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SF0023 • 2024

Public utilities-energy resource procurement.

AN ACT relating to public utilities; establishing a solicitation process for specified electrical utilities acquiring or constructing significant energy resources; providing a waiver process; providing for the use of independent evaluators; providing rulemaking authority; authorizing a full time position; providing an appropriation; and providing for an effective date.

Budget Elections Energy
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Corporations
Last action
2024-03-15
Official status
enrolled
Effective date
7/1/2024

Plain English Breakdown

The bill text does not provide specific details about how independent evaluators will operate beyond their role in monitoring the solicitation process for fairness and compliance with rules.

Energy Resource Procurement for Utilities

This law sets up a process for large electrical utilities to follow when they want to buy or build big energy resources, and it allows the Public Service Commission to approve these processes.

What This Bill Does

  • Requires certain electrical utilities to get approval from the Public Service Commission before buying or building significant energy resources after July 1, 2024.
  • Allows the commission to give a waiver if there's an emergency or special opportunity that benefits customers.
  • Requires the commission to appoint independent evaluators to check and report on these processes for fairness and compliance with rules.

Who It Names or Affects

  • Electrical utilities that are not cooperative electric utilities
  • The Public Service Commission

Terms To Know

affected electrical utility
A public utility company except for a cooperative electric utility.
significant energy resource
An energy source that is large enough to meet certain size or duration requirements, such as generating 100 megawatts of power over ten years.

Limits and Unknowns

  • The law only applies to utilities after July 1, 2024.
  • It does not apply if the utility has already issued a solicitation before this date for similar resources.
  • Details about how independent evaluators will operate are left up to rules made by the Public Service Commission.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

SF0023HS001

Standing Committee • House Corporations, Elections & Political Subdivis

Adopted

Plain English: The amendment changes the wording of certain parts of the bill to allow more flexibility in actions by electrical utilities and increases a financial threshold from $200,000 to $356,000.

  • Changes 'shall' to 'may', allowing utilities more discretion in their actions.
  • Increases the dollar amount from two hundred thousand dollars ($200,000.00) to three hundred fifty-six thousand dollars ($356,000.00).
  • The amendment text does not provide context for why these changes are being made or what specific actions they affect.
SF0023S2001

2nd reading • Senator Case

Adopted

Plain English: The amendment changes specific letter labels in a bill section to new Roman numeral labels and adds a new clause about excluding certain customer-requested resources from being considered as significant energy resources.

  • Changes the label of an existing list item from (A) to (I).
  • Changes the label of another list item from (B) to (II).
  • Adds a new clause (B) that excludes customer-requested resources procured under approved tariffs from being considered as significant energy resources, provided they do not negatively impact other customers.
  • The exact context and content of the original labels (A), (B), etc., are not provided in the amendment text, so their full meaning is unclear without additional information.
SF0023SS001

Standing Committee • Senate Corporations, Elections & Political Subdivi

Adopted

Plain English: The amendment adds a new section to the bill that authorizes one full-time position for an analyst at the Public Service Commission and appropriates $200,000 from the public service account for this purpose.

  • Adds authorization for up to one full-time position for an analyst at the Public Service Commission until June 30, 2026.
  • Appropriates $200,000 from the public service account to fund the new position.
  • Deletes several sections and lines of text that were originally part of the bill.
  • The amendment deletes multiple sections without providing details on what those sections contained or how their deletion affects the overall bill's intent.

Bill History

  1. 2024-03-15 LSO

    Assigned Chapter Number 76

  2. 2024-03-15 Governor

    Governor Signed SEA No. 0053

  3. 2024-03-07 House

    H Speaker Signed SEA No. 0053

  4. 2024-03-07 Senate

    S President Signed SEA No. 0053

  5. 2024-03-07 LSO

    Assigned Number SEA No. 0053

  6. 2024-03-07 Senate

    S Concur:Passed 29-0-1-0-1

  7. 2024-03-07 Senate

    S Received for Concurrence

  8. 2024-03-06 House

    H 3rd Reading:Passed 54-8-0-0-0

  9. 2024-03-05 House

    H 2nd Reading:Passed

  10. 2024-03-04 House

    H COW:Passed

  11. 2024-03-04 House

    H Placed on General File

  12. 2024-03-04 House

    H02 - Appropriations:Recommend Do Pass 7-0-0-0-0

  13. 2024-03-04 House

    :Rerefer to H02 - Appropriations

  14. 2024-03-04 House

    H07 - Corporations:Recommend Amend and Do Pass 9-0-0-0-0

  15. 2024-02-28 House

    H Introduced and Referred to H07 - Corporations

  16. 2024-02-28 House

    H Received for Introduction

  17. 2024-02-27 Senate

    S 3rd Reading:Passed 30-0-0-0-1

  18. 2024-02-26 Senate

    S 2nd Reading:Passed

  19. 2024-02-23 Senate

    S COW:Passed

  20. 2024-02-20 Senate

    S Placed on General File

  21. 2024-02-20 Senate

    S02 - Appropriations:Recommend Do Pass 5-0-0-0-0

  22. 2024-02-16 Senate

    :Rerefer to S02 - Appropriations

  23. 2024-02-16 Senate

    S07 - Corporations:Recommend Amend and Do Pass 5-0-0-0-0

  24. 2024-02-12 Senate

    S Introduced and Referred to S07 - Corporations 31-0-0-0-0

  25. 2024-01-24 Senate

    S Received for Introduction

  26. 2023-12-18 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 24LSO-0275

Bill No.:

SF0023

Effective:

7/1/2024

LSO No.:

24LSO-0275

Enrolled Act No.:

SEA No. 0053

Chapter No.:

76

Prime Sponsor:

Joint Corporations, Elections & Political Subdivisions Interim Committee

Catch Title:

Public utilities-energy resource procurement.

Has Report:

No

Subject:

Public utilities-energy resource procurement.

Summary/Major Elements:

This bill establishes a process for electrical utilities to use when acquiring or constructing a significant energy resource. The bill requires the Public Service Commission to approve the solicitation process being used by an electrical utility company and requires the Public Service Commission to adopt rules outlining the solicitation approval process as well as any waiver of the process.

The bill provides for the appointment of an independent evaluator by the Public Service Commission to monitor and report on the solicitation approval process.

This bill requires affected electrical utilities to comply with the solicitation approval process for the acquisition or construction of any significant energy resource after July 1, 2024.

The bill provides definitions of "affected electrical utility", "significant energy resource" and "solicitation".
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
24LSO-0275
CORRECTED COPY
July 12, 2024

ORIGINAL Senate

ENGROSSED
File No
.
SF0023

ENROLLED ACT NO. 53,

SENATE

SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2024 Budget Session

AN ACT relating to public utilities; establishing a solicitation process for specified electrical utilities acquiring or constructing significant energy resources; providing a waiver process; providing for the use of independent evaluators; providing rulemaking authority; authorizing a full time position; providing an appropriation; and providing for an effective date.

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

Section 1.

W.S. 37
‑
2
‑
135 is created to read:

37
‑
2
‑
135.

Energy resource procurement.

(a)

An affected electrical utility shall comply with this section to acquire or construct a significant energy resource after July 1, 2024, provided that this section shall not apply to a significant energy resource for which the affected electrical utility has issued a solicitation before July 1, 2024.

(b)

Except as provided in subsection (c) of this section, to acquire or construct a significant energy resource, an affected electrical utility shall conduct a solicitation process that is approved by the commission. To obtain the approval of the commission of a solicitation process, the affected electrical utility shall file with the commission a request for approval that includes a description of the solicitation process that the affected electrical utility will use, a complete proposed solicitation and any other information that the commission requires by rule.

(c)

An affected electrical utility may obtain a waiver of the requirements of subsection (b) of this section if the commission determines that waiving the requirement is in the public interest because of a clear emergency, a time limited commercial or technical opportunity that provides value to the customers of the affected electrical utility or any other factor determined by the commission that makes waiving the requirement in the public interest. The commission shall adopt rules regarding the waiver process.

(d)

The commission shall adopt rules outlining the requirements for the solicitation approval process under this section. Rules adopted under this subsection may account for circumstances where an affected electrical utility is subject to regulation in more than one (1) state regarding the acquisition, construction or cost recovery of a significant energy resource, in which event the rules may allow the commission to consider the impact of the multistate regulation on the solicitation process, cost recovery of resources and methods by which the affected electrical utility may be able to mitigate the potential for cost disallowances.

(e)

The commission may appoint an independent evaluator to monitor any solicitation submitted for approval under this section. The independent evaluator shall not make the determination as to which bid shall be awarded under the solicitation. The independent evaluator shall actively monitor the solicitation approval process for fairness and compliance with this section and rules of the commission. The independent evaluator shall report to the commission and others as directed by the commission and shall develop one (1) or more reports addressing the solicitation approval process, any concerns related to the solicitation and the ultimate results of the solicitation approval process including the opinions and conclusions of the independent evaluator. The report shall include an opinion as to whether the solicitation approval process is fair, done in compliance with this section and whether any modeling used by the affected electrical utility regarding the solicitation is sufficient. The independent evaluator shall perform other functions and provide other input and reports as directed by the commission. The commission shall adopt rules regarding independent evaluators under this subsection.

(f)

As used in this section:

(i)

"Affected electrical utility" means a public utility other than a cooperative electric utility as defined in W.S. 37
‑
17
‑
101(a)(i);

(ii)

"Significant energy resource":

(A)

Means a resource that consists of:

(I)

A total of one hundred (100) megawatts or more of new generating capacity that has a dependable life of ten (10) or more years;

(II)

The purchase of electricity, electric generating capacity or both if the contract is for a term of ten (10) or more years and a total of not less than one hundred (100) megawatts;

(III)

The purchase or lease by an affected electrical utility from an affiliated company of a generating facility, electricity, electrical generating capacity or both electricity and electrical generating capacity;

(IV)

A contract with an option for the affected electrical utility or an affiliate to purchase a resource that consists of not less than one hundred (100) megawatts of new generating capacity that has a remaining dependable life of ten (10) or more years; or

(V)

A type of resource designated by rule of the commission as a significant energy resource after considering the affected electrical utility's integrated resource plan and action plan.

(B)

Shall not include a resource procured for one (1) or more customers pursuant to an approved tariff, at the customer's request and agreed upon with the affected electrical utility, provided that the agreement does not negatively impact the affected electrical utility's other customers.

(iii)

"Solicitation" means a request for proposals or other invitation for persons to submit a bid or proposal through an open bid process for construction or acquisition of a significant energy resource.

Section 2.

(a)

The public service commission is authorized up to one (1) full
‑
time position for the period beginning with the effective date of this act and ending June 30, 2026 for an analyst to implement the requirements of this act. It is the intent of the legislature that the public service commission include this full
‑
time position in its standard budget request for the immediately succeeding fiscal biennium.

(b)

There is appropriated three hundred fifty
‑
six thousand dollars ($356,000.00) from the public service account under W.S. 37
‑
2
‑
106 within the special revenue fund to the public service commission for the period beginning with the effective date of this act and ending June 30, 2026 to be expended only for purposes of funding the position authorized in subsection (a) of this section. This appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2026.

Section 3.

This act is effective July 1, 2024.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

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