54-17-806.  Qualified utility renewable energy tariff.

(1)  The commission may authorize a qualified utility to implement a renewable energy tariff in accordance with this section if the commission determines the tariff that the qualified utility proposes is reasonable and in the public interest.

Terms Used In Utah Code 54-17-806

  • Avoided costs: means the incremental costs to an electrical corporation of electric energy or capacity or both that, due to the purchase of electric energy or capacity or both from small power production or cogeneration facilities, the electrical corporation would not have to generate itself or purchase from another electrical corporation. See Utah Code 54-2-1
  • Commission: means the Public Service Commission. See Utah Code 54-2-1
  • Qualified utility: means an electric corporation that serves more than 200,000 retail customers in the state. See Utah Code 54-17-801
  • Renewable energy tariff: means a tariff offered by a qualified utility that allows the qualified utility to procure renewable generation on behalf of and to serve its customers. See Utah Code 54-17-801
(2)  The commission may authorize a tariff under Subsection (1) to apply to:

(a)  a qualified utility customer with an aggregated electrical load of at least five megawatts; or

(b)  a combination of qualified utility customers who are separately metered if:

(i)  the aggregated electrical load of the qualified utility customers is at least five megawatts; and

(ii)  each of the qualified utility customers is located within a project area, as defined in Section 11-58-102.

(3)  A customer who agrees to take service that is subject to the renewable energy tariff under this section shall pay:

(a)  the customer’s normal tariff rate;

(b)  an incremental charge in an amount equal to the difference between the cost to the qualified utility to supply renewable generation to the renewable energy tariff customer and the qualified utility’s avoided costs as defined in Subsection 54-2-1(1), or a different methodology recommended by the qualified utility; and

(c)  an administrative fee in an amount approved by the commission.

(4)  The commission shall allow a qualified utility to recover the qualified utility’s prudently incurred cost of renewable generation procured pursuant to the tariff established in this section that is not otherwise recovered from the proceeds of the tariff paid by customers agreeing to service that is subject to the renewable energy tariff.

Amended by Chapter 126, 2020 General Session