54-17-403. Cost recovery.

430 words·~2 min read·/ut/title-54/chapter-17/54-17-403·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/1/2024

(a)Except as otherwise provided in this section, and excluding cost recovery for costs associated with proven dispatchable generation resources, which is governed by Section 54-17-1002 , if the commission approves any portion of an energy utility's resource decision under Section 54-17-402 , the commission shall, in a general rate case or other appropriate commission proceeding, include in the energy utility's retail rates the state's share of costs:

(i)relevant to that proceeding;

(ii)incurred by the energy utility in implementing the approved resource decision; and

(iii)up to the projected costs specified in the commission's order issued under Section 54-17-402 .

(b)Except to the extent that the commission issues an order under Section 54-17-404 , any increase from the projected costs specified in the commission's order issued under Section 54-17-402 shall be subject to review by the commission as part of a rate hearing under Section 54-7-12 .

(c)If the commission approves a request for approval of rural gas infrastructure development under Section 54-17-402 , the commission may approve the inclusion of rural gas infrastructure development costs within the gas corporation's base rates if:

(i)the inclusion of those costs will not increase the base distribution non-gas revenue requirement by more than 2% in any three-year period;

(ii)the distribution non-gas revenue requirement increase related to the infrastructure development costs under Subsection (1)(c)(i) does not exceed 5% in the aggregate; and

(iii)the applicable distribution non-gas revenue requirement is the annual revenue requirement determined in the gas corporation's most recent rate case.

(a)Subsequent to the commission issuing an order described in Subsection (2)(a)(i) or (ii), the commission may disallow some or all costs incurred in connection with an approved resource decision if the commission finds that an energy utility's actions in implementing an approved resource decision are not prudent because of new information or changed circumstances that occur after:

(i)the commission approves the resource decision under Section 54-17-402 ; or

(ii)the commission issues an order to proceed under Section 54-17-404 .

(b)In making a determination of prudence under Subsection (2)(a), the commission shall use the standards identified in Section 54-4-4 .

(3)Notwithstanding any other provision of this chapter, the commission may disallow some or all of the costs incurred by an energy utility in connection with an approved resource decision upon a finding by the commission that the energy utility is responsible for a material misrepresentation or concealment in connection with an approval process under this chapter.

Amended by Chapter 214 , 2024 General Session