HB0113 – Special electric utility agreements

According to the summary provided by the Legislative Services Office:
“This act concerns service agreements between an electric utility and a customer with projected electric usage greater than five (5) megawatts for services provided under a tariff approved by the Public Service Commission (Commission). The act provides that an electric utility may enter into a service agreement with these customers provided that the terms and conditions of the agreement:
Are expected to result in revenue to the utility in an amount that exceeds the expected cost to serve the customer’s projected electric usage;
Shall not result in obligating other customers for any utility investments or any direct, indirect or reasonably assigned costs related to the utility’s service to the customer under the agreement;
Provide benefits to other customers without imposing additional current or future costs.

The act specifies that an electric utility shall retain for its owners any profits or losses that result from entering such an agreement with a customer.

The act also requires these electric utilities to report to the Commission at least once every three (3) years as to the impacts of the agreements on other rate payers”.