Utilities-presumption against facility retirements.
AN ACT relating to public utilities; creating a presumption against the retirement of electric generation facilities as specified; providing definitions related to the presumption; specifying how a public utility can rebut the presumption; limiting rate recovery for public utilities retiring electric generation facilities without rebutting the presumption as specified; requiring consideration of reliability before approving the retirement of an electric generation facility; requiring rulemaking; and providing for effective dates.
Energy
Enacted
This bill passed the Legislature and reached final enactment based on the latest official action.
Sponsor
Representative Harshman
Last action
2021-04-14
Official status
enrolled
Effective date
7/1/2021
Plain English Breakdown
The summary does not specify that the act requires rulemaking, though it's clear from the bill text.
Utilities-presumption against facility retirements
This law creates a presumption against retiring electric generation facilities, especially those using coal or natural gas, and sets rules for public utilities to follow when considering such retirements.
What This Bill Does
Creates a rule that it is harder for companies to close down power plants that use coal or natural gas.
Requires the Public Service Commission to look at how closing these plants might affect electricity supply before allowing them to be closed.
Limits how much money utilities can get back from customers if they close such plants without proving why it's necessary.
Who It Names or Affects
Public utilities that own and operate electric generation facilities in Wyoming.
The Public Service Commission, which regulates these utilities.
Customers of public utilities who might see changes in electricity supply or rates.
Terms To Know
Dispatchable
Electricity that can be produced when needed and controlled by the utility company.
Reliable
Electricity that is available consistently without interruptions.
Limits and Unknowns
The law does not apply to plants closed due to federal laws or environmental requirements.
It's unclear how the new rules will affect electricity prices for customers in the long term.
Amendments
These notes stay tied to the official amendment files and metadata from the legislature.
Standing Committee • House Minerals, Business and Economic Development
Adopted
Plain English: The amendment passes a bill that creates rules about when electric power plants can be shut down.
Passes the bill which sets up a rule that it's harder for companies to close down power plants.
The text of the amendment does not provide specific details on how the presumption against retiring facilities will work or what exceptions might exist.
It is unclear from this brief text exactly what new rules are being added beyond passing the bill.
Standing Committee • Senate Minerals, Business and Economic Development
Adopted
Plain English: The amendment changes the bill to focus on preventing the retirement of electric generation facilities without considering reliability and impact on customers.
Removes references to 'closing' and replaces them with 'retiring'.
Adds a requirement for the commission to consider reliability before approving the retirement of an electric generation facility.
Modifies definitions related to 'retirement' and 'dispatchable capacity'.
The amendment text includes many technical changes that may be hard to understand without additional context.
Bill History
2021-04-14LSO
Assigned Chapter Number 154
2021-04-14Governor
Governor Signed HEA No. 0088
2021-04-06Senate
S President Signed HEA No. 0088
2021-04-06House
H Speaker Signed HEA No. 0088
2021-04-06LSO
Assigned Number HEA No. 0088
2021-04-06House
H Concur:Passed 49-8-3-0-0
2021-04-06House
H Received for Concurrence
2021-04-02Senate
S 3rd Reading:Passed 25-2-2-0-1
2021-04-02Senate
S 2nd Reading:Passed
2021-04-01Senate
S COW:Passed
2021-04-01Senate
S Placed on General File
2021-04-01Senate
S09 - Minerals:Recommend Amend and Do Pass 5-0-0-0-0
2021-03-22Senate
S Introduced and Referred to S09 - Minerals
2021-03-22Senate
S Received for Introduction
2021-03-22House
H 3rd Reading:Passed 49-10-1-0-0
2021-03-19House
H 2nd Reading:Passed
2021-03-18House
H COW:Passed
2021-03-11House
H Placed on General File
2021-03-11House
H09 - Minerals:Recommend Amend and Do Pass 8-1-0-0-0
2021-03-03House
H Introduced and Referred to H09 - Minerals
2021-03-01House
H Received for Introduction
2021-02-27LSO
Bill Number Assigned
Official Summary Text
Bill Summary - 21LSO-0563
Bill No.:
HB0166
Effective:
Multiple Dates
LSO No.:
21LSO-0563
Enrolled Act No.:
HEA No. 0088
Chapter No.:
154
Prime Sponsor:
Harshman
Catch Title:
Utilities-presumption against facility retirements.
Subject:
Electricity reliability considerations and presumptions.
Summary/Major Elements:
This act requires the Public Service Commission to, before authorizing or approving the retirement of an electric generation facility, consider the effect on available reliable, dispatchable electricity to Wyoming customers and the impact that any shortage of available energy nationwide may have on Wyoming customers.
The act establishes a rebuttable presumption against the retirement of an electric generation facility—defined as one that uses coal or natural gas as its fuel.
The Public Service Commission shall not approve the retirement of an electric generation facility unless the public utility seeking its retirement provides evidence to rebut the presumption to establish that: (1) costs savings will result to customers; (2) the retirement will not result in an insufficient amount of reliable and dispatchable capacity to serve Wyoming customers; and (3) the retirement will not adversely impact the dispatchability or reliability of electric service to the public utility's customers.
A public utility that completes a retirement of an electric generation facility without rebutting the presumption is subject to limitations on rate recovery for any replacement facility built to replace the coal-fired or gas-fired electric generation facility that is retired.
The act does not apply to electric generation facilities closed as required by federal law or closed because of federal environmental requirements to where the facility is no longer cost effective to operate.
The act requires the Public Service Commission to promulgate rules to implement the act; the rulemaking authority is effective immediately.
The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.
While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.
Current Bill Text
Read the full stored bill text
21LSO-0563
ORIGINAL House
ENGROSSED
Bill No
.
HB0166
ENROLLED ACT NO. 88,
HOUSE OF REPRESENTATIVES
SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2021 General Session
AN ACT relating to public utilities; creating a presumption against the retirement of electric generation facilities as specified; providing definitions related to the presumption; specifying how a public utility can rebut the presumption; limiting rate recovery for public utilities retiring electric generation facilities without rebutting the presumption as specified; requiring consideration of reliability before approving the retirement of an electric generation facility; requiring rulemaking; and providing for effective dates.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.
W.S. 37
‑
2
‑
134 and 37
‑
3
‑
118 are created to read:
37
‑
2
‑
134.
Electric generation facility closures; presumption; commission review.
(a)
As used in this section:
(i)
"Dispatchable" means as defined in W.S. 37
‑
18
‑
101(a)(ii) and includes dispatchability;
(ii)
"Retirement" or "retired" means the closure of or the complete and permanent cessation of operations at an electric generation facility. "Retirement" or "retired" shall not include any closure mandated by federal law or any closure resulting from federal environmental requirements to where it is no longer cost effective for the facility to continue operating;
(iii)
"Electric generation facility" means a facility located in Wyoming that uses coal or natural gas
to generate reliable and dispatchable electricity for provision to customers;
(iv)
"Reliable" means as defined in W.S. 37
‑
18
‑
101(a)(iv).
(b)
Before authorizing or approving the retirement of an electric generation facility as proposed in a rate case, integrated resource plan or other submission to the commission, the commission shall consider the effect on available reliable, dispatchable electricity to Wyoming customers and the impact that any shortage of available energy nationwide may have on Wyoming customers.
(c)
There shall be a rebuttable presumption against the retirement of an electric generation facility. The commission shall not approve the retirement of an electric generation facility unless the presumption created by this subsection is rebutted by evidence deemed sufficient by the commission to establish that:
(i)
Cost savings will result to customers as a result of the retirement of the electric generation facility;
(ii)
The retirement will not result in an insufficient amount of reliable and dispatchable capacity to serve Wyoming customers; and
(iii)
The retirement will not adversely impact the dispatchability or reliability of electric service to customers of the public utility.
(d)
The rate recovery limitations of W.S. 37
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3
‑
118 shall apply to a public utility that completes a retirement of an electric generation facility without rebutting the presumption specified in this section.
(e)
Nothing in this section shall be construed to relieve a public utility of the requirements to comply with W.S. 37
‑
2
‑
133 and 37
‑
3
‑
117 before the retirement of an electric generation facility.
37
‑
3
‑
118.
Limitation for recovery of costs for replacing electric generation facilities
.
(a)
As used in this section, "retirement" or "retired" means as defined in W.S. 37
‑
2
‑
134(a)(ii).
(b)
Notwithstanding any other provision of this chapter but in addition to W.S. 37
‑
3
‑
117, the rates charged by an electric public utility shall not include any recovery of or earnings on the capital costs associated with electric generation facilities built, in whole or in part, to replace the electricity generated from a retired coal or natural gas electric generation facility that was retired on or after July 1, 2021 and for which the presumption against retirement was not rebutted by the public utility as required by W.S. 37
‑
2
‑
134.
Section 2
.
The public service commission shall promulgate all rules necessary to implement the provisions of this act.
Section 3.
(a)
Except as provided in subsection (b) of this section, 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.
(b)
Section 1 of this act is effective July 1, 2021
.
(END)
Speaker of the House
President of the Senate
Governor
TIME APPROVED: _________
DATE APPROVED: _________
I hereby certify that this act originated in the House.
Chief Clerk
1