Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 72 (2025GS)

Sponsor

Rep. Albrecht, Carl R.

Final action

House/ filed 3/7/2025

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• establishes requirements for the Public Service Commission to prioritize Utah ratepayer interests when allocating utility costs;
• prohibits cost recovery from Utah ratepayers for facilities and programs primarily benefiting other states;
• eliminates electrical corporation energy balancing account cost recovery for costs incurred after December 31, 2024; and
• maintains existing energy balancing account provisions for costs incurred before December 31, 2024.

Every vote on this bill

Bill text

5
54-4-4.2
54-7-13.5
Electricity Rate Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Carl R. Albrecht
LONG TITLE
 The Public Utilities, Energy, and Technology Interim Committee recommended this bill.
8 voting for
2 voting against
6 absent
Legislative Vote:
Committee Note:
General Description:
This bill modifies provisions related to public utility regulation.
Highlighted Provisions:
This bill:
establishes requirements for the Public Service Commission to prioritize Utah ratepayer 
interests when allocating utility costs;
prohibits cost recovery from Utah ratepayers for facilities and programs primarily 
benefiting other states;
eliminates electrical corporation energy balancing account cost recovery for costs 
incurred after December 31, 2024; and
maintains existing energy balancing account provisions for costs incurred before 
December 31, 2024.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
54-7-13.5
, as last amended by Laws of Utah 2021, Chapter 249
ENACTS:
54-4-4.2
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
54-4-4.2
 is enacted to read:
54-4-4.2. Utah ratepayer interests -- priority.
(1)
Before the commission may approve allocation of costs to Utah ratepayers, a public 
utility operating in Utah and other states shall demonstrate by a preponderance of 
evidence that:
(a)
the allocated costs provide direct benefits to Utah ratepayers;
(b)
the cost allocation methodology aligns costs with benefits to Utah ratepayers; and
(c)
Utah ratepayers are not subsidizing benefits provided to ratepayers in other states.
(2)
The commission may not approve recovery of costs from Utah ratepayers for:
(a)
facilities, programs, or investments that primarily benefit ratepayers in other states;
(b)
compliance with other states' laws or regulations unless directly benefiting Utah 
ratepayers; or
(c)
liabilities arising from events or conditions in other states unless directly related to 
service provided to Utah ratepayers.
Section 2, Section 
54-7-13.5
 is amended to read:
54-7-13.5. Energy balancing accounts.
(1)
As used in this section:
(a)
"Base rates" means the same as that term is defined in Subsection 
54-7-12(1)
.
(b)
"Energy balancing account" means an electrical corporation account for some or all 
components of the electrical corporation's incurred actual power costs, including:
(i)
(A)
fuel;
(B)
purchased power; and
(C)
wheeling expenses; and
(ii)
the sum of the power costs described in Subsection 
(1)(b)(i)
 less wholesale 
revenue.
(c)
"Gas balancing account" means a gas corporation account to recover on a 
dollar-for-dollar basis, purchased gas costs, and gas cost-related expenses.
(2)
(a)
The commission may authorize an electrical corporation to establish an energy 
balancing account.
(b)
An energy balancing account shall become effective upon a commission finding that 
the energy balancing account is:
(i)
in the public interest;
(ii)
for prudently-incurred costs; and
(iii)
implemented at the conclusion of a general rate case.
(c)
An electrical corporation:
(i)
may, with approval from the commission, recover costs under this section through:
(A)
base rates;
(B)
contract rates;
(C)
surcredits; or
(D)
surcharges; and
(ii)
shall file a reconciliation of the energy balancing account with the commission at 
least annually with actual costs and revenue incurred by the electrical corporation.
(d)
For an electrical corporation with an energy balancing account established before 
January 1, 2016, the commission shall allow an electrical corporation to recover 
100% of the electrical corporation's prudently incurred costs as determined and 
approved by the commission under this section.
(e)
Except in the case of an interim rate request made in accordance with Subsection 
(2)(k)
, an energy balancing account may not alter:
(i)
the standard for cost recovery; or
(ii)
the electrical corporation's burden of proof.
(f)
The collection method described in Subsection 
(2)(c)(i)
 shall:
(i)
apply to the appropriate billing components in base rates; and
(ii)
be incorporated into base rates in an appropriate commission proceeding.
(g)
The collection of costs related to an energy balancing account from customers 
paying contract rates shall be governed by the terms of the contract.
(h)
Revenue collected in excess of prudently incurred actual costs shall:
(i)
be refunded as a bill surcredit to an electrical corporation's customers over a 
period specified by the commission; and
(ii)
include a carrying charge.
(i)
Prudently incurred actual costs in excess of revenue collected shall:
(i)
be recovered as a bill surcharge over a period to be specified by the commission; 
and
(ii)
include a carrying charge.
(j)
The carrying charge applied to the balance in an energy balancing account shall be:
(i)
determined by the commission; and
(ii)
symmetrical for over or under collections.
(k)
(i)
The commission may consider an interim rate request made as a part of an 
electrical corporation's filing an energy balancing account.
(ii)
The commission, on the commission's own initiative or in response to an interim 
rate request by an electrical corporation or another party:
(A)
shall hold a hearing on an interim rate; and
(B)
if the electrical corporation or the other party makes the showing required by 
Subsection 
(2)(k)(iii)
, may allow any rate increase or decrease, or a reasonable 
part of the rate increase or decrease, to take effect on an interim basis, subject 
to the commission's right to order a refund or surcharge.
(iii)
The electrical corporation or the other party shall make an adequate prima facie 
showing that:
(A)
the proposed interim rate appears consistent with prior years' filings; and
(B)
the interim rate requested is more likely to reflect actual power costs than the 
current base rates.
(l)
The commission may issue a final order establishing and fixing the electrical 
corporation's energy balancing account:
(i)
after a hearing; and
(ii)
before the expiration of 300 days after the day on which the electrical corporation 
files a complete filing.
(m)
(i)
If the commission in the commission's final decision on an electrical 
corporation's energy balancing account finds that the interim rate ordered under 
Subsection 
(2)(k)(ii)
 exceeds the rate finally determined in the energy balancing 
account, the commission shall order the electrical corporation to refund the excess 
revenue generated by the interim rate to customers.
(ii)
If the commission in the commission's final decision on an electrical corporation's 
energy balancing account finds that the interim rate ordered under Subsection 
(2)(k)(ii)
 is lower than the rate finally determined in the energy balancing account, 
the commission shall order the electrical corporation to charge a surcharge to 
customers to recover the revenue not recovered during that period.
(3)
(a)
The commission may:
(i)
establish a gas balancing account for a gas corporation; and
(ii)
set forth procedures for a gas corporation's gas balancing account in the gas 
corporation's commission-approved tariff.
(b)
A gas balancing account may not alter:
(i)
the standard of cost recovery; or
(ii)
the gas corporation's burden of proof.
(4)
(a)
All allowed costs and revenue associated with an energy balancing account or gas 
balancing account shall remain in the respective balancing account until charged or 
refunded to customers.
(b)
The balance of an energy balancing account or gas balancing account may not be:
(i)
transferred by the electrical corporation or gas corporation; or
(ii)
used by the commission to impute earnings or losses to the electrical corporation 
or gas corporation.
(c)
An energy balancing account or gas balancing account that is formed and maintained 
in accordance with this section does not constitute impermissible retroactive 
ratemaking or single-issue ratemaking.
(5)
This section does not create a presumption for or against approval of an energy 
balancing account.
(6)
(a)
An electrical corporation that has established an energy balancing account under 
this section shall report to the Public Utilities, Energy, and Technology Interim 
Committee before December 1 of each even numbered year.
(b)
The report required in Subsection 
(6)(a)
 shall provide information regarding:
(i)
the continued 100% recovery of the electrical corporation's prudently incurred 
costs related to the energy balancing account; and
(ii)
any determination by the commission of costs not prudently incurred.
(7)
Notwithstanding any other provision of this section, an electrical corporation may not 
recover through an energy balancing account any costs incurred after December 31, 
2024.
Section 3. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
12-27-24 11:05 AM