Requirements for granting a certificate for certain electric facilities and use of environmental trust bonds to finance the costs of retiring electric facilities

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

This bill requires the Public Service Commission to, in taking action on an application by a public utility for a certificate of public convenience and necessity (CPCN), determine whether a proposed electric facility will primarily serve the load of a very large customer. If PSC determines that an electric facility proposed by a public utility will primarily serve the load of a very large customer, PSC must reject the application for a CPCN unless PSC orders or requires the public utility to use environmental trust financing for the unrecovered value of the facility if the facility is retired before the full value of the facility is recovered. Under current law, a person seeking to construct a large electric generating facility having a nominal capacity of 100 megawatts or more or a high-voltage transmission line must obtain a CPCN from PSC. Also, current law allows an energy utility to use environmental trust financing by applying to PSC for an order allowing the utility to finance certain costs by issuing bonds. If approved by PSC, the bonds are secured by revenues arising from charges paid by an energy utility’s customers for the utility to recover the cost of the activities and the cost of financing the bonds.

The bill also authorizes PSC to order or require an energy utility to use environmental trust bonds to finance the retirement of an electric facility if the facility is retired before the full value of the facility is recovered and if the commission determines that the order or requirement is in the public interest. Current law prohibits PSC from ordering or requiring an energy utility to use environmental trust bonds to finance any expenditures of the energy utility. The bill also adds the retiring of an existing electric facility as an activity that may be financed by an environmental trust bond. Under current law, environmental trust bonds may be used only to finance the following costs: 1) the construction, installation, or otherwise putting into place of environmental control equipment in connection with a plant that, before March 30, 2004, has been used to provide service to customers and 2) the retiring of an existing plant, facility, or other property to reduce, control, or eliminate environmental pollution in accordance with federal or state law.

Who's behind it

2 senators are its authors⁠. All 2 are Democrats.

1 more lawmaker signed on in support⁠.