01-31 16:24 1st Sub. (Green) S.B. 132
Scott D. Sandall proposes the following substitute bill:
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Electric Utility Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Scott D. Sandall
House Sponsor: Colin W. Jack
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LONG TITLE
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General Description:
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This bill creates requirements for providing electrical service to large-scale electrical loads.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ establishes requirements for submitting and processing large-scale electrical service
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requests;
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▸ requires the Public Service Commission to review large load contracts;
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▸ creates requirements for electrical corporations serving large loads;
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▸ establishes registration and operating requirements for large-scale generation providers;
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▸ requires separate accounting for large load service costs;
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▸ prohibits cost shifting to other electrical customers; and
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▸ requires financial security and insurance for large-scale service.
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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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ENACTS:
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54-26-101, Utah Code Annotated 1953
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54-26-102, Utah Code Annotated 1953
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54-26-201, Utah Code Annotated 1953
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54-26-202, Utah Code Annotated 1953
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54-26-301, Utah Code Annotated 1953
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54-26-302, Utah Code Annotated 1953
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54-26-401, Utah Code Annotated 1953
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54-26-402, Utah Code Annotated 1953
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54-26-501, Utah Code Annotated 1953
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54-26-502, Utah Code Annotated 1953
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54-26-503, Utah Code Annotated 1953
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54-26-601, Utah Code Annotated 1953
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54-26-602, 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 54-26-101 is enacted to read:
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54-26-101 . Definitions.
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As used in this chapter:
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(1) "Feasibility study" means an engineering analysis that:
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(a) evaluates the impact of a large-scale service request on a qualified electric utility's
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systems;
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(b) identifies any necessary:
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(i) system modifications;
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(ii) system upgrades; or
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(iii) transmission service requests;
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(c) provides cost estimates for any required improvements; and
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(d) establishes an estimated timeline for implementing any necessary system changes.
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(2)(a) "Intermittent" means available for use on a variable basis that is dependent on
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elements outside of the control of the operator.
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(b) "Intermittent" does not include resources that are made reliable and dispatchable.
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(3) "Large load contract" means a large load construction contract or a large load service
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contract.
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(4) "Large load construction contract" means a contract for the construction of large load
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facilities between:
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(a) a qualified electric utility or a large-scale generation provider; and
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(b) a large load customer.
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(5) "Large load customer" means a customer or potential customer that requests electric
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service under a large-scale service request.
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(6) "Large load facilities" means facilities and resources reasonably necessary to provide
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safe and reliable electric service for a large-scale service request, including facilities or
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upgrades necessary to facilitate a transmission request from a large-scale generation
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provider for a large-scale service request.
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(7) "Large load incremental costs" means all costs reasonably necessary for the design,
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engineering, procurement, construction, and completion of:
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(a) large load facilities; and
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(b) any activities required to provide electric service under a large-scale service request.
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(8) "Large load service contract" means a contract for the provision of electric service for a
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large-scale service request between:
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(a) a qualified utility or a large-scale generation provider; and
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(b) a large load customer.
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(9) "Large-scale generation provider" means an entity that:
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(a) is not a qualified electric utility;
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(b) is registered with the commission in accordance with Section 54-26-501;
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(c) owns and operates one or more qualifying generation resources; and
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(d) is capable of generating electricity sufficient to fulfill a large-scale service request
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using exclusively qualifying generation resources.
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(10) "Large-scale service request" means a request from a large load customer who:
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(a) intends to contract for new electric service with a total capacity of 50 megawatts or
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greater, which may be implemented in phases; or
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(b) intends to contract to increase the customer's total contracted capacity by 50
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megawatts or greater, which may be implemented in phases.
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(11) "Qualified electric utility" means a large-scale electric utility.
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(12) "Qualifying generation resource" means an electric generating facility that:
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(a) is capable of continuous operation at a minimum of 85% of rated capacity for not
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less than 325 days per calendar year;
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(b) maintains at the facility's own cost:
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(i) spinning reserves of at least 15% of the facility's capacity; and
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(ii) the total planning reserve margin required by the Western Electricity
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Coordinating Council;
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(c) is not dependent upon intermittent energy sources; and
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(d) meets any other reliability standards established by the commission.
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(13) "Spinning reserve" means spinning reserve as defined by the Western Electricity
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Coordinating Council.
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(14) "Transmission provider" means a qualified electric utility that:
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(a) owns, operates, or controls facilities used for the transmission of electric energy at
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voltages above 100 kilovolts; and
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(b) provides transmission service under a Federal Energy Regulatory
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Commission-approved open access transmission tariff.
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Section 2. Section 54-26-102 is enacted to read:
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54-26-102 . Application.
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The procedures and standards set forth in this chapter shall govern:
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(1) large-scale service requests;
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(2) services sought, provided, or received under a large-scale service request; and
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(3) the review and approval of large load contracts.
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Section 3. Section 54-26-201 is enacted to read:
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54-26-201 . Large-scale service request requirements.
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(1) A customer seeking service under this chapter shall submit a large-scale service request
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to the qualified electric utility serving the proposed location.
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(2) A large-scale service request shall include:
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(a) the customer's identifying information;
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(b) the proposed location for electric service;
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(c) the requested amount of electric capacity in megawatts;
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(d) a proposed service commencement date that is at least three years, unless otherwise
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specified by mutual agreement between the customer and the qualified electric utility,
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after the date on which the customer delivers the large-scale service request to the
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qualified electric utility;
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(e) load profile information, including:
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(i) anticipated annual energy usage;
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(ii) expected hours of operation;
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(iii) seasonal variations;
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(iv) peak demand requirements; and
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(v) any special service requirements;
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(f) information sufficient to demonstrate the financial capability to complete the project;
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and
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(g) confirmation that the customer will not use the electric service for resale.
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(3) After submitting a large-scale service request and before entering into a large load
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contract, a customer shall:
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(a) ensure that all information submitted under this section remains current; and
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(b) promptly notify the qualified electric utility of any material changes to information
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submitted under this section.
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Section 4. Section 54-26-202 is enacted to read:
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54-26-202 . Service request procedures -- Notice.
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(1) A qualified electric utility that receives a large-scale service request shall:
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(a) acknowledge receipt of the request;
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(b) notify the customer of any missing information within 15 business days after
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beginning to process the request under Subsection (2); and
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(c) complete a feasibility study as soon as reasonably practicable after beginning the
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study under Subsection (2), but in no case more than 6 months after beginning the
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study.
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(2) A qualified electric utility shall begin processing large-scale service requests, including
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conducting feasibility studies, only:
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(a) on January 1, for requests received after June 30 and on or before December 31 of
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the previous year; or
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(b) on July 1, for requests received after December 31 of the previous year and on or
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before June 30 of the same year.
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(3) During the feasibility study process, the qualified electric utility shall:
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(a) provide the customer with regular updates; and
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(b) notify the customer when the study is completed.
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(4) Within 15 business days after completing a feasibility study, the qualified electric utility
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shall provide a written response that includes:
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(a) whether the qualified electric utility can provide the requested service within the time
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frame required by the customer;
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(b) the estimated large load incremental costs that will be allocated to the customer,
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based on the information provided by the customer;
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(c) any required:
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(i) system upgrades;
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(ii) improvements; or
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(iii) transmission service requests;
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(d) the estimated timeline for commencing electric service; and
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(e) the proposed terms and conditions of service.
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(5) A qualified electric utility:
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(a) may charge reasonable fees to recover costs of conducting:
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(i) a feasibility study; and
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(ii) any subsequent or related studies; and
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(b) is not required to begin work on a study until the customer:
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(i) pays applicable fees; and
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(ii) provides the information required to the qualified electric utility to conduct a
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feasibility study.
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Section 5. Section 54-26-301 is enacted to read:
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54-26-301 . Large load contract requirements.
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(1) Electric service for a large-scale service request shall be provided only under a large
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load contract.
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(2) A large load contract shall:
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(a) ensure that all large load incremental costs are allocated to and paid by:
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(i) the large load customer; or
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(ii) in the case of service by a large-scale generation provider, the large-scale
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generation provider, by the large load customer;
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(b) comply with all system requirements;
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(c) require the large load customer to maintain financial security sufficient to cover the
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large load customer's obligations;
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(d) specify:
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(i) points of interconnection; and
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(ii) power delivery points;
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(e) specify the term of service; and
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(f) provide curtailment provisions if the large load customer's demand exceeds:
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(i) for service provided by a qualified electric utility, the amount of contractually
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supported demand; or
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(ii) for service provided by a large-scale generation provider, the real-time output, net
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of transmission losses.
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(3) A qualified electric utility or a large-scale generation provider shall:
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(a) commence design and construction of large load facilities only after:
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(i) executing a large load construction contract; and
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(ii) obtaining commission approval in accordance with Section 54-26-302;
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(b) commence providing electric service for a large-scale service request only after:
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(i) executing a large load service contract; and
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(ii) obtaining commission approval in accordance with Section 54-26-302; and
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(c) negotiate the terms of a large load contract with a large load customer on a
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case-by-case basis.
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(4) Within 15 business days after executing a large load contract, a person executing the
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contract shall submit an application for approval to the commission for review under
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Section 54-26-302.
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Section 6. Section 54-26-302 is enacted to read:
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54-26-302 . Commission review -- Approval of contracts.
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(1) A large-scale electric utility or a large-scale generation provider shall file an application
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with the commission for approval of a large load contract that includes:
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(a) a copy of the large load contract for which the applicant seeks review and approval;
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and
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(b) evidence sufficient to demonstrate compliance with Subsection (2)(b).
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(2) The commission shall approve a large load contract submitted as under Subsection (1) if
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the commission finds by a preponderance of the evidence that:
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(a) the contract complies with the requirements of this chapter; and
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(b) service to the large load customer under the contract will not adversely impact the
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ratepayers served by the qualified utility or by any cooperative, municipal or other
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utility;
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(3) Commission review of a large load contract:
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(a) is limited to the requirements described in Subsection (2); and
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(b) does not include review of other contract terms.
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(4) The commission shall approve or disapprove an application submitted under this section
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within 60 days after the day on which a person files the application.
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(5) The commission may establish rules to expedite the review of applications for approval
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of a large load contract under this chapter.
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Section 7. Section 54-26-401 is enacted to read:
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54-26-401 . Electric corporation service obligations.
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(1) Subject to Subsection (2), a qualified electric utility has the sole right to provide electric
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service to a large load customer in the qualified utility's service territory.
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(2) A qualified electric utility:
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(a) is not required to provide electric service in response to a large-scale service request
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if:
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(i) the large load customer has not complied with the requirements of this chapter;
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(ii) the qualified electric utility cannot provide the requested service within the
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timeframe required by the large-scale service request;
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(iii) the large load customer and the qualified electric utility cannot agree upon terms
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for a large load contract;
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(iv) the large load customer fails or refuses to comply with the requirements of a
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large load contract; or
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(v) the large load customer is receiving service from a large-scale generation provider
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in accordance with Section 54-26-402; and
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(b) that does not agree to terms with a large load customer for a large load contract:
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(i) has no duty to serve the large load customer;
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(ii) is not required to provide backup services to the large load customer; and
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(iii) is not required to provide any services to a large-scale generation provider.
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Section 8. Section 54-26-402 is enacted to read:
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54-26-402 . Alternative service requirements.
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(1) A large load customer may enter into a large load contract with a large-scale generation
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provider if:
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(a) 90 days have elapsed after the day on which the large load customer receives the
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feasibility study described in Section 54-26-202, unless the qualified electric utility
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and the large load customer mutually agree to a longer period of time;
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(b) the qualified electric utility and large load customer cannot agree to a large load
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contract; and
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(c) the qualified electric utility has not exercised its right to provide service under this
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chapter.
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(2) After submitting a large-scale service request, a large load customer:
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(a) may negotiate a contract with a large-scale generation provider; and
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(b) may not execute a contract with a large-scale generation provider unless the
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conditions described in Subsection (1) are met.
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Section 9. Section 54-26-501 is enacted to read:
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54-26-501 . Large-scale generation provider requirements.
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(1) A large-scale generation provider shall:
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(a) register with the commission before providing service;
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(b) maintain technical and financial qualifications established by the commission;
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(c) provide service only through qualifying generation resources;
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(d) maintain spinning reserve capacity of at least 15% above contracted power delivery
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obligations;
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(e) comply with all applicable reliability standards required by the commission; and
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(f) post security deemed sufficient by the commission to cover potential damages from
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service interruptions.
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(2) A large-scale generation provider shall submit to the commission:
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(a) proof of compliance with Subsection (1);
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(b) proof of financial capability to provide service as required by the large-scale service
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request;
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(c) the provider's operational history and experience;
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(d) an explanation of the qualifying generation resources the provider intends to use;
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(e) the provider's maintenance schedules for the qualifying generation resource; and
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(f) the provider's emergency response procedures.
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Section 10. Section 54-26-502 is enacted to read:
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54-26-502 . Operating requirements -- Registration suspension.
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(1) A large-scale generation provider that fails to satisfy the requirements of this chapter:
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(a) may not initiate new service to a large load customer;
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(b) shall remedy any deficiencies within 90 days after the day on which the deficiency
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arises; and
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(c) may have its registration suspended or revoked by the commission.
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(2) If the commission suspends or revokes a large-scale generation provider's registration:
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(a) the provider may not provide service to a large load customer; and
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(b) the large load customer may not receive electric service from a qualified electric
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utility until the customer agrees upon the terms of a large load contract with the
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qualified electric utility.
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Section 11. Section 54-26-503 is enacted to read:
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54-26-503 . Transmission requirements.
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(1) If a large-scale service request requires transmission service:
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(a) the large-scale generation provider shall submit a transmission service request to the
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transmission provider;
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(b) the large-scale generation provider or large load customer shall:
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(i) pay for:
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(A) any interconnection or transmission-related studies;
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(B) any identified interconnection upgrades, transmission upgrades, network
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upgrades, or system upgrades; and
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(C) the transmission service rates in the transmission provider's open access
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transmission tariff; and
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(ii) pay and provide for:
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(A) ancillary services;
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(B) balancing services; and
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(C) backup services.
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(2) A customer of a qualified electric utility may not be required to pay for any cost
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described in Subsection (1).
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Section 12. Section 54-26-601 is enacted to read:
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54-26-601 . Large load customer requirements -- Cost allocation.
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A large load customer shall pay all reasonably allocated large load incremental costs,
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including the costs of:
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(1) generation resources;
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(2) transmission system improvements, including network upgrades;
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(3) distribution system upgrades;
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(4) interconnection facilities;
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(5) electrical and transmission service; and
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(6) other necessary infrastructure.
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Section 13. Section 54-26-602 is enacted to read:
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54-26-602 . Accounting requirements -- Service standards.
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(1) A large-scale generation provider shall:
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(a) maintain separate accounting records for all investments, revenues, and expenses
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associated with large-scale service requests using generally accepted accounting
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principles;
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(b) demonstrate that customers other than a large load customer are not paying large
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load incremental costs;
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(c) provide all:
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(i) energy;
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(ii) capacity;
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(iii) reserves;
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(iv) balancing services; and
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(v) ancillary services necessary to ensure reliable service to the large load customer
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without reliance on a qualified electric utility;
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(d) meet all applicable North American Electric Reliability Corporation standards; and
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(e) maintain commercial liability insurance for the benefit of the qualified electric utility
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and the qualified electric utility's customers of at least $100,000,000 per occurrence.
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(2) A qualified electric utility shall:
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(a) maintain separate accounting records for all investments, revenues, and expenses
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associated with large-scale service requests using generally accepted accounting
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principles; and
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(b) provide information sufficient to demonstrate that customers other than a large load
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customer are not paying large load incremental costs.
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(3) All revenues and large load incremental costs associated with a large-scale service
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request shall be excluded from any rate determinations by the commission.
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Section 14. Effective Date.
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This bill takes effect on May 7, 2025.
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