No. 29377 (New Rule): R746-430. Action Plan and Significant Energy Resource Decision Rule

DAR File No.: 29377
Filed: 12/29/2006, 03:31
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this proposed new rule is to establish the procedural and informational requirements for review of a utility's action plan, for approval of significant energy resource decision, and when seeking an order to proceed with an approved significant energy resource decision pursuant to the Energy Resource Procurement Act, Sections 54-17-301 through 54-17-304.

Summary of the rule or change:

The proposed rule identifies how the Commission will review and provide guidance on a utility's action plans. The proposed rule sets forth the information which will be submitted by an energy utility to obtain approval of a significant energy resource decision and the process or procedure to be followed in the approval or order to proceed processes.

State statutory or constitutional authorization for this rule:

Section 54-17-100 et seq.

Anticipated cost or savings to:

the state budget:

It is not anticipated that the proposed rule will have any costs or savings effect upon state agencies. Any costs to state agencies are driven by the provisions of the Energy Resource Procurement Act, Section 54-17-100 et seq. and were considered by the Legislature in enacting the Act. The proposed rule specifies the specific information which the Act contemplated would be submitted by utilities affected by the Act and identifies the specific procedures that should be followed for agency approval of a utility's request to approve a resource decision or obtain an order to proceed with an approved resource decision.

local governments:

There will be no change in costs or savings to local governments as the proposed rule has no provisions affecting any local government activity.

other persons:

Although affected utilities will incur costs to comply with the Act, costs derive from the requirements of the Act and not the proposed rule. The Act allows a utility to seek Commission approval of its resource decision or an order to proceed with the implementation of an approved resource decision. The proposed rule identifies the specific information to be submitted when seeking such approval or order to proceed and the procedural steps for proceedings before the Commission.

Compliance costs for affected persons:

As explained previously, there are no anticipated compliance costs arising from the proposed rule beyond costs which were already considered by the Legislature when enacting the Energy Resource Procurement Act.

Comments by the department head on the fiscal impact the rule may have on businesses:

The proposed rule, itself, will have no fiscal impact on affected businesses. The fiscal impact which may arise derive from the Act itself and were considered by the Legislature when enacting the specific provisions of the Act. Ric Campbell, Chairman

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Public Service Commission
Administration
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Sheri Bintz or Sandy Mooy at the above address, by phone at 801-530-6714 or 801-530-6708, by FAX at 801-530-6796 or 801-530-6796, or by Internet E-mail at [e-mail] or [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

02/14/2007

This rule may become effective on:

02/21/2007

Authorized by:

Sandy Mooy, Legal Counsel

RULE TEXT

R746. Public Service Commission, Administration.

R746-430. Procedural and Informational Requirements for Review of Utility's Action Plan.

R746-430-1. Definitions.

Definition: "Action Plan" means a plan, prepared or updated in anticipation of the acquisition of the Affected Utility's significant energy resource(s) under the Energy Resource Procurement Act, Utah Code Title 54 Chapter 17, outlining actions and specific resource decisions intended to implement an Affected Utility's Integrated Resource Plan consistent with the utility's strategic business plan.

(1) Filing of an Action Plan - As soon as practicable after development of its Integrated Resource Plan or as part of the development of an Integrated Resource Plan, each Affected Utility shall file with the Commission an Action Plan. The Affected Utility shall include with the Action Plan the following:

(a) Information showing the Affected Utility's analysis and conclusions by which it identified and selected the actions and significant energy resources which will be pursued through the Action Plan consistent with the Energy Resource Procurement Act, Utah Code Title 54, Chapter 17.

(b) Identification of the Integrated Resource Plan used in the development of the Action Plan, including information showing how the Action Plan is consistent with the Integrated Resource Plan or why deviations have been made.

(c) All data, models and information used to develop the Action Plan, including, but not limited to, the Affected Utility's costs, risk and scenario analysis, methodologies and assumptions used.

(d) Identification of the means, whether included or not included in the Action Plan, by which the Affected Utility may enable changes to the actions and significant energy resource(s) pursued through the Action Plan, which changes may be warranted as the Affected Utility prepares and pursues future Integrated Resource Plans or may revise actions and significant energy resources in future Action Plans.

(2) Procedure on an Action Plan - Upon the filing of an Action Plan.

(a) The Commission shall set and give notice of a scheduling conference to set a schedule which will identify the time period during which interested parties may obtain information to prepare comments on the Action Plan, set the date upon which comments shall be provided to the Commission and other interested parties, and set a date upon which reply comments may be made to the comments previously filed.

(b) The Commission may, but is not required to, hold hearings in connection with the Action Plan for the purpose of the Commission's review and guidance.

(3) Affect of Review or Guidance - Nothing in these rules requires any acknowledgment, acceptance or order pertaining to the Action Plan submitted. Any review or guidance provided by the Commission shall not be binding on the Affected Utility and shall not be construed as approval of any action or resource identified in the Action Plan. The Affected Utility's response to any Commission review or guidance may be considered by the Commission in connection with any other request or filing made by the Affected Utility under the Energy Resource Procurement Act, Utah Code Title 54, Chapter 17.

 

R746-430-2. Approval of a Significant Energy Resource.

(1) Filing Requirements - When an Affected Utility files a request to approve a Significant Energy Resource pursuant to Section 54-17-302, the utility shall include with its request the following:

(a) Information to demonstrate the utility has complied with the requirements of the Energy Resource Procurement Act and Commission rules.

(b) Information to demonstrate whether approval of the selected Significant Energy Resource is in the public interest.

(c) Information regarding the solicitation process, if the Significant Energy Resource was solicited through a solicitation process, including, but not limited to:

(i) Summaries of all bids received,

(ii) Summaries of the Affected Utility's rankings and evaluations of bids,

(iii) Copies of all reports relating to the solicitation process made by an independent evaluator who may have been involved with the solicitation process,

(iv) Copies of all solicitation documents, and

(v) Signed acknowledgments from utility personnel and the utility's contractors' employees, if any, involved in the solicitation that they fully observed and complied with the requirements of the Commission's rules or statutes applicable to the solicitation process.

(d) All information, data, models and analyses used by the Affected Utility to evaluate the acquisition of the Significant Energy Resource if the acquisition is pursuant to Section 54-17-201(3), or to evaluate and rank bids and the selected resource, if the acquisition is by a solicitation process pursuant to Section 54-17-201(2).

(e) Contracts proposed for execution or use in connection with the acquisition of the Significant Energy Resource and identification of matters for which contracts are being negotiated or remain to be negotiated.

(f) Information on the estimated costs for the Significant Energy Resource, including but not limited to engineering studies, data, and models used in the analysis, and any other costs which the utility considers recoverable pursuant to Section 54-17-303.

(g) An analysis of the estimated effects the Significant Energy Resource will have on the Affected Utility's revenue requirement.

(h) Financial information demonstrating adequate financial capability to obtain the Significant Energy Resource pursuant to the proposed acquisition.

(i) A Proposed Protective Order, using the Commission's standard Protective Order, which may be used to facilitate access to information which may be claimed as confidential or protected.

(2) Procedure to Approve a Significant Energy Resource and Its Acquisition -

(a) If the Affected Utility is contemplating acquiring a Significant Energy Resource through a solicitation process, after it has completed its evaluation of bids but prior to filing a request to approve a Significant Energy Resource, the utility shall provide a written notification to the Commission of the Significant Energy Resources it has selected from the bids and the reasoning for the utility's selection of those resources.

(b) The Affected Utility may negotiate a proposed final agreement for the acquisition of the proposed Significant Energy Resource at any time, however, any such agreement shall be expressly conditional on the final decision of the Commission in the approval proceeding.

(c) The Affected Utility shall file a request for approval of a Significant Energy Resource as soon as practicable after completion of the utility's decision to select the resource.

(i) Prior to filing the request for approval of a Significant Energy Resource, the Affected Utility shall provide public notice of its intent to file the request and seek approval of the Significant Energy Resource from the Commission.

(ii) After the filing of the request, the Commission will schedule and provide notice of a Scheduling Conference to set a schedule for the proceedings, including a public hearing, through which it will consider the requested approval of the Significant Energy Resource.

(d) Any agreement for the acquisition of a Significant Energy Resource shall be submitted to the Commission for approval. The Commission will set a schedule to accept comments and reply comments from interested persons and the Affected Utility concerning whether the agreement complies with any Commission orders or Commission conditions relating to the Significant Energy Resource which will be acquired through the agreement.

(e) The Affected Utility shall maintain a complete record of all materials submitted in response to discovery requests and all documents submitted to the Commission during any proceedings to approve a Significant Energy Resource and its acquisition for at least ten years after the date of a Commission order approving an agreement to acquire the Significant Energy Resource.

 

R746-430-3. Requests for a Determination of Whether to Proceed with an Approved Significant Energy Resource In the Event of Change in Circumstances or Costs.

(1) Filing of a Request - When an Affected Utility seeks a Commission review and determination, pursuant to Section 54-17-304, of whether it should proceed with an approved Significant Energy Resource decision, the utility shall file with its request the following:

(a) Information concerning the nature and cause of the change of circumstances or projected costs, including, but not limited to, when and how the Affected Utility became aware of the change of circumstances or projected costs and any actions it has taken.

(b) Information concerning all costs incurred by the utility or to be incurred by the utility if the Commission determines that the utility should not proceed with the approved Significant Energy Resource, including those for which the utility anticipates it will seek future recovery pursuant to Section 54-17-304(4).

(c) Information concerning the utility's expectations concerning costs, timing and other aspects of an Approved Energy Resource if the utility were to proceed with its acquisition with the changed circumstances or projected costs. This information shall also include proposed contracts or contract amendments, if any, to be used in the event the utility were to proceed with the Significant Energy Resource.

(d) The utility's conclusions and recommendations on whether it would or would not be in the public interest to proceed with the Approved Energy Resource, and all information, data, models and analyses used in arriving at the utility's conclusions and recommendations.

(e) Information concerning any alternatives which the utility considered to meet the needs or purposes for which the Approved Energy Resource is intended in the utility's own analysis of whether or not to proceed with the Approved Energy Resource, including, but not limited to, all data, models, and analyses used by the utility.

(f) A Proposed Protective Order, using the Commission's standard Protective Order, which may be used to facilitate access to information which may be claimed as confidential or protected.

(2) Procedure on a Request for a Commission Review and Determination on Whether to Proceed-

(a) The Affected Utility shall give notice of the filing of its request to all parties who participated in the Commission proceedings by which the Significant Energy Resource was approved, individuals who have requested notification of such requests, and, additionally, as directed by the Commission.

(b) The Commission shall set and give notice of a scheduling conference by which it will set a schedule which will identify the time period, if any, during which interested persons may obtain information to prepare comments on the request, set the date upon which comments shall be provided to the Commission and other interested persons, and set a date upon which reply comments may be made to the comments previously filed. The Commission may, but is not required to, set a date for a public hearing on the request.

(c) The Affected Utility shall maintain a complete record of all materials developed for or used in connection with its request for a period of ten years from the date the Commission issues an order on its request.

 

KEY: action plan, significant energy resource, order to proceed, utilities

Date of Enactment or Last Substantive Amendment: 2007

Authorizing, and Implemented or Interpreted Law: 54-17-100 et seq.