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21LSO-0405
2021
STATE OF WYOMING
21LSO-0405
Numbered
2.0
HOUSE BILL NO. HB0248
Electricity production standard.
Sponsored by: Representative(s) Bear, Fortner, Knapp and Zwonitzer and Senator(s) Hicks and McKeown
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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301 through 37
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305 are created to read:
ARTICLE 3
ELECTRICITY PRODUCTION STANDARD
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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 the period beginning January 1, 2023 and ending December 31, 2023 and each calendar year thereafter;
(iii)
"Electric utility" means a public utility as defined by W.S. 37
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1
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101(a)(vi)(C);
(iv)
"Electricity generating resource" means any plant or equipment used to generate electricity by any means;
(v)
"Eligible generating resource" means an electricity generating resource that produces electricity from one (1) or more of the following sources or systems:
(A)
Coal;
(B)
Thermogenic natural gas;
(C)
Oil;
(D)
Hydroelectric;
(E)
Biogenic natural gas;
(F)
Net metering system, as defined by W.S. 37
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16
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101(a)(viii);
(G)
Nuclear;
(H)
Geothermal;
(J)
Hydrogen.
(vi)
"Energy credit" means the exclusive right to claim the attributes, other than energy and capacity, of one (1) megawatt hour of electricity generated by an eligible generating resource;
(vii)
"Thermogenic natural gas" means natural gas formed by chemical reactions without the presence of microorganisms.
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302.
Eligible generating resource standard; exception.
(a)
In compliance year 2023, each electric utility shall produce or procure a minimum of ninety
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five percent (95%) of electricity sold in Wyoming from eligible generating resources located in Wyoming, except as provided in subsection (c) of this section
but in accordance with W.S. 37
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102
.
(b)
In compliance year 2024 and in each subsequent compliance year, each electric utility shall produce or
procure a minimum of one hundred percent (100%) of electricity sold in Wyoming from eligible generating resources located in Wyoming, except as provided in subsections (c) and (d) of this section
but in accordance with W.S. 37
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102
.
(c)
An electric utility may utilize electricity generated from eligible generating resources 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.
(d)
An electric utility's minimum obligation to produce or procure electricity sold in Wyoming from
eligible generating resources in any compliance year may be reduced to the extent the utility:
(i)
Is required by law to purchase electricity produced by other generating facilities;
(ii)
Produces electricity from other generating facilities constructed pursuant to a certificate of public convenience and necessity or otherwise approved by the commission and included in rates prior to January 1, 2023;
(iii)
Obtained energy credits for the compliance year, except that the minimum obligation shall not be satisfied by obtaining energy credits if the utility has retired an eligible generating resource prior to the end of its depreciable life, unless such retirement is necessary to comply with federal or Wyoming law; or
(iv)
Has contracted with customers for the purchase of renewable energy.
(e)
In determining just and reasonable rates under W.S. 37
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122, the commission shall take into consideration the requirements of this article.
(f)
Nothing in this section shall supersede the requirements of W.S. 37
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102.
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303.
Energy credits; administrative penalty.
(a)
An electric utility may purchase or otherwise obtain 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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302, only energy credits associated with electricity from an eligible generating resource located in Wyoming and for which the associated energy credits have not been sold separately.
(c)
An electric utility may use 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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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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302.
(e)
If an electric utility fails to meet the standards specified in W.S. 37
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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 or procure. An electric utility shall not recover this penalty through its electricity rates.
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304.
Reporting.
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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305.
Commission authority; rulemaking authority; penalties; sunset.
(a)
Not later than November 1, 2022, the commission shall adopt rules to implement and enforce the provisions of this article. The rules shall establish:
(i)
A system for validating energy credits;
(ii)
Any additional criteria necessary to identify eligible generating resources;
(iii)
Requirements for annual compliance 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 compliance report.
(b)
This article is repealed effective July 1, 2028.
Section 2.
W.S. 37
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2
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122(a) and 37
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102(c) by creating a new paragraph (iv) are amended to read:
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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 take into consideration
the requirements
of W.S. 37
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301 through 37
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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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114(b)(i) and regional benefits provided by the utility.
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102.
Energy generation portfolio standards; reporting requirements; rate recovery and limitations.
(c)
Subject to W.S. 37
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117(a) and the limitation in subsection (b) of this section, the commission shall consider the following when establishing reasonable rates for a public utility working toward and achieving the electricity generation standards established under subsection (a) of this section:
(iv)
The requirements of W.S. 37
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301 through 37
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305.
Section 3
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This act is effective July 1, 2021.
(END)
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HB0248