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County briefed on SB132 energy bill that could let off-takers bypass Rocky Mountain Power for transmission
Summary
A presenter described Senate Bill 132, a two-part energy bill that would (1) allow off-takers to seek Public Service Commission approval to bypass Rocky Mountain Power when RMP cannot deliver and (2) create a direct-contracting process for large loads (over 50 MW) with take-or-pay obligations.
Lincoln briefed the commission on Senate Bill 132, an energy bill the presenter described as “deregulation light” for parts of Utah’s electric system. The bill has two main elements: a process that lets an off-taker apply to the Public Service Commission to obtain transmission and power when Rocky Mountain Power (RMP) cannot deliver, and a special contracting mechanism for very large loads (described as requests over 50 megawatts) that would allow an off-taker to negotiate an individualized take-or-pay contract.
Lincoln said the first element would let an off-taker — typically the buyer of power, not the generator — petition the Public Service Commission for permission to develop transmission or other arrangements outside of RMP’s normal queuing process when RMP cannot meet the request. "If Rocky Mountain Power says no, then it would allow the off taker to apply through the public service commission to circumvent the Rocky Mountain power process," Lincoln said.
The second element Lincoln described would let large customers (50 MW or more) enter contracts that require the buyer to take the full contracted capacity or pay for it, removing the need for RMP to socialize the speculative development cost across all ratepayers. Lincoln said both elements are intended to speed delivery of large new loads and reduce the risk that owners of smaller loads must fund speculative transmission projects.
County staff and commissioners discussed the implications for county economic development, noting that off-takers (not generators) would usually carry the regulatory application and that the county’s best strategy as a generator is to identify and work with potential off-takers.
No vote took place; staff was asked to share bill text and to coordinate with local power producers if the county wants to provide input to legislators.
