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HomeMy WebLinkAbout20180619PAC to Staff Attachment 3-2.pdfEnrolled Copy S.B. 180 1 PUBLIC UTILITIES AMENDMENTS 2 2013 GENERAL SESSION 3 STATE OF UTAH 4 Chief Sponsor: Kevin T. Van Tassell 5 House Sponsor: Stephen G. Handy 6 7 LONG TITLE 8 General Description: 9 This bill enacts language related to the service territory of an electrical corporation and 10 municipality. 11 Highlighted Provisions: 12 This bill: 13 <defines terms; 14 <prohibits a municipality from providing electric service to a customer in an annexed 15 area with certain exceptions; 16 <enacts procedures for transferring an electric facility; 17 <enacts language related to the reimbursement for the transfer of an electric facility; 18 <requires a party that cannot agree on the transfer of an electric facility to submit the 19 dispute for mediation or arbitration; 20 <authorizes a municipality to provide retail electric service to a customer beyond its 21 municipal boundary on or before June 15, 2013, if the municipality enters into a 22 written filing agreement with an electrical corporation and the agreement is 23 approved by the Public Service Commission (commission); 24 <allows a municipality to submit a request to an electrical corporation to provide 25 service to a customer located outside the municipal boundary if a customer requests 26 the service; 27 <in certain circumstances, prohibits an electrical corporation from providing electric 28 service to a customer located within a municipal boundary unless the electrical 29 corporation enters into a written agreement with the municipality and the agreement ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 1 of 16 S.B. 180 Enrolled Copy - 2 - 30 is approved by the commission; 31 <authorizes an electrical corporation to provide, on or before June 15, 2013, electric 32 service to a customer within the municipal boundary of a municipality that provides 33 electric service if the electrical corporation enters into an agreement with the 34 municipality and the agreement is approved by the commission; 35 <authorizes the commission to review certain agreements between an electrical 36 corporation and a municipality; and 37 <makes technical and conforming amendments. 38 Money Appropriated in this Bill: 39 None 40 Other Special Clauses: 41 None 42 Utah Code Sections Affected: 43 AMENDS: 44 10-8-14, as last amended by Laws of Utah 2001, Chapter 83 45 ENACTS: 46 54-3-30, Utah Code Annotated 1953 47 54-3-31, Utah Code Annotated 1953 48 54-4-40, Utah Code Annotated 1953 49 REPEALS AND REENACTS: 50 10-2-421, as last amended by Laws of Utah 2001, Chapter 206 51 52 Be it enacted by the Legislature of the state of Utah: 53 Section 1. Section 10-2-421 is repealed and reenacted to read: 54 10-2-421. Electric utility service in annexed area -- Reimbursement for value of 55 facilities -- Liability -- Arbitration. 56 (1) As used in this section: 57 (a) "Commission" means the Public Service Commission established in Section ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 2 of 16 Enrolled Copy S.B. 180 - 3 - 58 54-1-1. 59 (b) "Current replacement cost" means the cost the transferring party would incur to 60 construct the facility at the time of transfer using the transferring party's: 61 (i) standard estimating rates and standard construction methodologies for the facility; 62 and 63 (ii) standard estimating process. 64 (c) "Depreciation" means an amount calculated: 65 (i) based on: 66 (A) the life and depreciation mortality curve most recently set for the type of facility in 67 the depreciation rates set by the commission or other governing regulatory authority for the 68 electrical corporation; or 69 (B) a straight-line depreciation rate that represents the expended life if agreed to by the 70 transferring and receiving parties; and 71 (ii) to include the gross salvage value of the type of facility based on the latest 72 depreciation life approved by the commission or other governing regulatory authority for the 73 electrical corporation, with a floor at the gross salvage value of the asset and in no case less 74 than zero. 75 (d) "Electrical corporation" means: 76 (i) an entity as defined in Section 54-2-1; and 77 (ii) an improvement district system described in Subsection 17B-2a-403(1)(a)(iv). 78 (e) "Facility" means electric equipment or infrastructure used to serve an electric 79 customer, above ground or underground, including: 80 (i) a power line, transformer, switch gear, pole, wire, guy anchor, conductor, cable, or 81 other related equipment; or 82 (ii) a right-of-way, easement, or any other real property interest or legal right or interest 83 used to operate and maintain the electric equipment or infrastructure. 84 (f) "Facility transfer" means the transfer of a facility from a transferring party to a 85 receiving party in accordance with Subsection (3). ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 3 of 16 S.B. 180 Enrolled Copy - 4 - 86 (g) "Lost or stranded facility" means a facility that is currently used by a transferring 87 party that will no longer be used, whether in whole or in part, as a result of a facility transfer. 88 (h) "Receiving party" means a municipality or electrical corporation to whom a facility 89 is transferred. 90 (i) "Transferring party" means a municipality or electrical corporation that transfers a 91 facility. 92 (2) If an electric customer in an area being annexed by a municipality receives electric 93 service from an electrical corporation, the municipality may not, without the agreement of the 94 electrical corporation, furnish municipal electric service to the electric customer in the annexed 95 area until the municipality has reimbursed the electrical corporation for the value of each 96 facility used to serve each electric customer within the annexed area, including the value of any 97 facility owned by a wholesale electric cooperative affiliated with the electrical corporation, 98 dedicated to provide service to the annexed area. 99 (3) The following procedures shall apply if a municipality transfers a facility to an 100 electrical corporation in accordance with Section 10-8-14 or if an electrical corporation 101 transfers a facility to a municipality in accordance with Subsection (2), Section 54-3-30, or 102 54-3-31: 103 (a) The transferring party shall provide a written estimate of the transferring party's 104 cost of preparing the inventory required in Subsection (3)(c) to the receiving party no later than 105 60 days after the date of notice from the receiving party. 106 (b) (i) The receiving party shall pay the estimated cost of preparing the inventory to the 107 transferring party no later than 60 days after the day that the receiving party receives the written 108 estimate. 109 (ii) If the actual cost of preparing the inventory differs from the estimated cost, the 110 transferring party shall include the difference between the actual cost and the estimated cost in 111 the reimbursement described in Subsection (5). 112 (c) Except as provided in Subsection (3)(f), the transferring party shall prepare, in 113 accordance with Subsection (4), and deliver the inventory to the receiving party no later than ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 4 of 16 Enrolled Copy S.B. 180 - 5 - 114 180 days after the day that the transferring party receives the payment specified in Subsection 115 (3)(b). 116 (d) (i) At any time, the parties may by agreement correct or update the inventory. 117 (ii) If the parties are unable to reach an agreement on an updated inventory, they shall: 118 (A) proceed with the facility transfer and reimbursement based on the inventory as 119 submitted in accordance with Subsection (3)(c); and 120 (B) resolve their dispute as provided in Subsection (6). 121 (e) Except as provided in Subsection (3)(f), the parties shall complete each facility 122 transfer and reimbursement contemplated by this Subsection (3) no later than 180 days after the 123 date that the transferring party delivers the inventory to the receiving party in accordance with 124 Subsection (3)(c). 125 (f) The periods specified in Subsections (3)(c) and (e) may be extended for up to an 126 additional 90 days by agreement of the parties. 127 (4) (a) The inventory prepared by a transferring party in accordance with Subsection 128 (3)(c) shall include an identification of each facility to be transferred and the amount of 129 reimbursement as provided in Subsection (5). 130 (b) The transferring party may not include in the inventory a facility that the 131 transferring party removed from service for at least 36 consecutive months prior to the date of 132 the inventory, unless the facility was taken out of service as a result of an action by the 133 receiving party. 134 (5) (a) Unless otherwise agreed by the parties, the reimbursement for the transfer of 135 each facility shall include: 136 (i) the cost of preparing the inventory as provided in Subsection (3)(b); 137 (ii) subject to Subsection (5)(b)(i), the value of each transferred facility calculated by 138 the current replacement cost of the facility less depreciation based on facility age; 139 (iii) the cost incurred by the transferring party for: 140 (A) the physical separation of each facility from its system, including the cost of any 141 facility constructed or installed that is necessary for the transferring party to continue to provide ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 5 of 16 S.B. 180 Enrolled Copy - 6 - 142 reliable electric service to its remaining customers; 143 (B) administrative, engineering, and record keeping expenses incurred by the 144 transferring party for the transfer of each facility to the receiving party, including any difference 145 between the actual cost of preparing the inventory and the estimated cost of preparing the 146 inventory; and 147 (C) reimbursement for any tax consequences to the transferring party resulting from 148 each facility transfer; 149 (iv) the value of each lost or stranded facility of the transferring party based on the 150 valuation formula described in Subsection (5)(a)(ii) or as otherwise agreed by the parties; 151 (v) the diminished value of each transferring party facility that will not be transferred 152 based on the percentage of the facility that will no longer be used as a result of the facility 153 transfer; and 154 (vi) the transferring party's book value of a right-of-way or easement transferred with 155 each facility. 156 (b) (i) (A) The receiving party may review the estimation of the current replacement 157 costs of each facility, including the wage rates, material costs, overhead assumptions, and other 158 pricing used to establish the estimation of the current replacement costs of the facility. 159 (B) Prior to reviewing the estimation, the receiving party shall enter into a 160 nondisclosure agreement acceptable to the transferring party. 161 (C) The nondisclosure agreement shall restrict the use of the information provided by 162 the transferring party solely for the purpose of reviewing the estimation of the current 163 replacement cost and preserve the confidentiality of the information to prevent any effect on a 164 competitive bid received by either party. 165 (ii) (A) If the age of a facility may be readily determined by the transferring party, the 166 transferring party shall use that age to determine the facility's depreciation. 167 (B) If the age of a facility cannot be readily determined, the transferring party shall 168 estimate the age of the facility based on the average remaining life approved for the same type 169 of facility in the most current depreciation rates set by the commission or other governing ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 6 of 16 Enrolled Copy S.B. 180 - 7 - 170 regulatory authority for the electrical corporation. 171 (c) (i) (A) A transferring party that transfers a facility in accordance with this section 172 shall, upon delivery of a document conveying title to the receiving party, transfer the facility 173 without any express or implied warranties. 174 (B) A receiving party that receives a facility in accordance with this section shall, upon 175 receipt of a document conveying title, accept the facility in its existing condition and assume 176 any and all liability, fault, risk, or potential loss arising from or related to the facility. 177 (ii) Notwithstanding Subsection (5)(c)(i), if, within six months after the date that any 178 oil filled equipment is transferred, the receiving party discovers that a transferred oil filled 179 equipment contains polychlorinated biphenyl, the transferring party shall reimburse the 180 receiving party for the cost of testing and disposal of that oil filled equipment. 181 (6) (a) If the parties cannot agree on each facility to be transferred or the respective 182 reimbursement amount, the parties shall: 183 (i) proceed with the facility transfer and the reimbursement based on the inventory as 184 submitted by the transferring party in accordance with Subsection (3)(c) and in accordance with 185 the schedule provided in Subsection (3)(e); and 186 (ii) submit the dispute for mediation or arbitration. 187 (b) The parties shall share equally in the costs of mediation or arbitration. 188 (c) If the parties are unable to resolve the dispute through mediation or arbitration, 189 either party may bring an action in the state court of jurisdiction. 190 (d) The arbitrator, or state court if the parties cannot agree on arbitration, shall 191 determine each facility to be transferred and the amount to be reimbursed in accordance with 192 Subsection (5). 193 (e) If the arbitrator or state court determines that: 194 (i) a transferring party transferred a facility that should not have been transferred, the 195 receiving party shall return the facility; 196 (ii) a party did not transfer a facility that should have been transferred, the party that 197 should have transferred the facility shall transfer the facility to the party to whom the facility ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 7 of 16 S.B. 180 Enrolled Copy - 8 - 198 should have been transferred; 199 (iii) the amount reimbursed by the receiving party is insufficient, the receiving party 200 shall pay the difference to the transferring party; or 201 (iv) the amount reimbursed by the receiving party is more than the amount that should 202 have been reimbursed, the transferring party shall pay the difference to the receiving party. 203 (7) Unless otherwise agreed upon in writing by the parties: 204 (a) a party shall transfer a facility to be transferred in accordance with Subsection (6)(e) 205 no later than 60 days after the day that the arbitrator or court issues a determination unless the 206 parties mutually agree to a longer time to complete the transfer; and 207 (b) a party shall: 208 (i) pay an amount required to be paid in accordance with Subsection (6)(e) no later than 209 30 days after the day that the arbitrator or court issues a determination; and 210 (ii) include interest in the payment at the overall rate of return on the rate base most 211 recently authorized by the commission or other governing regulatory agency for the electrical 212 corporation from the date the reimbursement was originally paid until the difference is paid. 213 (8) (a) Nothing in this section limits the availability of other damages under law arising 214 by virtue of an agreement between the municipality and the electrical corporation. 215 (b) Notwithstanding Subsection (8)(a), a party described in this section is not entitled 216 to an award for: 217 (i) damages that are indirect, incidental, punitive, exemplary, or consequential; 218 (ii) lost profits; or 219 (iii) other business interruption damages. 220 (9) Nothing in this section or Section 10-8-14, 54-3-30, or 54-3-31 applies to a transfer 221 of facilities from an electrical corporation to a municipality in accordance with a decision by a 222 municipality that did not previously provide electric service and seeks to commence providing 223 electric service to a customer currently served by an electrical corporation within the municipal 224 boundary. 225 Section 2. Section 10-8-14 is amended to read: ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 8 of 16 Enrolled Copy S.B. 180 - 9 - 226 10-8-14. Water, sewer, gas, electricity, and public transportation -- Service 227 beyond municipal limits -- Retainage -- Notice of service and agreement -- Cable 228 television and public telecommunications services. 229 (1) A [city] municipality may: 230 (a) construct, maintain, and operate waterworks, sewer collection, sewer treatment 231 systems, gas works, electric light works, telecommunications lines, cable television lines, or 232 public transportation systems; 233 (b) authorize the construction, maintenance and operation of the works or systems 234 listed in Subsection (1)(a) by others; 235 (c) purchase or lease the works or systems listed in Subsection (1)(a) from any person 236 or corporation; and 237 (d) sell and deliver the surplus product or service capacity of any works or system 238 listed in Subsection (1)(a), not required by the [city] municipality or the [city's] municipality's 239 inhabitants, to others beyond the limits of the [city] municipality, except the sale and delivery 240 of: 241 (i) retail electricity beyond the municipal boundary is governed by Subsections (3) 242 through (8); and 243 (ii) cable television services or public telecommunications services is governed by 244 Subsection [(3)] (11). 245 (2) If any payment on a contract with a private person, firm, or corporation to construct 246 waterworks, sewer collection, sewer treatment systems, gas works, electric [light] works, 247 telecommunications lines, cable television lines, or public transportation systems is retained or 248 withheld, it shall be retained or withheld and released as provided in Section 13-8-5. 249 (3) (a) Except as provided in Subsection (3)(b), (5), or (9), a municipality may not sell 250 or deliver the electricity produced or distributed by its electric works constructed, maintained, 251 or operated in accordance with Subsection (1) to a retail customer located beyond its municipal 252 boundary. 253 (b) A municipality that provides retail electric service to a customer beyond its ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 9 of 16 S.B. 180 Enrolled Copy - 10 - 254 municipal boundary on or before June 15, 2013, may continue to serve that customer if: 255 (i) on or before December 15, 2013, the municipality provides the electrical 256 corporation, as defined in Section 54-2-1, that is obligated by its certificate of public 257 convenience and necessity to serve the customer with an accurate and complete verified written 258 notice described in Subsection (3)(c) that identifies each customer served by the municipality 259 beyond its municipal boundary; 260 (ii) no later than June 15, 2014, the municipality enters into a written filing agreement 261 for the provision of electric service with the electrical corporation; and 262 (iii) the Public Service Commission approves the written filing agreement in 263 accordance with Section 54-4-40. 264 (c) The municipality shall include in the written notice required in Subsection (3)(b)(i) 265 for each customer: 266 (i) the customer's meter number; 267 (ii) the location of the customer's meter by street address, global positioning system 268 coordinates, metes and bounds description, or other similar method of meter location; 269 (iii) the customer's class of service; and 270 (iv) a representation that the customer was receiving service from the municipality on 271 or before June 15, 2013. 272 (4) The written filing agreement entered into in accordance with Subsection (3)(b)(ii) 273 shall require the following: 274 (a) The municipality shall provide electric service to a customer identified in 275 accordance with Subsection (3)(b)(i) unless the municipality and the electrical corporation 276 subsequently agree in writing that the electrical corporation will provide electric service to the 277 customer. 278 (b) If a customer who is located outside the municipal boundary and who is not 279 identified in accordance with Subsection (3)(b)(i) requests service from the municipality after 280 June 15, 2013, the municipality may not provide that customer electric service unless the 281 municipality submits a request to and enters into a written agreement with the electric ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 10 of 16 Enrolled Copy S.B. 180 - 11 - 282 corporation in accordance with Subsection (5). 283 (5) (a) A municipality may submit to the electrical corporation a request to provide 284 electric service to an electric customer described in Subsection (4)(b). 285 (b) If a municipality submits a request, the electrical corporation shall respond to the 286 request within 60 days. 287 (c) If the electrical corporation agrees to allow the municipality to provide electric 288 service to the customer: 289 (i) the electrical corporation and the municipality shall enter into a written agreement; 290 (ii) the municipality shall agree in the written agreement to subsequently transfer 291 service to the customer described in Subsection (4)(b) if the electrical corporation notifies, in 292 writing, the municipality that the electrical corporation has installed a facility capable of 293 providing electric service to the customer; and 294 (iii) the municipality may provide the service if the Public Service Commission 295 approves the agreement in accordance with Section 54-4-40. 296 (d) The municipality or the electrical corporation may terminate the agreement for the 297 provision of electric service if the Public Service Commission imposes a condition authorized 298 in Section 54-4-40 that is a material change to the agreement. 299 (6) If the municipality and electrical corporation make a transfer described in 300 Subsection (5)(c)(ii): 301 (a) (i) the municipality shall transfer the electric service customer to the electrical 302 corporation; and 303 (ii) the electrical corporation shall provide electric service to the customer; and 304 (b) the municipality shall transfer a facility in accordance with and for the value as 305 provided in Section 10-2-421. 306 (7) (a) In accordance with Subsection (7)(b), the municipality shall establish a 307 reasonable mechanism for resolving potential future complaints by an electric customer located 308 outside its municipal boundary. 309 (b) The mechanism shall require: ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 11 of 16 S.B. 180 Enrolled Copy - 12 - 310 (i) that the rates and conditions of service for a customer outside the municipality's 311 boundary are at least as favorable as the rates and conditions of service for a similarly situated 312 customer within the municipality's boundary; and 313 (ii) if the municipality provides a general rebate, refund, or other payment to a 314 customer located within the municipality's boundary, that the municipality also provide the 315 same general rebate, refund, or other payment to a similarly situated customer located outside 316 the municipality's boundary. 317 (8) The municipality is relieved of any obligation to transfer a customer described in 318 Subsection (4)(b) or facility used to serve the customer in accordance with Subsection (5)(c)(ii) 319 if the municipality annexes the property on which the customer is being served. 320 (9) (a) A municipality may provide electric service outside of its municipal boundary to 321 a facility that is solely owned and operated by the municipality for municipal service. 322 (b) A municipality's provision of electric service to a facility that is solely owned and 323 operated by the municipality does not expand the municipality's electric service area. 324 (10) Nothing in this section expands or diminishes the ability of a municipality to enter 325 into a wholesale electrical sales contract with another municipality that serves electric 326 customers to sell and deliver wholesale electricity to the other municipality. 327 [(3)] (11) A [city's] municipality's actions under this section related to works or 328 systems involving public telecommunications services or cable television services are subject 329 to the requirements of Chapter 18, Municipal Cable Television and Public 330 Telecommunications Services Act. 331 Section 3. Section 54-3-30 is enacted to read: 332 54-3-30. Electric utility service within a provider municipality -- Electrical 333 corporation prohibited as provider -- Exceptions -- Notice and agreement -- Transfer of 334 customer. 335 (1) This section applies to an electrical corporation that intends to provide electric 336 service to a customer: 337 (a) who is located within the municipal boundary of a municipality that provides ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 12 of 16 Enrolled Copy S.B. 180 - 13 - 338 electric service; and 339 (b) who is not described in Subsection 54-3-31(2). 340 (2) (a) If an electrical corporation is authorized by the commission to provide electric 341 service to a customer in an area adjacent to a municipality, and the municipality provides 342 electric service to a customer located within its municipal boundary, the electrical corporation 343 may not provide electric service to a customer within the municipal boundary unless: 344 (i) the electrical corporation has entered into a written agreement with the municipality 345 authorizing the electrical corporation to provide electric service: 346 (A) to a specified customer within the municipal boundary; and 347 (B) in accordance with the terms and conditions of the electrical corporation's tariffs 348 and regulations approved by the commission; and 349 (ii) the commission approves the agreement in accordance with Section 54-4-40. 350 (b) The municipality or the electrical corporation may terminate the agreement for the 351 provision of electric service if the commission imposes a condition authorized in Section 352 54-4-40 that is a material change to the agreement. 353 (3) An electrical corporation that enters into an agreement described in Subsection 354 (2)(a) shall transfer service to a customer described in Subsection (2): 355 (a) at the conclusion of a term specified in the agreement; or 356 (b) upon termination of the agreement by the electrical corporation in accordance with 357 Subsection (4). 358 (4) Unless otherwise agreed in writing by the electrical corporation and the 359 municipality, the electrical corporation may terminate an agreement entered into in accordance 360 with Subsection (2)(a) by giving written notice of termination to the municipality: 361 (a) no earlier than two years before the day of termination; or 362 (b) within a period of time shorter than two years if otherwise agreed to with the 363 municipality. 364 (5) Upon termination of an agreement in accordance with Subsection (3)(a), (3)(b), or 365 (4): ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 13 of 16 S.B. 180 Enrolled Copy - 14 - 366 (a) (i) the electrical corporation shall transfer the electric service customer to the 367 municipality; and 368 (ii) the municipality shall provide electric service to the customer; and 369 (b) the electrical corporation shall transfer a facility in accordance with and for the 370 value as provided in Section 10-2-421. 371 (6) This section may not be construed to modify or terminate any written franchise 372 agreement or other agreement that expressly provides for electric service by an electrical 373 corporation to a customer within a municipality that was entered into between an electrical 374 corporation and a municipality on or before June 15, 2013. 375 Section 4. Section 54-3-31 is enacted to read: 376 54-3-31. Electric utility service within a provider municipality -- Electrical 377 corporation authorized as continuing provider for service provided on or before June 15, 378 2013 -- Notice of service and agreement -- Transfer of customer. 379 (1) This section applies to an electrical corporation that: 380 (a) provides electric service to a customer on or before June 15, 2013, within the 381 municipal boundary of a municipality that provides electric service; and 382 (b) intends to continue providing service to that customer. 383 (2) Notwithstanding Section 54-3-30, if an electrical corporation provides electric 384 service to a customer within the municipal boundary of a municipality on or before June 15, 385 2013, and the municipality provides electric service to another customer within its municipal 386 boundary, the electrical corporation may continue to provide electric service to the customer 387 within the municipality's boundary if: 388 (a) the electrical corporation provides, on or before December 15, 2013, the 389 municipality with an accurate and complete verified written notice, in accordance with 390 Subsection (3), identifying each customer within the municipality served by the electrical 391 corporation on or before June 15, 2013; 392 (b) the electrical corporation enters into a written agreement with the municipality no 393 later than June 15, 2014; and ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 14 of 16 Enrolled Copy S.B. 180 - 15 - 394 (c) the commission approves the agreement in accordance with Section 54-4-40. 395 (3) The written notice provided in accordance with Subsection (2)(a) shall include for 396 each customer: 397 (a) the customer's meter number; 398 (b) the location of the customer's meter by street address, global positioning system 399 coordinates, metes and bounds description, or other similar method of meter location; 400 (c) the customer's class of service; and 401 (d) a representation that the customer was receiving service from the electrical 402 corporation on or before June 15, 2013. 403 (4) The agreement entered into in accordance with Subsection (2) shall require the 404 following: 405 (a) The electrical corporation is the exclusive electric service provider to a customer 406 identified in the notice described in Subsection (2)(a) unless the municipality and electrical 407 corporation subsequently agree, in writing, that the municipality may provide electric service to 408 the identified customer. 409 (b) If a customer who is located within the municipal boundary and who is not 410 identified in Subsection (2)(a) requests service after June 15, 2013, from the electrical 411 corporation, the electrical corporation may not provide that customer electric service unless the 412 electrical corporation subsequently submits a request to and enters into a written agreement 413 with the municipality in accordance with Section 54-4-30. 414 (5) (a) Unless otherwise agreed in writing by the electrical corporation and the 415 municipality, the electrical corporation may terminate an agreement entered into in accordance 416 with Subsection (2)(b) by giving written notice of termination to the municipality: 417 (i) no earlier than two years before the day of termination; or 418 (ii) within a period of time shorter than two years if otherwise agreed to with the 419 municipality. 420 (b) Upon termination of an agreement in accordance with Subsection (5)(a): 421 (i) (A) the electrical corporation shall transfer an electric service customer located ID PAC-E-18-04 IPUC 3 Attachment IPUC 3-2 15 of 16 S.B. 180 Enrolled Copy - 16 - 422 within the municipality to the municipality; and 423 (B) the municipality shall provide electric service to the customer; and 424 (ii) the electrical corporation shall transfer a facility in accordance with and for the 425 value as provided in Section 10-2-421. 426 (6) This section may not be construed to modify or terminate any written franchise 427 agreement or other agreement that expressly provides for electric service by an electrical 428 corporation to a customer within a municipality that was entered into between an electrical 429 corporation and a municipality on or before June 15, 2013. 430 Section 5. Section 54-4-40 is enacted to read: 431 54-4-40. Approval of certain agreements between an electrical corporation and 432 municipality. 433 (1) The commission shall review an agreement entered into between an electrical 434 corporation and a municipality if the electrical corporation is required to obtain commission 435 approval in accordance with Section 10-8-14, 54-3-30, or 54-3-31. 436 (2) The requirements of Subsection (1) do not confer jurisdiction on the commission to 437 regulate any electric service provided by a municipality. 438 (3) Unless the commission determines that additional time is warranted and is in the 439 public interest, no later than 120 days after the day on which an application to approve an 440 agreement described in Subsection (1) is filed by an electrical corporation, the commission 441 shall: 442 (a) approve the agreement; 443 (b) approve the agreement subject to conditions imposed by the commission; or 444 (c) reject the agreement. 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