Senate approves framework to let large electricity users contract outside regulated monopoly; Public Service Commission to allocate transmission costs

The Utah Senate approved S.B. 1 32, which creates a competitive contracting framework for very large electricity users and directs the Public Service Commission (PSC) to allocate transmission upgrade costs between new large loads and existing customers.

Senators said the measure responds to a rapid increase in demand from data centers and other large facilities seeking tens of megawatts of capacity. Sponsor remarks explained the bill “allows for loads that are over 50 megawatts to come in and operate in a competitive space rather than a regulated monopoly space,” and that the PSC will decide how much of transmission upgrade costs should be allocated to new large loads versus existing ratepayers based on accrued benefits.

The bill applies geographically to the Rocky Mountain Power service district. Sponsors said the substitute language was negotiated with consumer groups and Rocky Mountain Power to limit cross-subsidy risks for existing customers. Senator Owens and other supporters said the measure protects ratepayers from bearing costs for new, very large loads and enables Utah to attract investment.

Questions from senators included whether the bill allows renewable or intermittent resources (the sponsors said it does) and whether remaining technical coordination would be resolved with the PSC. Senator Sandle described the bill as a culmination of months of work and said it may require future legislative refinement.

The Senate approved the measure on a roll-call vote: 28 yes, 1 no, 2 absent. The bill will be transmitted to the House for consideration.