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Utah House Approves Temporary Measure Letting Gas Utilities Extend Service Into Rural Towns
Summary
The House passed House Bill 180 on Jan. 27, 1998, allowing gas utilities under strict conditions to extend lines into previously unserved areas and request rate-base recovery for unrecovered costs; the measure drew sustained debate over potential subsidies and stranded-cost risks before passing 61–10.
Representative Hatch, sponsor of House Bill 180, told the House the bill would permit a gas corporation to extend service into previously unserved communities and, if the cost cannot be recovered over the life of the line, to petition the Public Service Commission to include the unrecovered amount in the rate base. "I think the buzzword surrounding this bill is subsidy," Hatch said, framing the proposal as a targeted, temporary option for rural development.
Supporters said the measure would help attract industry and stabilize rural economies. Representative Hayman said expanding service statewide was part of a broader economic-development strategy and urged colleagues to help communities that lack infrastructure. Representative Johnson…
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