54-17-807. Solar photovoltaic or thermal solar energy facilities.
| (1) |
As used in this section, “acquire” means to purchase, construct, or purchase the output from a photovoltaic or thermal solar energy resource. |
Terms Used In Utah Code 54-17-807
- Commission: means the Public Service Commission. See Utah Code 54-2-1
- Contract: A legal written agreement that becomes binding when signed.
- Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Public utility: includes every railroad corporation, gas corporation, electrical corporation, distribution electrical cooperative, wholesale electrical cooperative, telephone corporation, telegraph corporation, water corporation, sewerage corporation, heat corporation, and independent energy producer not described in Section 54-2-201 where the service is performed for, or the commodity delivered to, the public generally, or in the case of a gas corporation or electrical corporation where the gas or electricity is sold or furnished to any member or consumers within the state for domestic, commercial, or industrial use. 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
- Solicitation: means a request for proposals or other invitation for persons to submit a bid or proposal through an open bid process for construction or acquisition of a significant energy resource. See Utah Code 54-17-102
| (2) |
| (a) |
In accordance with this section, a qualified utility may file an application with the commission for approval to acquire a photovoltaic or thermal solar energy resource using rate recovery based on a competitive market price, except as provided in Subsection (2)(b). |
| (b) |
A qualified utility may not, under this section, acquire a photovoltaic or thermal solar energy resource with a generating capacity that is two megawatts or less per meter if that resource is located on the customer’s side of the meter. |
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| (3) |
The energy resource acquired pursuant to this section may be owned solely or jointly by a qualified utility or another entity:
| (a) |
to provide renewable energy to a contract customer as provided in Section 54-17-803; |
| (b) |
to serve energy to a qualified utility customer as provided in Section 54-17-806; |
| (c) |
to serve energy to any customers of the qualified utility if the proposed energy resource’s nameplate capacity does not exceed 300 megawatts or, if applicable, the quantity of capacity that is the subject of a contract for the purchase of electricity does not exceed 300 megawatts, so long as the qualified utility proceeds under and complies with 4; or |
| (d) |
to serve energy to any customers of the qualified utility if the proposed energy resource’s nameplate capacity exceeds 300 megawatts or, if applicable, the quantity of capacity that is the subject of a contract for the purchase of electricity exceeds 300 megawatts, so long as the qualified utility complies with this chapter. |
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| (4) |
Except as provided in Subsections (3)(c) and (d), the following do not apply to an application submitted under Subsection (2):
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| (5) |
The application described in Subsection (2) shall include:
| (a) |
a proposed solicitation process for the energy resource; |
| (b) |
the criteria proposed to be used to evaluate the responses to the solicitation:
| (i) |
as determined by the customer, if the energy resource is sought to serve a customer pursuant to Subsection (3)(a) or (b); or |
| (ii) |
as proposed by the qualified utility, if the energy resource is sought to serve the customers of the qualified utility pursuant to Subsection (3)(c) or (d); and |
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| (c) |
any other information the commission may require. |
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| (6) |
| (a) |
Before approving a solicitation process under this section for an energy resource to serve customers of the qualified utility pursuant to Subsection (3)(c) or (d), the commission shall:
| (i) |
hold a public hearing; and |
| (ii) |
provide an opportunity for public comment. |
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| (b) |
The commission may approve a solicitation process under this section only if the commission determines that the solicitation and evaluation processes to be used will create a level playing field in which the qualified utility and other bidders can compete fairly, including with respect to interconnection and transmission requirements imposed on bidders by the solicitation within the control of the commission and the qualified utility, excluding its federally regulated transmission function, and will otherwise serve the public interest. |
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| (7) |
| (a) |
Upon completion of the solicitation process approved under Subsection (6), the qualified utility may seek approval from the commission to acquire the energy resource identified through the solicitation process as the winning bid. |
| (b) |
Before approving acquisition of an energy resource acquired pursuant to this section, the commission shall:
| (i) |
hold a public hearing; |
| (ii) |
provide an opportunity for public comment; |
| (iii) |
determine whether the solicitation and evaluation processes complied with this section, commission rules, and the commission’s order approving the solicitation process; and |
| (iv) |
determine whether the acquisition of the energy resource is just and reasonable, and in the public interest. |
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| (c) |
The commission may approve a qualified utility’s ownership of an energy resource or a power purchase agreement containing a purchase option under Subsection (3)(c) or (d) with rate recovery based on a competitive market price only if the commission determines that the qualified utility’s bid is the lowest cost ownership option for the qualified utility. |
| (d) |
If the commission approves a qualified utility’s acquisition of an energy resource under Subsection (3), including entering into a power purchase agreement containing a purchase option, using rate recovery based on a competitive market price:
| (i) |
the prices approved by the commission shall constitute competitive market prices for purposes of this section; and |
| (ii) |
assets owned by the qualified utility and used to provide service as approved under this section are not public utility property. |
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| (8) |
If upon completion of a solicitation process approved under Subsection (6) the qualified utility proposes not to acquire an energy resource, the qualified utility shall file with the commission a report explaining its reasons for not acquiring the lowest cost resource bid into the solicitation, along with any other information the commission requires. |
| (9) |
Within six months after a competitive market price for a solar energy resource acquired under Subsection (3)(c) or (d) has been identified pursuant to this section, or for such longer period as the commission may determine to be in the public interest, a qualified utility may file an application with the commission seeking approval to acquire another energy resource similar to the energy resource for which a competitive market price was established without going through a new solicitation process. The commission may approve the application if the qualified utility demonstrates a need to acquire the energy resource, that the competitive market price remains reasonable, and that the acquisition is in the public interest. |
| (10) |
No later than 180 days before the end of the term approved by the commission for an energy resource acquired under this section and owned by the qualified utility, the qualified utility shall file with the commission a request for determination of an appropriate disposition of the energy resource asset, except that the qualified utility is permitted to retain the benefits or proceeds and shall be required to assume the costs and risks of ownership of the energy resource. |
| (11) |
The commission shall adopt rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
| (a) |
addressing the content and filing of an application under this section; |
| (b) |
to establish the solicitation process and criteria to be used to identify the competitive market price and select an energy resource; and |
| (c) |
addressing other factors determined by the commission to be relevant to protect the public interest and to implement this section. |
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Amended by Chapter 136, 2019 General Session
