02-18 09:39 3rd Sub. (Cherry) H.B. 201
Ronald M. Winterton proposes the following substitute bill:
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Energy Resource Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Colin W. Jack
Senate Sponsor: Ronald M. Winterton
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LONG TITLE
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General Description:
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This bill modifies provisions related to the evaluation of integrated resource plans by the
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Public Service Commission.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ requires full cost attribution for supplemental resources in integrated resource plans;
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▸ establishes requirements for calculating generation capacity;
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▸ requires an affected electrical utility to include certain designations in the utility's action
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plan;
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▸ prohibits certain involuntary demand management programs; and
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▸ makes technical changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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54-17-301, as last amended by Laws of Utah 2008, Chapter 382
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ENACTS:
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54-17-305, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 54-17-301 is amended to read:
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54-17-301 . Review of integrated resource plan action plans.
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(1) As used in this part:
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(a) "Baseload capacity" means the amount of baseload power that electricity generation
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resources can reliably produce through continuous or nearly continuous operation.
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(b) "Baseload electricity resource" means an electricity generation resource that operates
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continuously or nearly continuously to maintain a stable power supply at the
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electricity generation resource's rated capacity.
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(c) "Baseload power" means the minimum amount of electric power continuously
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needed to meet basic system demand.
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(d) "Demand management program" means any incentive or technology designed to
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modify the timing or amount of customer electricity consumption.
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(e) "Expected deliverable energy" means the amount of electrical energy that a resource
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can reliably deliver to the grid based on historical performance data and operational
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constraints.
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(f) "Firming capacity" means the amount of electric power that electricity generation
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resources can produce, at the system operator's discretion, to reliably meet peak load
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and balance fluctuations in electrical demand or supply.
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(g) "Plant factor" means the same as that term is defined in Section 79-6-303.
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(h) "Resource adequacy program" means a program that establishes capacity
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contribution values for generation resources based on historical performance data.
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(i)(i) "Supplemental resource" means a utility asset or operational control required to
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maintain reliable power delivery when a variable energy resource is not operating
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at full capacity.
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(ii) "Supplemental resource" includes:
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(A) generation resources;
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(B) transmission resources;
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(C) energy balancing measures; and
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(D) market purchases.
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(j) "Variable capacity" means the amount of electric power that electricity generation
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resources can produce when operating on a variable basis due to elements outside of
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operator control.
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(k) "Variable energy resource" means an electricity generation facility that cannot
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consistently deliver power at the facility's rated capacity due to elements outside of
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the operator's control.
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(l) "Voluntary conservation program" means a program that:
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(i) provides customers financial incentives or cost-saving opportunities to reduce
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energy consumption;
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(ii) maintains the customer's control over the customer's energy usage decisions; and
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(iii) allows customers to opt out of any offered programs without restrictive penalties
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or length commitments.
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(2) An affected electrical utility shall file with the commission any action plan developed as
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part of the affected electrical utility's integrated resource plan to enable the commission
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to review and provide guidance to the affected electrical utility.
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(3) An affected electrical utility's action plan shall:
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(a) report baseload energy resources as baseload capacity, specifying the expected
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deliverable energy;
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(b) report variable energy resources as variable capacity, specifying the expected
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deliverable energy;
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(c) report energy storage systems, including batteries and other storage devices, as
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firming capacity;
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(d) report variable energy resources paired with energy storage as firming capacity,
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subject to the energy storage system requirements in Subsection (3)(g)(ii);
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(e) separately report any expected curtailment of baseload and variable energy resources
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resulting from regulations, costs, or demand constraints; and
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(f) attribute relevant costs of supplemental resources to the variable energy resources
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that necessitate the use of supplemental resources;
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(g) for generation capacity calculations:
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(i) exclude energy conservation measures and demand reduction programs;
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(ii) reflect actual delivery capability for energy storage systems, accounting for:
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(A) charging requirements;
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(B) duration limitations; and
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(C) seasonal performance variations in capacity and duration; and
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(iii) for variable energy resources, use:
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(A) capacity assumptions for long-term planning; and
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(B) capacity and plant factor values established by a resource adequacy program
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in which the affected electrical utility's resource adequacy participates.
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[(2)] (4)(a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
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Act, the commission shall make rules providing a process for its review of an action
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plan.
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(b) The rules required under Subsection [(2)(a) ] (4)(a) shall provide sufficient flexibility
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to permit changes in an action plan between the periodic filings of the affected
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electrical utility's integrated resource plan.
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Section 2. Section 54-17-305 is enacted to read:
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54-17-305 . Demand management programs.
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(1) An affected electrical utility may not:
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(a) implement a demand management program unless:
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(i) the consumer voluntarily participates; and
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(ii) the consumer provides written or electronic consent; or
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(b) count anticipated demand reductions from any demand management program as
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equivalent to generation capacity in an integrated resource plan.
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(2) Notwithstanding Subsection (1), an integrated resource plan may account for load
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decrease from a demand management program if:
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(a) the affected electrical utility demonstrates the load decrease is:
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(i) within the utility's sole control; or
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(ii) otherwise reliable; and
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(b) the load decrease will not result in a supply shortage during the period for which the
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decrease is anticipated.
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(3) This section does not prohibit an affected electrical utility from:
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(a) offering voluntary conservation programs that provide customers direct financial
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benefits; or
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(b) implementing emergency procedures necessary to maintain system reliability.
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Section 3. Effective Date.
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This bill takes effect on May 7, 2025.
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