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SF0071 • 2022

Deregulated industrial power zones.

AN ACT relating to public utilities; providing for the creation of deregulated industrial power zones; providing for the exemption of rate regulation and service territory requirements for electrical service as specified; providing a definition; specifying applicability; making conforming amendments; requiring rulemaking; amending obsolete provisions related to public utilities; and providing for effective dates.

Technology
Inactive

Wyoming marks this bill as inactive, which usually means it is no longer moving in the current session.

Sponsor
BlockChain/Technology
Last action
2022-03-11
Official status
inactive
Effective date
3/1/2022

Plain English Breakdown

The official source material does not provide specific details about how the act will be implemented beyond requiring rulemaking by certain dates.

Deregulated Industrial Power Zones Act

This act allows counties in Wyoming to create special zones where businesses can buy electricity without following usual rules about prices and service areas.

What This Bill Does

  • Creates a new law that lets counties ask the state to make certain areas 'deregulated industrial power zones'.
  • Businesses inside these zones don't have to follow normal price rules for buying electricity.
  • Electric companies can sell electricity in these zones without being limited by their usual service area.
  • The act requires electric companies not to pass on extra costs to customers outside the special zones.

Who It Names or Affects

  • Businesses and industries within designated deregulated industrial power zones
  • Electric companies providing service in these zones

Terms To Know

Deregulated Industrial Power Zone
An area where businesses can buy electricity without following normal rules about prices and service areas.
Rate Regulation
Rules that control how much a company can charge for its services, like electricity.

Limits and Unknowns

  • The act does not apply to contracts for utility services existing prior to July 1, 2022.
  • It is unclear if and when the state board of land commissioners will approve any petitions for these zones.
  • The effectiveness of this law depends on rules being made by the state board of land commissioners and the public service commission.

Bill History

  1. 2022-03-11 Senate

    S:Died in Committee Returned Bill Pursuant to SR 5-4

  2. 2022-02-25 Senate

    S No report prior to CoW Cutoff

  3. 2022-02-24 Senate

    S09 - Minerals:Do Pass Failed 1-3-1-0-0

  4. 2022-02-16 Senate

    S Introduced and Referred to S09 - Minerals 27-3-0-0-0

  5. 2022-02-11 Senate

    S Received for Introduction

  6. 2022-02-11 LSO

    Bill Number Assigned

Current Bill Text

Read the full stored bill text
22LSO-0258
2022
STATE OF WYOMING
22LSO-0258
Numbered
2.0

SENATE FILE NO. SF0071

Deregulated industrial power zones.

Sponsored by: Select Committee on Blockchain, Financial Technology and Digital Innovation Technology

A BILL

for

AN ACT relating to public utilities; providing for the creation of deregulated industrial power zones; providing for the exemption of rate regulation and service territory requirements for electrical service as specified; providing a definition; specifying applicability; making conforming amendments; requiring rulemaking; amending obsolete provisions related to public utilities; and providing for effective dates.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 37
‑
19
‑
101 through 37
‑
19
‑
104 is created to read:

CHAPTER 19
DEREGULATED INDUSTRIAL POWER ZONES

37
‑
19
‑
101.

Short title.

This act shall be known, and may be cited as, the "Deregulated Industrial Power Zones Act."

37
‑
19
‑
102.

Definitions.

(a)

As used in this chapter:

(i)

"Deregulated industrial power zone" means an area of designated state lands not less than six hundred forty (640) contiguous acres situated entirely within a single county and within which the statutory and regulatory exemptions in W.S. 37
‑
19
‑
104 are available;

(ii)

"State lands" means as defined in W.S. 36
‑
1
‑
101(a)(iv).

37
‑
19
‑
103.

Designation of land.

(a)

The board of county commissioners in each county

may petition the board of land commissioners to designate not more than one (1) area of unincorporated state land within the county constituting not less than six hundred forty (640) contiguous acres as a deregulated industrial power zone.

The designated land shall not include any part of a municipality or land outside the boundaries of the county. A petition may be filed under this subsection to modify as well as create a deregulated industrial power zone.

(b)

Prior to petitioning the board of land commissioners under subsection (a) of this section, the board of county commissioners shall hold at least one (1) public hearing with notice of the time and place of the hearing being given by publication in a newspaper of general circulation in the county not less than one (1) time and not less than fourteen (14) days before the date of the hearing.

(c)

The commission shall provide the board of land commissioners with an analysis of the potential impact the deregulated industrial zone may have on retail customers
outside of the zone and nonparticipating retail customers within the zone and any other information required by rule promulgated by the board of land commissioners.

(d)

The board of land commissioners may consider the analysis provided under subsection (c) of this section and any other factors it deems relevant in determining whether to approve a petition submitted pursuant to this section. The board of land commissioners shall not approve a petition that does not meet the requirements of subsection (a) of this section but may otherwise approve or deny a petition at its discretion.

37
‑
19
‑
104.

Regulation exemptions; limitations.

(a)

Except as otherwise provided in this section, the provisions of this title with respect to public service commission rate regulation shall not apply to rates charged for the sale of electricity to a customer who:

(i)

Consumes the electricity entirely within a deregulated industrial power zone;

(ii)

Consumes the electricity for commercial or industrial use; and

(iii)

Is not purchasing the electricity to replace electrical service capacity that existed prior to the establishment of the deregulated industrial power zone.

(b)

Except as otherwise provided in this section, the provisions of this title that prohibit the sale of electricity outside a specified service territory shall not apply to sales to a customer within a deregulated industrial power zone who meets the requirements of subsection (a) of this section.

(c)

Nothing in this section shall be construed to reduce, modify, eliminate or otherwise alter any applicable requirements of federal law or any local, state or federal tax that may be imposed.

(d)

Any public utility providing service under this section shall not recover costs associated with that service through rates imposed on retail customers outside
of, or not participating in the exemptions provided by, a deregulated industrial power zone.

(e)

Service provided by a public utility under this section shall not adversely affect the service provided to other retail customers not participating in the deregulated industrial power zone.

(f)

The public service commission shall regulate rates charged for the use of transmission lines transmitting electricity generated outside of a deregulated industrial zone to the deregulated industrial zone through transmission lines otherwise regulated by the public service commission by setting a rate that ensures other retail customers not receiving the benefits of any exemption under this section are not disproportionately paying joint and common costs of transmission.

Section 2.

W.S. 36
‑
2
‑
101, 37
‑
1
‑
101(a)(intro) and 37
‑
2
‑
118 are amended to read:

36
‑
2
‑
101.

Composition; powers generally.

The governor, secretary of state, state treasurer, state auditor, and superintendent of public instruction, being constituted a "board of land commissioners" by the provisions of section 3, article 18, of the constitution of the state of Wyoming, shall as such board, have the direction, control, leasing, care and disposal of all lands heretofore or hereafter granted or acquired by the state for the benefit and support of public schools or for any other purpose whatsoever, subject to the limitations contained in the constitution of the state, and the laws enacted by the legislature. The board shall have the power and authority to take such official action as may be necessary in securing title to land grants, or any other lands acquired by the state. The board shall oversee the compensatory mitigation credit system established under W.S. 9
‑
19
‑
201 through 9
‑
19
‑
204 and shall promulgate rules and regulations in accordance with W.S. 9
‑
19
‑
201 through 9
‑
19
‑
204.
The board shall consider petitions pursuant to the deregulated industrial power zones act.

37
‑
1
‑
101.

Definitions.

(a)

As used in chapters 1, 2, 3, 12, 17
,

and
18
and 19
of this title:

37
‑
2
‑
118.

Who may make complaint.

Any public utility, person, municipality or the attorney general may complain to the commission of anything, actual or proposed, done or omitted to be done in violation of W.S.
37
‑
1 through 37
‑
64 [§§ 37
‑
1
‑
101 through 37
‑
3
‑
114] or W.S. 37
‑
260 through 37
‑
272 [§§ 37
‑
12
‑
201 through 37
‑
12
‑
213],
37
‑
1
‑
101 through 37
‑
3
‑
114, 37
‑
12
‑
201 through 37
‑
12
‑
213, 37
‑
19
‑
101 through 37
‑
19
‑
104
or of an order of the commission.

Section 3.

This act shall not apply to contracts for utility services existing prior to July 1, 2022.

Section 4.

The state board of land commissioners and the public service commission shall promulgate any rules necessary to implement this act on or before July 1, 2022.

Section 5
.

(a)

Except as provided in subsection (b) of this section, this act is effective July 1, 2022.

(b)

Sections 4 and 5 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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SF0071