Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 191 Second Substitute (2024GS)

Sponsor

Rep. Jack, C.

Final action

Governor Signed 3/12/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• sets conditions for when the Public Service Commission may approve the early retirement of an electrical generation facility; and
• defines terms.

Every vote on this bill

Bill text

ELECTRICAL ENERGY AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Colin W. Jack
Senate Sponsor: 
 Ronald M. Winterton
LONG TITLE
General Description:
This bill modifies provisions related to the regulation of energy.
Highlighted Provisions:
This bill:
▸ sets conditions for when the Public Service Commission may approve the early
retirement of an electrical generation facility; and
▸ defines terms.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
79-6-303
, as enacted by Laws of Utah 2023, Chapter 195
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
79-6-303
 is amended to read:
79-6-303.
Legislative findings -- Forced retirement of electrical generation
facilities.
(1) As used in this section:
(a) "Dispatchable" means available for use on demand and generally available to be
delivered at a time and quantity of the operator's choosing.
(b) "Early retirement" means the premature closure of an electrical generation facility
before it reaches the end of its expected operational lifespan or designated service life.
[
(b)
] 
(c)
 "Electrical generation facility" means a facility that generates electricity for
provision to customers.
[
(c)
] 
(d)
 "Forced retirement" means the closure of an electrical generation facility as a
result of a federal regulation that either directly mandates the closure of an electrical generation
facility or where the costs of compliance are so high as to effectively force the closure of an
electrical generation facility.
(e) "Nameplate capacity" means the sum of the maximum rated outputs of all electrical
generating equipment within a facility under specific conditions designated by the
manufacturer, as indicated on individual nameplates physically attached to the equipment.
(f) "Plant factor" means the ratio of the actual annual electrical energy output of an
electrical generation facility compared to the potential annual electrical energy output if the
electrical generation facility operated at full capacity continuously for the entire year.
[
(d)
] 
(g)
 "Qualified utility" means the same as that term is defined in Section
54-17-801
.
[
(e)
] 
(h)
 "Reliable" means supporting a system generally able to provide a continuous
supply of electricity at the proper voltage and frequency and the resiliency to withstand sudden
or unexpected disturbances.
(i) "Replacement resource" means an electric generation facility that meets or exceeds
the existing facility in the following characteristics:
(i) plant factor;
(ii) nameplate capacity;
(iii) reliability;
(iv) dispatchability;
(v) affordability; and
(vi) maintains the minimum reserve capacity requirement established by the utility's
reliability coordinator.
[
(f)
] 
(j)
 "Secure" means protected against disruption, tampering, and external
interference.
(2) The Legislature finds that:
(a) affordable, reliable, dispatchable, and secure energy resources are important to the
health, safety, and welfare of the state's citizens;
(b) the state has invested substantial resources in the development of affordable,
reliable, dispatchable, and secure energy resources within the state;
(c) the early retirement of an electrical generation facility that provides affordable,
reliable, dispatchable, and secure energy is a threat to the health, safety, and welfare of the
state's citizens;
(d) the state's police powers, reserved to the state by the United States Constitution,
provide the state with sovereign authority to make and enforce laws for the protection of the
health, safety, and welfare of the state's citizens;
(e) the state has a duty to defend the production and supply of affordable, reliable,
dispatchable, and secure energy from external regulatory interference; and
(f) the state's sovereign authority with respect to the retirement of an electrical
generation facility for the protection of the health, safety, and welfare of the state's citizens is
primary and takes precedence over any attempt from an external regulatory body to mandate,
restrict, or influence the early retirement of an electrical generation facility in the state.
(3) A qualified utility that receives notice of any federal regulation that may result in
the forced retirement of the qualified utility's electrical generation facility shall inform the
Office of the Attorney General of the regulation within 30 days after the receipt of notice.
(4) After being informed as described in Subsection (3), the Office of the Attorney
General may take any action necessary to defend the interest of the state with respect to
electricity generation by the qualified utility, including filing an action in court or participating
in administrative proceedings.
(5) Before authorizing or approving a rate case, integrated resource plan, or other
submission that proposes the early retirement of an electrical generation facility, the
commission shall consider the Legislature's findings in Subsection (2) and determine that the
early retirement of an electrical generation facility will not:
(a) create a material adverse effect on the provision of affordable, reliable,
dispatchable, and secure electricity to customers in the state;
(b) create a shortage of available electricity to customers in the state;
(c) harm the qualified utility's ratepayers by causing the qualified utility to incur any
net incremental costs to be recovered from ratepayers that could be avoided by continuing to
operate the electric generating unit proposed for retirement in compliance with applicable law;
and
(d) be undertaken as a result of any financial incentives or benefits offered by any
federal agency.
(6) (a) There is a rebuttable presumption against the early retirement of an electric
generation facility.
(b) A qualified utility may overcome the rebuttable presumption described in
Subsection (6)(a) by submitting evidence of a commitment and capability to have a
replacement resource operational before retiring the existing facility.
(7) The commission shall prepare and submit an annual report to the Public Utilities,
Energy, and Technology Interim Committee before November 30 of each year detailing:
(a) the number of received requests to retire electric generating units in the state,
including:
(i) the nameplate capacity of each of those units; and
(ii) whether the request was approved or denied by the commission;
(b) the impact of any commission-approved retirement of an electric generating unit on
the:
(i) state's generation fuel mix;
(ii) required capacity reserve margins for the qualified utility;
(iii) need for capacity additions or expansions at new or existing facilities as a result of
the retirement; and
(iv) need for additional purchase power or capacity reserve arrangements; and
(c) whether a retirement resulted in stranded costs for the ratepayer that will be
recovered by the utility through a surcharge or some other separate charge on the customer bill.
Section 2. 
Effective date.
This bill takes effect on May 1, 2024.