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20LSO-0538
2020
STATE OF WYOMING
20LSO-0538
Numbered
2.0
SENATE FILE NO. SF0125
Electricity production standard.
Sponsored by: Senate Appropriations Committee
A BILL
for
AN ACT relating to electric utilities; establishing minimum procurement requirements for electric utilities; requiring reports; defining terms; providing enforcement and rulemaking authority; mandating the public service commission to account for specified factors in rate setting; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.
W.S. 37
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16
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301 through 37
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16
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305 are created to read:
ARTICLE 3
ELECTRICITY PRODUCTION STANDARD
37
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16
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301.
Definitions.
(a)
As used in this article:
(i)
"Biogenic natural gas" means natural gas formed through a biological process;
(ii)
"Compliance year" means any twelve (12) month period beginning January 1 and ending December 31, starting in 2021, for which compliance with this article shall be demonstrated;
(iii)
"Dispatch ability" means the ability of a transmission system control operator, who balances electricity supply and load to meet transmission system operating criteria and to provide reliable electric service to customers, or the owner of an electricity generating resource to rapidly start, stop, increase or decrease electricity production from that electricity generating
resource in order to respond to the electricity transmission system's needs;
(iv)
"Electric utility" means any electrical company or electric cooperative that is engaged in the business of distributing electricity to electric customers in Wyoming;
(v)
"Electricity generating resource" means any plant or equipment used to generate electricity by any means;
(vi)
"Eligible generating resource" means an electricity generating resource that produces electricity from one (1) or more of the following sources or systems:
(A)
Biogenic natural gas;
(B)
Coal;
(C)
Hydroelectric;
(D)
Net metering system, as defined by W.S. 37
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16
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101(a)(viii);
(E)
Nuclear;
(F)
Oil;
(G)
Thermogenic natural gas.
(vii)
"Energy credit" means a certificate of proof of one (1) megawatt hour of electricity generated by an eligible generating resource that is tracked and verified by the commission and includes all of the attributes associated with one (1) megawatt hour unit of electricity production;
(viii)
"Thermogenic natural gas" means natural gas formed by chemical reactions without the presence of microorganisms.
37
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16
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302.
Eligible generating resource standard; exception.
(a)
In compliance year 2021, each electric utility shall procure a minimum of ninety
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five percent (95%) of its sales of electricity in Wyoming or electricity that will be offered for sale in Wyoming from eligible generating resources located in Wyoming, except as provided in subsection (c) of this section.
(b)
In compliance year 2022 and in each subsequent compliance year, each electric utility shall procure a minimum of one hundred percent (100%) of its sales of electricity in Wyoming or electricity that will be offered for sale in Wyoming from eligible generating resources located in Wyoming, except as provided in subsection (c) of this section.
(c)
An electric utility may utilize electricity generated from eligible generating resources generated or produced outside of Wyoming to satisfy the standards established in this section if the electric utility demonstrates to the commission's satisfaction that:
(i)
Eligible generating resources located within Wyoming are unavailable; or
(ii)
Eligible generating resources are available from outside of Wyoming at a lower cost to Wyoming electric utility customers.
37
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16
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303.
Energy credits; administrative penalty.
(a)
An electric utility may purchase energy credits for a compliance year through December 31 of that year.
(b)
Except as provided in subsection (c) of this section, in order to meet the minimum procurement standards specified in W.S. 37
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16
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302, an electric utility shall use electricity from an eligible generating resource located in Wyoming in which the associated energy credits have not been sold separately.
(c)
An electric utility may purchase energy credits from an eligible generating resource generated or produced outside of Wyoming to meet the minimum production standards
specified in W.S. 37
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16
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302 if the electric utility demonstrates to the commission's satisfaction that:
(i)
Eligible generating resources located within Wyoming are unavailable;
(ii)
Energy credits for electricity from an eligible generating resource located in Wyoming are unavailable for purchase; or
(iii)
Energy credits are available from outside of Wyoming that will result in lower costs to Wyoming electric utility customers.
(d)
An electric utility shall not resell or otherwise transfer energy credits and count those sold credits against the electric utility's obligation to meet the standards specified in W.S. 37
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16
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302.
(e)
If an electric utility is unable to meet the standards specified in W.S. 37
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16
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302 in any compliance year, the electric utility shall pay an administrative
penalty, assessed by the commission, of ten dollars ($10.00) for each megawatt hour of energy the electric utility failed to produce and for each megawatt hour of energy credits the electric utility failed to procure. An electric utility may not recover this penalty through its electricity rates.
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16
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304.
Procurement; reporting.
(a)
In meeting the requirements of this article, an electric utility shall:
(i)
Conduct energy credit solicitation under which the electric utility offers to purchase energy credits under contracts of not less than ten (10) years in duration;
(ii)
When procuring energy credits, consider the importance of dispatch ability and other attributes of the eligible generating resource contained in the commission's supply procurement rules.
(b)
In accordance with commission rules, an electric utility shall submit annual reports demonstrating compliance with this article for each compliance year. The reports shall be filed with the commission not later than March 1 of the year following a compliance year.
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16
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305.
Commission authority; rulemaking authority; penalties.
(a)
Not later than November 1, 2020, the commission shall adopt rules to implement and enforce the provisions of this article. The rules shall establish:
(i)
An energy credit tracking system and a system to track energy production to verify compliance with this article;
(ii)
A system by which electricity generating resources may be certified as eligible generating resources;
(iii)
Requirements for annual reports and supply procurement;
(iv)
An appropriate administrative penalty not to exceed one thousand dollars ($1,000.00) for an electric utility's failure to file an annual report.
Section 2.
W.S. 37
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2
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122(a) is amended to read:
37
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2
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122.
Matters considered in fixing rates; order changing services or facilities.
(a)
In determining what are just and reasonable rates the commission
may
shall
take into consideration
the requirements of W.S. 37
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16
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301 through 37
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16
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305, the
availability or reliability of service, depreciation of plant, technological obsolescence of equipment, expense of operation, physical and other values of the plant, system, business and properties of the public utility whose rates are under consideration. In determining just and reasonable rates for electricity the commission shall
also
consider common sets of facts developed pursuant to W.S.
37
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2
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114(b)(i) and regional benefits provided by the utility.
Section 3.
This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.
(END)
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SF0125