No. 29378 (New Rule): R746-440. Significant Energy Resource Solicitation.

DAR File No.: 29378
Filed: 12/29/2006, 03:33
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this new rule is to establish the procedural and informational requirements for approval of a utility's resource decision or when seeking an order to proceed with an approved resource decision pursuant to Utah Code Sections 54-17-401 through 54-17-404.

Summary of the rule or change:

The proposed new rule sets forth the information which will be submitted by a utility to obtain approval of a resource decision or to proceed with an approved resource decision and the process or procedure to be followed in the approval or order to proceed process.

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 and were considered by the Legislature in enacting the Act. The proposed rule specifies the information which the Act contemplated would be submitted by utilities affected by the Act and identifies the 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 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, there are no anticipated compliance costs arising from the proposed rule beyond costs from the Act itself and which were considered by the Legislature when enacting the specific provisions of the 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 derives from the Act and were considered by the Legislature when enacting 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.

R746-440. Significant Energy Resource Solicitation.

R746-440-1. Filing Requirements for a Request for Approval of a Resource Decision.

(1) A request for approval of a Resource decision shall include testimony and exhibits which provide:

(a) A description of the Resource decision,

(b) Information to demonstrate that the Energy utility has complied with the applicable requirements of the Act and Commission rules,

(c) The purposes and reasons for the Resource decision,

(d) An analysis of the estimated or projected costs of the Resource decision, including the engineering studies, data, information and models used in the Energy utility's analysis,

(e) Descriptions and comparisons of other resources or alternatives evaluated or considered by the Energy utility, in lieu of the proposed Resource decision,

(f) Sufficient data, information, spreadsheets, and models to permit an analysis and verification of the conclusions reached and models used by the Energy utility,

(g) An analysis of the estimated effect of the Resource decision on the Energy utility's revenue requirement,

(h) Financial information demonstrating adequate financial capability to implement the Resource decision,

(i) Major contracts, if any, proposed for execution or use in connection with the Resource decision,

(j) Information to show that the Energy utility has or will obtain any required authorizations from the appropriate governmental bodies for the Resource decision, and

(k) Other information as the Commission may require.

(2) Notice of a request for approval of a Resource decision.

(a) At least five calendar days prior to filing a request for approval of a Resource decision, the Energy utility shall provide public notice of its request for approval of a Resource decision. The public notice shall provide a description of the request and information on how interested persons my obtain, from the Energy utility, further information about the request or a copy of the request.

(b) At least five calendar days prior to filing a request for approval of a Resource decision, the Energy Utility shall inform the Commission of the anticipated filing and the means by which the Energy Utility has made, or will make, the public notice.

(3) Issues regarding the production, treatment and use of materials of a confidential or proprietary nature, including issues regarding who is entitled to review the materials, will be determined by the Commission.

 

R746-440-2. Process for Approval of a Resource Decision.

(1) Following a filing of a request for approval of a Resource decision:

(a) At a scheduling conference, the Commission will set an intervention deadline and schedule the time for conducting a public hearing on the request. The Commission will issue a Scheduling Order subsequent to the scheduling conference.

(b) The Commission will issue a protective order, to facilitate access to and exchange of information which is claimed to be confidential or of a proprietary nature.

(c) Discovery may commence. Responses to discovery requests shall be made within 21 calendar days after receipt, or as otherwise agreed between the parties or ordered by the Commission.

(d) Delivery of documents may be made by electronic means (e.g., email, disk, facsimile), instead of paper versions, as agreed by the parties or as ordered by the Commission.

(2) The Energy utility shall maintain a complete record of all materials submitted to the Commission and all materials submitted in response to discovery requests during a Resource decision process for 10 years from the date of the Commission's final order in a Resource decision proceeding. A party to a proceeding may petition the Commission to require specified additional materials to be maintained for a specified period.

 

R746-440-3. Process for Review and Determination of a Request for an Order to Proceed with Implementation of an Approved Resource Decision.

(1) A request for such Commission review and determination shall include testimony and exhibits which provide:

(a) An explanation of the nature and cause of the change in circumstances or projected costs, including how the Energy utility became aware of the change in circumstances or projected cost and any action it has taken,

(b) An explanation of why an Order to Proceed is or is not, in the Energy utility's view, the proper response to the changed circumstances,

(c) The Energy utility's updated projections regarding the impact of the changed circumstances or projected costs on the timing, cost and other aspects of the approved Resource decision,

(d) The costs incurred to date in connection with the Resource decision,

(e) The Energy utility's updated projections of any unavoidable costs if the approved Resource decision is not pursued to completion, and

(f) Major proposed contracts or contract amendments, if any, to be used in the event of an Order to Proceed.

(2) Notice of a request for review and determination of an Order to Proceed shall be provided, by the Energy utility, to all parties in the docket in which the Resource decision was approved and otherwise as determined by the Commission.

(3) The Energy utility shall maintain a complete record of its analyses and evaluations relating to the Order to Proceed, including spreadsheets and models materially relied upon by the utility, all materials submitted to the Commission and all materials submitted in response to discovery requests during a proceeding involving a review and determination for at least 10 years from the date of the Commission's final order in a Commission proceeding for review and determination of an Order to Proceed with Implementation of an approved Resource decision. A party to a proceeding may petition the Commission to require specified additional materials to be maintained for a specified period.

(4) Issues regarding the production, treatment and use of materials of a confidential or proprietary nature, including issues regarding who is entitled to review those materials will be determined by the Commission.

 

KEY: resource decision, energy utility, filing requirements

Date of Enactment or Last Substantive Amendment: 2007

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