House approves bill directing Utah Public Service Commission to study regional transmission options

The Utah House on Feb. 5 passed HB238, a bill that directs the Public Service Commission to participate in regional transmission organizations (RTOs) or independent system operators (ISOs) when Utah utilities are members and authorizes the commission to contract for independent analysis of market data.

Sponsor Representative Albrecht said the bill is intended to give Utah a seat at the table if utilities such as Rocky Mountain Power consider joining an organized market, and to ensure ratepayers are protected by requiring analysis and annual reporting to relevant legislative committees. "Basically, what it does... is it requires the public service commission to participate in these organizations where Utah utilities are members," Albrecht said during floor remarks.

Albrecht told colleagues the bill includes a fiscal note paid from the public utility restricted account, which is funded by a utility fee assessed on investor-owned and cooperative utilities; he said the account contains ample funds to cover the analysis the commission may contract for. Representative Hansen expressed concern that the proposal could shift significant authority to the three-member commission and asked whether annual reporting provided sufficient oversight.

Proponents said the bill adds guardrails so Utah would conduct proper analysis before joining an organized market. Representative Jack argued other states have joined similar markets without adequate safeguards and that the measure would protect customers from higher rates tied to some organized markets.

The House opened and closed voting and approved HB238 68-1. The bill will be transmitted to the Senate for consideration.