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House reconsiders and narrowly passes Sustainable Transportation and Energy Plan Act after heated debate over utility risk
Summary
After reconsideration, the Utah House passed fourth substitute SB115, the Sustainable Transportation and Energy Plan Act, following floor debate about whether the bill shifts fuel-price risk from utilities to ratepayers; the measure passed 46-26 and returns to the Senate.
SALT LAKE CITY — The Utah House reconsidered and passed fourth substitute SB115, the Sustainable Transportation and Energy Plan Act, after a lengthy floor debate over the distribution of fuel-price risk between utilities and customers.
Representative John Snow, sponsor of the bill, told the House the measure does not allow “Rocky Mountain Power or any major utility to set their own rates,” and emphasized reporting requirements and a sunset provision intended as safeguards. Snow said the proposal includes interim reporting to let lawmakers reassess the policy if unintended consequences appear.
Representative Ken Ivory, chair of the Public Utilities Committee, explained that key language in the bill preserves the Public Service Commission’s discretion. “As provided in this section, the commission may approve a tariff under the demand-side management program,” Ivory read, adding the bill’s framework merely sets policy “buckets” for how demand-side programs could be managed and leaves prudential review to the PSC.
Opponents argued the bill shields utilities from fuel-price risk and weakens existing risk-sharing mechanisms. Representative Francisco Aaron said the bill would “shield Rocky Mountain Power from bearing any of the fuel price risks associated with electricity production,” and warned that it would shift costs from utility shareholders to customers by eliminating current Commission risk-sharing tools such as the energy balancing account.
Supporters said the bill is consistent with practices in other states and is designed to provide predictability as the state’s energy portfolio changes. Snow noted that “there are 42 other states who have the same ratio, 100% of their variable power costs reimbursed” subject to the Commission’s prudence review.
After the previous question was ordered and summary remarks were made, the House voted. The bill passed, 46 yes to 26 no, and will be returned to the Senate for further consideration.
The vote concludes the House’s action for now; the Senate will next consider the bill as amended by the House.
