Bill > HB0072

This bill modifies Utah's regulations for electrical utilities' cost recovery and energy balancing accounts, introducing several key provisions to protect ratepayers' interests. The bill establishes new requirements for large-scale electric utilities when allocating generation resource costs, mandating that utilities must demonstrate direct benefits to Utah ratepayers and prevent subsidizing other states' benefits. Specifically, utilities must prepare a state-specific resource plan for new generation resources procured after December 31, 2025, which must reflect Utah's energy policies and identify the most cost-effective resources for state ratepayers. The bill also changes how energy balancing accounts operate, introducing a more nuanced cost recovery mechanism where utilities will now bear a percentage of certain costs: for most components, utilities will recover 70% of excess costs from customers and absorb 30%, with special provisions for coal-related and renewable energy resources. Additionally, the bill requires large-scale electrical corporations to file a general rate case at least every three years to remain eligible for energy balancing account cost recovery, and it sets new standards for how the Public Service Commission approves cost allocations, emphasizing that ratepayers should only pay for resources and investments that directly benefit them. The bill is set to take effect on May 7, 2025.

Business and Industry, Transportation and Infrastructure

https://le.utah.gov/~2025/bills/static/HB0072.html