House approves bill letting private buyers contract directly with renewable generators

The Utah House on Feb. 29 approved First Substitute Senate Bill 12, a measure its sponsor described as a ‘‘free-market approach’’ enabling private alternative-energy generators to enter power purchase agreements with consumers willing to pay the full cost of generation. Representative Noel, the House floor sponsor, said the bill prevents alternative generators from being categorized as regulated utilities and ‘‘does not allow the cost of alternative energy to be socialized in any way.’’

The bill exempts municipal power providers and limits the role of incumbents to wheeling services that recover transmission costs at the same rates they charge other customers, Noel said. He named Rocky Mountain Power, co-ops and large customers including data-center operators such as eBay as stakeholders who participated in crafting the language.

Lawmakers asked whether municipal providers and private utilities are treated equally. Noel responded that municipal power agencies requested the exemption and that Rocky Mountain Power asked to be included; the speaker noted municipalities would experience ‘‘0 impact’’ from the measure.

Supporters framed the bill as expanding voluntary private contracting and avoiding taxpayer subsidies. Representative Hemingway said he ‘‘stands in Foursquare support’’ and called the bill ‘‘a move in the right direction’’ for large electric users. There were no recorded votes against the substitute.

Voting opened after floor discussion and closed with the House adopting the substitute 71–0. The bill will be signed by the speaker pro tem and returned to the Senate for the president’s signature.

The next steps are Senate receipt of the returned substitute and gubernatorial consideration if enacted by both chambers.