Utah Admin. Code R746-450-4 - Solar Resource Acquisition Approval Process

(1) Before acquiring a solar resource selected through a specific customer solicitation approved under this rule:

(a) a qualified utility shall file an application for approval of the acquisition with the Commission that includes information sufficient for the Commission to make the following determinations:

(i) that the solicitation, bid evaluation and resource selection processes complied with these rules, other Commission rules, the Utah Code, and the Commission's order approving the solicitation process; and

(ii) that the acquisition of the solar resource is just and reasonable, and in the public interest.

(b) the Commission will provide public notice of the application and interested parties may file comments on the application within 30 days of the notice. Interested parties shall have 15 days to respond to any comments. The Commission will hold a scheduling conference to set the time for public hearing. Unless the Commission determines that another process or additional time is warranted and is in the public interest, the Commission will set a hearing date that is within 75 days of the application.

(2) Combining applications for Commission approval:

(a) A qualified utility may combine its application for Commission approval of a specific customer solicitation with its application for Commission approval of the acquisition of a solar resource selected through that specific customer solicitation if the following conditions are met:

(i) all information required under R746-450-3(1) is included in the combined solicitation and acquisition approval application;

(ii) the qualified utility did not prepare or administer the specific customer solicitation, and was not involved in the evaluation or selection of the solar resource selected through that specific customer solicitation;

(iii) the specific customer solicitation is not combined with any other form of solicitation under these rules; and

(iv) the qualified utility's application for combined approval meets the requirements of both R746-450-3(2)(a) and R746-450-4(1).

(b) The Commission shall provide public notice of the application and interested parties may file comments on the application within 30 days of the notice. Interested parties shall have 15 days to respond to any comments. The Commission will hold a scheduling conference to set the time for public hearing. Unless the Commission determines that another process or additional time is warranted and is in the public interest, the Commission will set a hearing date that is within 75 days of the application.

(3) Approval of an acquisition under an all customers large solicitation is also subject to Part 3 of the Energy Resource Procurement Act and must be approved in accordance with that Part 3 and R746-430 and these rules. An acquisition under an all customers solicitation is subject to Part 4 of the Energy Resource Procurement Act and must be approved in accordance with that Part 4 and R746-440 and these rules.

(a) In an application for approval of an acquisition resulting from an all customers solicitation or an all customers large solicitation, in addition to the requirements of Part 3 and R746-430 or Part 4 and R746-440, the qualified utility shall include in such application information sufficient for the Commission to make the following determinations:

(i) that the solicitation, bid evaluation and resource selection processes complied with these rules, other Commission rules, the Utah Code and the Commission's order approving the solicitation process;

(ii) that the acquisition of the solar resource is just and reasonable, and in the public interest;

(iii) that the accounting treatment of the acquired solar resource proposed by the qualified utility in the application will be properly reflected in the qualified utility's accounting system, reports, energy balancing accounts, and for interjurisdictional allocations; and

(iv) that the qualified utility's acquisition of the solar resource at a competitive market price is the lowest cost ownership option, which will be based on:

(A) the solicitation criteria and the bid results; and

(B) information to be included in the application by the qualified utility that compares customer costs and benefits for acquisition of the solar resource using the competitive market price to the costs and benefits of the solar resource if it were treated as a traditional regulated resource included in rate base.

(b) The Commission will provide public notice of the application. The process for approval of the application will be governed by applicable provisions of the Energy Resource Procurement Act and Commission rules.

(4) If the Commission issues an order granting acquisition approval under this section R746-450-4, including entering into a power purchase agreement containing a purchase option by the qualified utility, using rate recovery based on a competitive market price:

(a) the prices approved by the Commission shall constitute competitive market prices; and

(b) assets owned by the qualified utility and used to provide service as approved under this section are not public utility property.

(5) Within six months following the date of a Commission order approving the acquisition of a solar resource pursuant to an all customers solicitation or an all customers large solicitation, or for such longer period as the Commission determines to be in the public interest a qualified utility may file an application with the Commission seeking approval to acquire another solar resource that is similar to the one for which a competitive market price was established without requiring a new solar solicitation approval process. For the purposes of this section, whether a solar resource is 'similar" shall be determined based on the overall similarity between the solar resources after evaluating the following factors: resource size, capacity factor, technology type, resource location, contract term length, generation profile, reliability capabilities, transmission, and such other factors the Commission deems appropriate.

(a) The qualified utility's application shall also provide information sufficient to demonstrate that:

(i) there is a need to acquire the solar resource;

(ii) the competitive market price remains reasonable; and

(iii) the acquisition is in the public interest.

(b) The Commission shall provide public notice of the application. Interested parties may file comments on the application within 30 days of the notice. Interested parties shall have 15 days to respond to any comments. The Commission will hold a scheduling conference to set the time for public hearing. Unless the Commission determines that another process or additional time is warranted and is in the public interest, the Commission will set a hearing date that is within 75 days of the application.

Notes

Utah Admin. Code R746-450-4

Adopted by Utah State Bulletin Number 2019-2, effective 12/24/2018