Rocky Mountain Power says SB 132 is running, identifies three new large‑load requests and protections for existing customers

Rocky Mountain Power officials updated the committee on implementation of Senate Bill 132, describing how the law separates traditional load growth from new large loads above 100 megawatts and creates contract and review requirements intended to protect existing customers.

Tom Carter, who introduced the company’s presenters, said the update focused on SB 132 implementation. Craig Eller, senior vice president of resource strategy and development, told the committee SB 132 “creates a clear line between traditional load growth and new loads over 100 megawatts” and requires large‑load customers to demonstrate financial capability through either an investment‑grade rating, investment‑grade parent/partner credit assurance, or preapproval for a letter of credit.

Eller described the law’s protections: contracts for new large customers must identify the additional generation and transmission required and ensure those costs are borne by the new customer rather than socialized across existing customers. The statute also provides a 60‑day modified regulatory review process (for pricing/contract review) and a six‑month evaluation window for the first study period (october–march window). Eller said the company received three new large‑load requests after the statute took effect and has seven legacy requests grandfathered in, totaling roughly 3 gigawatts of potential new load by 2030.

Committee members sought clarity on definitions and economic effects. One lawmaker asked whether adding very large projects would lower unit costs through economies of scale; Eller and other members said the relevant economics depend on the cost of new generation versus the legacy fleet and that newer combined‑cycle plants are substantially more expensive per MWh than the existing fleet’s dispatch cost. The chair cited the company’s figure that Utah’s current coincident peak is about 5.6 gigawatts and that new projects could push system planning toward higher‑cost resources.

Members also questioned practical steps: how preapproval letters will work (Eller described them as preapproval commitments from lenders, not a taken letter of credit at study time), whether new generation will stay committed to Utah customers, and whether municipalities were included in large‑load requests (Eller said the requests refer to individual customers, not municipal retail contracts). The company said it is pursuing a mix of its own and third‑party resources to match load needs and that the Public Service Commission retains oversight of reliability and affordability.

What happens next: Rocky Mountain Power said it anticipates filing contracts and studies in the coming weeks and months and that rules and PSC review procedures are being finalized with a targeted effective date of Jan. 1 (rulemaking noted in testimony). The committee members and company agreed to continue oversight as studies and contracts move forward.