State Codes and Statutes
Statutes > Utah > Title-17b > Chapter-02a > 17b-2a-40617B-2a-406. Improvement districts providing electric service -- Public ServiceCommission jurisdiction -- Exceptions.
(1) As used in this section:
(a) "Commission" means the Public Service Commission of Utah established in Section54-1-1.
(b) "Electric corporation" has the same meaning as defined in Section 54-2-1.
(c) "Electric improvement district" means an improvement district that provides electricservice as authorized under Subsection 17B-2a-403(1)(a)(iv).
(d) "Stranded asset" means an asset that:
(i) an electric corporation owns and operates;
(ii) is designed to serve an area that is:
(A) within the electric corporation's certificated service area before the area is removedfrom the certificated service area by commission order as provided in Subsection (3)(b)(i)(B)(II);and
(B) within the boundary of an electric improvement district; and
(iii) will not be useful to or used by the electric corporation after removal of the areafrom the electric corporation's certificated service area.
(2) An electric improvement district is a public utility and subject to the jurisdiction ofthe commission.
(3) (a) Except as provided in Subsection (3)(b), an electric improvement district:
(i) may include only an area where:
(A) no retail electricity has been provided to commercial, industrial, residential, andother users of electricity from an investor-owned utility within any part of an area certificated bythe commission or an area adjacent to that area, municipal agency, or electric cooperative withinthe five years immediately preceding September 1, 1985; and
(B) electric service is provided to at least one user of electricity within the electricservice district as of September 1, 1985; and
(ii) shall have filed an application for certification and received approval by thecommission by September 1, 1986.
(b) (i) An electric improvement district created after May 11, 2009 may provide electricservice within the boundary of the improvement district if:
(A) no part of the boundary of the electric improvement district is closer than 40 miles toan existing service line of an electric corporation;
(B) (I) no part of the area within the boundary of the electric improvement district iswithin the certificated service area of an electric corporation; or
(II) the area within the boundary of the electric improvement district that is also withinthe certificated service area of an electric corporation is removed from the electric corporation'scertificated service area by commission order in a proceeding initiated by a petition filed by andat the discretion of the electric corporation; and
(C) before January 1, 2010, the electric improvement district receives a certificate ofpublic convenience and necessity from the commission authorizing the electric improvementdistrict to provide electric service to the area within the boundary of the electric improvementdistrict.
(ii) An electric improvement district that provides electric service as provided inSubsection (3)(b)(i) shall pay an electric corporation an amount equal to the fair market value of
each stranded asset of the electric corporation.
(4) Nothing in this part may be construed to give the commission jurisdiction over:
(a) an improvement district, other than an electric improvement district;
(b) a municipality; or
(c) an association of municipalities organized under Title 11, Chapter 13, InterlocalCooperation Act.
(5) Before an electric improvement district serves any customer, the electricimprovement district shall obtain a certificate of public convenience and necessity from thecommission.
(6) (a) Section 54-7-12 does not apply to rate changes of an electric improvement districtif:
(i) the district is organized for the purpose of distributing electricity to customers withinthe boundary of the district on a not-for-profit basis;
(ii) the schedule of new rates or other change that results in new rates has been approvedby the board of trustees of the district;
(iii) prior to the implementation of any rate increases, the district first holds a publicmeeting for all its customers to whom mailed notice of the meeting is sent at least 10 days priorto the meeting; and
(iv) the district has filed the schedule of new rates or other change with the commission.
(b) The commission shall make the district's schedule of new rates or other changeavailable for public inspection.
Amended by Chapter 384, 2009 General Session
