54-17-502 - Renewable energy source -- Solicitation -- Consultant.
54-17-502. Renewable energy source -- Solicitation -- Consultant.
(1) Sections 54-17-102 through 54-17-404 do not apply to a significant energy resourcethat is a renewable energy source as defined in Section 54-17-601 if the nameplate capacity of therenewable energy source does not exceed 300 megawatts or, if applicable, the quantity ofcapacity that is the subject of a contract for the purchase of electricity from a renewable energysource does not exceed 300 megawatts.
(2) (a) (i) An affected electrical utility shall issue a public solicitation of bids for arenewable energy source up to 300 megawatts in size by January 31 of each year in which itreasonably anticipates that it will need to acquire or commence construction of a renewableenergy resource.
(ii) A solicitation for a renewable energy source issued by January 31, 2008 for up to 99megawatts satisfies the requirement of this Subsection (2) for the year 2008 if:
(A) not later than 30 days after the day on which this section takes effect, the affectedelectrical utility amends the solicitation or initiates a new solicitation to seek bids for renewableenergy source projects up to 300 megawatts in size; and
(B) within 60 days after the day on which this section takes effect and as soon aspracticable, the commission retains a consultant in accordance with Subsection (3).
(b) A consultant hired under Subsection (2)(a)(ii)(B) shall perform the consultant's dutiesunder Subsection (3) in relation to the status of the solicitation process at the time the consultantis retained and may not unreasonably delay the solicitation process.
(c) For a solicitation issued after January 31, 2008:
(i) the affected electrical utility shall develop a reasonable process for pre-approval ofbidders; and
(ii) in addition to publicly issuing the solicitation in Subsection (2)(a)(i), the affectedelectrical utility shall send copies of the solicitation to each potential bidder who is pre-approved.
(d) The affected electrical utility shall evaluate in good faith each bid that is received andnegotiate in good faith with each bidder whose bid appears to be cost effective, as defined inSection 54-17-602.
(e) Beginning on August 1, 2008, and on each August 1 thereafter, the affected electricalutility shall file a notice with the commission indicating whether it reasonably anticipates that itwill need to acquire or commence construction of a renewable energy resource during thefollowing year.
(3) (a) If the commission receives a notice under Subsection (2)(e) that the affectedelectrical utility reasonably anticipates that it will need to acquire or commence construction of arenewable energy source during the following year, the commission shall promptly retain aconsultant to:
(i) validate that the affected electrical utility is following the bidder pre-approval processdeveloped pursuant to Subsection (2)(c) and make recommendations for changes to thepre-approval process for future solicitations;
(ii) monitor and document all material aspects of the bids, bid evaluations, and bidnegotiations between the affected electrical utility and any bidders in the solicitation process;
(iii) maintain adequate documentation of each bid, including the solicitation, evaluation,and negotiation processes and the reason for the conclusion of negotiations, whichdocumentation shall be transmitted to the commission at the conclusion of all negotiations in thesolicitation; and
(iv) be available to testify under oath before the commission in any relevant proceedingconcerning all aspects of the public solicitation process.
(b) The commission and the consultant shall use all reasonable efforts to not delay thesolicitation process.
(4) Documentation provided to the commission by the consultant shall be available to theaffected electrical utility, any bidder, or other interested person under terms and conditions and attimes determined appropriate by the commission.
(5) (a) The commission and the consultant shall execute a contract approved by thecommission with terms and conditions approved by the commission.
(b) Unless otherwise provided by contract, an invoice for the consultant's services shallbe sent to the Division of Public Utilities for review and approval.
(c) After approval under Subsection (5)(b), the invoice shall be forwarded to the affectedelectrical utility for payment to the consultant.
(d) The affected electrical utility may, in a general rate case or other appropriatecommission proceeding, include, and the commission shall allow, recovery by the affectedelectrical utility of any amount paid by the affected electrical utility for the consultant.
(6) (a) Nothing in this section precludes an affected electrical utility from constructing oracquiring any renewable energy source project outside the solicitation process provided for inthis section, including purchasing electricity from any renewable energy source project thatchooses to self-certify as a qualifying facility under the federal Public Utility Regulatory PoliciesAct of 1978.
(b) An affected electrical utility that constructs a renewable energy source outside thesolicitation process of this section or Section 54-17-201 shall file a notice with the commission atleast 60 days before the date of commencement of construction, indicating the size and locationof the renewable energy source.
(c) The date of commencement of construction under Subsection (6)(b) is the date of anydirective from an affected electrical utility to the person responsible for the construction of therenewable energy source authorizing or directing the person to proceed with construction.
(d) For an affected electrical utility whose rates are regulated by the commission, theutility has the burden of proving in a rate case or other appropriate commission proceeding theprudence, reasonableness, and cost-effectiveness of construction under this Subsection (6),including the method used to evaluate the risks and value of any bid submitted in the solicitationunder this section.
(7) Nothing in this section requires an affected electrical utility to enter into anytransaction that it reasonably believes is not cost effective or otherwise is not in the publicinterest.
Enacted by Chapter 374, 2008 General Session