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21LSO-0688
2021
STATE OF WYOMING
21LSO-0688
Numbered
2.0
HOUSE BILL NO. HB0259
Public utilities-regulatory amendments.
Sponsored by: Representative(s) Zwonitzer and Senator(s) Dockstader
A BILL
for
AN ACT relating to public utilities; providing legislative findings; amending reliable and dispatchable energy standards to require the public service commission to establish reliability and transparency requirements; amending low-carbon energy standard requirements to require the use of certain generation facilities as specified; authorizing the public service commission to revoke certificates of convenience and necessity as specified; amending and defining terms related to low-carbon energy standards and requirements; amending the public service commission's authority to revoke certificates for violations as specified; amending standards for the commission to consider during rate cases; amending requirements and procedures for the sale and purchase of otherwise retiring coal-fired generation facilities; amending the definitions, purposes, duties, bonding authority and requirements and general powers of the Wyoming energy authority; amending bonding provisions and requirements pertaining to the Wyoming energy authority; amending general penalties for public utilities; making conforming amendments; requiring rulemaking; and providing for effective dates.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.
(a)
The legislature finds that:
(i)
Wyoming is the largest producer of coal in the United States, supplying approximately forty percent (40%) of the nation's coal, which is used to generate approximately eleven percent (11%) of the nation's electricity that is supplied to millions of consumers in the United States;
(ii)
Approximately two
‑
thirds (2/3) of the electricity produced in Wyoming, most of which is produced
by coal
‑
fired electric generation facilities, is exported to other states, ensuring reliability and sufficient resource adequacy of the electric transmission grid;
(iii)
The welfare and economic security of Wyoming and its citizens depend upon the reliability and resiliency of the nation's electric power supply;
(iv)
Electric power markets have likely been distorted by direct and indirect subsidies and will not function rationally until policies account for the true and total cost of generated electricity;
(v)
Market distortions have resulted in the undervaluation of dispatchable thermal electric power generation facilities that are now at risk of early retirement, which will further erode the reliability and resiliency of the electric grid;
(vi)
The variability and nondispatchability of wind and solar electric generation threatens to expose the bulk power system to reliability and resiliency challenges
without the continued presence of significant dispatchable thermal electric generation;
(vii)
Economics and scaling issues will prevent energy storage technologies from replacing dispatchable thermal electric generation and providing grid support for the foreseeable future;
(viii)
The current system of regulatory oversight is hindered in its ability to ensure the reliability and resiliency of the electric grid because markets are distorted by direct and indirect subsidies, which prevent ratepayers from knowing the true and total cost of the electric power they are purchasing. Similarly, subsidies lead to analyses that incorporate premature retirement of thermal electric power generation and do not adequately consider the reliability and resiliency penalties of renewable, nondispatchable energy;
(ix)
In the states served by the Western Interconnection, state policies mandating and incentivizing the deployment of significant nondispatchable electricity sources, including wind and solar, are imposing reliability
and resiliency penalties on the bulk power system that Wyoming citizens and industries rely upon;
(x)
It is essential that the state immediately develops additional regulatory structures to ensure that a system is put into place to address the reliability and resiliency penalties being imposed on the state as a result of the deployment of nondispatchable sources of electricity, and that Wyoming citizens and industries are given more transparency about the true and total cost of the deployment of those sources of electricity.
Section 2.
W.S. 37
‑
18
‑
103 is created to read:
37
‑
18
‑
103.
Energy reliability standards; enforcement; reporting requirements.
(a)
In addition to the standards established under W.S. 37
‑
18
‑
102, beginning on July 1, 2021, one hundred percent (100%) of the electricity generated or purchased by a public utility shall be dispatchable. Any public utility not meeting the standard required by this subsection shall:
(i)
Offset the reliability difference of nondispatchable sources of electricity through firming; or
(ii)
If the public utility does not offset the reliability difference, be subject to revocation of the public utility's certificate of convenience and necessity issued under W.S. 37
‑
2
‑
205.
(b)
To ensure that the reliability standard specified in subsection (a) of this section is implemented, the commission shall:
(i)
Require public utilities generating or purchasing nondispatchable electricity to demonstrate to the commission not later than December 1, 2022, and not later than each December 1 thereafter, that the public utility has secured sufficient firming capacity to meet the reliability standard in subsection (a) of this section. As part of this annual reporting requirement, the commission shall require each public utility to demonstrate or provide:
(A)
The firming costs necessitated by the use of renewable, nondispatchable energy;
(B)
The total transmission costs with an allocation of the transmission costs necessitated by the use of renewable, nondispatchable energy.
(ii)
Commence revocation proceedings under W.S. 37
‑
2
‑
205 if a public utility fails to meet the requirements of subsection (a) of this section.
Section 3.
W.S. 15
‑
1
‑
103(b)(ix), 37
‑
1
‑
101(a)(vi)(N), 37
‑
2
‑
120, 37
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2
‑
121, 37
‑
2
‑
133(b)(intro), (i), (iii), (d) through (f), (g)(intro) and (h), 37
‑
2
‑
205 by creating a new subsection (k), 37
‑
3
‑
116(d)(ii), 37
‑
3
‑
117(a)(i), (ii), (d), (e)(iv) and (vi), 37
‑
5
‑
501(a)(iv) and (v), 37
‑
5
‑
503(a)(intro), (i), (ii)(A), (v), (viii), by creating new paragraphs (x) through (xiii), (b), (c) and (f) through (j), 37
‑
5
‑
504(a)(ii), (iv), (v), (x), (xv) and by creating a new paragraph (xviii), 37
‑
5
‑
505(d) and (g)(intro), 37
‑
5
‑
506(a), (c) and by creating a new subsection (d), 37
‑
5
‑
602(b) and (m), 37
‑
5
‑
603(a), 37
‑
5
‑
607(a)(i) and (b), 37
‑
12
‑
118, 37
‑
18
‑
101(a)(i) through (iii) and by creating
new paragraphs (v) through (x) and 37
‑
18
‑
102(a)(i) through (iii), (v)(A), (C), (c)(ii), (d) and by creating new subsections (f) and (g) are amended to read:
15
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1
‑
103.
General powers of governing bodies.
(b)
Any franchise granted pursuant to subparagraph (a)(xxxiii)(C) of this section is subject to the following:
(ix)
If a distribution system has only one (1) supplier of natural gas all prices charged in that franchise are subject to W.S.
37
‑
2
‑
121
37
‑
2
‑
121(a)
and 37
‑
2
‑
122;
37
‑
1
‑
101.
Definitions.
(a)
As used in chapters 1, 2, 3, 12, 17 and 18 of this title:
(vi)
"Public utility" means and includes every person that owns, operates, leases, controls or has power to operate, lease or control:
(N)
The provisions of W.S. 37
‑
18
‑
101
and 37
‑
18
‑
102
through 37
‑
18
‑
103
shall not apply to any public utility owned or operated by a municipality or any cooperative electrical generation and transmission association operating in interstate commerce whose rates are not regulated by the Wyoming public service commission.
37
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2
‑
120.
Order in case of violation; public hearing required for change in rate or service; certificate revocation.
Whenever, after investigation in accordance with the provisions of this act, the commission shall be of the opinion that any provisions or requirements of this act
, title or any other law
, or any order of the commission is being, has been, or is about to be violated, it may make and enter of record an order in the premises, specifying the actual or proposed acts or omissions to act which constitute such real or proposed violations, and require that such violations be discontinued or rectified, or both, or that it be prevented.
The commission may make and enter of record an order to revoke a public utility's certificate of convenience and necessity or any other right, privilege,
franchise or certificate granted by the commission under W.S. 37
‑
2
‑
205(k) for any violation.
No order, however, shall be made by the commission which requires the change of any rate or service, facility or service regulation except as otherwise specifically provided,
or for a revocation of any certificate, right, privilege or franchise,
unless or until all parties are afforded an opportunity for a hearing in accordance with the Wyoming Administrative Procedure Act.
After any hearing under this section and in addition to any revocation of a certificate, right, privilege or franchise, the commission shall assess a civil penalty upon the public utility not to exceed one million dollars ($1,000,000.00) for each day that the violation is not discontinued or rectified pursuant to an order.
37
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2
‑
121.
When rate to be changed by commission; nontraditional rate making; considerations for electric utilities.
(a)
If upon hearing and investigation, any rate shall be found by the commission to be inadequate or unremunerative, or to be unjust, or unreasonable, or
unjustly discriminatory, or unduly preferential or otherwise in any respect in violation of any provision of this act, the commission, within the time periods provided under W.S. 37
‑
3
‑
106(c) may fix and order substituted therefor a rate as it shall determine to be just and reasonable, and in compliance with the provisions of this act. The rate so ascertained, determined and fixed by the commission shall be charged, enforced, collected and observed by the public utility for the period of time fixed by the commission. The rates may contain provisions for incentives for improvement of the public utility's performance or efficiency, lowering of operating costs, control of expenses or improvement and upgrading or modernization of its services or facilities.
Any public utility may apply to the commission for its consent to use innovative, incentive or nontraditional rate making methods.
In conducting any investigation and holding any hearing in response thereto, the commission may consider and approve proposals which include any rate, service regulation, rate setting concept, economic development rate, service concept, nondiscriminatory revenue sharing or profit
‑
sharing form of regulation and policy, including policies for the encouragement of the development of public
utility infrastructure, services, facilities or plant within the state, which can be shown by substantial evidence to support and be consistent with the public interest
of the citizens of Wyoming
.
(b)
When evaluating electric resource acquisitions, integrated resource plans, requests for certificates of convenience and necessity or other requests or petitions for the acquisition, replacement, construction, decommissioning, abandonment, transfer or expansion of electric generation facilities, the commission shall consider the effects on Wyoming labor and employment and the short
‑
term and long
‑
term social and economic viability of Wyoming businesses and communities. Any submission specified in this subsection to the commission shall be accompanied by a description of the external environmental and economic consequences of the plan.
37
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2
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133.
Exemption for purchase of coal fired generation facilities that would otherwise have been retired; public utility purchase requirements; conditions for exemption.
(b)
Electric public utilities
, other than cooperative electric utilities,
that sell a coal fired electric generation facility under an agreement approved by the commission
shall be obligated to purchase electricity generated from
a
that
coal fired electric generation facility purchased under agreement approved by the commission under W.S. 37
‑
3
‑
117 provided that:
(i)
The person purchasing the otherwise retiring coal fired electric generation facility offers to sell some or all of the electricity from the facility to an electric public utility
that sold the facility. For purposes of this paragraph, "person" shall include the Wyoming energy authority, any other instrumentality of the state, a cooperative electric utility or a municipal utility
;
(iii)
The electricity is sold under a power purchase agreement with a specified term length
of not less than twenty (20) years, or another term length specified by the purchaser, from the closing of the purchase of the otherwise retiring coal fired generation facility
and such other terms and conditions as may be approved by the commission; and
(d)
The commission
may
shall
elect to set the avoided cost price and other terms and conditions for the purchase of electricity from an otherwise retiring coal fired electric generation facility in advance of the facility's proposed retirement date
and shall promulgate any other rules deemed necessary by the commission
to permit potential purchasers
of the otherwise retiring coal fired electric generation facility
to know the
public utility's
avoided cost
price
and other terms and conditions for sales from that facility prior to entering into an agreement to purchase the facility.
(e)
As used in this section, "avoided cost" means the
long
‑
term
incremental costs to
an
the purchasing
electric utility of electric energy or capacity or both which, but for the purchase from the otherwise retiring coal fired electric generation facility, the utility would
be required to
generate itself or
incur in a
purchase from another source.
As may be determined by the commission
with the consent of the parties to an approved power purchase agreement
, avoided costs may change over the course of
an
approved power purchase
that
agreement at specified intervals set forth in the power purchase agreement.
(f)
A person purchasing an otherwise retiring coal fired electric generation facility may sell
any amount or all of the
electricity generated by the facility
directly
to
the electric public utility selling the otherwise retiring coal fired electric generation facility, except for a cooperative or municipal public utility, for the benefit of
a retail customer
of the electric public utility selling the otherwise retiring coal fired electric generation facility, provided that the retail customer is
located in the existing service territory of that electric public utility
and
provided that the customer has
or otherwise agrees to purchase to satisfy its projected demand
more than one (1) megawatt average demand and takes service at a primary or transmission voltage level
up to all of the coal fired electric generation facility's capacity
.
(g)
If an electric utility purchases electricity from the owner of an otherwise retiring coal fired electric generation facility for the benefit of an eligible retail
customer
pursuant to subsection (f) of this section
, the utility serving that eligible retail customer shall purchase the electricity at a cost and under terms and conditions that are acceptable to and negotiated between the customer and the owner of the otherwise retiring coal fired electric generation facility. The electric public utility shall pass that cost through to the customer without markup or modification except:
(h)
An eligible retail customer under
subsection
subsections (f) and
(g) of this section shall only receive electricity as provided in
subsection
subsections (f) and
(g) of this section from the owner of an otherwise retiring coal fired electric generation facility if the customer also purchases partial requirements or equivalent service from the electric public utility under rates, terms and conditions set by the commission to compensate the public utility for its costs.
37
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2
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205.
Certificate of convenience and necessity; hearings.
(k)
The commission shall commence proceedings to revoke a certificate of convenience and necessity issued under this section after finding that a public utility has failed to meet the requirements of W.S. 37
‑
18
‑
103. The commission shall afford a public utility subject to this subsection reasonable notice and an opportunity for hearing for the public utility to show cause why the certificate of convenience and necessity should not be revoked.
37
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3
‑
116.
Electric utility service agreements.
(d)
This section shall only apply to service agreements:
(ii)
For services provided under a tariff approved by the commission consistent with its authority under W.S.
37
‑
2
‑
121
37
‑
2
‑
121(a)
.
37
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3
‑
117.
Limitation for recovery of costs associated with electric generation built to replace retiring coal fired generation facility.
(a)
Notwithstanding any other provision of this chapter:
(i)
Any electric public utility seeking to retire a coal fired electric generation facility shall first make a good faith effort to
consider any offer to purchase the facility for continued use as a coal fired electric generation facility and, unless a sale is completed earlier, not later than thirty
‑
six (36) months after announcing its plan to retire the facility, make a good faith effort to
sell the facility for continued use as a coal fired electric generation facility;
(ii)
The rates charged by an electric public utility, other than a cooperative electric utility, shall not include any recovery of or earnings on the capital costs associated with new electric generation facilities built
or any purchases made
, in whole or in part, to replace the electricity generated from one (1) or more coal fired electric generating facilities located in Wyoming and retired on or after January 1, 2022, unless the commission has determined that the public utility that owned the retired coal fired electric generation facility made a good
faith effort to sell the facility to another person prior to its retirement and that the public utility did not refuse a reasonable offer to purchase the facility or the commission determines that, if a reasonable offer was received, the sale was not completed for a reason beyond the reasonable control of the public utility.
For purposes of this section, the commission shall presume that an offer to purchase a coal fired electric generation facility at the facility's net book value is a reasonable purchase price.
(d)
Upon application by a public utility, the commission may approve procedures for the solicitation and review of offers to purchase an otherwise retiring electric generation facility in advance of a proposed retirement. If the public utility follows the procedures approved by the commission to solicit and review offers to purchase an otherwise retiring electric generation facility under this subsection
and otherwise complies with this section
, there shall be no limitation under this section for recovery of costs or earnings associated with electric generation built to replace a retired coal fired electric generation facility.
(e)
Any agreement between a public utility and another person for the sale of an otherwise retiring coal fired electric generation facility shall not be effective until approved by the commission. In reviewing the agreement the commission shall consider:
(iv)
If the coal fired electric generation facility is comprised of one (1) or more
separately operable
generation units
at a larger power plant where
and
the public utility will continue to own and operate one (1) or more generation units, whether the proposed purchaser and the public utility have made reasonable contractual arrangements for the sharing of the costs associated with any joint or common facilities at the plant;
(vi)
Whether the proposed purchase agreement contains a provision allowing the public utility, with commission approval, to revoke the sale in the event the purchaser is unable to timely obtain all necessary local, state and federal permits
beyond those that the public utility is able to assign to the purchaser in the proposed purchase agreement
;
37
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5
‑
501.
Definitions.
(a)
As used in this article:
(iv)
"Energy project" means
:
(A)
A
ny project related to or involving a natural resource associated with energy or an associated natural resource;
(B)
An electric generation, transmission or distribution facility;
(C)
A carbon capture or sequestration facility;
(D)
Any pipeline;
(E)
Any ancillary equipment that may be associated with any of the facilities or natural resources specified in this paragraph.
(v)
"Natural resource associated with energy" or "associated natural resource" means any technology or any substance, element or compound, either gaseous, liquid or solid, associated with the production, development, refining, processing, storage
, generation, distribution
or transmission of energy
or for an energy project
;
37
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5
‑
503.
Purposes; report.
(a)
The authority is created to
, either independently, through a joint venture or in cooperation with public or private partners
:
(i)
Diversify and expand the Wyoming economy through improvements in the state's electric and energy
generation, distribution or
transmission infrastructure and facilitate Wyoming's production,
storage, sequestration,
development and transmission of energy and associated natural resources
or chemical byproducts
by planning, financing, constructing, developing, acquiring, maintaining
, owning, investing in
and operating electric
generation, transmission, distribution
, energy export and
other
energy
transmission facilities
projects
, advanced
technology facilities for natural resources associated with energy, carbon dioxide capture and transportation infrastructure, distribution facilities and related supporting infrastructure and undivided or other interests therein;
(ii)
Consolidate energy staff and functions existing in the state energy program and take actions to administer the state energy program, including:
(A)
Seek federal grants and loans
and other equity and debt financing
;
(v)
Develop and administer programs providing education on energy
projects,
resources and emerging technologies including tours, academic programs and communication plans;
(viii)
Plan, finance, construct, develop, acquire, maintain
, own, invest in
and operate a pipeline or other transportation and distribution systems
or an energy project
within or outside the state of Wyoming to facilitate the production, transportation, distribution and
delivery of associated natural resources that are produced or developed in this state, including
electric and other forms of
energy
, energy byproducts
and associated natural resources received as royalties in kind pursuant to mineral leases by the state, its agencies and political subdivisions;
(x)
Acquire by purchase, condemnation or other means any property necessary or useful for its purposes, including to own, maintain or operate, in whole or in part, coal fired electric generation facilities previously owned by a public utility for the purpose of installing and operating carbon
‑
capture technology retrofits, provided that the authority shall not have the right to condemn mineral leases, gas supplies, gas reserves, oil supplies, oil reserves, oil refineries, minerals or other mineral rights;
(xi)
Supply electricity to the wholesale and retail markets, including generation and transmission cooperatives, public utilities, retail customers or other consumers;
(xii)
Preserve coal industry and electric generation facility jobs and associated communities impacted by the decommissioning of existing coal mines and energy projects;
(xiii)
Utilize carbon dioxide captured from coal fired electric generation facilities' combustion flue gas streams and other sources related to electric generation, transmission or distribution to facilitate tertiary recovery of low
‑
carbon oil, mining of rare
‑
earth elements or other development of natural resources associated with energy or energy projects.
(b)
In order to provide for the financing, construction, development, maintenance and operation of energy transmission facilities, pipeline and other transportation and distribution systems, the authority may own, lease or rent facilities, structures and properties, both incidental and necessary, constructed in accordance with this article and article 6 of this chapter, to facilitate the production, development, transportation,
generation, transmission,
distribution and delivery of energy and associated natural resources.
(c)
Energy
transmission facilities
projects
and related supporting infrastructure may include all facilities, structures and properties incidental and necessary or useful in the production, development, transportation,
generation, distribution, storage, sequestration,
transmission and delivery of energy. Pipeline and other transportation or distribution systems may be inclusive of
poles, wires, transformers, substations,
pipelines, ports, pumps, storage and all other facilities, structures and properties incidental and necessary or useful in the production, development, transportation,
generation, transmission,
distribution and delivery of natural resources associated with energy to points of sale, consumption or to the points of distribution for consumption.
(f)
Except as provided in this
section
chapter
, the authority shall not exercise any of the rights or powers granted to it in this section if private persons, firms or corporations are performing the acts, constructing or have constructed the facilities or are providing the services contemplated by the authority.
The authority may acquire by
condemnation or purchase any property necessary for its purposes, subject to the restrictions of this section and W.S. 37
‑
5
‑
504(a)(v), for its purposes, including owning, maintaining or operating, in whole or in part, coal fired electric generation facilities previously owned by a public utility.
(g)
Prior to exercising any rights or powers granted to it in this section
, including those activities specified in subsection (f) of this section, and
except for activities related to the administration of pipeline capacity contracted with an entity operating under the jurisdiction of the federal energy regulatory commission or a successor agency, the authority shall publish in a newspaper of general circulation in Wyoming, and in a newspaper in the area where the authority contemplates providing facilities or services, in the manner prescribed by law, a notice describing the acts, facilities or services contemplated by the authority. Private persons, firms or corporations wishing to perform the acts, construct the facilities or provide the services described in the notice shall have ninety (90) days from the date of last publication of the notice within which to notify the
authority of their intention to perform the acts, construct the facilities or provide the services described in the notice. A person or entity giving notice to the authority shall include an anticipated timeline for completion of the acts, construction or services. In the absence of notification by a private person, firm or corporation, or if a person, firm or corporation, having given notice of intention to perform the acts, construct the facilities or provide the services contemplated by the authority, fails to commence the same within one hundred eighty (180) days from the date of last publication, the authority may proceed to perform the acts, construct the facilities or provide the services for which notice was given. A private person, firm or corporation that has made necessary applications to acquire any federal, state, local or private permits, certificates or other authorizations necessary to perform the acts, construct the facilities or provide the services included in the authority's notice within the time required is deemed to have commenced the same. When a private person, firm or corporation has given notice of intent to perform or is performing the acts, constructing the facilities or providing the services that the authority contemplated, the authority may conduct
hearings or meetings with the person, firm or corporation to assess progress toward completion of the intended acts to be performed, the facilities to be constructed or the services to be provided. If it appears to the authority that progress or completion of any or all of the intended acts may be delayed for one (1) year or more, the authority may proceed to perform the acts, construct the facilities or provide the services originally contemplated.
(h)
The authority may acquire, purchase, hold, use, lease, license, sell, transfer and dispose of an undivided or other interest in or the right to capacity in any pipeline system
or other energy project
within or outside the state of Wyoming in order to facilitate the production, transportation, distribution or delivery of associated natural resources that are produced or developed in this state. The provisions of subsection (g) of this section shall not apply to the authority in exercising any power pursuant to this subsection
including the generation, transmission or distribution of electricity
.
(j)
Before any appropriation is made to the authority, the authority shall submit its budget for review
as provided by W.S. 9
‑
2
‑
1010 through 9
‑
2
‑
1014.
Any appropriation to the authority shall be expended only for administrative purposes, which shall include planning and research.
37
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5
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504.
Powers of the authority.
(a)
The authority may:
(ii)
Contract, upon terms as it may agree upon, for legal, financial, engineering
, surveying, appraising
and other professional services necessary or expedient in the conduct of its affairs;
(iv)
Plan, finance, construct, develop, acquire, own, maintain and operate within and outside the state of Wyoming,
energy projects,
energy transmission infrastructure, energy export facilities and pipeline and other transportation or distribution systems including pumps,
poles, lines, substations, transformers,
storage and other attendant facilities, any necessary equipment for energy
generation, distribution or
transmission infrastructure and pipeline and other transportation or
distribution systems and for all other property, structures, equipment, facilities and works of public improvement necessary or useful for accomplishing the purposes for which the authority was created, including obtaining permits and acquiring rights
‑
of
‑
way;
(v)
Acquire by
purchase or
condemnation any properties
or property rights
necessary or useful for its purposes,
including owning, maintaining or operating, in whole or in part, coal fired electric generation facilities previously owned by a public utility for the purposes of installing and operating carbon
‑
capture technology retrofits of the facilities,
provided the authority shall not have the right to condemn mineral leases, gas supplies, gas reserves, oil supplies, oil reserves, oil refineries,
existing energy transmission, distribution and generation facilities,
minerals
, water rights,
or
other mineral rights
;
or pipelines or other distribution systems used in connection therewith;
(x)
Investigate, plan, prioritize and establish corridors for the
generation, distribution or
transmission of energy and natural resources associated with energy;
(xv)
Request data from any public or private entity
, or a public utility,
that is necessary to ascertain the location of associated natural resources within the state
or is relevant to the activities for which the authority is permitted to engage
;
(xviii)
Supply low
‑
carbon electricity to the wholesale market, retail market, generation and transmission cooperatives and other consumers.
37
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5
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505.
Bonds.
(d)
Except as provided by subsection (k) of this section, any bonds issued under this section shall be payable from and be secured by the pledge of the revenues derived from the operation of the pipeline or other transportation or distribution system
, energy project
or energy
generation or
transmission facility as constructed, acquired, extended or improved with the proceeds of the bonds, subject only to prior payment of the reasonable and necessary expenses of operating and maintaining the system or facility. Any holder of the bonds may by appropriate
legal action compel performance of all duties required of the authority in order to enforce payment of the bonds when due. If any bond issued under this section is permitted to go into default as to principal or interest, any court of competent jurisdiction may, pursuant to the application of the holder of the bonds, appoint a receiver for the system or facility, who shall operate the same and collect and distribute the revenues thereof pursuant to the provisions and requirements of the resolution authorizing the bonds.
(g)
No board or commission other than the authority shall fix or supervise the making of fees and charges stated in this subsection, which shall be in amounts reasonably necessary for the purposes stated in this article. When the authority has issued bonds and pledged the revenues of the pipeline or other transportation or distribution system or facility or the energy
transmission facility
project
for the payment of the bonds as provided in this article, the authority shall operate and maintain or shall contract for the operation and maintenance of the system or facility and shall impose and collect fees and charges for the services furnished by the system or facility, including those furnished to the authority
itself, in the amounts and at rates as shall be fully sufficient at all times to:
37
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5
‑
506.
Use of net revenues.
(a)
The authority, acting alone or in cooperation with any agency of the state of Wyoming, may use and employ any net revenues derived from a system or facility authorized in this article and from any other source, after providing for all costs of maintenance and operation of the system or facility and after making the required principal and interest payments on any revenue bonds issued hereunder and any other payments provided in any resolution authorizing the issuance and sale of revenue bonds and obligations, to extend and improve the system or facility as the authority may determine to be warranted by any need for additional intrastate
or interstate
transportation or energy
distribution, generation or
transmission facilities.
(c)
If the authority determines that no need for additional transportation or energy
generation, distribution or
transmission facilities exists and after the administrative expenses of the authority are paid, net
revenues derived under this article shall be paid to the state treasurer for credit to the state general fund.
(d)
The authority may make additional investments using net revenues derived from a system or facility in which the authority has an interest as authorized by this article.
37
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5
‑
602.
Authority revenue bonds; issuance; amount.
(b)
The authority may issue and have outstanding bonds to finance energy
generation or
transmission facilities and related infrastructure, pipeline and other transportation and distribution projects consistent with the purposes of W.S. 37
‑
5
‑
503(a), which may be located within or without the state of Wyoming, in an amount not to exceed three billion dollars ($3,000,000,000.00). The financing of a pipeline or other
generation, transmission,
transportation and distribution projects under this article may include or consist solely of the purchase of capacity by the authority as authorized by subsection (m) of this section.
(m)
The authority may acquire, purchase, make prepayments for, finance, hold, use, lease, license, sell, transfer and dispose of an undivided or other interest in or the right to capacity in any pipeline or other transportation
, generation, transmission
or distribution system within or without the state of Wyoming. The authority may acquire, purchase, make prepayments for proven developed reserves, hold, use, lease, license, sell, transfer and dispose of an undivided or other interest in natural resources associated with energy, including royalties taken in kind. The powers specified in this subsection may be exercised in order to facilitate the production,
generation, transmission,
transportation, distribution or delivery of associated natural resources produced or developed in this state. The authority is exempt from the provisions of W.S. 37
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5
‑
503(g) when exercising the powers granted by this article.
37
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603.
Authority revenue bonds; security; payments after retirement.
(a)
The principal and interest on any bonds that the authority issues shall be secured by a pledge of revenues
from the operation of the pipeline or other transportation or distribution system or energy
generation or
transmission project financed, by a first mortgage on the facilities, by guarantees and pledges of the entity owning the project, pipeline or system, or of the parent corporation owning said entity or by any combination thereof or other security as the authority may determine to be reasonable and prudent. The guarantees and pledges shall be no less favorable to the authority than those granted other lenders of the same class.
37
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607.
Powers; duties; limitations.
(a)
The authority has the powers granted by W.S. 37
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5
‑
501 through 37
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5
‑
509 as necessary to carry out the purposes of this article, including the power to hire technical consultants, financial advisors and legal advisors and specifically including the powers granted by W.S. 37
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5
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504(a)(ii). In addition to the powers otherwise granted to the authority, the authority shall have the power to:
(i)
Enter into loan or other agreements with respect to one (1) or more projects, energy
generation, distribution or
transmission infrastructure, energy export facilities, pipelines or systems upon terms and conditions the authority considers advisable;
(b)
The authority may assess and collect fees that are nonrefundable from applicants seeking to obtain authority financing of an energy
generation, distribution or
transmission infrastructure project, energy export facility, pipeline, system or other project in total amounts not to exceed five hundred thousand dollars ($500,000.00), which shall be credited to the state general fund.
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118.
Electricity; penalty.
(a)
Any person convicted of a violation of any of the provisions of this
act
title
, shall be punished for each offense by a fine of not less than fifty dollars ($50.00) nor more than three hundred dollars ($300.00), or by imprisonment in the county jail for a period of not less
than thirty (30) days or more than ninety (90) days, or by both such fine and imprisonment.
(b)
In addition to the penalty specified in subsection (a) of this section, any public utility that violates any provision of W.S. 37
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3
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117 or 37
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18
‑
102, and after proceedings required under W.S. 37
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2
‑
120 or 37
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2
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205(k), may be further sanctioned by:
(i)
Revocation of the public utility's certificate of convenience and necessity or any other right, privilege, franchise or certificate granted by the commission;
(ii)
A civil penalty not to exceed one million dollars ($1,000,000.00) for each day that the violation continues or persists.
37
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18
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101.
Definitions.
(a)
As used in this article:
(i)
"Carbon capture, utilization and storage technology" means technology that has the principal purpose of capturing, reusing, storing,
transporting,
sequestering or using carbon dioxide emissions to prevent carbon dioxide from entering the atmosphere whether constructed integral or adjacent to a coal fired generation facility;
(ii)
"Dispatchable" means a source of electricity that is available for use on demand and that can be dispatched upon request of a power grid operator or that can have its power output adjusted, according to market needs
and where the availability of the source is not directly dependent on the presence or variability of wind, sunshine or other weather conditions
;
(iii)
"Low
‑
carbon" means electricity that is generated
while using
by a coal fired electric generation facility that has been retrofitted and is operating with
carbon capture, utilization and storage technology
and
that produces carbon emissions
either
not greater than six hundred fifty (650) pounds of carbon dioxide per megawatt hour of generated electricity averaged over one (1)
calendar year
or such other emission rate as approved by the commission
;
(v)
"Availability factor" means the amount of time that an electric generation facility is able to produce electricity in a specified period of time;
(vi)
"Dispatchable energy reliability factor" means the average availability factor of all dispatchable sources of electricity in the state during the five (5) peak electric demand hours in the most recent calendar year, or an average of the five (5) peak electric demand hours in past calendar years, as determined by the commission;
(vii)
"Firming" means the act of mitigating the reliability difference of a given nondispatchable source of electricity to ensure that the hourly availability of the nondispatchable source of electricity equals or exceeds the dispatchable energy reliability factor by:
(A)
Continuing to operate or constructing a facility that generates reliable, dispatchable electricity;
(B)
Acquiring reliable, dispatchable electricity through a power purchase agreement;
(C)
Otherwise generating sufficient electricity to meet the standard specified in this paragraph.
(viii)
"Nondispatchable" means a source of electricity that is not dispatchable as defined in paragraph (ii) of this subsection;
(ix)
"Reliability difference" means the difference between a nondispatchable source of electricity's average availability factor during the five (5) peak electric demand hours in the most recent calendar year, or an average of the five (5) peak electric demand hours in past calendar years, as determined by the commission, and the dispatchable energy reliability factor;
(x)
"Resiliency" means the ability to withstand and reduce the magnitude or duration of disruptive events
and includes the capability to anticipate, absorb, adapt to or rapidly recover from a disruptive event.
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102.
Energy generation portfolio standards; reporting requirements; rate recovery and limitations.
(a)
Consistent with the objective of ensuring Wyoming electric utilities maintain access to reliable and cost effective electric generation resources, the public service commission shall establish by rule energy portfolio standards that will maximize the use of dispatchable and reliable low
‑
carbon electricity. In establishing standards, the commission:
(i)
Shall require a public utility to generate
or, after July 1, 2021, purchase from a coal fired electric generation facility
a specified percentage of
electricity generated to be
dispatchable and reliable low
‑
carbon electricity;
(ii)
Shall establish a date not later than July 1, 2030
for requiring a
by which the specified
percentage of electricity
generated by a public utility to be
dispatchable and reliable low
‑
carbon electricity
shall be achieved,
taking into consideration any potentially expiring federal tax credits;
(iii)
Shall establish intermediate standards and requirements for dispatchable and reliable low
‑
carbon electricity that public utilities must
, not later than July 1, 2030,
generate
before
or purchase from a coal fired electric generation facility sold by the public utility in order to achieve
the electricity generation standard established in paragraphs (i) and (ii) of this subsection;
(v)
Shall for each public utility:
(A)
Establish baseline standards for electric reliability to ensure that new or expanded
nondispatchable
or otherwise
intermittent generation resources do not unreasonably diminish power quality or increase momentary outages across a utility's service territory or in any particular location
and to determine how those generation resources may affect reliability
;
(C)
Require the utility to take any steps the commission deems reasonably necessary to maintain reasonable levels of electric reliability and power quality
or to satisfy any other rule or order issued by the commission
.
(c)
Subject to W.S. 37
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3
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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:
(ii)
A public utility may apply to the commission for authorization to allow a portion of any revenues from the sale of carbon dioxide captured, stored
, transported
or
otherwise
utilized as a result of generating dispatchable and reliable low
‑
carbon electricity to be returned to the shareholders of the public utility;
(d)
The commission shall promulgate rules to ensure that public utilities are
:
(i)
S
atisfactorily progressing toward achieving the dispatchable and reliable low
‑
carbon electricity generation standard that the commission establishes as required in subsection (a) of this section
;
and
(ii)
A
chieving reasonable electric reliability and power quality outcomes as required by subsection (a) of this section
;
.
(iii)
Undertaking good faith efforts to sell and to accept a reasonable offer to purchase a coal fired electric generation facility that the public utility plans to retire as stated in its most recent integrated resource plan filed with the commission and are performing any other duties or obligations required in this section or W.S. 37
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3
‑
117.
(f)
Not later than January 1, 2022, each public utility shall submit to the commission a certification that demonstrates its compliance with W.S. 37
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3
‑
117 regarding the good faith efforts to sell or accept an offer for an otherwise retiring coal fired electric generation facility and that the public utility:
(i)
Affirms that it will forgo requesting authorization before January 1, 2030 to retire a coal fired electric generation facility in Wyoming;
(ii)
Demonstrates that it has commenced good faith efforts to install carbon capture, utilization and storage technology at all of its coal fired electric generation facilities to comply with the standards imposed under this article.
(g)
Upon a finding by the commission that a public utility has failed to comply with the requirements of subsection (f) of this section, the commission shall order the public utility to show cause why its certificate of convenience and necessity or any other right, privilege, franchise or certificate issued by the commission should not be immediately revoked. If, after a hearing by the commission, the commission determines that the public utility has failed to comply or will not comply with the requirements of subsection (f) of this section, the commission may:
(i)
Revoke the public utility's certificate of convenience and necessity or any other right, privilege, franchise or certificate issued by the commission in accordance with W.S. 37
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2
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205(k);
(ii)
Impose a civil penalty not to exceed one million dollars ($1,000,000.00) for each day that the public utility is not in compliance with the requirements of subsection (f) of this section.
Section 4.
Nothing in this act shall be construed to impair any agreement for the sale of an otherwise retiring electric generation facility in accordance with W.S. 37
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2
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133 and 37
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3
‑
117 entered into before the effective date of this section.
Section 5.
The public service commission shall promulgate all rules necessary to implement the provisions of this act.
Section 6
.
(a) Except as provided in subsection (b) of this section, t
his act is effective July 1, 2021
.
(b) Sections 5 and 6 of this act are
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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HB0259