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20LSO-0545
2020
STATE OF WYOMING
20LSO-0545
Introduced
2.0
SENATE FILE NO. SF0133
Electric generation facilities-operation and retirement.
Sponsored by: Senator(s) Dockstader and Representative(s) Crank and Simpson
A BILL
for
AN ACT relating to public utilities; requiring advance notice of the retirement of electric generation facilities as specified; specifying procedures; authorizing rate recovery as specified; defining terms; specifying applicability; requiring rulemaking; 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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134 is created to read:
37
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134.
Operation and retirement of electric generation facilities; procedures; rate recovery.
(a)
As used in this section:
(i)
"Dispatch" means electricity that is
available for use on demand and that can be transmitted upon request of a power grid operator or that can have its power output adjusted, according to market needs;
(ii)
"Electric utility" means any public utility, electrical company or electric cooperative that is engaged in the business of distributing electricity to electric customers in Wyoming;
(iii)
"Electricity generating resource" means any plant or equipment used to generate electricity by any means;
(iv)
"Regional transmission organization" means the regional transmission organization approved by the Federal Energy Regulatory Commission for a control area that includes the electric utility's electricity generating resource;
(v)
"Reliable" means generated electricity that is not subject to intermittent availability;
(vi)
"Reliable generation resource" means an electric generating resource that:
(A)
Is located in Wyoming;
(B)
Has a capacity valued by a regional transmission organization of not less than eighty percent (80%) of the electricity generating resource's rated capacity;
(C)
Maintains an annual average onsite fuel inventory of at least thirty (30) days of average fuel consumption.
(b)
An electric utility that owns or operates a reliable generation resource shall operate and maintain the resource in a manner reasonably likely to secure the availability of the resource for dispatch and for providing reliable electric service to the utility's customers.
(c)
An electric utility shall provide advance notice to the commission as follows:
(i)
Except as provided in paragraph (ii) of this subsection, not less than three (3) years of advance notice when the electric utility seeks to retire, sell or transfer a reliable generation resource;
(ii)
If the commission finds that the electric utility has demonstrated an emergency which necessitates retirement, sale or transfer of a reliable generation resource, not less than six (6) months of advance notice.
(d)
A public utility providing notice as required by subsection (c) of this section shall include in the notice its reasons for the proposed retirement, sale or transfer of the reliable generation resource, including whether a federal law, regulation, order or rule is the basis, in whole or in part, of the planned retirement, sale or transfer of the reliable generation resource.
(e)
Not less than one hundred twenty (120) days before the planned retirement, sale or transfer of a reliable generation resource, the commission shall hold a public hearing in accordance with the provisions of this
title, the Wyoming Administrative Procedure Act and rules of the commission. The commission shall consider public comment on the planned retirement, sale or transfer. At least sixty (60) days before the planned retirement, sale or transfer, the commission shall issue findings and conclusions regarding the reasonableness of the planned retirement, sale or transfer. If an electric utility cites a federal law, regulation, order or rule as a basis for the retirement, sale or transfer the commission may consider in making its findings and conclusions whether the cited federal mandate is in effect, has been or is planned to be revoked and the likelihood of the federal law, regulation, order or rule being enacted if not yet in effect.
(f)
An electric utility shall not retire, sell or transfer a reliable generation resource with a rated capacity of eighty (80) megawatts or more until:
(i)
The electric utility complies with the provisions of W.S. 37
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117 to the extent applicable; and
(ii)
The commission has held the hearing and issued its findings as required under subsection (e) of this section.
(g)
Nothing in this section shall be construed to relieve an electric public utility from the purchase requirements of W.S. 37
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133.
(h)
Subject to W.S. 37
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117 and any other provision of law reducing or limiting rate or cost recovery, an electric utility may seek to recover rates associated with new electric generation facilities built to replace reliable generation resources that are retired, sold or transferred in accordance with this section.
Section 2.
(a)
For any electric utility that is planning to retire, sell or transfer a reliable generation resource for which the deadline to provide notice under W.S. 37
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134(c), as created by section 1 of this act, has passed, then the electric utility shall provide notice as required by that subsection not later than thirty (30) days
after the effective date of this act. The notice shall include the reasons required by W.S. 37
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134(d), as created by section 1 of this act.
(b) Upon receiving notice as required by this subsection, the public service commission shall hold a hearing not less than sixty (60) days before the planned retirement, sale or transfer of the reliable generation resource in accordance with W.S. 37
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134(e), as created by section 1 of this act.
Section 3.
The public service commission shall promulgate rules necessary to implement this act.
Section 4
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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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SF0133