AB 145

This bill permits the Public Service Commission (PSC) to approve a proposal

by an electric public utility to offer discounted rates to a qualifying industrial

customer specified in the electric public utility's proposal if the PSC determines that

the discounted rates will promote economic development in a service territory of the

electric public utility located in this state.

Under the bill, a prospective customer of the electric public utility with no

industrial operations in this state may qualify for discounted rates if the customer

demonstrates that it will establish operations in this state if it receives the

discounted rates. A current customer of the electric public utility may qualify for

discounted rates if the customer demonstrates that it will increase its energy

consumption in the service territory of the electric public utility located in this state

by 5 percent over its average energy consumption over the previous 36 months. A

current customer of the electric public utility may also qualify for discounted rates

if the customer demonstrates to the satisfaction of the electric public utility that it

will be unable to maintain operations in this state without a discounted rate and it

falls into one of the following categories: 1) the customer has received economic

development assistance of at least $500,000 from a local governmental unit or state

agency within the calendar year preceding a request for a discounted rate from the

electric public utility; or 2) the customer will receive such economic development

assistance within two calendar years following a request for a discounted rate from

the electric public utility.

The PSC must review and either approve or deny a proposal to offer discounted

rates within 90 days after receiving the proposal. If the PSC does not approve the

proposal, the PSC must provide the reasons for its decision and shall permit the

electric public utility to submit a revised proposal.

The bill prohibits a customer from receiving a discounted rate for merely

shifting operations from one electric provider in this state to another electric

provider in this state. Similarly, the bill prohibits a customer from receiving a

discounted rate for increasing the amount of energy purchased from one electric

provider in this state while concurrently or proximately decreasing the amount of

energy purchased from another electric provider in this state. The bill defines

"electric provider" as an electric public utility or retail electric cooperative. Finally,

the bill prohibits a customer from receiving a discounted rate for increasing energy

consumption in one electric public utility service territory located in this state while

decreasing energy consumption in another electric public utility service territory

located in this state.

If the PSC approves the proposal, the electric public utility may offer the

discounted rates for up to five years. The discounted rate would apply only to the

incremental increase in energy usage over the customer's base energy usage. The

bill defines "base energy usage" as the customer's average energy usage over the