54-2-201. Independent energy producer — Exemption from commissionjurisdiction.
(1)
As used in this section:
Terms Used In Utah Code 54-2-201
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
Independent energy producer: means every electrical corporation, person, corporation, or government entity, their lessees, trustees, or receivers, that own, operate, control, or manage an independent power production or cogeneration facility. See Utah Code 54-2-1
Independent power production facility: means a facility that:
(a)
produces electric energy solely by the use, as a primary energy source, of biomass, waste, a renewable resource, a geothermal resource, or any combination of the preceding sources; or
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
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
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
United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(a)
“Customer generation system” means the same as that term is defined in Section 54-15-102.
(b)
“Net metering program” means the same as that term is defined in Section 54-15-102.
(2)
An independent energy producer is exempt from regulation by the commission as a public utility for an independent power production facility if the independent energy producer produces a commodity or delivers a service:
(a)
solely for the use of a state-owned facility;
(b)
not for sale to the public, without charge, solely for the use of:
for sale solely to an electrical corporation or other wholesale purchaser; or
(d)
(i)
for use by:
(A)
an entity the independent energy producer controls, is controlled by, or is an affiliate of; or
(B)
a user located on real property that the independent energy producer manages or controls; and
(ii)
for use on real property that is contiguous to, or is separated only by a public road or easement from, real property that the independent energy producer owns or controls.
(3)
In addition to the exemptions described in Subsection (2), an independent energy producer that supplies energy, for direct consumption by a customer, via a customer generation system, is exempt from regulation by the commission as a public utility for an independent power production facility if:
(a)
the customer is:
(i)
a United States governmental entity, including an entity of the United States military;
(ii)
a state entity, including a political subdivision of the state;
(iii)
a state institution of higher education;
(iv)
a school district, charter school, or an entity within the state system of public education;
(v)
a federal income tax exempt charitable organization under 26 U.S.C. § 501(c)(3) that can provide proof of the entity’s tax-exempt status; or
(vi)
a residential customer participating in a net metering program in an area served by an electrical corporation with more than 200,000 retail customers in the state;
(b)
the customer generation system is:
(i)
for use on the real property where the customer generation system is located; and
(ii)
designed to supply a maximum amount of electricity equal to the lesser of:
(A)
90% of the customer’s average annual electricity consumption, based on an annualized billing period; or
(B)
the maximum amount allowed under a net metering program, as defined in Section 54-15-102;
(c)
the independent energy producer notifies the customer, before installing the customer generation system, of:
(i)
the total cost a customer is required to pay for the customer generation system, including an interconnection cost; and
(ii)
the potential for a change in:
(A)
the amount the customer pays for energy from a public utility; and
(B)
customer fees associated with net metering and generation;
(d)
the independent energy producer enters into an interconnection agreement:
(i)
with a public utility that provides retail electric service to the real property on which the customer generation system is located; and
(ii)
that is subject to approval by a public utility’s governing authority; and
(e)
except for a customer described in Subsection (3)(a)(vi), the independent energy producer installs the customer generation system by December 31, 2021.
(4)
An independent energy producer that supplies electric service to a customer described in Subsection (3)(a)(vi) via a customer generation system shall provide the electric service under an agreement that includes:
(a)
the notification described in Subsection (3)(c);
(b)
a description of the incentives, including any renewable energy certificate, generated by the agreement, or by the installation or use of the customer generation system;
(c)
a description of an incentive described in Subsection (4)(b) that the customer forfeits or assigns to the independent energy producer under the agreement;
(d)
the property, equipment, or liability that the independent energy producer will insure under the agreement, and what property, equipment, or liability that the customer is responsible for insuring; and
(e)
the Internet address of a Division of Public Utilities website, if any, that describes considerations for a net metering customer.
(5)
An independent energy producer may not provide electric service to a customer described in Subsection (3)(a)(vi) until the commission makes the first determination about a net metering program under which the independent energy producer will provide service required by Subsection 54-15-105.1(2), and the determination becomes final agency action.
(6)
A public utility shall serve a customer in the public utility’s service area that is partially served by an independent energy producer.
