023-3 Wyo. Code R. §§ 3-21 - Notices and Applications

(a) No utility may commence new construction or an expansion of facilities or projects for which notification is required pursuant to section 21(b) until the Commission:

(i) Grants the utility a situs or non-situs certificate of public convenience and necessity; or a non-situs waiver;

(ii) Informs the utility in writing that the proposed facilities or projects in Wyoming do not require a certificate of public convenience and necessity or a non-situs waiver, following the utility's notification that explains in detail why a proposed facility or project is in the ordinary course of business or otherwise exempt. Notwithstanding the foregoing, no notification shall be required for a non-situs facility or project if the capital investment in such facility or project that is assigned or allocated to Wyoming Customers is less than one percent (1%) of the utility's total Wyoming rate base from the most recent general rate case. The Commission shall inform the utility whether or not the proposed facility or project is exempt within 20 business days following receipt of the utility's notice; or

(iii) Determines that waiving the requirement to obtain a non-situs certificate of public convenience and necessity is in the public interest because:

(A) The capital investment in such facility or project that is assigned or allocated to Wyoming customers is less than one percent of the utility's total Wyoming rate base from the most recent general rate case; or

(B) There exists:

(I) A clear emergency;

(II) A time-limited commercial or technical opportunity that provides value to or serves a public purpose or need of customers of the affected public utility; or

(III) Any other factor that makes waiving the requirement in the public interest.

(b) Utilities shall notify the Commission of the following proposed facilities or projects:

(i) For electric utilities, a summary of the proposed modification, construction or re-route for any project associated with any generation plant, substations or switching station 69kV and above or transmission lines 69kV and above that are greater than three miles in length, except that, no utility notification shall be required for a non-situs project if the capital investment in such facility or project that is assigned or allocated to Wyoming customers is less than one percent (1%) of the utility's total Wyoming rate base from the most recent general rate case;

(ii) For gas utilities, a summary of the proposed modification, construction or re-route for any project above 125 pounds per square inch gauge and greater than three miles in length in Class 1 Locations not designated as High Consequence Areas or one mile in length in all other locations;

(iii) For water utilities, a summary of the proposed modification, construction, diversion or re-route for any project associated with transmission lines, pumping stations, storage facilities or diversion facilities; or

(iv) For pipeline utilities, a summary of the proposed modification, construction or re-route for any project above 125 pounds per square inch gauge associated with:

(A) liquid transmission pipelines greater than three miles in length unless they could impact High Consequence Areas, or one mile in length in all other locations; or

(B) gas transmission pipelines greater than three miles in length in Class 1 Locations not designated as High Consequences Areas or one mile in length in all other locations.

(c) When a utility is required to file an application for a certificate of public convenience and necessity:

(i) The application shall include:

(A) The name and address of the applicant;

(B) The type of plant, property or facility proposed to be constructed or acquired;

(C) A description of the facilities proposed to be constructed or acquired, including preliminary engineering specifications in sufficient detail to properly describe the principal systems and components, and final and complete engineering specifications when they become available;

(D) The rates, if any, proposed to be charged for the service that will be rendered because of the proposed construction or acquisition;

(E) The estimated total cost of the proposed construction or acquisition;

(F) The manner by which the proposed construction or acquisition will be financed;

(G) Documentation of the financial condition of the applicant;

(H) The estimated annual operating revenues and expenses that are expected to accrue from the proposed construction or acquisition, including a comparison of the overall effect on the applicant's revenues and expenses;

(J) The estimated start and completion dates of the proposed construction or date of acquisition; and

(K) A statement setting forth the need for the facility in meeting present or future demands for service in Wyoming or other states within the utility's service area.

(ii) To operate or construct a major utility facility in Wyoming, the application shall include the following information in addition to the requirements of section (21)(c)(i):

(A) A description of the proposed site, including the county or counties in which the facility will be located, with a metes and bounds description, and a description of the terrain where the facility will be constructed;

(B) A geological report of the proposed site, including foundation conditions, groundwater conditions, operating mineral deposits within a one-mile radius and a topographical map showing the area within a five-mile radius;

(C) A description of and plans for protecting the surrounding scenic, historical, archeological and recreational locations; natural resources; plant and animal life; and land reclamation, including:

(I) A general description of the devices to be installed at the major utility facility to protect air, water, chemical, biological and thermal qualities;

(II) The designed and tested effectiveness of such devices; and

(III) The operational conditions for which the devices were designed and tested.

(D) A description of any potential safety hazards;

(E) A description of the real property, fuel and water requirements, including any source of water along which the major utility facility will be constructed or from which it will obtain or return water;

(F) The acquisition status, source and location of real property, right-of-way, fuel and water requirements;

(G) The proposed means of transporting fuel and water requirements;

(H) A description of all mineral rights associated with the facility and plans for addressing any split-estate issues;

(J) A description of the commodity or service the facility will make available;

(K) A statement of the facility's effect on the applicant's and other systems' stability and reliability;

(L) The status of satisfying local, state, Tribal or federal governmental agency requirements. The applicant shall immediately file all agencies' final orders.

(M) For gas utilities, when the proposed modification, construction or re-route for any project is above 125 pounds per square inch gauge and greater than three miles in length in Class 1 Locations not designated as High Consequence Areas or one mile in length in all other locations, all project documentation, including but not limited to, constructability review, project management, risk assessment, and safety management systems shall include the signature and seal of a registered professional engineer.

(d) When a utility extends service to a contiguous, unserved area as defined in Wyoming Statute § 37-2-205, the utility shall notify the Commission in writing and, if so directed, shall apply for an order conforming the certificated area to the area actually served. At a minimum, the notification shall include:

(i) A map of the extension area;

(ii) A metes and bounds description;

(iii) The number and type of customers served; and

(iv) A description of the facilities deployed.

(e) A utility shall file an application and obtain Commission approval prior to discontinuing, any type of utility service currently offered to the public.

(i) The application shall include:

(A) A description of past, present and prospective customer use of the subject service;

(B) Any impact of the proposed action on other public utilities; and

(C) A description of any anticipated cost savings or other benefits to customer.

(f) A utility shall file an application and obtain Commission approval prior to abandoning, transferring, selling, leasing, discontinuing the use of, or otherwise disposing of, relinquishing complete or partial operational control of, or, in the case of an electrical generation facility, converting to the use of a different primary fuel, any utility plant or facilities used or useful in providing service to the public.

(i) The application shall include:

(A) Studies of past, present and prospective customer use of the subject service, plant or facility;

(B) A description of any impact of the proposed action on other public utilities; and

(C) A description of any anticipated cost savings to customers.

(ii) In addition to the items in § 21(f)(i), if the utility is retiring a major utility facility, the application shall include:

(A) any material state and local socioeconomic impacts or cost externalities, incurred, or likely to be incurred, by or in the state of Wyoming;

(B) the costs and a plan for decommissioning and reclamation of the facility's site; and

(C) if applicable, any federal law mandating closure or environmental compliance expenditure that makes it no longer cost effective to operate the facility with supporting analysis.

(iii) If a utility is retiring an electric generation facility, as defined in Wyo. Stat. 37-2-134(a)(iii), in addition to § 21(f)(i) and (ii), the application shall include:

(A) a reliability study, if applicable, analyzing the proposed action upon quality of services provided, including descriptions of:

(I) the generation or other resources that will replace the capacity of the facility proposed for retirement,

(II) the effect of the proposed retirement on system reliability and resilience, including with respect to disaster preparedness,

(III) the dispatchability of the replacement generation or other facility relative to the facility proposed for retirement, and

(IV) any anticipated alterations to transmission facilities or effects on transmission system operations that would be necessary to accommodate the proposed retirement and facilities providing replacement capacity; and

(B) a detailed analysis of any potential alternatives to discontinuing, abandoning or otherwise disposing of the utility plant, facility or service.

(iv) An application shall not be required:

(A) To remove individual facilities where a customer has requested service discontinuance;

(B) For de minimis sales and dispositions of utility plant or facilities that do not affect a utility's ability to provide safe, adequate and reliable service. De minimis sales and disposition do not include the sale or disposition of distribution facilities, major utility facilities or facilities valued at more than 1% of a utility's Wyoming gross plant in service; or

(C) For easements and rights-of-way and leases or sale of real property that do not affect a utility's ability to provide safe, adequate and reliable service, provided that such transactions shall be reported to the Commission on the 15^th day of January and July each year. The reports shall include an itemized list of all transactions, their value and a description of the disposition of all funds received.

(g) A utility shall file an application prior to selling, transferring by lease or otherwise disposing of a controlling interest in the utility. The application shall include:

(i) The name and address of the utility;

(ii) Ownership;

(iii) The utility's financial condition;

(iv) The name and financial condition of the purchaser, lessee or assignee;

(v) A copy of any draft or final agreement detailing the transaction;

(vi) The effect of the proposed transaction on the ability of the utility to provide service; and

(vii) The effect the proposed transaction will have on any other utility.

(h) In the case of an otherwise retiring Coal Fired Electric Generation Facility:

(i) Where a utility attempted to sell and no winning bidder was selected:

(A) The utility shall submit to the Commission an application describing its efforts to sell the Coal Fired Electric Generation Facility, including, but not limited to, proof of compliance with the solicitation process approved by the Commission and any offers received to purchase the Coal Fired Electric Generation Facility;

(B) The utility shall include a report detailing the reasons a sale was not accomplished. The utility shall demonstrate that:

(I) An asset purchase and sales agreement and a power purchase agreement with a prospective purchaser selected through the Commission approved Coal Fired Electric Generation Facility solicitation process, in comparison with the proposed retirement of the Coal Fired Electric Generation Facility, was not executed as it does not reduce costs and reduce risks to the utility's Wyoming customers, including any diminished environmental remediation risks;

(II) The Coal Fired Electric Generation Facility should be retired because there was no reasonable offer to purchase it through the Commission approved Coal Fired Electric Generation Facility solicitation process; or

(III) A sale could not be completed for a reason beyond the reasonable control of the utility.

(C) The Commission shall review whether the utility complied with the Commission approved processes pursuant to Section 25 and determine whether the utility has demonstrated it made a good faith effort to sell the Coal Fired Electric Generation Facility.

(D) For any Coal Fired Electric Generation Facility retired on or after January 1, 2024, the Commission shall review whether the utility has demonstrated that:

(I) The requirements of W.S. § 37-3-117(a) have been satisfied; and

(II) The utility is achieving, or has taken steps satisfactory to the Commission to achieve, the electricity generation standards established in accordance with W.S. § 37-18-102(a) and the rules adopted pursuant thereto.

(ii) Where the utility reached an agreement to sell with a prospective purchaser, the utility shall submit an application to the Commission including:

(A) An asset purchase and sales agreement to be executed between the utility and the prospective purchaser;

(B) Any power purchase agreement(s) to be executed between the prospective purchaser and the utility and/or the utility and an Eligible Retail Customer;

(C) Any partial requirements contract agreement executed between the utility and an Eligible Retail Customer;

(D) Demonstration that the prospective purchaser has acquired or is in the process of acquiring all permits necessary to operate, maintain and retire the Coal Fired Electric Generation Facility, either through transfer of existing permits, or by application to agencies with appropriate jurisdiction.

(E) A plan of operation for the Coal Fired Electric Generation Facility by the prospective purchaser demonstrating:

(I) The availability of personnel that will operate and manage the Coal Fired Electric Generation Facility, including:

(1.) A complete list of the prospective purchaser's managers, owners, and Board of Directors including job descriptions and any relevant experience of managers, owners and key employees; and

(2.) A complete list of any labor agreements, collective bargaining agreements or other employee arrangements assumed by the prospective purchaser.

(II) An estimate of anticipated capital expenses necessary to operate the Coal Fired Electric Generation Facility for the next five years;

(III) Existence of relationships with vendors to supply fuel, reagents and other supplies and materials necessary to operate the Coal Fired Electric Generation Facility;

(IV) Familiarity with the electrical and emissions limits of the Coal Fired Electric Generation Facility; and

(V) Other aspects of a plan of operation as may assist the Commission in evaluation of the prospective purchaser's suitability.

(F) The terms and conditions of the prospective purchaser's proposed financing;

(G) A list of all local, state and federal taxes associated with owning and operating the Coal Fired Electric Generation Facility, along with a disclosure of adequate future performance by the prospective purchaser;

(H) Documentation of the prospective purchaser's financial condition, including, but not limited to, audited financial statements, tax returns, corporate ratings opinions and capital ratios;

(J) Demonstration that the prospective purchaser possesses the requisite technical expertise, financial resources and managerial ability to operate, maintain, decommission and retire the Coal Fired Electric Generation Facility through the end of it useful life;

(I) If these obligations are shared with a selling utility, the joint operating agreement shall clearly and unambiguously define the obligations of each party regarding decommissioning and retiring the Coal Fired Electric Generation Facility at the end of its useful life;

(II) Decommissioning costs shall be itemized and estimated for Commission review; and

(III) The Commission may require financial assurance of the prospective purchaser sufficient to assure complete decommissioning of the Coal Fired Electric Generation Facility and reclamation of the site.

(K) Demonstration that the purchase is in the public interest.

(j) A gas or electric utility shall file an application signed by an authorized person prior to issuing securities or creating liens.

(i) The application shall include:

(A) Documentation of authorization to issue securities or create debt, including the total amount of securities or debt;

(B) The purpose of the security issuance or debt;

(C) Copies of proposed securities or debt document, including any related terms and conditions;

(D) Copies of financial statements, work papers and financial forms showing the aggregate of the existing and proposed securities or debt and the fair value of the gas or electric utility; and

(E) Presentation of the utility's debt-to-equity ratio before and after the proposed transaction.

(ii) Cooperative utilities shall, except as provided in (B) below:

(A) Provide their debt-to-asset ratio, operating TIER, debt service coverage ratio, the minimum debt coverage ratios and the amount of long-term debt held by the utility before and after the proposed transaction. If issuing the securities would violate any minimum ratio requirement, the cooperative utility shall provide a letter from the lender acknowledging the cooperative utility will not be in violation of loan covenants with the new securities, or;

(B) Cooperative utilities exempt from retail rate regulation pursuant to Wyo. Stat. 37-17-103, when borrowing from the United States Rural Utilities Service, CoBank, the National Rural Utilities Cooperative Finance Corporation, the National Cooperative Services Corporation or the Rural Telephone Finance Cooperative, may, in lieu of the information required in (i), above, provide:

(I) A Board of Directors' resolution identifying the proposed lender;

(II) A statement of the cooperative's purpose of the loan; and

(III) Affirmation that the loan will not result in the cooperative's aggregate amount of securities outstanding to exceed the fair value of the properties and business of the cooperative.

(iii) Once securities are issued, compliance documents shall be filed with the Commission that detail the final terms and conditions, including a copy of the final executed documents.

(k) Applications for tariff changes:

(i) The proposed tariff sheets shall be posted on the utility's website and in offices and places of business in the territory affected when the proposed change is filed with the Commission. Approved tariff sheets shall be similarly posted for 30 days after their effective date;

(ii) Proposed tariff sheets shall be filed in clean and legislative formats. Legislative format shall indicate deleted material in strikeout and added material in underline. The version in legislative format shall not be part of the utility's tariff.

Notes

023-3 Wyo. Code R. §§ 3-21

Adopted, Eff. 3/21/2016. Amended, Eff. 4/8/2019. Amended, Eff. 8/24/2020. Amended, Eff. 1/26/2021. Amended, Eff. 1/3/2022. Amended, Eff. 9/15/2022. Amended, Eff. 3/8/2023.