State Codes and Statutes
Statutes > Utah > Title-54 > Chapter-17 > 54-17-60554-17-605. Recovery of costs for renewable energy activities.
(1) In accordance with other law, the commission shall include in the retail electric ratesof an electrical corporation whose rates the commission regulates the state's share of any of thecosts listed in Subsection (2) that are relevant to the proceeding in which the commission isconsidering the electrical corporation's rates:
(a) if the costs are prudently incurred by the electrical corporation in connection with:
(i) the acquisition of a renewable energy certificate;
(ii) the acquisition of qualifying electricity for which a renewable energy certificate willbe issued after the acquisition; and
(iii) the acquisition, construction, and use of a renewable energy source; and
(b) to the extent any qualifying electricity or renewable energy source under Subsection(1)(a) satisfies the cost-effectiveness criteria of Subsection 54-17-201(2)(c)(ii).
(2) The following are costs that may be recoverable under Subsection (1):
(a) a cost of siting, acquisition of property rights, equipment, design, licensing,permitting, construction, owning, operating, or otherwise acquiring a renewable energy sourceand any associated asset, including transmission;
(b) a cost to acquire qualifying electricity through trade, power purchase, or othertransfer;
(c) a cost to acquire a bundled or unbundled renewable energy certificate, if any netrevenue from the sale of a renewable energy certificate allocable to this state is also included inrates;
(d) a cost to interconnect a renewable energy source to the electrical corporation'stransmission and distribution system;
(e) a cost associated with using a physical or financial asset to integrate, firm, or shape arenewable energy source on a firm annual basis to meet a retail electricity need; and
(f) any cost associated with transmission and delivery of qualifying electricity to a retailelectricity consumer.
(3) (a) The commission may allow an electrical corporation to use an adjustmentmechanism or reasonable method other than a rate case under Sections 54-4-4 and 54-7-12 toallow recovery of costs identified in Subsection (2).
(b) If the commission allows the use of an adjustment mechanism, both the costs and anyassociated benefit shall be reflected in the mechanism, to the extent practicable.
(c) This Subsection (3) creates no presumption for or against the use of an adjustmentmechanism.
(4) (a) The commission may permit an electrical corporation to include in its retailelectric rates the state's share of costs prudently incurred by the electrical corporation inconnection with a renewable energy source, whether or not the renewable energy sourceultimately becomes operational, including costs of:
(i) siting;
(ii) property acquisition;
(iii) equipment;
(iv) design;
(v) licensing;
(vi) permitting; and
(vii) other reasonable items related to the renewable energy source.
(b) Subsection (4)(a) creates no presumption concerning the prudence or recoverabilityof the costs identified.
(c) To the extent deferral is consistent with other applicable law, the commission mayallow an electrical corporation to defer costs recoverable under Subsection (4)(a) until therecovery of the deferred costs can be considered in a rate proceeding or an adjustmentmechanism created under Subsection (3).
(d) An application to defer costs shall be filed within 60 days after the day on which theelectrical corporation determines that the renewable energy source project is impaired undergenerally accepted accounting principles and will not become operational.
(e) Notwithstanding the opportunity to defer costs under Subsection (4)(c), a costincurred by an electrical corporation for siting, property acquisition, equipment, design,licensing, and permitting of a renewable energy source that the electrical corporation proposes toconstruct shall be included in the electrical corporation's project costs for the purpose ofevaluating the project's cost-effectiveness.
(f) A deferred cost under Subsection (4)(a) may not be added to, or otherwise consideredin the evaluation of, the cost of a project proposed by any person other than the electricalcorporation for the purpose of evaluating that person's proposal.
Enacted by Chapter 374, 2008 General Session
