Committee endorses RTO oversight language and adopts opt-out protections for renewable communities program

The Senate Natural Resources Committee on Feb. 11 voted to send House Bill 238 to the full Senate after adopting a third substitute that clarifies consumer notice and opt-out mechanics for the Renewable Communities clean-energy program and directs the Public Service Commission to participate in planning and cost-allocation processes if an in-state electrical corporation joins a regional transmission organization (RTO) or independent system operator (ISO).

Jerry Finn, chair of the Utah Public Service Commission, told the committee an RTO is "like an air traffic controller," arguing HB238 would give the commission a role in planning, oversight, and cost-allocation decisions and protect Utah customers if utilities join regional markets. Representative Albrecht said the bill is intended to ensure state regulators have a voice in any multistate governance structure and referenced ongoing work on a community clean-energy program.

Sponsor amendments in the third substitute require clearer customer notification for participating Renewable Communities (including separate mailings and a distinct opt-out check box) and address concerns about customer rates and termination fees. Testimony came from municipal leaders, the Utah Renewable Communities board, utilities and cooperatives; Rocky Mountain Power and Deseret stakeholders said they support a regulatory role for the PSC. After discussion the committee adopted the third substitute and gave HB238 a favorable recommendation to the full Senate.

The bill’s next steps include the full Senate calendar where members may consider tradeoffs between regional planning benefits and local rate and policy concerns.