Read the full stored bill text
LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1259
Introduced by Hansen, 16; Sanders, 45.
Read first time January 21, 2026
Committee: Natural Resources
A BILL FOR AN ACT relating to electricity; to adopt the Grid1
Modernization Act. 2
Be it enacted by the people of the State of Nebraska,3
LB1259
2026
LB1259
2026
-1-
Section 1. Sections 1 to 21 of this act shall be known and may be1
cited as the Grid Modernization Act. 2
Sec. 2. For purposes of the Grid Modernization Act:3
(1) Board means the Nebraska Power Review Board;4
(2) Closed private generation system means electric generating5
facilities and associated infrastructure that: 6
(a) Is not connected to and operates independently from the7
transmission system of a public power utility; 8
(b) Serves one or more customers with a minimum cumulative electric9
demand of one hundred megawatts; and 10
(c) Serves one or more large-load customers through direct11
connection; 12
(3) Connected generation system means electric generating facilities13
and associated infrastructure that: 14
(a) Is connected to and operates in conjunction with the15
transmission system of a public power utility; 16
(b) Serves one or more large-load customers through connection to17
the transmission system of a public power utility; and18
(c) Except as provided in a large-load contract, operates19
independent of the generation resources of any public power utility;20
(4) Evaluation means an assessment that: 21
(a) Estimates the impact of a large-scale service request on the22
systems of a public power utility; 23
(b) Identifies any necessary: 24
(i) System modification or upgrades to the systems of the public25
power utility to provide service as requested in a large-scale service26
request; 27
(ii) Generation capacity; or 28
(iii) Transmission service requests; 29
(c) Provides cost estimates for any required improvements; and30
(d) Establishes an estimated timeline for implementing any necessary31
LB1259
2026
LB1259
2026
-2-
changes to systems; 1
(5) Large-load construction contract means a contract for the2
construction of large-load facilities between: 3
(a) A public power utility or a large-scale generation provider; and4
(b) A large-load customer; 5
(6) Large-load contract means a large-load construction contract or6
large-load service contract; 7
(7) Large-load customer means a current or potential customer in the8
service territory of a public power utility that requests electric9
service under a large-scale service request or enters into a private10
generation contract with a large-scale generation provider;11
(8) Large-load facilities means facilities and resources reasonably12
necessary, as determined in an evaluation, to provide safe and reliable13
electric service as requested in a large-scale service request, including14
the reasonably allocated share of facilities or upgrades necessary to15
facilitate a transmission request from a public power utility or large-16
scale generation provider to serve a large-scale service request;17
(9) Large-load flexible tariff means a tariff:18
(a) Pursuant to which a large-load customer will:19
(i) Receive components of electric services from a large-scale20
generation provider; or 21
(ii) Reduce demand at periods specified by a large-scale generation22
provider; and 23
(b) Under which a large-load customer receives components of24
available electric services from a public power utility to the extent:25
(i) The public power utility's resources are reasonably expected to26
be available and sufficient; and 27
(ii) As determined by an agreement with the public power utility or28
tariffs approved by the board; 29
(10) Large-load incremental costs means all costs reasonably30
necessary for: 31
LB1259
2026
LB1259
2026
-3-
(a) The design, engineering, procurement, construction, and1
completion of large-load facilities and any activities required to2
provide electric service under a large-scale service request; and3
(b) The long-term operation and maintenance of large-load facilities4
for the duration of any applicable service contract;5
(11) Large-load service contract means a contract for the provision6
of electric service for a large-scale service request between a large-7
load customer and a public power utility or large-scale generation8
provider; 9
(12) Large-scale generation provider means an entity that:10
(a) Is not a public power utility; 11
(b) Is registered with the board in accordance with section 11 of12
this act; and 13
(c) Owns, operates, or contracts for the output of one or more14
qualifying generation resources intended to be used to supply certain15
retail electric services to a large-load customer pursuant to a large-16
load contract or a private generation contract; 17
(13) Large-scale service request means a request submitted to a18
public power utility for: 19
(a) New electric service that is expected to reach a cumulative20
demand of one hundred megawatts or greater within five years of the21
requested initial start date; or 22
(b) Additional electric service that is expected to increase a23
customer's total service level by one hundred megawatts or greater within24
five years of the requested start date for the additional service;25
(14) Private generation contract means a contract for the provision26
of electric service through a closed private generation system between a27
large-scale generation provider and a large-load customer requesting new28
electric service that is expected to reach a cumulative demand of one29
hundred megawatts or greater within five years of the requested initial30
start date; 31
LB1259
2026
LB1259
2026
-4-
(15) Public power utility means public power districts, public power1
and irrigation districts, municipalities, registered groups of2
municipalities, electric cooperatives, electric membership associations,3
joint entities formed under the Interlocal Cooperation Act, joint public4
agencies formed under the Joint Public Agency Act, agencies formed under5
the Municipal Cooperative Financing Act, and any other governmental6
entities providing electric service; and 7
(16) Qualifying generation sources means one or more generation8
resources that, in combination: 9
(a) If connected to the transmission system of a public power10
utility: 11
(i) Meets or exceeds the resource adequacy standards of the public12
power utility; 13
(ii) Includes sufficient resources and capacity to meet all14
requirements imposed by the North American Electric Reliability15
Corporation, the Southwest Power Pool, the Midwest Reliability16
Organization, and the Western Area Power Administration; and17
(iii) Is capable of satisfying the load and electricity requirements18
of a large-load customer without drawing on any generation or services19
provided by a public power utility except to the extent such services are20
provided under a large-load contract; or 21
(b) If not connected to the transmission system of a public power22
utility: 23
(i) Is capable of satisfying the load, transmission, and electricity24
requirements of a large-load customer without drawing on any generation25
or services provided by a public power utility; and26
(ii) Meets any other reliability standards established by the board.27
Sec. 3. The procedures and standards set forth in the Grid28
Modernization Act shall govern: 29
(1) Large-scale service requests; 30
(2) Services sought, provided, or received under either a large-31
LB1259
2026
LB1259
2026
-5-
scale service request or a private generation service request;1
(3) Services provided through closed private generation systems2
under private generation contracts; and 3
(4) The review and approval of large-load contracts and private4
generation contracts. 5
Sec. 4. (1) Except for large-load customers seeking electric6
service under a private generation contract, a large-load customer7
seeking electric service shall submit a large-scale service request to8
the public power utility serving the proposed location.9
(2) A large-scale service request shall include:10
(a) A customer's identifying information; 11
(b) The proposed location for electric service;12
(c) The requested amount of electric demand in megawatts;13
(d) A proposed service commencement date; 14
(e) Load profile information, including anticipated annual energy15
usage, expected hours of operation, seasonal variations, peak demand16
requirements, and any special service requirements;17
(f) Information sufficient to demonstrate the financial capability18
to complete the large-load customer's project that is the subject of the19
large-scale service request; and 20
(g) Confirmation that the customer will not use the electric service21
for resale. 22
(3) After submitting a large-scale service request and before23
entering into a large-load contract, a customer shall ensure that all24
information submitted under this section remains current and shall25
promptly notify the public power utility of any material changes to26
information submitted under this section. 27
Sec. 5. (1) A public power utility that receives a large-scale28
service request shall: 29
(a) Acknowledge receipt of the request; 30
(b) Notify the customer of any missing required information within31
LB1259
2026
LB1259
2026
-6-
fifteen business days after the processing start date of the utility1
described in subsection (2) of this section; and 2
(c) Complete an evaluation as soon as reasonably practicable after3
the processing start date provided in subsection (2) of this section, but4
no more than six months after such date. 5
(2) The processing start date of a public power utility for large-6
scale service requests, including conducting evaluations, shall be no7
later than: 8
(a) April 1, for requests received after September 30 of the prior9
year and on or before March 31; or 10
(b) October 1, for requests received after March 31 and on or before11
September 30. 12
(3) During the evaluation process, the public power utility shall13
provide the customer with regular updates and notify the customer when14
the evaluation is completed. 15
(4) Within fifteen business days after completing an evaluation, the16
public power utility shall provide to the customer a written service17
proposal that includes: 18
(a) Whether the public power utility can provide the requested19
service within the time frame required by the customer;20
(b) The estimated large load incremental costs that will be21
allocated to the customer, based on the information provided by the22
customer; 23
(c) Any required system upgrades, improvements, or transmission24
service requests; 25
(d) The estimated timeline for commencing the requested electric26
service; and 27
(e) The proposed terms and conditions of service, including28
provisions for addressing long-term operation and maintenance costs for29
large load facilities. 30
(5) A public power utility: 31
LB1259
2026
LB1259
2026
-7-
(a) May charge reasonable fees for costs incurred in evaluating a1
large-scale service request and necessary subsequent or related2
assessments; and 3
(b) Is not required to begin work on an evaluation until the4
customer pays applicable fees and provides the information required for5
the public power utility to conduct an evaluation. 6
Sec. 6. (1) Electric service for a large-scale service request7
shall be provided only under one or more large-load contracts with a8
public power utility, a large-scale generation provider, or a combination9
of both. 10
(2) A large-load customer shall: 11
(a) Contract for all of the customer's projected electrical12
requirements under the large-scale service request; and13
(b) Maintain contracts with resources or load-shedding capabilities14
sufficient to meet the customer's actual electrical requirements at all15
times. 16
(3) A large-load contract with a public power utility shall:17
(a) Require that all large-load incremental costs are allocated to18
and paid by the large-load customer; 19
(b) Comply with all system requirements; 20
(c) Require the large-load customer to maintain financial security21
sufficient to cover the customer's obligations; 22
(d) Specify points of interconnection, power delivery points, the23
amount of electrical capacity contracted for, the length of service, and24
any arrangements for backup power supply; 25
(e) Provide curtailment provisions if the large-load customer's26
demand exceeds the amount of contractually supported demand;27
(f) Identify the generation resources that the public power utility28
will use to serve the large-load customer; and 29
(g) Include provisions addressing the allocation and payment of30
long-term operation and maintenance costs for large-load facilities.31
LB1259
2026
LB1259
2026
-8-
(4) A large-load contract with a large-scale generation provider1
that provides service through a connected generation system shall:2
(a) Ensure that all large-load incremental costs are allocated to3
and paid by the large-load customer; 4
(b) Comply with all system requirements; 5
(c) Specify points of interconnection, power delivery points, the6
amount of electrical capacity contracted for, the length of service, and7
any arrangements for backup power supply; and 8
(d) Provide curtailment provisions if the large-load customer's9
demand exceeds the real-time dispatch, net of transmission losses of the10
large-scale generation provider's resource under the large-load contract.11
(5) Except as explicitly provided in a large-load contract, a public12
power utility shall have no duty to serve a large-load customer and is13
not required to provide backup power. 14
(6) A public power utility shall not be required to commence design15
and construction of large-load facilities until after executing a large-16
load construction contract and obtaining board approval in accordance17
with section 8 of this act. 18
(7) A public power utility or large-scale generation provider shall:19
(a) Obtain board approval in accordance with section 8 of this act20
before providing electric service under a large-load contract; and21
(b) Negotiate the terms of a large-load contract with a large-load22
customer on a case-by-case basis. 23
Sec. 7. A customer seeking to receive electric service through a24
closed private generation system: 25
(1) May negotiate directly with a large-scale generation provider;26
and 27
(2) Is not required to submit a large-scale service request to a28
public power utility. 29
Sec. 8. (1) Within fifteen business days after executing a large-30
load contract, a public power utility or a large-scale generation31
LB1259
2026
LB1259
2026
-9-
provider executing the contract shall submit an application for approval1
or denial of the contract to the board. Such application shall include:2
(a) A copy of the large-load contract; and 3
(b) Evidence sufficient to demonstrate compliance with subsection4
(2) of this section. 5
(2) The board shall approve the application and contract if the6
board finds by a preponderance of the evidence that:7
(a) The contract complies with the requirements of the Grid8
Modernization Act; 9
(b) The large-load customer bears all incremental costs reasonably10
attributable to receiving the requested electric service; and11
(c) Existing ratepayers do not bear costs reasonably attributable to12
providing electric service for the large-load customer.13
(3) Board review of an application and contract under this section14
is limited to review of compliance with subsection (2) of this section15
and shall not include review of other contract terms.16
(4) The board shall approve or deny an application and contract17
submitted pursuant to this section within sixty days after receipt of the18
application. 19
(5) The board may adopt and promulgate rules and regulations to20
expedite the review of applications for approval or denial of large-load21
contracts under this section. 22
Sec. 9. (1) Subject to subsection (2) of this section, a public23
power utility shall have sole right to provide electric service to a24
large-load customer in the public power utility's service territory.25
(2) A public power utility shall not be required to provide electric26
service: 27
(a) In response to a large-scale service request if:28
(i) The large-load customer has not complied with the Grid29
Modernization Act; 30
(ii) The public power utility cannot provide the requested service31
LB1259
2026
LB1259
2026
-10-
within the timeframe required by the large-scale service request;1
(iii) The large-load customer and the public power utility cannot2
agree upon terms for a large-load contract; 3
(iv) The large-load customer fails or refuses to comply with the4
requirements of a large-load contract; or 5
(v) The large-load customer is receiving service from a large-scale6
generation provider; or 7
(b) To a large-load customer that receives service pursuant to a8
private generation contract. 9
(3) A public power utility that does not agree to terms with a10
large-load customer for a large-load contract: 11
(a) Has no right or duty to serve the large-load customer;12
(b) Is not required to provide ancillary or backup services to the13
large-load customer; and 14
(c) Is not required to provide any services to a large-scale15
generation provider. 16
Sec. 10. (1) A large-load customer may enter into a large-load17
contract with a large-scale generation provider if the following18
conditions are met: 19
(a) A public power utility fails to complete an evaluation or20
provide a written response within the time periods described in section 521
of this act; or 22
(b) The public power utility and large-load customer cannot agree to23
a large-load contract within ninety days after the day on which the24
large-load customer receives the evaluation described in this title,25
unless the public power utility and the large-load customer mutually26
agree to a longer period of time. 27
(2) After submitting a large-scale service request, a large-load28
customer: 29
(a) May negotiate a contract with one or more large-scale generation30
providers; and 31
LB1259
2026
LB1259
2026
-11-
(b) Shall not execute a contract with a large-scale generation1
provider unless the conditions described in subsection (1) of this2
section are met. 3
Sec. 11. (1) Before providing electric service to a large-load4
customer, a large-scale generation provider shall: 5
(a) Register with the board; 6
(b) Maintain any reasonable technical and financial qualifications7
required by the board; 8
(c) Provide electric service only through qualifying generation9
resources; 10
(d) Post security as reasonably negotiated with a large-load11
customer, as required by contract with a transmission provider, or as12
required by the board for services to be provided by a public power13
utility; 14
(e) Submit to the board: 15
(i) Proof of financial capability as reasonably negotiated with the16
large-load customer; 17
(f) The provider's operational history and experience;18
(g) A description of the portfolio of qualifying generation19
resources the provider intends to use to serve the large-load customer20
without reliance on any public power utility, cooperative utility,21
municipal utility, or other utility except as provided under a large-load22
contract; and 23
(h) Documentation of all required permits obtained for generation24
resources, including any environmental permits, and the estimated impact25
of the generation sources on the state implementation plan for air26
quality. 27
Sec. 12. (1) A large-scale generation provider that fails to28
satisfy the requirements of the Grid Modernization Act:29
(a) Shall not initiate new service to a large-load customer;30
(b) Shall remedy any deficiency under the Grid Modernization Act31
LB1259
2026
LB1259
2026
-12-
within ninety days after the day the deficiency arises; and1
(c) May have reasonable conditions imposed by the board on the2
provider's registration under the Grid Modernization Act.3
(2) If the board suspends or revokes a large-scale generation4
provider's registration under the Grid Modernization Act:5
(a) The provider shall not continue to provide electric service to a6
large-load customer after the large-load customer has been given a7
reasonable opportunity to secure alternative service arrangements; and8
(b) The large-load customer shall not receive electric service from9
another large-scale generation provider or a public power utility except10
pursuant to a large-load contract approved by the board.11
Sec. 13. (1) If the provision of electric service to a large load12
customer requires transmission service: 13
(a) The public power utility or the large-scale generation provider14
shall submit a transmission service request to the transmission service15
provider; 16
(b) To the fullest extent allowed under applicable federal law and17
regulations, the large-scale generation provider or large-load customer18
shall: 19
(i) Pay for: 20
(A) Any interconnection-related or transmission-related studies;21
(B) Any identified necessary interconnection upgrades, transmission22
upgrades, network upgrades, distribution system upgrades, or other system23
upgrades; and 24
(C) The transmission service rates in the transmission service25
provider's open access transmission tariff; and 26
(ii) Pay and provide for any necessary ancillary services, balancing27
services, and backup services. 28
(2) Nothing in this section shall be construed to:29
(a) Conflict with or superseded any applicable federal law,30
regulation, or order regarding transmission cost allocation; or31
LB1259
2026
LB1259
2026
-13-
(b) Require cost allocation methods inconsistent with Federal Energy1
Regulatory Commission requirements or orders. 2
(3) The board shall review transmission cost allocation methods3
consistent with the requirements of federal law and regulations and may4
adopt and promulgate rules and regulations for implementation of this5
section. 6
Sec. 14. (1) A large-load customer may enter into a private7
generation contract for all needed electric services from a large-scale8
generation provider through a closed private generation system under9
terms and conditions acceptable to the large-load customer and the large-10
scale generation provider. 11
(2) Any closed private generation system or large-scale generation12
provider that provides electric service on or through a closed private13
generation system in accordance with the Grid Modernization Act:14
(a) Is exempt from any other powers of the board over public power15
utilities under state law; 16
(b) Shall ensure all generation, transmission, and related17
facilities remain wholly separate from facilities owned or operated by18
any public power utility except to the extent authorized by the Grid19
Modernization Act; and 20
(c) May connect to or receive services from a public power utility21
only pursuant to a contract consistent with state law and approved by the22
board under the Grid Modernization Act. 23
(3) A closed private generation system may operate prior to24
receiving a request from a public power utility to purchase power25
generated by the system and prior to board approval of a large-load26
service contract. 27
(4) The provision of electric service to a large-load customer on or28
through a closed private generation system shall utilize qualifying29
generation resources. 30
(5) The board may adopt and promulgate rules and regulations to31
LB1259
2026
LB1259
2026
-14-
require appropriate notices and warnings regarding separation from the1
systems of the public power utility. 2
Sec. 15. (1) A large-load customer may obtain all needed electric3
services from a large-scale generation provider through a connected4
generation system consistent with the Grid Modernization Act.5
(2) A large-scale generation provider may provide service on or6
through a connected generation system if the provider:7
(a) Registers with the board in accordance with section 11 of this8
act; 9
(b) Uses only qualifying generation resources;10
(c) Maintains sufficient generation capacity to serve all contracted11
loads; 12
(d) Has submitted system design, operational information, emergency13
response procedures, and notification of any changes in system14
configuration or operation to the board; and 15
(e) Maintains commercial liability insurance required by state law.16
(3) A large-scale generation provider that provides service on or17
through a connected generation system consistent with the requirements of18
this act is exempt from any other powers of the board over public power19
utilities under state law. 20
(4) A closed private generation system or a large-scale generation21
provider that provides service through a closed private generation system22
may connect to the interstate transmission of a transmission service23
provider only if: 24
(a) The closed private generation system is interconnected to the25
interstate transmission system pursuant to the open access transmission26
tariff of the transmission service provider approved by Federal Energy27
Regulatory Commission; and 28
(b) The board determines that the closed private generation system29
or large-scale generation provider has complied with the Grid30
Modernization Act for the provision of service on or through a connected31
LB1259
2026
LB1259
2026
-15-
generation system. 1
(5) A closed private generation system or a large-scale generation2
provider that provides service through a closed private generation system3
may receive services from a public power utility only if it has complied4
with subsection (4) of this section and if it has an agreement with the5
public power utility that has been approved by the board.6
(6) A public power utility: 7
(a) Is not required to purchase or accept any power from a connected8
generation system; 9
(b) Shall not accept power from a connected generation system unless10
explicitly authorized in an agreement that has been approved by the11
board; and 12
(c) May elect to purchase up to ten percent of the power generated13
by a large-scale generation provider. Such election shall be made in14
writing no later than the deadline for the board to approve or deny a15
large-load contract as provided in subsection (4) of section 8 of this16
act unless otherwise agreed to in writing by the large-scale generation17
provider and the public power utility. Election by a public power utility18
to purchase power under this subsection shall not be grounds to delay or19
deny approval of a large-load contract or to prevent operation of a20
closed generation system. 21
Sec. 16. A large-load customer shall pay all large-load incremental22
costs necessary to receive electric service, including the costs of:23
(1) Generation resources; 24
(2) Distribution system upgrades; 25
(3) To the extent permitted and applicable by federal law and26
approved by the Federal Energy Regulatory Commission:27
(a) Transmission system improvements, including network upgrades;28
and 29
(b) Interconnection facilities; 30
(4) Transmission service; and 31
LB1259
2026
LB1259
2026
-16-
(5) Other necessary infrastructure. 1
Sec. 17. (1) A large-scale generation provider shall:2
(a) Maintain separate accounting records for all investments,3
revenues, and expenses associated with large-scale service requests using4
generally accepted accounting principles; 5
(b) Take reasonable measures to ensure costs are properly allocated6
between large-load customers and other customers; 7
(c) Provide all contracted energy services without reliance on any8
public power utility except as provided under a large-load contract;9
(d) Meet all applicable North American Electric Reliability10
Corporation standards; and 11
(e) Maintain reasonable commercial liability insurance as determined12
by contract or the board. 13
(2) A public power utility shall: 14
(a) Maintain separate accounting records for all investments,15
revenues, and expenses associated with large-scale service requests using16
generally accepted accounting principles; and 17
(b) Take reasonable measures to ensure costs are properly allocated18
between large-load service and other operations. 19
(3) All revenues and large-load incremental costs associated with a20
large-scale service request shall be excluded from any rate21
determinations by the board. 22
(4) In connection with any rate determination or other appropriate23
proceeding before the board, a public power utility shall provide:24
(a) Operational data identifying when and to what extent the25
generation resources identified in a large-load contract were dispatched26
to serve large-load customers; 27
(b) An identification of the timing, magnitude, and duration of:28
(i) The public power utility's dispatch of the resources described29
in subdivision (4)(a) of this section; 30
(ii) Any periods in which the amount of the electric service of31
LB1259
2026
LB1259
2026
-17-
large-load customers exceeded the dispatch of resources described in1
subdivision (4)(a) of this section; and 2
(iii) Any periods in which the dispatch of resources described in3
subdivision (4)(a) of this section exceeded the amount of the electric4
service of large-load customers; 5
(c) The method by which costs for the provision of electric service6
from the public power utility to a large-load customer will be excluded7
from rates paid by retail customers; and 8
(d) Any other information the board requires to ensure that the9
costs associated with electric service to a large-load customer are10
excluded from the rates paid for by retail customers.11
(5) A public power utility shall not be required to publicly12
disclose specific revenue information from individual large-load13
customers in any proceeding described in subsection (4) of this section.14
Sec. 18. (1) The board shall: 15
(a) Investigate a large-load flexible tariff for public power16
utilities; and 17
(b) Adopt a large-load flexible tariff if the board determines that18
the tariff is in the public interest and fair and reasonable.19
(2) In conducting an investigation for a large-load flexible tariff,20
the board shall consider: 21
(a) The conditions and timing for the tariff;22
(b) The means of determining the rates, terms, and conditions23
pursuant to which a public power utility may provide electric services to24
a large-load customer; and 25
(c) The conditions under which a public power utility may require a26
large-load customer to reduce or eliminate electric usage under the27
large-load flexible tariff. 28
Sec. 19. Beginning in 2029 and ever three years thereafter, the29
board shall: 30
(1) Conduct a review of the Grid Modernization Act;31
LB1259
2026
LB1259
2026
-18-
(2) Conduct an investigation with stakeholder input and public1
comments and prepare a report that includes: 2
(a) Data on overall use of and participation with the Grid3
Modernization Act; 4
(b) Analysis of impacts of the Grid Modernization Act on electrical5
rates; 6
(c) Assessment of transmission system reliability; and7
(d) Recommendations regarding whether to expand the Grid8
Modernization Act or modify the act; and 9
(3) Provide the report described in subsection (2) of this section10
and any recommendations to the Natural Resources Committee of the11
Legislature. 12
Sec. 20. (1) The board shall: 13
(a) Adopt and promulgate rules and regulations for the allocation of14
transmission costs between large-load customers and retail customers for15
all large-load contracts executed on or after January 1, 2027;16
(b) Retain a qualified independent consultant with expertise in17
transmission cost allocation methodologies to: 18
(i) Analyze potential methodologies for transmission cost19
allocation, taking into account the factors listed in subsection (2) of20
this section; and 21
(ii) Make recommendations to the board; and 22
(c) Adopt and promulgate such rules and regulations no later than23
January 1, 2027. 24
(2) In developing rules and regulations pursuant to subsection (1)25
of this section, the board shall consider the following factors:26
(a) Federal Energy Regulatory Commission policies and precedents27
regarding transmission cost allocation; 28
(b) The projected increase in electricity demand from large-load29
customers; 30
(c) The incremental transmission costs required to serve large-load31
LB1259
2026
LB1259
2026
-19-
customers; 1
(d) The economic development benefits associated with serving large-2
load customers; 3
(e) The need to maintain fair and reasonable rates for retail4
customers; 5
(f) The extent to which new large-load facilities are required6
specifically for service of large-load customers; 7
(g) The extent to which large-load customers utilize existing8
transmission infrastructure; 9
(h) Methods to apportion costs based on cost causation and system10
benefits; and 11
(i) Any other factors the board determines are relevant to12
establishing a fair and reasonable allocation of transmission costs.13
(3) The board may establish different cost allocation methodologies14
based on the timing of large-load customer interconnection, the size of15
the load being served, the cost causation attributable to various16
customer classes, the benefits accruing to various customer classes, or17
other relevant distinctions. 18
(4) Nothing in this section limits the board's existing authority to19
determine fair and reasonable rates. 20
(5)(a) The board shall impose and collect a fee from each large-load21
customer that submits a large-scale service request to cover the cost of:22
(i) The retention of qualified independent consultants and experts23
by the board to evaluate large-scale service requests and large-load24
contracts; and 25
(ii) Any other reasonable costs incurred in conducting proceedings26
and evaluations under the Grid Modernization Act. 27
(b) The fee shall be: 28
(i) Assessed on a semi-annual basis established by the board;29
(ii) Determined based on the anticipated needs given the number and30
complexity of requests received; and 31
LB1259
2026
LB1259
2026
-20-
(iii) Proportionately allocated among large-load customers with1
pending requests. 2
(c) All fees collected under this subsection shall be used3
exclusively to cover the costs described in subdivision (5)(a) of this4
section. 5
Sec. 21. The board may adopt and promulgate rules and regulations6
necessary to carry out the Grid Modernization Act. 7
LB1259
2026
LB1259
2026
-21-