54-2-1 - Definitions.
54-2-1. Definitions.
As used in this title:
(1) "Avoided costs" means the incremental costs to an electrical corporation of electricenergy or capacity or both that, due to the purchase of electric energy or capacity or both fromsmall power production or cogeneration facilities, the electrical corporation would not have togenerate itself or purchase from another electrical corporation.
(2) "Cogeneration facility":
(a) means a facility that produces:
(i) electric energy; and
(ii) steam or forms of useful energy, including heat, that are used for industrial,commercial, heating, or cooling purposes; and
(b) is a qualifying cogeneration facility under federal law.
(3) "Commission" means the Public Service Commission of Utah.
(4) "Commissioner" means a member of the commission.
(5) (a) "Corporation" includes an association and a joint stock company having anypowers or privileges not possessed by individuals or partnerships.
(b) "Corporation" does not include towns, cities, counties, conservancy districts,improvement districts, or other governmental units created or organized under any general orspecial law of this state.
(6) "Distribution electrical cooperative" includes an electrical corporation that:
(a) is a cooperative;
(b) conducts a business that includes the retail distribution of electricity the cooperativepurchases or generates for the cooperative's members; and
(c) is required to allocate or distribute savings in excess of additions to reserves andsurplus on the basis of patronage to the cooperative's:
(i) members; or
(ii) patrons.
(7) "Electrical corporation" includes every corporation, cooperative association, andperson, their lessees, trustees, and receivers, owning, controlling, operating, or managing anyelectric plant, or in any way furnishing electric power for public service or to its consumers ormembers for domestic, commercial, or industrial use, within this state, except independentenergy producers, and except where electricity is generated on or distributed by the producersolely for the producer's own use, or the use of the producer's tenants, or for the use of membersof an association of unit owners formed under Title 57, Chapter 8, Condominium OwnershipAct, and not for sale to the public generally, and except where the electricity generated isconsumed by an owner, lessor, or interest holder, or by an affiliate of an owner, lessor, or interestholder, who has provided at least $25,000,000 in value, including credit support, relating to theelectric plant furnishing the electricity and whose consumption does not exceed its long-termentitlement in the plant under a long-term arrangement other than a power purchase agreement,except a power purchase agreement with an electrical corporation.
(8) "Electric plant" includes all real estate, fixtures, and personal property owned,controlled, operated, or managed in connection with or to facilitate the production, generation,transmission, delivery, or furnishing of electricity for light, heat, or power, and all conduits,ducts, or other devices, materials, apparatus, or property for containing, holding, or carryingconductors used or to be used for the transmission of electricity for light, heat, or power.
(9) "Gas corporation" includes every corporation and person, their lessees, trustees, andreceivers, owning, controlling, operating, or managing any gas plant for public service within thisstate or for the selling or furnishing of natural gas to any consumer or consumers within the statefor domestic, commercial, or industrial use, except in the situation that:
(a) gas is made or produced on, and distributed by the maker or producer through, privateproperty:
(i) solely for the maker's or producer's own use or the use of the maker's or producer'stenants; and
(ii) not for sale to others;
(b) gas is compressed on private property solely for the owner's own use or the use of theowner's employees as a motor vehicle fuel; or
(c) gas is compressed by a retailer of motor vehicle fuel on the retailer's property solelyfor sale as a motor vehicle fuel.
(10) "Gas plant" includes all real estate, fixtures, and personal property owned,controlled, operated, or managed in connection with or to facilitate the production, generation,transmission, delivery, or furnishing of gas, natural or manufactured, for light, heat, or power.
(11) "Heat corporation" includes every corporation and person, their lessees, trustees, andreceivers, owning, controlling, operating, or managing any heating plant for public service withinthis state.
(12) (a) "Heating plant" includes all real estate, fixtures, machinery, appliances, andpersonal property controlled, operated, or managed in connection with or to facilitate theproduction, generation, transmission, delivery, or furnishing of artificial heat.
(b) "Heating plant" does not include either small power production facilities orcogeneration facilities.
(13) "Independent energy producer" means every electrical corporation, person,corporation, or government entity, their lessees, trustees, or receivers, that own, operate, control,or manage an independent power production or cogeneration facility.
(14) "Independent power production facility" means a facility that:
(a) produces electric energy solely by the use, as a primary energy source, of biomass,waste, a renewable resource, a geothermal resource, or any combination of the preceding sources;or
(b) is a qualifying power production facility.
(15) "Private telecommunications system" includes all facilities for the transmission ofsigns, signals, writing, images, sounds, messages, data, or other information of any nature bywire, radio, lightwaves, or other electromagnetic means, excluding mobile radio facilities, thatare owned, controlled, operated, or managed by a corporation or person, including their lessees,trustees, receivers, or trustees appointed by any court, for the use of that corporation or personand not for the shared use with or resale to any other corporation or person on a regular basis.
(16) (a) "Public utility" includes every railroad corporation, gas corporation, electricalcorporation, distribution electrical cooperative, wholesale electrical cooperative, telephonecorporation, telegraph corporation, water corporation, sewerage corporation, heat corporation,and independent energy producer not described in Subsection (16)(d), where the service isperformed for, or the commodity delivered to, the public generally, or in the case of a gascorporation or electrical corporation where the gas or electricity is sold or furnished to anymember or consumers within the state for domestic, commercial, or industrial use.
(b) (i) If any railroad corporation, gas corporation, electrical corporation, telephonecorporation, telegraph corporation, water corporation, sewerage corporation, heat corporation, orindependent energy producer not described in Subsection (16)(d), performs a service for ordelivers a commodity to the public, it is considered to be a public utility, subject to thejurisdiction and regulation of the commission and this title.
(ii) If a gas corporation, independent energy producer not described in Subsection(16)(d), or electrical corporation sells or furnishes gas or electricity to any member or consumerswithin the state, for domestic, commercial, or industrial use, for which any compensation orpayment is received, it is considered to be a public utility, subject to the jurisdiction andregulation of the commission and this title.
(c) Any corporation or person not engaged in business exclusively as a public utility asdefined in this section is governed by this title in respect only to the public utility owned,controlled, operated, or managed by the corporation or person, and not in respect to any otherbusiness or pursuit.
(d) An independent energy producer is exempt from the jurisdiction and regulations ofthe commission with respect to an independent power production facility if it meets therequirements of Subsection (16)(d)(i), (ii), (iii), or (iv), or any combination of these:
(i) the commodity or service is produced or delivered, or both, by an independent energyproducer solely for the uses exempted in Subsection (7) or for the use of state-owned facilities;
(ii) the commodity or service is sold by an independent energy producer solely to anelectrical corporation or other wholesale purchaser;
(iii) (A) the commodity or service produced or delivered by the independent energyproducer is delivered to an entity that controls, is controlled by, or affiliated with the independentenergy producer or to a user located on real property managed or controlled by the independentenergy producer; and
(B) the real property on which the service or commodity is used is contiguous to realproperty which is owned or controlled by the independent energy producer. Parcels of realproperty separated solely by public roads or easements for public roads shall be considered ascontiguous for purposes of this Subsection (16); or
(iv) the independent energy producer:
(A) supplies energy for direct consumption by a customer that is:
(I) a county, municipality, city, town, other political subdivision, local district, specialservice district, state institution of higher education, school district, charter school, or any entitywithin the state system of public education; or
(II) an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3)operated for religious, charitable, or educational purposes that is exempt from federal income taxand able to demonstrate its tax-exempt status;
(B) supplies energy to the customer through use of a customer generation system, asdefined in Section 54-15-102, for use on the real property where the customer generation systemis located;
(C) supplies energy using a customer generation system designed to supply the lesser of:
(I) no more than 90% of the average annual consumption of electricity by the customer atthat site, based on an annualized billing period; or
(II) the maximum size allowable under net metering provisions, defined in Section54-15-102;
(D) notifies the customer before installing the customer generation system of:
(I) all costs the customer is required to pay for the customer generation system, includingany interconnection costs; and
(II) the potential for future changes in amounts paid by the customer for energy receivedfrom the public utility and the possibility of changes to the customer fees or charges to thecustomer associated with net metering and generation;
(E) enters into and performs in accordance with an interconnection agreement with apublic utility providing retail electric service where the real property on which the customergeneration system is located, with the rates, terms, and conditions of the retail service andinterconnection agreement subject to approval by the governing authority of the public utility, asdefined in Subsection 54-15-102(8); and
(F) installs the relevant customer generation system by December 31, 2015.
(e) Any person or corporation defined as an electrical corporation or public utility underthis section may continue to serve its existing customers subject to any order or futuredetermination of the commission in reference to the right to serve those customers.
(f) (i) "Public utility" does not include any person that is otherwise considered a publicutility under this Subsection (16) solely because of that person's ownership of an interest in anelectric plant, cogeneration facility, or small power production facility in this state if all of thefollowing conditions are met:
(A) the ownership interest in the electric plant, cogeneration facility, or small powerproduction facility is leased to:
(I) a public utility, and that lease has been approved by the commission;
(II) a person or government entity that is exempt from commission regulation as a publicutility; or
(III) a combination of Subsections (16)(f)(i)(A)(I) and (II);
(B) the lessor of the ownership interest identified in Subsection (16)(f)(i)(A) is:
(I) primarily engaged in a business other than the business of a public utility; or
(II) a person whose total equity or beneficial ownership is held directly or indirectly byanother person engaged in a business other than the business of a public utility; and
(C) the rent reserved under the lease does not include any amount based on or determinedby revenues or income of the lessee.
(ii) Any person that is exempt from classification as a public utility under Subsection(16)(f)(i) shall continue to be so exempt from classification following termination of the lessee'sright to possession or use of the electric plant for so long as the former lessor does not operate theelectric plant or sell electricity from the electric plant. If the former lessor operates the electricplant or sells electricity, the former lessor shall continue to be so exempt for a period of 90 daysfollowing termination, or for a longer period that is ordered by the commission. This period maynot exceed one year. A change in rates that would otherwise require commission approval maynot be effective during the 90-day or extended period without commission approval.
(g) "Public utility" does not include any person that provides financing for, but has noownership interest in an electric plant, small power production facility, or cogeneration facility. In the event of a foreclosure in which an ownership interest in an electric plant, small powerproduction facility, or cogeneration facility is transferred to a third-party financer of an electricplant, small power production facility, or cogeneration facility, then that third-party financer isexempt from classification as a public utility for 90 days following the foreclosure, or for a
longer period that is ordered by the commission. This period may not exceed one year.
(h) (i) The distribution or transportation of natural gas for use as a motor vehicle fueldoes not cause the distributor or transporter to be a "public utility," unless the commission, afternotice and a public hearing, determines by rule that it is in the public interest to regulate thedistributers or transporters, but the retail sale alone of compressed natural gas as a motor vehiclefuel may not cause the seller to be a "public utility."
(ii) In determining whether it is in the public interest to regulate the distributors ortransporters, the commission shall consider, among other things, the impact of the regulation onthe availability and price of natural gas for use as a motor fuel.
(i) "Public utility" does not include any corporation, cooperative association, or person,their affiliates, lessees, trustees, or receivers, owning, controlling, operating, or managing anelectric plant or in any way furnishing electricity if the electricity is consumed by an owner,lessor, or interest holder or by an affiliate of an owner, lessor, or interest holder, who hasprovided at least $25,000,000 in value, including credit support, relating to the electric plantfurnishing the electricity and whose consumption does not exceed its long-term entitlement in theplant under a long-term arrangement other than a power purchase agreement, except a powerpurchase agreement with an electrical corporation.
(17) "Purchasing utility" means any electrical corporation that is required to purchaseelectricity from small power production or cogeneration facilities pursuant to the Public UtilityRegulatory Policies Act, 16 U.S.C. Section 824a-3.
(18) "Qualifying power producer" means a corporation, cooperative association, orperson, or the lessee, trustee, and receiver of the corporation, cooperative association, or person,who owns, controls, operates, or manages any qualifying power production facility orcogeneration facility.
(19) "Qualifying power production facility" means a facility that:
(a) produces electrical energy solely by the use, as a primary energy source, of biomass,waste, a renewable resource, a geothermal resource, or any combination of the preceding sources;
(b) has a power production capacity that, together with any other facilities located at thesame site, is no greater than 80 megawatts; and
(c) is a qualifying small power production facility under federal law.
(20) "Railroad" includes every commercial, interurban, and other railway, other than astreet railway, and each branch or extension of a railway, by any power operated, together withall tracks, bridges, trestles, rights-of-way, subways, tunnels, stations, depots, union depots, yards,grounds, terminals, terminal facilities, structures, and equipment, and all other real estate,fixtures, and personal property of every kind used in connection with a railway owned,controlled, operated, or managed for public service in the transportation of persons or property.
(21) "Railroad corporation" includes every corporation and person, their lessees, trustees,and receivers, owning, controlling, operating, or managing any railroad for public service withinthis state.
(22) (a) "Sewerage corporation" includes every corporation and person, their lessees,trustees, and receivers, owning, controlling, operating, or managing any sewerage system forpublic service within this state.
(b) "Sewerage corporation" does not include private sewerage companies engaged indisposing of sewage only for their stockholders, or towns, cities, counties, conservancy districts,improvement districts, or other governmental units created or organized under any general or
special law of this state.
(23) "Telegraph corporation" includes every corporation and person, their lessees,trustees, and receivers, owning, controlling, operating, or managing any telegraph line for publicservice within this state.
(24) "Telegraph line" includes all conduits, ducts, poles, wires, cables, instruments, andappliances, and all other real estate, fixtures, and personal property owned, controlled, operated,or managed in connection with or to facilitate communication by telegraph, whether thatcommunication be had with or without the use of transmission wires.
(25) (a) "Telephone corporation" means any corporation or person, and their lessees,trustee, receivers, or trustees appointed by any court, who owns, controls, operates, manages, orresells a public telecommunications service as defined in Section 54-8b-2.
(b) "Telephone corporation" does not mean a corporation, partnership, or firm providing:
(i) intrastate telephone service offered by a provider of cellular, personal communicationsystems (PCS), or other commercial mobile radio service as defined in 47 U.S.C. Sec. 332 thathas been issued a covering license by the Federal Communications Commission;
(ii) Internet service; or
(iii) resold intrastate toll service.
(26) "Telephone line" includes all conduits, ducts, poles, wires, cables, instruments, andappliances, and all other real estate, fixtures, and personal property owned, controlled, operated,or managed in connection with or to facilitate communication by telephone whether thatcommunication is had with or without the use of transmission wires.
(27) "Transportation of persons" includes every service in connection with or incidentalto the safety, comfort, or convenience of the person transported, and the receipt, carriage, anddelivery of that person and that person's baggage.
(28) "Transportation of property" includes every service in connection with or incidentalto the transportation of property, including in particular its receipt, delivery, elevation, transfer,switching, carriage, ventilation, refrigeration, icing, dunnage, storage, and hauling, and thetransmission of credit by express companies.
(29) "Water corporation" includes every corporation and person, their lessees, trustees,and receivers, owning, controlling, operating, or managing any water system for public servicewithin this state. It does not include private irrigation companies engaged in distributing wateronly to their stockholders, or towns, cities, counties, water conservancy districts, improvementdistricts, or other governmental units created or organized under any general or special law ofthis state.
(30) (a) "Water system" includes all reservoirs, tunnels, shafts, dams, dikes, headgates,pipes, flumes, canals, structures, and appliances, and all other real estate, fixtures, and personalproperty owned, controlled, operated, or managed in connection with or to facilitate thediversion, development, storage, supply, distribution, sale, furnishing, carriage, appointment,apportionment, or measurement of water for power, fire protection, irrigation, reclamation, ormanufacturing, or for municipal, domestic, or other beneficial use.
(b) "Water system" does not include private irrigation companies engaged in distributingwater only to their stockholders.
(31) "Wholesale electrical cooperative" includes every electrical corporation that is:
(a) in the business of the wholesale distribution of electricity it has purchased orgenerated to its members and the public; and
(b) required to distribute or allocate savings in excess of additions to reserves and surplusto members or patrons on the basis of patronage.
Amended by Chapter 302, 2010 General Session
Amended by Chapter 390, 2010 General Session