54-26-901. Transmission cost allocation.

454 words·~2 min read·/ut/title-54/chapter-26/54-26-901

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

Effective 5/7/2025

(1)The commission shall:

(a)conduct a proceeding to establish rules for the allocation of transmission costs between large load customers and retail customers for large load contracts executed on or after January 1, 2026;

(b)retain a qualified independent consultant with expertise in transmission cost allocation methodologies to:

(i)analyze potential methodologies for transmission cost allocation, taking into account the factors listed in Subsection (2); and

(ii)make recommendations to the commission; and

(c)issue a rule no later than January 1, 2026.

(2)In developing rules under Subsection (1), the commission shall consider:

(a)Federal Energy Regulatory Commission policies and precedents regarding transmission cost allocation;

(b)the projected increase in electricity demand from large load customers;

(c)the incremental transmission costs required to serve large load customers;

(d)the economic development benefits associated with serving large load customers;

(e)the need to maintain just and reasonable rates for retail customers;

(f)the extent to which new large load facilities are required specifically to serve large load customers;

(g)the extent to which large load customers utilize existing transmission infrastructure;

(h)methods to apportion costs based on cost causation and system benefits; and

(i)any other factors the commission determines are relevant to establishing a fair and reasonable allocation of transmission costs.

(3)The commission may establish different cost allocation methodologies based on:

(a)the timing of large load customer interconnection;

(b)the size of the load being served;

(c)the cost causation attributable to various customer classes;

(d)the benefits accruing to various customer classes; or

(e)other relevant distinctions.

(4)Nothing in this section limits the commission's existing authority to determine just and reasonable rates.

(a)The commission shall impose and collect a fee from each large load customer that submits a large-scale service request to cover the cost of:

(i)retaining qualified independent consultants and experts by the commission, the Division of Public Utilities, and the Office of Consumer Services to evaluate large-scale service requests and large load contracts; and

(ii)any other reasonable costs incurred in conducting proceedings and evaluations under this chapter.

(b)The fee shall be:

(i)assessed on a semi-annual basis corresponding to the study periods established in Section 54-26-202 ;

(ii)determined based on the anticipated needs given the number and complexity of requests received in each study period; and

(iii)proportionately allocated among large load customers with pending requests.

(c)All fees collected under this subsection shall be:

(i)remitted to the state treasurer;

(ii)credited to the Public Utility Regulation Fee Account created in Section 54-5-1.5 ; and

(iii)used exclusively for the purposes described in Subsection (5)(a).

Enacted by Chapter 318 , 2025 General Session