Electric utility resources.

WORKING DRAFT
2007
STATE OF
WYOMING
07LSO-0030

HOUSE BILL

NO.
HB0012

Electric utility
resource
s
.

Sponsored by:
Joint Minerals, Business and Economic Development Interim Committee

A BILL

for

AN ACT relating to
public utilities; providing for
electric utilit
y resource planning
;
establishing
requirements for
resource plans;
establishing requirements for periodic review of electric utility resources;
grant
ing rulemaking authority;
and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 37
‑
3
‑
116
through

37
‑
3
‑
11
8
are
created to read:

37
‑
3
‑
116.

Electric utility
resource plan
ning; rulemaking authority
.

(a)

Any public
utility
providing service
pursuant to W.S. 37
‑
1
‑
101(a)(vi)(C) may
file a

resource plan with the commission in accordance with this section.

(
b
)

Any public
utility
providing service
pursuant to W.S. 37
‑
1
‑
101(a)(vi)(C) to fifty thousand (50,000) or more retail electric customers in Wyoming shall
file a

resource plan with the commission in accordance with this section.

(c)

The commission shall:

(i)

Establish criteria and procedures for resource plan approval;

(ii)

Establish the data
and
analysis necessary for a full and fair consideration of the prudence and reasonableness of each resource plan;

(iii)

Designate any
minimum short and long term planning
horizon
s
used in the resource plan;

(iv)

Establish public hearing requirements;
and

(v)

Address a
ny requirements for periodic updati
ng
of
the resource plan.

(
d
)

A

resource plan
shall at
a minimum
:

(i)

F
ully explain the
electric
utility
’s future resource needs
;

(ii)

D
escribe how t
he electric utility
intends to satisfy
future resource
needs
;

(iii)

D
escribe the planning and forecasti
ng processes utilized;
and

(iv)

F
urnish supporting documentatio
n for all aspects of the
resource
plan
.

(e)

Within nine (9) months of the filing of a resource plan, and after notice and opportunity for hearing, the commission shall by order decide on the prudence and reasonableness of the resource plan and whether the resource plan is consistent with the public interest. The commission shall:

(i)

Approve the resource plan as written;

(ii)

Specify changes and additions which, if accepted by the electric utility, would permit the commission to approve the resource plan; or

(iii)

Reject the plan.

37
‑
3
‑
117.

Electric utility
periodic review of resources
; hearings
.

(a)

The commission shall
establish
a process, including an opportunity for hearing, in which an electric utility may
elect to
seek approval of a specific electrical generation or transmission resource the electric utility intends to construct or acquire in furtherance of its approved resource plan,
regardless of
whether
the
resource is to be located in
Wyoming
or another state.
The process
shall also provide a subsequent hearing process for periodic review and approval by order of the actual costs incurred and progress of construction of the approved resource prior to the
electric utility
inclu
d
in
g
the costs of the resource in the electric utility’s
Wyoming
retail rates.

(
b
)

An electric utility shall not be precluded from using the processes
established pursuant to
subsection (
a
)
of this section
for a resource
which
w
as commenced
without seeking commission approval prior to
construction
. However
,

the subsequent inclusion in
Wyoming
rates of the costs incurred prior to submitting the project to commission review shall be at the electric utility’s risk until these costs are reviewed and approved by the commission.

(
c
)

When an electric utility seeks to include the cost of a generation or transmission resource, or a portion thereof, in its retail electric rates in

Wyoming
, the electric utility shall have the burden of proving
the prudence and reasonableness of the resource and associated costs. If the resource is part of a resource plan approved by the commission pursuant to
W.S.
37
‑
3
‑
116 and has been reviewed and approved by the commission in periodic reviews pursuant to subsection (a) of this section, the
electric
utility shall be deemed to have satisfied its burden of proof regarding the prudence and reasonableness of the resource and the costs of the resource to the extent
these
costs have been reviewed and approved by the commission in the periodic reviews. The burden of proof shall remain with the electric utility with respect to other issues including, but not limited to
:

(i)

T
he reasonableness of the costs of the resource to the extent not approved in a periodic review
;

(ii)

W
hether the resource is in operation
;
and

(iii)

W
hether the resource is operated prudently.

(
d
)

All hearings provided
pursuant to
W.S. 37
‑
3
‑
116
and
this section shall be deemed contested cases as defined in W.S. 16
‑
3
‑
101(b)(ii).

(
e
)

The commission shall promulgate any rules it deems necessary to implement
W.S. 37
‑
3
‑
116 and
this section.
All rules and procedures
established by the commission
shall comply with the Wyoming Administrative Procedure Act.

37
‑
3
‑
118.

Authority to confer with other r
egional
, state

and federal entities; expenses
.

The commission may
confer in person,
participate
in meetings
and represent the interests of the citizens of
Wyoming
in any regional or multi
‑
state planning or cost allocation process with other state and federal entities regarding electric generation resources or transmission facilities
and shall be allowed actual traveling expenses when engaged in such work
.

Section 2.

W.S. 37
‑
3
‑
106(a) is amended to read:

37
‑
3
‑
106.

Temporary suspension of rates; burden of proof; notice of rate changes; bonding; refunding of amounts collected in excess of final rates.

(a)

Except as provided in W.S. 37
‑
3
‑
11
7
(
c
) a
t any hearing as provided in this act involving an increase in rates or charges sought by a public utility, the burden of proof to show that the increased rate or charge is just and reasonable shall be upon the utility.

Section 3.

This act is effective July 1, 2007.

(END)

1
HB0012