Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy.infrastructure topic
No spam. Unsubscribe anytime.
House advances natural gas infrastructure amendment, sponsor cites rural benefits and capped customer impact
Summary
First substitute HB 422 (natural gas infrastructure amendments) was uncircled and discussed March 1, 2018. Sponsor said the clarification limits rate increases to no more than 2% over a 3‑year period and cited a $175 million aggregate infrastructure cap with a projected maximum system bill impact of about 25¢ to 58¢ per month; bill to be transmitted to the Senate.
The Utah House considered first substitute House Bill 422 on March 1, 2018, a measure that clarifies limits on rate changes for natural‑gas utility infrastructure and encourages build‑out to underserved rural communities. Sponsor Representative Noel described an amendment to ensure utilities cannot increase rates by more than 2% of total revenue in any given three‑year window and discussed potential extensions to Green River, Wendover, Garden City (Bear Lake area), Pine Valley and Kanab.
Representative Noel said the project would be consumer‑driven and not funded by the state; he cited that, under maximum build‑out assumptions, the aggregate development cost would not exceed $175,000,000 and the average customer on the system would see a monthly bill increase in the range of 25¢ to 58¢. He said the proposed model is regulated and reviewed by the Public Service Commission.
Members questioned statewide impacts and the effect on propane suppliers and on affordable housing costs. Representative Hutchings relayed concerns from rural propane companies about competitive harm; the sponsor acknowledged impacts to some propane providers but characterized the proposal as an infrastructure expansion that would help households and businesses in high‑cost fuel areas.
Sponsor waived summation and the Clerk indicated the bill will be transmitted to the Senate for its consideration.
