Utah Code 54-17-403. Cost recovery

54-17-403. Cost recovery.

(1)

Terms Used In Utah Code 54-17-403

Commission: means the Public Service Commission. See Utah Code 54-2-1
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Corporation: includes an association and a joint stock company having any powers or privileges not possessed by individuals or partnerships. See Utah Code 54-2-1
Energy utility: means one of the following with 200,000 retail customers in the state:

(i)	an electrical corporation; or

(ii)

a gas corporation. See Utah Code 54-17-401

Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5

Resource decision: means a decision, other than a decision to construct or acquire a significant energy resource, involving:

(i)

an energy utility's acquisition, management, or operation of energy production, processing, transmission, or distribution facilities or processes including:

(A)	a facility or process for the efficient, reliable, or safe provision of energy to retail customers;

(B)	an energy efficiency and conservation program; or

(C)	rural gas infrastructure development; or

(ii)

a decision determined by the commission to be appropriate for review under this part. See Utah Code 54-17-401

Rural gas infrastructure development: means the acquisition, planning, development, extension, expansion, and construction of natural gas utility facilities to serve previously unserved rural areas of the state. See Utah Code 54-17-401

State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

(a)

Except as otherwise provided in this section, 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.

(2)

(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 449, 2018 General Session

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