01-14 13:32 H.B. 201 1 Energy Resource Amendments 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Colin W. Jack 2 3 LONG TITLE 4 General Description: 5 This bill modifies provisions related to the evaluation of integrated resource plans by the 6 Public Service Commission. 7 Highlighted Provisions: 8 This bill: 9 ▸ requires full cost attribution for supplemental resources in integrated resource plans; 10 ▸ establishes requirements for calculating generation capacity; 11 ▸ prohibits certain involuntary demand management programs; and 12 ▸ makes technical changes. 13 Money Appropriated in this Bill: 14 None 15 Other Special Clauses: 16 None 17 Utah Code Sections Affected: 18 AMENDS: 19 54-17-301, as last amended by Laws of Utah 2008, Chapter 382 20 ENACTS: 21 54-17-305, Utah Code Annotated 1953 22 23 Be it enacted by the Legislature of the state of Utah: 24 Section 1. Section 54-17-301 is amended to read: 25 54-17-301 . Review of integrated resource plan action plans. 26 (1) As used in this part: 27 (a) "Demand management program" means any rate structure, incentive, technology, or 28 other mechanism designed to modify the timing or amount of customer electricity 29 consumption. 30 (b) "Supplemental resource" means a generation, transmission, or other utility asset 31 required to maintain reliable power delivery when a variable energy resource is not H.B. 201 01-14 13:32 32 operating at full capacity. 33 (c) "Variable energy resource" means an electric generation facility that cannot 34 consistently deliver power at the facility's rated capacity due to the nature of the 35 facility's fuel source. 36 (d) "Voluntary conservation program" means a program that: 37 (i) provides customers financial incentives or cost-saving opportunities to reduce 38 energy consumption; and 39 (ii) maintains the customer's control over the customer's energy usage decisions. 40 (2) An affected electrical utility shall file with the commission any action plan developed as 41 part of the affected electrical utility's integrated resource plan to enable the commission 42 to review and provide guidance to the affected electrical utility. 43 (3) In reviewing an action plan, the commission shall require: 44 (a) all costs of supplemental resources to be attributed to the variable energy resources 45 that necessitate the use of supplemental resources; and 46 (b) generation capacity calculations to: 47 (i) exclude energy conservation measures and demand reduction programs; and 48 (ii) reflect actual delivery capability for energy storage systems, accounting for: 49 (A) charging requirements; 50 (B) duration limitations; and 51 (C) seasonal performance variations in capacity and duration. 52 [(2)] (4)(a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking 53 Act, the commission shall make rules providing a process for its review of an action 54 plan. 55 (b) The rules required under Subsection [(2)(a)] (4)(a) shall provide sufficient flexibility 56 to permit changes in an action plan between the periodic filings of the affected 57 electrical utility's integrated resource plan. 58 Section 2. Section 54-17-305 is enacted to read: 59 54-17-305 . Demand management programs. 60 (1) An affected electrical utility may not: 61 (a) implement a demand management program without the consumer's voluntary 62 participation and written consent; or 63 (b) count anticipated demand reductions from any demand management program as 64 equivalent to generation capacity in an integrated resource plan. 65 (2) This section does not prohibit an affected electrical utility from: - 2 - 01-14 13:32 H.B. 201 66 (a) offering voluntary conservation programs that provide customers direct financial 67 benefits; or 68 (b) implementing emergency procedures necessary to maintain system reliability. 69 Section 3. Effective Date. 70 This bill takes effect on May 7, 2025. - 3 -