Committee hears wide-ranging testimony on 27LSO181 third‑party generation bill draft

The Joint Minerals, Business & Corporations Select Committee opened formal consideration of bill draft 27LSO181, which would add two narrow exemptions to Wyoming’s public‑utility law to permit specified third‑party electricity service for large customers.

Brian Fuller, an attorney in the Legislative Service Office, told the panel that the draft creates a "behind‑the‑meter exemption" and a separate "right of first refusal" exemption. "This bill draft would provide that the provision electricity by 1 person to another would be exempt from regulation as a public utility under title 37 of the Wyoming statutes in 2 specific situations," Fuller said while walking members through the statutory text and staff comments.

The committee’s questions focused on several recurring policy choices: whether the two exemptions should be exclusive, the right megawatt threshold to trigger the exemptions, and how to allocate the often substantial costs and timelines of interconnection studies.

Legal and administrative gaps were a central concern. Witnesses repeatedly noted federal jurisdiction over transmission interconnection (FERC/OATT) and urged paired legislative and commission rule work. Chris Petrie, deputy chairman at the Wyoming Public Service Commission, said the commission’s Chapter 6 rule establishes an administrative pathway for nonutility generators but that statutory clarity could reduce the number of legal ambiguities that prompt judicial review.

Industry, utilities, co‑ops and economic‑development advocates testified at length. Some industrial consumers and developers urged a lower threshold (5 megawatts) and argued behind‑the‑meter contracting will speed projects. Utilities stressed that infrastructure—transmission and substation investment—remains the primary constraint and urged tools to finance pre‑build projects rather than workarounds that avoid system planning.

The committee did not vote on the draft. Members asked stakeholders to provide suggested amendment language addressing thresholds, the bill’s interplay with tariffs and interconnection, and protections to prevent cost shifting to residential ratepayers. The panel indicated it will continue work and consider revisions at a later meeting.