Commissioners of the Public Service Commission; notices, orders, and determinations of the commission; certificates of authority issued by the commission; approval of contracts by the commission; electricity sales from certain wholesale merchant plants; public utility removal of certain electric service lines; renewable resource credits; tampering or interfering with utility equipment; granting rule-making authority; and providing penalties

Also under current law, unless the PSC specifies a different effective date, the PSC's orders and determinations take effect 20 days after the PSC files and serves an order or determination on the parties to the proceeding in which the PSC made the order or determination or on the parties' attorneys. This bill provides that an order or determination takes effect on the day after the order or determination is filed and served, unless the PSC specifies a different effective date. Current law also specifies that service must be done by personal delivery or mail. This bill allows service to be done by personal delivery, mail, electronic mail, or any other method that the PSC determines is likely to reach the parties or attorneys.

Firm sales of electricity to affiliates.

Current law generally prohibits an affiliated interest from making a firm sale of electricity of three years or more to a public utility with which the affiliated interest is affiliated. Under current law, an affiliated interest is considered to be affiliated with a public utility if the affiliated interest has specified ownership or control interests in common with the public utility. Current law defines "firm sale" as a sale in which electricity is intended to be available to a purchaser at all times during a specified period on an uninterruptible basis. This bill creates an exception to the prohibition for a firm sale from an affiliated interest's wholesale merchant plant located in Adams or Juneau county to an affiliated public utility, but only if the affiliated public utility owned, operated, or controlled the affiliated interest before January 1, 2012. Under current law, which the bill does not affect, a "wholesale merchant plant" is defined, in part, as an electric generating plant that does not provide retail electric service.

Contracts or arrangements with affiliates.

Current law generally requires the PSC to approve contracts or arrangements between public utilities and their affiliated interests. An exception to the requirement applies if the amount of consideration involved in the contract or arrangement does not exceed $25,000 or 5 percent of the equity of the public utility, whichever is smaller. This bill revises the exception so that PSC approval is not required if the amount of consideration does not exceed $250,000 or 5 percent of the equity, whichever is smaller. In addition, beginning in 2014 and biennially thereafter, the bill requires the PSC to adjust the $250,000 amount based on inflation. Also, if PSC approval is required, the bill requires the PSC to take final action on an application for approval within deadlines that depend on whether the PSC holds a hearing on the application. If no hearing is held, the PSC must take final action within 90 days after issuing a notice opening a docket on the application. If a hearing is held, the PSC must take final action within 180 days after issuing a notice of the hearing, except that, for good cause, the chairperson of the PSC may extend that deadline by an additional 180 days. If the PSC fails to take action within the foregoing deadlines, the bill provides that the PSC is considered to have approved the application.

Certificates for certain projects.

Current law generally requires a public utility to obtain a certificate from the PSC or apply with an applicable order or rule of the PSC before the public utility may engage in certain construction, installation, or improvement projects. This bill requires the PSC to take final action on an application for such a certificate or made pursuant to such an order or rule within deadlines that depend on whether the PSC holds a hearing on the application. If no hearing is held, the PSC must take final action within 90 days after issuing a notice opening a docket on the application, except that, for good cause, the chairperson of the PSC may extend the deadline by an additional 90 days. If a hearing is held, the PSC must take final action within 180 days after issuing a notice of the hearing, except that, for good cause, the chairperson of the PSC may extend the deadline by an additional 180 days. If the PSC fails to take action within the foregoing deadlines, the bill provides that the PSC is considered to have approved the application.

The bill also creates exemptions from the requirement for a public utility to obtain a certificate or approval prior to commencing certain proposed construction, installation, or improvement projects. The exemptions are based on the estimated gross cost of the project and the type of public utility that proposes the project. For a water public utility or combined water and sewer public utility, the exemption applies if the estimated cost does not exceed $250,000 or 25 percent of the utility's operating revenues in the prior year, whichever is less. For a natural gas public utility, the exemption applies if the estimated cost does not exceed $2,500,000 or 4 percent of the utility's natural gas operating revenues in the prior year, whichever is less. For an electric utility whose electric operating revenues in the prior year were less than $5,000,000, the exemption applies if the estimated cost does not exceed $250,000. For an electric public utility whose electric operating revenues in the prior year were $5,000,000 or more and less than $250,000,000, the exemption applies if the estimated cost does not exceed 4 percent of those operating revenues. For an electric public utility whose electric operating revenues in the prior year were $250,000,000 or more, the exemption applies if the cost estimate does not exceed $10,000,000. Beginning on May 1, 2014, and on May 1 of each successive even-numbered year thereafter, the bill requires the PSC to adjust the foregoing dollar amounts based on changes in utility construction costs.

Removal of certain electric and steam lines.

Current law generally prohibits a public utility from abandoning or discontinuing any line or extension of service without the prior approval of the PSC. The prohibition does not apply to a public utility that provides telecommunications service. This bill creates another exception for a public utility's removal, at the request of a customer, of the customer's electric service drop or electric or steam service lateral, including any primary voltage or steam line that is used exclusively to serve the customer.

Renewable portfolio standards.

Under current law, an electric utility or retail electric cooperative (electric provider) is subject to certain requirements for ensuring that, in a given year, a specified percentage of the electricity that the electric provider sells to retail customers or members is derived from renewable resources. The requirements are commonly referred to as renewable portfolio standards (RPSes), and current law refers to the foregoing percentage as an electric provider's "renewable energy percentage" (REP). Current law allows an electric provider to create a credit based on the amount of electricity derived from renewable resources that the electric provider provides to its customers or members in a year and that exceeds the RPS for that year. Current law refers to such a credit as a "renewable resource credit." Current law also allows the PSC to promulgate rules that allow an electric provider to create a renewable resource credit based on the use of specified types of energy applications by the provider or a customer or member of the provider. Current law allows an electric provider to include renewable resource credits in the electric provider's REP to help the provider comply with an RPS, or sell renewable resource credits to another electric provider for inclusion in the buyer's REP to help the buyer comply with an RPS.

This bill specifies that an electric provider creates one renewable resource credit for each megawatt hour of renewable energy the provider sells to customers or members in a year. If the amount of such credits exceeds that electric provider's REP for a year, the bill allows the electric provider to bank the credit or sell the credit to another electric provider. The bill also allows for the banking or sale of portions of credits. Although "banking" is not defined, the term is understood to refer to retaining a credit for future use. Also, for purposes of determining compliance with an RPS for a particular year, the bill allows an electric provider to use the renewable resource credits created from renewable energy that the provider sold to customers or members in that year. The bill also allows an electric provider to use other renewable resource credits. The bill requires an electric provider to annually retire renewable resource credits that are used to comply with an RPS. In addition, the bill requires the PSC to promulgate rules that allow a customer or member of an electric provider to create the renewable resource credit described above that is based on the use of specified energy applications.

PSC commissioners.

Current law prohibits a commissioner of the PSC from serving on or under any committee of a political party. The bill further prohibits a commissioner from doing any of the following: 1) being a candidate for public office in any election; 2) directly or indirectly soliciting or receiving any contribution for any political purpose from any person within or outside of the state; or 3) acting as an officer or manager for any candidate, political party, or committee organized to promote the candidacy of any person for any public office.

Tampering or interfering with utility equipment.

Under current law, a person who removes or changes a building or other structure to which a telegraph, telecommunications, electric light, or electric power line is attached in a way that destroys or disturbs the wire, pole, or other property of a telegraph, telecommunications, or electric company without giving at least 24 hours' notice to the company generally may be imprisoned up to 30 days and fined up to $50. A person who breaks down, interrupts, or moves any telegraph, telecommunications, electric light, or electric power line or wire, pole, or other property of a telegraph, telecommunications, or electric company generally may be imprisoned up to three months and fined up to $100.

Under the bill, a person who commits any of those acts is guilty of a Class B misdemeanor, and may be imprisoned for up to 90 days, fined up to $1,000, or both.

Additionally, under the bill, a person who intentionally makes or causes to be made a physical electrical connection with any wire, cable, conductor, ground, equipment, facility, or other property of any telecommunications or electric company is guilty of a Class A misdemeanor, and may be imprisoned for up to nine months, fined up to $10,000,000, or both.

The bill clarifies that a telegraph, telecommunications, or electric company may include a cooperative organized under the laws of this state and exempts from criminal liability a person who is acting with the permission of the telegraph, telecommunications, or electric company or cooperative or with the permission of the person who owns the land on which the affected property is located.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report concerning the proposed penalty and the costs or savings that are likely to result if the bill is enacted.