Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Electricity Large Loads topic
No spam. Unsubscribe anytime.
Senate passes bill letting competitive contracts for very large electric loads while directing PSC to allocate transmission costs
Summary
The Utah Senate approved changes to allow competitive contracting for new electric loads over 50 megawatts in Rocky Mountain Power territory and directed the Public Service Commission to decide how transmission upgrade costs are allocated between new large customers and existing ratepayers.
The Utah Senate on Monday approved second-substitute Senate Bill 132, changing how very large electric customers — such as data centers and AI facilities — may be served and how the costs of transmission upgrades will be allocated.
Sponsor Senator Kevin Sandle said the bill “is a culmination of months of work,” and described it as a response to an “exponential increase in demand” from companies seeking to site very large loads in the state. The measure allows loads over 50 megawatts to be served in a competitive contracting space rather than solely under the state’s traditional regulated monopoly model in Rocky Mountain Power’s service territory.
Why it matters: Supporters said the change creates a path for large, high‑demand customers to contract competitively and for outside providers to serve those loads, while protecting ordinary ratepayers from shouldering costs tied to new, concentrated demand. Senator Sandle told colleagues the most difficult policy question was how to allocate costs when transmission upgrades benefit both new customers and the existing customer base.
How it works: The substitute directs the Utah Public Service Commission (PSC) to review requests regarding transmission upgrades tied to new large loads on a case‑by‑case basis and determine how much of the upgrade cost should be allocated to the new load and how much should be borne by the broader customer base “based on the benefit that they’re going to get,” the sponsor said.
Negotiations and amendments: The bill incorporates language agreed between competing stakeholders, including Rocky Mountain Power and consumer groups. Senators adopted a last‑minute technical amendment described by the sponsor as clarifying dispatch and coordination issues for large generation providers; the amendment passed on voice vote.
Debate and support: Questions from senators focused on whether the language would permit renewable or intermittent generation; Sandle said the substitute allows “all of those sources of energy to be permissible.” Senator Darren Owens rose in support, saying the bill helps protect “the taxpayer or the rate payer” from bearing the full cost of serving new large loads.
Final action: After floor debate and adoption of the amendment, the Senate passed the bill on a roll‑call vote of 28 yeas, 1 nay, 0 absent. The measure will be sent to the Utah House for consideration.
What’s next: The bill gives the PSC a central role in cost allocation disputes as new large facilities request service. Supporters said further refinements may be needed in future sessions.
