission line conductors that increase the power transfer capacity of transmission lines; andenergy storage technologies that facilitate energy storage during times of excess generation and discharge of stored energy during times of high demand to support transmission system operation.

(2) In an integrated resource plan filing, a general rate case, or other proceeding in which a large-scale electric utility proposes additions or expansions to the transmission system, the large-scale electric utility shall:analyze:the cost effectiveness and timetable for deployment of advanced transmission technologies as an alternative strategy to meet electric system needs; andwhether the technologies would:increase transmission capacity;increase transmission efficiency;reduce transmission system congestion;reduce curtailment of energy generation resources;increase reliability;reduce the risk of igniting wildfire;increase resiliency; andincrease capacity to connect new energy resources; andinclude the analysis described in Subsection (2)(a) in the filing to the commission.

(3) The commission shall encourage the large-scale electric utility to include deployment of advanced transmission technologies in an integrated resource plan.A large-scale electric utility shall include a summary of its existing and planned advanced transmission technologies in each integrated resource plan filed with the commission.

(4) If the commission determines, based on the analysis provided by the large-scale electric utility under Subsection (2)(a), that the deployment of advanced transmission technologies is cost effective, the commission shall approve the large-scale utility’s recovery of the prudently incurred costs of the advanced transmission technologies.

Enacted by Chapter 224, 2025 General Session