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House passes bill to allow interlocal natural‑gas cooperatives to recruit out‑of‑state members
Summary
The House passed HB 255, allowing interlocal cooperative entities involved in natural‑gas services to enroll members outside Utah for planning and membership purposes. Sponsor Representative Peterson said the measure clarifies membership rules without changing delivery obligations; the bill passed 74–0.
The Utah House on Feb. 12 passed House Bill 255, which allows interlocal cooperative entities that plan for natural‑gas delivery to recruit membership beyond state borders, while preserving existing intrastate delivery constraints.
Representative Peterson, the bill sponsor, said the change ‘‘allows agencies to go outside of the state to gather membership for their agency’’ so remote border communities such as Kanab and Fredonia can participate in planning and membership without triggering cross‑state transmission. He said the bill does not change delivery rules and ‘‘anything that was allowed for municipal gas associations before HB 255 will be allowed after 255.’’
Representative Swallow, who spoke in support, said committee review addressed concerns that the bill might subject a provider to Federal Energy Regulatory Commission jurisdiction and that the amended language overcomes that problem. Several members noted potential conflict of interest and recorded registrations were noted on the floor.
The House adopted Amendment 1 to HB 255 (02/09/2001) to clarify drafting and then approved the amended bill by voice/roll call, receiving 74 yes votes and 0 no votes. The bill will be referred to the Senate for further consideration.
The House record shows members questioned whether FERC approval would be required before a Public Service Commission could modify a tariff to permit out‑of‑state delivery. Peterson responded that existing PSC tariff language limits delivery outside the state absent a FERC order; he characterized HB 255 as a precursor that enables planning and membership formation rather than immediate interstate delivery.
Next steps: The bill will be transmitted to the Senate for further consideration.
