Committee declines to sponsor repeal of low‑carbon generation requirement after weeks of testimony; PSC and utilities urge completing studies

The committee reviewed a legislative staff draft (26LSO72 draft 0.4) that would repeal statutory low‑carbon generation requirements put in place by 2020 House Bill 200. LSO attorney Brian Fuller presented the draft and identified the sections of statute proposed for repeal (chapter references 37‑18‑101 and 37‑18‑102 in materials provided to the committee).

Randall Luthy, the governor’s policy director, told the committee HB 200 was originally enacted as part of a multi‑pronged state strategy to preserve coal markets and to encourage utilities to evaluate carbon capture, utilization and storage (CCUS) as a possible alternative to early plant retirements. Luthy and attorneys said HB 200 gave Wyoming utilities a statutory pathway to evaluate low‑carbon projects and to seek limited rate recovery (capped surcharges) to cover study and pre‑FEED costs. He recommended a compromise sunset date (01/01/2027) if the legislature wishes to repeal — giving utilities time to complete work already underway.

Chris Petrie, deputy chairman of the Public Service Commission (PSC), told the committee the PSC’s statutory mission is to ensure safe, adequate and reliable service at just and reasonable rates. He said the PSC has implemented HB 200 by adopting rules and public proceedings that encourage utilities to examine carbon capture options and that the commission has set a reliable‑dispatchable‑low‑carbon standard at 0% where no economically viable project was shown. Petrie described the HB 200 implementation as a hedging strategy in a period of high market and federal policy uncertainty: continuing HB 200 gives regulators and utilities more information should federal policy tighten again.

Representatives of the state’s largest utilities described ongoing technical work. Rocky Mountain Power said it is completing phase‑1 engineering and feed studies (Jim Bridger units 3 and 4) and has a 50% cost share grant from the Wyoming Energy Authority for study work; Rocky Mountain Power and affiliates requested a sunset to allow studies to finish through 2027. Black Hills Energy (Cheyenne Light, Fuel & Power) reported final feed studies and said its assessments showed the currently available amine capture technology was large and costly for the plants evaluated (Black Hills reported costs on the order of roughly $500 million for a bolt‑on capture unit on a small coal unit and estimated a roughly 30% net loss in unit output after adding capture equipment). Both utilities said their filings with the PSC so far have produced no economically feasible, commission‑approvable CCUS project for Wyoming ratepayers but that continuing the study process could yield options.

Stakeholder testimony and public comment

- Several industry and mining representatives urged retaining state tools that support coal markets and noted coal production and contracting activity had increased recently.

- Public commenters were divided. Some urged immediate repeal on cost and sovereignty grounds. Others, including utility officials and the governor’s office, urged caution and a short sunset so ongoing studies can finish.

Committee action and vote

Representative Tarver moved to sponsor a draft repeal of the HB 200 low‑carbon standard; Representative Campbell seconded. The committee held a roll‑call vote. Legislators recorded the following votes during the roll call called at the meeting (votes reported verbatim from…