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H.B. 276
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UTILITY REGULATION AMENDMENTS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: David Ure
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AN ACT RELATING TO PUBLIC UTILITIES; MODIFYING PROCEDURES FOR THE
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INFORMAL RESOLUTION OF MATTERS BEFORE THE PUBLIC SERVICE COMMISSION;
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AND SPECIFYING THE TEST YEARS THE PUBLIC SERVICE COMMISSION MAY USE
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IN DETERMINING JUST AND REASONABLE RATES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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54-4-4, as last amended by Chapter 166, Laws of Utah 1975
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54-7-1, as last amended by Chapter 161, Laws of Utah 1987
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
54-4-4
is amended to read:
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54-4-4. Classification and fixing of rates after hearing.
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(1) Whenever the commission shall find after a hearing that the rates, fares, tolls, rentals,
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charges or classifications, or any of them demanded, observed, charged or collected by any public
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utility for any service or product or commodity, or in connection therewith, including the rates or
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fares for excursion or commutation tickets, or that the rules, regulations, practices or contracts, or
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any of them, affecting such rates, fares, tolls, rentals, charges or classifications, or any of them, are
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unjust, unreasonable, discriminatory or preferential, or in anywise in violation of any provisions
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of law, or that such rates, fares, tolls, rentals, charges, or classifications are insufficient, the
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commission shall determine the just, reasonable, or sufficient rates, fares, tolls, rentals, charges,
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classifications, rules, regulations, practices, or contracts to be thereafter observed and in force, and
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shall fix the same by order as hereinafter provided.
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(2) The commission shall have power to investigate a single rate, fare, toll, rental, charge,
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classification, rule, regulation, contract or practice, or any number thereof, or the entire schedule
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or schedules of rates, fares, tolls, rentals, charges, classifications, rules, regulations, contracts and
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practices, or any number thereof, of any public utility, and to establish, after hearing, new rates,
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fares, tolls, rentals, charges, classifications, rules, regulations, contracts or practices, or schedule
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or schedules in lieu thereof.
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(3) (a) [The commission, in] In its determination of just and reasonable rates, [may
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consider recent changes in the utility's financial condition or changes reasonably expected, but not
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speculative, in the utility's revenues, expenses or investments and may adopt an appropriate future
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test period, not exceeding twelve] if the commission uses a test period, it shall select a test period
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that is demonstrated by the evidence to best reflect conditions that the public utility will encounter
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during the period when the rates will be in effect.
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(b) In establishing the test period, the commission may use:
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(i) a future test period based on projected data not exceeding 20 months from the date of
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filing[, including projections or projections together with a period of actual operations in
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determining the utility's test year for rate-making purposes.];
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(ii) a test period based on historic data that are adjusted for known and measurable changes
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or reasonable projections; or
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(iii) a combination of future projections and historic data.
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(c) If the test period is not based exclusively on future projections, the commission shall
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consider:
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(i) recent changes outside the test period which are known in nature and measurable in
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amount; and
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(ii) changes reasonably expected in the utility's financial condition, including its revenues,
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expenses, and investment.
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Section 2.
Section
54-7-1
is amended to read:
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54-7-1. Settlement -- Limitation of issues.
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(1) Informal resolution, by agreement of the parties, of matters before the commission is
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encouraged[.] as a means to:
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(a) resolve disputes while minimizing time and expense to public utilities, the state, and
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consumers;
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(b) enhance administrative efficiency; and
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(c) enhance the regulatory process by allowing the commission to concentrate on those
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issues which adverse parties cannot otherwise resolve.
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[(2) The commission may approve any agreement after considering the interests of the
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public and other affected persons.]
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(2) The commission may use settlement proposals to resolve disputed matters, while
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reserving to the parties the right to maintain confidentiality in the negotiation process.
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(3) (a) At any time before or during [a hearing or] an adjudicative proceeding before the
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commission, the parties, between themselves or with the commission or a commissioner, may
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engage in settlement conferences and negotiations.
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(b) The commission may adopt [any settlement proposal of the parties and may enter an
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order based upon the proposal.] settlement proposals entered into by one or more of the parties,
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including all parties initiating a proceeding and all parties against whom a proceeding is initiated.
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(c) The commission may adopt settlement proposals that are just and reasonable in result
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and is not required to inquire into:
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(i) each individual component or aspect of the settlement;
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(ii) each fact upon which the settlement is based; or
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(iii) each position of the parties.
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(d) The commission may adopt a settlement proposal without testimony or a hearing,
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unless it is contested by the party initiating the proceeding or the party against whom the
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proceeding is initiated.
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(e) The commission shall accept or reject settlement proposals within a reasonable time.
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(4) In cases or procedures involving rate increases as defined in Section
54-7-12
, the
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commission may limit the factors and issues to be considered in its determination of just and
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reasonable rates.
Legislative Review Note
as of 1-27-00 10:36 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.