2 | 3 | | 1 |
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3 | 4 | | Energy Resource Amendments |
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4 | 5 | | 2025 GENERAL SESSION |
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5 | 6 | | STATE OF UTAH |
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6 | 7 | | Chief Sponsor: Colin W. Jack |
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7 | 8 | | Senate Sponsor: Ronald M. Winterton |
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8 | 9 | | 2 |
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9 | 10 | | |
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10 | 11 | | 3 |
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11 | 12 | | LONG TITLE |
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12 | 13 | | 4 |
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13 | 14 | | General Description: |
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14 | 15 | | 5 |
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15 | 16 | | This bill modifies provisions related to the evaluation of integrated resource plans by the |
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16 | 17 | | 6 |
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17 | 18 | | Public Service Commission. |
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18 | 19 | | 7 |
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19 | 20 | | Highlighted Provisions: |
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20 | 21 | | 8 |
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21 | 22 | | This bill: |
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22 | 23 | | 9 |
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23 | 24 | | ▸ defines terms; |
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24 | 25 | | 10 |
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25 | 26 | | ▸ requires full cost attribution for supplemental resources in integrated resource plans; |
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26 | 27 | | 11 |
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27 | 28 | | ▸ establishes requirements for calculating generation capacity; |
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28 | 29 | | 12 |
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29 | 30 | | ▸ requires an affected electrical utility to include certain designations in the utility's action |
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30 | 31 | | 13 |
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31 | 32 | | plan; |
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32 | 33 | | 14 |
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33 | 34 | | ▸ prohibits certain involuntary demand management programs; and |
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34 | 35 | | 15 |
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35 | 36 | | ▸ makes technical changes. |
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36 | 37 | | 16 |
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37 | 38 | | Money Appropriated in this Bill: |
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38 | 39 | | 17 |
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39 | 40 | | None |
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40 | 41 | | 18 |
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41 | 42 | | Other Special Clauses: |
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42 | 43 | | 19 |
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43 | 44 | | None |
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44 | 45 | | 20 |
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45 | 46 | | Utah Code Sections Affected: |
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46 | 47 | | 21 |
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47 | 48 | | AMENDS: |
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48 | 49 | | 22 |
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49 | 50 | | 54-17-301, as last amended by Laws of Utah 2008, Chapter 382 |
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50 | 51 | | 23 |
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51 | 52 | | ENACTS: |
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52 | 53 | | 24 |
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53 | 54 | | 54-17-305, Utah Code Annotated 1953 |
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54 | 55 | | 25 |
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55 | 56 | | |
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56 | 57 | | 26 |
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57 | 58 | | Be it enacted by the Legislature of the state of Utah: |
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58 | 59 | | 27 |
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62 | 64 | | 29 |
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63 | 65 | | (1) As used in this part: |
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64 | 66 | | 30 |
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65 | 67 | | (a) "Baseload capacity" means the amount of baseload power that electricity generation |
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66 | 68 | | 31 |
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67 | 69 | | resources can reliably produce through continuous or nearly continuous operation. |
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68 | 70 | | 32 |
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69 | 71 | | (b) "Baseload electricity resource" means an electricity generation resource that operates |
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70 | 72 | | 33 |
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71 | 73 | | continuously or nearly continuously to maintain a stable power supply at the |
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72 | 74 | | 34 |
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73 | 75 | | electricity generation resource's rated capacity. |
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74 | 76 | | 35 |
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75 | 77 | | (c) "Baseload power" means the minimum amount of electric power continuously |
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76 | 78 | | 36 |
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77 | 79 | | needed to meet basic system demand. |
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78 | 80 | | 37 |
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79 | 81 | | (d) "Demand management program" means any incentive or technology designed to |
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80 | 82 | | 38 |
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81 | 83 | | modify the timing or amount of customer electricity consumption. |
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82 | 84 | | 39 |
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83 | 85 | | (e) "Expected deliverable energy" means the amount of electrical energy that a resource |
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84 | 86 | | 40 |
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85 | 87 | | can reliably deliver to the grid based on historical performance data and operational |
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86 | 88 | | 41 |
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87 | 89 | | constraints. |
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88 | 90 | | 42 |
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89 | 91 | | (f) "Firming capacity" means the amount of electric power that electricity generation |
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90 | 92 | | 43 |
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91 | 93 | | resources can produce, at the system operator's discretion, to reliably meet peak load |
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92 | 94 | | 44 |
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93 | 95 | | and balance fluctuations in electrical demand or supply. |
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94 | 96 | | 45 |
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95 | 97 | | (g) "Plant factor" means the same as that term is defined in Section 79-6-303. |
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96 | 98 | | 46 |
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97 | 99 | | (h) "Resource adequacy program" means a program that establishes capacity |
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98 | 100 | | 47 |
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99 | 101 | | contribution values for generation resources based on historical performance data. |
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100 | 102 | | 48 |
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101 | 103 | | (i)(i) "Supplemental resource" means a utility asset or operational control required to |
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102 | 104 | | 49 |
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103 | 105 | | maintain reliable power delivery when a variable energy resource is not operating |
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104 | 106 | | 50 |
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105 | 107 | | at full capacity. |
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106 | 108 | | 51 |
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107 | 109 | | (ii) "Supplemental resource" includes: |
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108 | 110 | | 52 |
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109 | 111 | | (A) generation resources; |
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110 | 112 | | 53 |
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111 | 113 | | (B) transmission resources; |
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112 | 114 | | 54 |
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113 | 115 | | (C) energy balancing measures; and |
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114 | 116 | | 55 |
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115 | 117 | | (D) market purchases. |
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116 | 118 | | 56 |
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117 | 119 | | (j) "Variable capacity" means the amount of electric power that electricity generation |
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118 | 120 | | 57 |
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119 | 121 | | resources can produce when operating on a variable basis due to elements outside of |
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120 | 122 | | 58 |
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121 | 123 | | operator control. |
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122 | 124 | | 59 |
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123 | 125 | | (k) "Variable energy resource" means an electricity generation facility that cannot |
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124 | 126 | | 60 |
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125 | 127 | | consistently deliver power at the facility's rated capacity due to elements outside of |
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126 | 128 | | 61 |
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127 | 129 | | the operator's control. |
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131 | 133 | | 63 |
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132 | 134 | | (i) provides customers financial incentives or cost-saving opportunities to reduce |
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133 | 135 | | 64 |
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134 | 136 | | energy consumption; |
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135 | 137 | | 65 |
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136 | 138 | | (ii) maintains the customer's control over the customer's energy usage decisions; and |
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137 | 139 | | 66 |
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138 | 140 | | (iii) allows customers to opt out of any offered programs without restrictive penalties |
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139 | 141 | | 67 |
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140 | 142 | | or length commitments. |
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141 | 143 | | 68 |
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142 | 144 | | (2) An affected electrical utility shall file with the commission any action plan developed as |
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143 | 145 | | 69 |
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144 | 146 | | part of the affected electrical utility's integrated resource plan to enable the commission |
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145 | 147 | | 70 |
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146 | 148 | | to review and provide guidance to the affected electrical utility. |
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147 | 149 | | 71 |
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148 | 150 | | (3) An affected electrical utility's action plan shall: |
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149 | 151 | | 72 |
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150 | 152 | | (a) report baseload energy resources as baseload capacity, specifying the expected |
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151 | 153 | | 73 |
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152 | 154 | | deliverable energy; |
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153 | 155 | | 74 |
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154 | 156 | | (b) report variable energy resources as variable capacity, specifying the expected |
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155 | 157 | | 75 |
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156 | 158 | | deliverable energy; |
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157 | 159 | | 76 |
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158 | 160 | | (c) report energy storage systems, including batteries and other storage devices, as |
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159 | 161 | | 77 |
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160 | 162 | | firming capacity; |
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161 | 163 | | 78 |
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162 | 164 | | (d) report variable energy resources paired with energy storage as firming capacity, |
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163 | 165 | | 79 |
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164 | 166 | | subject to the energy storage system requirements in Subsection (3)(g)(ii); |
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165 | 167 | | 80 |
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166 | 168 | | (e) separately report any expected curtailment of baseload and variable energy resources |
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167 | 169 | | 81 |
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168 | 170 | | resulting from regulations, costs, or demand constraints; and |
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169 | 171 | | 82 |
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170 | 172 | | (f) attribute relevant costs of supplemental resources to the variable energy resources |
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171 | 173 | | 83 |
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172 | 174 | | that necessitate the use of supplemental resources; |
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173 | 175 | | 84 |
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174 | 176 | | (g) for generation capacity calculations: |
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175 | 177 | | 85 |
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176 | 178 | | (i) exclude energy conservation measures and demand reduction programs; |
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177 | 179 | | 86 |
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178 | 180 | | (ii) reflect actual delivery capability for energy storage systems, accounting for: |
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179 | 181 | | 87 |
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180 | 182 | | (A) charging requirements; |
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181 | 183 | | 88 |
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182 | 184 | | (B) duration limitations; and |
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183 | 185 | | 89 |
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184 | 186 | | (C) seasonal performance variations in capacity and duration; and |
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185 | 187 | | 90 |
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186 | 188 | | (iii) for variable energy resources, use: |
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187 | 189 | | 91 |
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188 | 190 | | (A) capacity assumptions for long-term planning; and |
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189 | 191 | | 92 |
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190 | 192 | | (B) capacity and plant factor values established by a resource adequacy program |
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191 | 193 | | 93 |
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192 | 194 | | in which the affected electrical utility's resource adequacy participates. |
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193 | 195 | | 94 |
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194 | 196 | | [(2)] (4)(a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking |
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195 | 197 | | 95 |
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196 | 198 | | Act, the commission shall make rules providing a process for its review of an action |
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200 | 202 | | 97 |
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201 | 203 | | (b) The rules required under Subsection [(2)(a) ] (4)(a) shall provide sufficient flexibility |
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202 | 204 | | 98 |
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203 | 205 | | to permit changes in an action plan between the periodic filings of the affected |
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204 | 206 | | 99 |
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205 | 207 | | electrical utility's integrated resource plan. |
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206 | 208 | | 100 |
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207 | 209 | | Section 2. Section 54-17-305 is enacted to read: |
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208 | 210 | | 101 |
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209 | 211 | | 54-17-305 . Demand management programs. |
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210 | 212 | | 102 |
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211 | 213 | | (1) An affected electrical utility may not: |
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212 | 214 | | 103 |
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213 | 215 | | (a) implement a demand management program unless: |
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214 | 216 | | 104 |
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215 | 217 | | (i) the consumer voluntarily participates; and |
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216 | 218 | | 105 |
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217 | 219 | | (ii) the consumer provides written or electronic consent; or |
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218 | 220 | | 106 |
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219 | 221 | | (b) count anticipated demand reductions from any demand management program as |
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220 | 222 | | 107 |
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221 | 223 | | equivalent to generation capacity in an integrated resource plan. |
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222 | 224 | | 108 |
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223 | 225 | | (2) Notwithstanding Subsection (1), an integrated resource plan may account for load |
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224 | 226 | | 109 |
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225 | 227 | | decrease from a demand management program if: |
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226 | 228 | | 110 |
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227 | 229 | | (a) the affected electrical utility demonstrates the load decrease is: |
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228 | 230 | | 111 |
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229 | 231 | | (i) within the utility's sole control; or |
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230 | 232 | | 112 |
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231 | 233 | | (ii) otherwise reliable; and |
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232 | 234 | | 113 |
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233 | 235 | | (b) the load decrease will not result in a supply shortage during the period for which the |
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234 | 236 | | 114 |
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235 | 237 | | decrease is anticipated. |
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236 | 238 | | 115 |
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237 | 239 | | (3) This section does not prohibit an affected electrical utility from: |
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238 | 240 | | 116 |
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239 | 241 | | (a) offering voluntary conservation programs that provide customers direct financial |
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240 | 242 | | 117 |
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241 | 243 | | benefits; or |
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242 | 244 | | 118 |
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243 | 245 | | (b) implementing emergency procedures necessary to maintain system reliability. |
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244 | 246 | | 119 |
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245 | 247 | | Section 3. Effective Date. |
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246 | 248 | | 120 |
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247 | 249 | | This bill takes effect on May 7, 2025. |
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248 | 250 | | - 4 - |
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