03-01 20:28 2nd Sub. (Salmon) 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 alternative processes for providing electric service to customers with large
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electrical loads;
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▸ exempts service provided under this chapter from certain rate regulation requirements
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while maintaining safety and reliability standards;
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▸ creates procedures for submitting, evaluating, and contracting for large-scale electrical
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service requests;
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▸ establishes requirements for qualified electric utilities and large-scale generation
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providers serving large load customers;
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▸ creates accounting and operational transparency requirements to protect retail customers;
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▸ establishes a framework for closed private generation systems and connected generation
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systems;
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▸ requires the Public Service Commission (commission) to establish a large load flexible
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tariff;
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▸ directs the commission to establish rules for allocating transmission costs between large
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load customers and retail customers; and
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▸ requires the commission to conduct periodic reviews of the program and report to the
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Legislature.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
2nd Sub. S.B. 132 2nd Sub. (Salmon) S.B. 132 03-01 20:28
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None
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Utah Code Sections Affected:
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AMENDS:
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63G-6a-107.6, as last amended by Laws of Utah 2024, Chapters 291, 522
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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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54-26-504, Utah Code Annotated 1953
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54-26-505, 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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54-26-701, Utah Code Annotated 1953
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54-26-801, Utah Code Annotated 1953
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54-26-802, Utah Code Annotated 1953
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54-26-901, 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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CHAPTER 26. LARGE-SCALE ELECTRIC SERVICE REQUIREMENTS
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Part 1. General Provisions
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54-26-101 . Definitions.
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As used in this chapter:
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(1) "Closed private generation system" means electric generating facilities and associated
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transmission infrastructure that:
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(a) is not connected to and operates independently from a transmission provider,
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cooperative utility, municipal utility, or other utility; and
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(b) serves one or more large load customers through direct connection.
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(2) "Connected generation system" means electric generating facilities and associated
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transmission infrastructure that:
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(a) is connected to and operates in conjunction with the transmission system of a
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transmission provider, cooperative utility, municipal utility, or other utility;
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(b) serves one or more large load customers through connection to the transmission
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system of a qualified electric utility, and
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(c) except as provided in a large load contract, operates independent of the generation
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resources of any qualified electric utility, cooperative utility, municipal utility, or
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other utility.
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(3) "Evaluation" means an assessment 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 or upgrades to the qualified electric utility's system to
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provide service as requested in a large-scale service request;
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(ii) generation capacity; 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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(4) "Large load contract" means a large load construction contract or a large load service
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contract.
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(5) "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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(6) "Large load customer" means a current or potential customer in the service territory of a
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qualified electric utility that requests electric service under a large-scale service request.
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(7) "Large load facilities" means facilities and resources reasonably necessary, as
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determined in an evaluation, to provide safe and reliable electric service as requested in
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a large-scale service request, including the reasonably allocated share of facilities or
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upgrades necessary to facilitate a transmission request from a qualified electric utility or
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large-scale generation provider necessary to serve a large-scale service request.
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(8) "Large load flexible tariff" means a tariff:
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(a) pursuant to which a large load customer:
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(i) will receive components of electric services from a large-scale service provider; or
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(ii) will reduce demand at periods specified by a large-scale service provider; and
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(b) under which a large load customer receives components of available electric services
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from a qualified electric utility to the extent:
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(i) the qualified electric utility's resources are reasonably expected to be available and
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sufficient; and
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(ii) as determined by:
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(A) agreement with the qualified electric utility; or
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(B) tariffs approved by the commission.
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(9) "Large load incremental costs" means all costs reasonably necessary for:
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(a) the design, engineering, procurement, construction, and completion of:
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(i) large load facilities; and
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(ii) any activities required to provide electric service under a large-scale service
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request; and
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(b) the long-term operation and maintenance of large load facilities for the duration of
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any applicable service contract.
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(10) "Large load service contract" means a contract for the provision of electric service for
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a large-scale service request 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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(11) "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; and
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(c) owns, operates, or contracts for the output of one or more qualifying generation
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resources intended to be used to supply certain retail electric services to a large load
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customer pursuant to a large load contract.
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(12) "Large-scale service request" means a request submitted to a qualified electric utility
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for:
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(a) new electric service that is expected to reach a cumulative demand of 100 megawatts
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or greater within five years of the requested initial start date; or
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(b) additional electric service that is expected to increase a customer's total service level
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by 100 megawatts or greater within five years of the requested start date for the
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additional service.
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(13) "Qualified electric utility" means a large-scale electric utility.
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(14) "Qualifying generation resources" means one or more electric generating resources
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that, in combination:
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(a) if connected to the transmission system of a qualified electric utility:
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(i) meets or exceeds the resource adequacy standards of the qualified electric utility;
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(ii) includes sufficient resources and capacity to meet all requirements imposed by
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the North American Electric Reliability Corporation and the Western Electricity
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Coordinating Council, and
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(iii) is capable of satisfying the load and electricity requirements of a large load
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customer without drawing on any generation or generation services provided by a
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qualified electric utility, any cooperative utility, municipal utility, or other utility
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except to the extent such services are provided under a large load contract; or
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(b) if not connected to the transmission system of a qualified electric utility:
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(i) is capable of satisfying the load, transmission, and electricity requirements of a
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large load customer without drawing on any generation or services provided by a
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qualified electric utility, any cooperative utility, municipal utility, or other utility;
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and
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(ii) meets any other reliability standards established by the commission.
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(15) "Transmission provider" means an entity that:
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(a) owns, operates, or controls facilities located in the state that are used for the
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transmission of electric energy at voltages above 100 kilovolts; or
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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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(1) The procedures and standards set forth in this chapter shall govern:
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(a) large-scale service requests;
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(b) services sought, provided, or received under a large-scale service request; and
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(c) the review and approval of large load contracts.
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(2) Electric service provided pursuant to a large-scale service request under this chapter is
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exempt from:
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(a) rate regulation under Section 54-3-1;
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(b) the ratemaking provisions of Section 54-3-4;
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(c) the tariff and schedule filing requirements under Section 54-3-2; and
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(d) any other provision related to the regulation of rates, charges, or classifications of
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service.
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Section 3. Section 54-26-201 is enacted to read:
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Part 2. Service Request Process
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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 demand in megawatts;
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(d) a proposed service commencement date;
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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 large
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load customer's project that is the subject of the large-scale service request; 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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(4) A large load customer satisfies the requirements of Subsection (1) of this section if the
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large load customer submitted a large-scale service request consistent with the qualified
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electric utility's then-existing requirements to the qualified electric utility prior to May 7,
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2025.
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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 an evaluation as soon as reasonably practicable after beginning the study
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under Subsection (2), but in no case more than 6 months after beginning the
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evaluation.
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(2) A qualified electric utility shall begin processing large-scale service requests, including
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conducting evaluations, no later than:
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(a) January 1, for requests received after June 30 and on or before December 31 of the
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previous year; or
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(b) July 1, for requests received after December 31 of the previous year and on or before
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June 30 of the same year.
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(3) During the evaluation 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 evaluation is completed.
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(4) Within 15 business days after completing an evaluation, the qualified electric utility
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shall provide to the customer a written service proposal 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 the requested electric service; and
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(e) the proposed terms and conditions of service, including provisions for addressing
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long-term operation and maintenance costs for large load facilities..
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(5) A qualified electric utility:
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(a) may charge reasonable fees for costs incurred in:
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(i) evaluating a large-scale service request; and
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(ii) necessary subsequent or related assessments; and
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(b) is not required to begin work on an evaluation 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 an
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evaluation.
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Section 5. Section 54-26-301 is enacted to read:
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Part 3. Large Load Contracts
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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 one or
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more large load contracts with:
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(a) a qualified electric utility;
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(b) a large-scale generation provider; or
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(c) any combination of Subsections (1)(a) and (1)(b).
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(2) A large load customer shall:
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(a) contract for all of the customer's projected electrical requirements under the
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large-scale service request; and
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(b) maintain contracts with resources or load shedding capabilities sufficient to meet the
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customer's actual electrical requirements at all times.
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(3) A large load contract with a qualified electric utility shall:
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(a) ensure that all large load incremental costs are allocated to and paid by the large load
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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;
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(ii) power delivery points;
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(iii) the amount of electrical capacity contracted for;
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(iv) the term of service; and
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(v) any arrangements for backup power supply;
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(e) provide curtailment provisions if the large load customer's demand exceeds the
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amount of contractually supported demand;
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(f) identify the incremental generation resources that the qualified electric utility will use
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to serve the large load customer; and
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(g) include provisions addressing the allocation and payment of long-term operation and
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maintenance costs for large load facilities.
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(4) A large load contract with a large-scale generation provider that provides service
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through a connected electrical system shall:
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(a) ensure that all large load incremental costs are allocated to and paid by the large load
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customer;
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(b) comply with all system requirements;
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(c) specify:
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(i) points of interconnection;
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(ii) power delivery points;
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(iii) the amount of electrical capacity contracted for;
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(iv) the term of service; and
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(v) any arrangements for backup power supply; and
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(d) provide curtailment provisions if the large load customer's demand exceeds the
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real-time out put, net of transmission losses.
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(5) A large load contract with a large-scale generation provider that provides service
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through a closed private generation system shall ensure that all large load incremental
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costs are allocated to and paid by the large load customer or the large-scale generation
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provider.
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(6) A qualified electric utility:
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(a) has no duty to serve a large load customer except as explicitly provided in a large
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load contract; and
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(b) is not required to provide backup power to a large load customer except as explicitly
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provided in a large load contract.
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(7) A qualified electric utility may not be required to commence design and construction of
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large load facilities until after:
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(a) executing a large load construction contract; and
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(b) obtaining commission approval in accordance with Section 54-26-302.
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(8) A qualified electric utility or large-scale generation provider shall:
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(a) obtain commission approval in accordance with Section 54-26-302 before providing
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electric service under a large load contract; and
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(b) 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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(9) 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 qualified 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 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;
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(b) the large load customer bears all just and reasonable incremental costs attributable to
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receiving the requested electric service; and
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(c) existing ratepayers do not bear costs justly and reasonably attributable to providing
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electric service for the large load customer.
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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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Part 4. Service Provider Obligations
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54-26-401 . Qualified electric utility 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 electric 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 right or duty to serve the large load customer;
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(ii) is not required to provide ancillary or backup services to the large load customer;
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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) a qualified electric utility fails to complete an evaluation or provide a written
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response within the time period specified in Section 54-26-202; or
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(b) the qualified electric utility and large load customer cannot agree to a large load
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contract within 90 days after the day on which the large load customer receives the
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evaluation described in Section 54-26-202, unless the qualified electric utility and the
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large load customer mutually agree to a longer period of time.
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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 one or more large-scale generation providers; 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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Part 5. Large-Scale Generation Provider Requirements
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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 to a large load customer;
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(b) maintain any reasonable technical and financial qualifications required by the
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commission;
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(c) provide service only through qualifying generation resources as required in this part;
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and
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(d) post security:
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(i) as reasonably negotiated with a large load customer;
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(ii) as required by contract with a transmission provider; or
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(iii) as required by the commission for services to be provided by a qualified electric
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utility.
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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 as reasonably negotiated with the large load customer;
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(c) the provider's operational history and experience;
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(d) a description of the portfolio of qualifying generation resources the provider intends
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to use to serve the large load customer without reliance on any qualified electric
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utility, cooperative utility, municipal utility, or other utility except as provided under
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a large load contract; and
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(e) documentation of
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(i) all required permits, including any environmental permits, obtained for qualifying
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generation resources; and
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(ii) any estimated impact of qualifying generation resources on the state
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implementation plan for air quality.
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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 reasonable conditions imposed by the commission on the provider's
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registration status.
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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 continue to provide service to a large load customer after the
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large load customer has been given a reasonable opportunity to secure alternative
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service arrangements; and
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(b) the large load customer may not receive electric service from another large-scale
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generation provider or a qualified electric utility except pursuant to agreement and
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commission approval of the terms of a new large load contract consistent with this
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chapter.
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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 the provision of service to a large load customer requires transmission service:
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(a) the qualified electric utility or the large-scale generation provider shall submit a
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transmission service request to the transmission provider;
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(b) to the fullest extent allowable under applicable federal law and regulations, the
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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, distribution system 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) Nothing in this section shall be construed to:
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(a) conflict with or supersede any applicable federal law or regulation regarding
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transmission cost allocation; or
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(b) require cost allocation methods inconsistent with Federal Energy Regulatory
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Commission requirements or orders.
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(3) The commission shall review transmission cost allocation consistent with federal
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requirements and may establish rules for implementation of this section.
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Section 12. Section 54-26-504 is enacted to read:
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54-26-504 . Closed private generation systems.
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(1)
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A large load customer may establish and operate or contract for all needed electric
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services from a large-scale generation provider through a closed private generation
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system under terms and conditions acceptable to the large load customer and the
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large-scale generation provider if the large load customer meets the conditions described
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in Section 54-26-402.
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(2) A closed private generation system and a large-scale generation provider that provides
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service on or through a closed private generation system in accordance with this chapter:
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(a) are exempt from commission oversight or regulation as a public utility under this
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title;
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(b) shall ensure all generation, transmission, and related facilities remain wholly
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separate from facilities owned or operated by any qualified electric utility,
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cooperative utility, municipal utility, or other utility except to the extent authorized
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by this part; and
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(c) may connect to or receive services from a qualified electric utility, cooperative
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utility, municipal utility, or other utility only pursuant to a contract approved by the
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commission and consistent with Section 54-26-505.
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(3) The provision of service to a large load customer on or through a closed private
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generation system shall utilize qualified generation resources.
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(4) The commission may establish rules requiring appropriate notices and warnings
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regarding separation from the utility system.
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Section 13. Section 54-26-505 is enacted to read:
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54-26-505 . Connected generation systems.
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(1) A large load customer may obtain all needed electric services from a large-scale
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generation provider through a connected generation system consistent with this chapter.
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(2) A large-scale generation provider may provide service on or through a connected
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generation system if the provider:
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(a) registers with the commission in accordance with Section 54-26-501;
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(b) uses only qualifying generation resources;
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(c) maintains sufficient generation capacity to serve all contracted load;
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(d) provides the commission with:
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(i) system design and operational information;
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(ii) emergency response procedures; and
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(iii) notification of any changes in system configuration or operation; and
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(e) maintains commercial liability insurance as required under Section 54-26-602.
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(3) A large-scale generation provider that provides service on or through a connected
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generation system consistent with the requirements of this chapter is exempt from
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commission regulation as a public utility under this title.
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(4) A closed private generation system or a large-scale generation provider that provides
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service through a closed private generation system may connect to the interstate
466
transmission system of a transmission provider only if:
467
(a) the closed private generation system is interconnected to the interstate transmission
468
system pursuant to the transmission provider's Federal Energy Regulatory
469
Commission approved open access transmission tariff; and
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470
(b) the commission determines that the closed private generation system or large-scale
471
generation provider has satisfied the requirements of this chapter for the provision of
472
service on or through a connected generation system.
473
(5) A closed private generation system or a large-scale generation provider that provides
474
service through a closed private generation system may receive services from a qualified
475
electric utility only if:
476
(a) the requirements of Subsection (4) are met; and
477
(b) the system or provider has an agreement with the qualified electric utility as
478
approved by the commission.
479
(6) A qualified electric utility:
480
(a) is not required to purchase or accept any power from a connected generation system;
481
and
482
(b) shall accept power from a connected generation system only as explicitly provided in
483
an agreement that has been approved by the commission.
484
Section 14. Section 54-26-601 is enacted to read:
485
Part 6. Customer Requirements and Accounting
486
54-26-601 . Large load customer requirements -- Cost allocation.
487
A large load customer shall pay all just and reasonable large load incremental costs
488
necessary to receive electric service, including the costs of:
489
(1) generation resources;
490
(2) distribution system upgrades;
491
(3) to the extent permitted by federal law, and, as applicable, approved by the Federal
492
Energy Regulatory Commission:
493
(a) transmission system improvements, including network upgrades; and
494
(b) interconnection facilities;
495
(4) transmission service; and
496
(5) other necessary infrastructure.
497
Section 15. Section 54-26-602 is enacted to read:
498
54-26-602 . Accounting requirements -- Service standards.
499
(1) A large-scale generation provider shall:
500
(a) maintain separate accounting records for all investments, revenues, and expenses
501
associated with large-scale service requests using generally accepted accounting
502
principles;
503
(b) take reasonable measures to ensure costs are properly allocated between large load
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504
service and other customers;
505
(c) provide all contracted energy services without reliance on any qualified electric
506
utility, cooperative utility, municipal utility, or other utility except as provided under
507
a large load contract;
508
(d) meet all applicable North American Electric Reliability Corporation standards; and
509
(e) maintain reasonable commercial liability insurance as determined by contract or the
510
commission.
511
(2) A qualified electric utility shall:
512
(a) maintain separate accounting records for all investments, revenues, and expenses
513
associated with large-scale service requests using generally accepted accounting
514
principles; and
515
(b) take reasonable measures to ensure costs are properly allocated between large load
516
service and other operations.
517
(3) All revenues and large load incremental costs associated with a large-scale service
518
request shall be excluded from any rate determinations by the commission.
519
(4) In connection with any rate case or other appropriate proceeding before the commission,
520
a qualified electric utility shall provide:
521
(a) operational data identifying when and to what extent the incremental generation
522
resources identified in a large load contract pursuant to Subsection 54-26-301(3)(f)
523
were used to serve large load customers;
524
(b) an identification of the timing, magnitude, and duration of:
525
(i) the qualified electric utility's dispatch of the resources described in Subsection
526
(4)(a);
527
(ii) any periods in which utilization by large load customers exceeded the resources
528
described in Subsection (4)(a); and
529
(iii) any periods in which the resources described in Subsection (4)(a) exceeded the
530
utilization by large load customers;
531
(c) the method by which costs for the provision of electric service from a qualified
532
electric utility to a large load customer will be excluded from rates paid by retail
533
customers; and
534
(d) any other information the commission requires to ensure that the costs associated
535
with service to a large load customer are excluded from the rates paid for by retail
536
customers.
537
(5) A qualified electric utility may not be required to publicly disclose specific revenue
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538
information from individual large load customers in any proceeding described in
539
Subsection (4).
540
Section 16. Section 54-26-701 is enacted to read:
541
Part 7. Large Load Flexible Tariffs
542
54-26-701 . Large load flexible tariffs.
543
(1) The commission shall:
544
(a) investigate a large load flexible tariff for a qualified electric utility; and
545
(b) adopt a large load flexible tariff if the commission determines that the tariff is:
546
(i) just and reasonable; and
547
(ii) in the public interest.
548
(2) In conducting an investigation for a large load flexible tariff, the commission shall
549
consider:
550
(a) the conditions and times for the tariff;
551
(b) the means of determining the rates, terms, and conditions pursuant to which a
552
qualified electric utility may provide electric services to a large load customer; and
553
(c) the conditions under which a qualified electric utility may require a large load
554
customer to reduce or eliminate electric usage under the large flexible load tariff.
555
Section 17. Section 54-26-801 is enacted to read:
556
Part 8. Application and Review
557
54-26-801 . Application.
558
The provisions of this chapter apply only to large load customers, large-scale generation
559
providers, or qualified electric utilities which enter into a large load service contract which
560
provides for service to commence on or before December 31, 2034.
561
Section 18. Section 54-26-802 is enacted to read:
562
54-26-802 . Commission review.
563
The commission shall:
564
(1) conduct a review of this chapter before October 31, 2027, and every three years
565
thereafter;
566
(2) conduct an investigation with stakeholder input and public comment and prepare a
567
report that includes:
568
(a) data on program participation;
569
(b) analysis of impacts on electrical rates;
570
(c) assessment of transmission system reliability; and
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571
(d) recommendations regarding whether to:
572
(i) extend the program;
573
(ii) modify program requirements; or
574
(iii) allow the program to close to new participants; and
575
(e) provide the report described in this Subsection (2) and any recommendations to the
576
Public Utilities, Energy, and Technology Interim Committee.
577
Section 19. Section 54-26-901 is enacted to read:
578
Part 9. Transmission Cost Allocation
579
54-26-901 . Transmission cost allocation.
580
(1) The commission shall:
581
(a) conduct a proceeding to establish rules for the allocation of transmission costs
582
between large load customers and retail customers;
583
(b) retain a qualified independent consultant with expertise in transmission cost
584
allocation methodologies to:
585
(i) analyze potential methodologies for transmission cost allocation;
586
(ii) consider the impact of projected large load growth on the transmission system;
587
(iii) evaluate the economic impacts of various cost allocation approaches; and
588
(iv) make recommendations to the commission; and
589
(c) issue a rule no later than January 1, 2026.
590
(2) In developing rules under Subsection (1), the commission shall consider:
591
(a) Federal Energy Regulatory Commission policies and precedents regarding
592
transmission cost allocation;
593
(b) the projected increase in electricity demand from large load customers;
594
(c) the economic development benefits associated with serving large load customers;
595
(d) the need to maintain just and reasonable rates for retail customers;
596
(e) the extent to which new transmission infrastructure is required specifically to serve
597
large load customers;
598
(f) the extent to which large load customers utilize existing transmission infrastructure;
599
(g) methods to apportion costs based on causation and system benefits; and
600
(h) any other factors the commission determines are relevant to establishing a fair and
601
reasonable allocation of transmission costs.
602
(3) The commission may:
603
(a) establish different cost allocation methodologies based on:
604
(i) the timing of large load customer interconnection;
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605
(ii) the size of the load being served;
606
(iii) the benefits accruing to various customer classes; or
607
(iv) other relevant distinctions; and
608
(b) consider phased-in approaches that balance economic development with consumer
609
protection.
610
(4) Nothing in this section limits the commission's existing authority to determine just and
611
reasonable rates.
612
(5)(a) The commission shall impose and collect a fee from each large load customer that
613
submits a large-scale service request to cover the cost of:
614
(i) retaining qualified independent consultants and experts by the commission, the
615
Division of Public Utilities, and the Office of Consumer Services to evaluate
616
large-scale service requests and large load contracts; and
617
(ii) any other reasonable costs incurred in conducting proceedings and evaluations
618
under this chapter.
619
(b) The fee shall be:
620
(i) assessed on a semi-annual basis corresponding to the study periods established in
621
Section 54-26-202;
622
(ii) determined based on the anticipated needs given the number and complexity of
623
requests received in each study period; and
624
(iii) proportionately allocated among large load customers with pending requests.
625
(c) All fees collected under this subsection shall be:
626
(i) remitted to the state treasurer;
627
(ii) credited to the Public Utility Regulation Fee Account created in Section 54-5-1.5;
628
and
629
(iii) used exclusively for the purposes described in Subsection (5)(a).
630
Section 20. Section 63G-6a-107.6 is amended to read:
631
63G-6a-107.6 . Exemptions from chapter.
632
(1) Except for this Subsection (1), the provisions of this chapter do not apply to:
633
(a) a public entity's acquisition of a procurement item from another public entity; [or]
634
(b) a public entity that is not a procurement unit, including the Colorado River Authority
635
of Utah as provided in Section 63M-14-210[.] ; or
636
(c) the retention of experts by:
637
(i) the Public Service Commission under Subsection 54-1-6(1)(a)(iii);
638
(ii) the Division of Public Utilities under Subsection 54-4a-3(2)(b); and
- 19 - 2nd Sub. (Salmon) S.B. 132 03-01 20:28
639
(iii) the Office of Consumer Services under Title 54, Chapter 10a, Office of
640
Consumer Services Act.
641
(2) Unless otherwise provided by statute and except for this Subsection (2), the provisions
642
of this chapter do not apply to the acquisition or disposal of real property or an interest
643
in real property.
644
(3) Except for this Subsection (3) and Part 24, Unlawful Conduct and Penalties, the
645
provisions of this chapter do not apply to:
646
(a) funds administered under the Percent-for-Art Program of the Utah Percent-for-Art
647
Act;
648
(b) a grant;
649
(c) medical supplies or medical equipment, including service agreements for medical
650
equipment, obtained by the University of Utah Hospital or the Department of Health
651
and Human Services through a purchasing consortium if:
652
(i) the consortium uses a competitive procurement process; and
653
(ii) the chief administrative officer of the hospital or the executive director of the
654
Department of Health and Human Services, as the case may be, makes a written
655
finding that the prices for purchasing medical supplies and medical equipment
656
through the consortium are competitive with market prices;
657
(d) the purchase of firefighting supplies or equipment by the Division of Forestry, Fire,
658
and State Lands, created in Section 65A-1-4, through the federal General Services
659
Administration or the National Fire Cache system;
660
(e) supplies purchased for resale to the public;
661
(f) activities related to the management of investments by a public entity granted
662
investment authority by law; or
663
(g) activities of the Utah water agent appointed under Section 73-10g-702.
664
(4) This chapter does not supersede the requirements for retention or withholding of
665
construction proceeds and release of construction proceeds as provided in Section 13-8-5.
666
(5) Except for this Subsection (5), the provisions of this chapter do not apply to a
667
procurement unit's hiring a mediator, arbitrator, or arbitration panel member to
668
participate in the procurement unit's dispute resolution efforts.
669
Section 21. Effective Date.
670
This bill takes effect on May 7, 2025.
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