(1) The commission shall: (a) conduct a proceeding to establish rules for the allocation of transmission costs between large load customers and retail customers for large load contracts executed on or after January 1, 2026; (b) retain a qualified independent consultant with expertise in transmission cost allocation methodologies to: (i) analyze potential methodologies for transmission cost allocation, taking into account the factors listed in Subsection (2); and (ii) make recommendations to the commission; and (c) issue a rule no later than January 1, 2026. (2) In developing rules under Subsection (1), the commission shall consider: (a) Federal Energy Regulatory Commission policies and precedents regarding transmission cost allocation; (b) the projected increase in electricity demand from large load customers; (c) the incremental transmission costs required to serve large load customers; (d) the economic development benefits associated with serving large load customers; (e) the need to maintain just and reasonable rates for retail customers; (f) the extent to which new large load facilities are required specifically to serve large load customers; (g) the extent to which large load customers utilize existing transmission infrastructure; (h) methods to apportion costs based on cost causation and system benefits; and (i) any other factors the commission determines are relevant to establishing a fair and reasonable allocation of transmission costs. (3) The commission may establish different cost allocation methodologies based on: (a) the timing of large load customer interconnection; (b) the size of the load being served; (c) the cost causation attributable to various customer classes; (d) the benefits accruing to various customer classes; or (e) other relevant distinctions. (4) Nothing in this section limits the commission's existing authority to determine just and reasonable rates. (5) (a) The commission shall impose and collect a fee from each large load customer that submits a large-scale service request to cover the cost of: (i) retaining qualified independent consultants and experts by the commission, the Division of Public Utilities, and the Office of Consumer Services to evaluate large-scale service requests and large load contracts; and (ii) any other reasonable costs incurred in conducting proceedings and evaluations under this chapter. (b) The fee shall be: (i) assessed on a semi-annual basis corresponding to the study periods established in Section 54-26-202; (ii) determined based on the anticipated needs given the number and complexity of requests received in each study period; and (iii) proportionately allocated among large load customers with pending requests. (c) All fees collected under this subsection shall be: (i) remitted to the state treasurer; (ii) credited to the Public Utility Regulation Fee Account created in Section 54-5-1.5; and (iii) used exclusively for the purposes described in Subsection (5)(a).
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