Full text of Utah Utah Code § 54-17-403 — Cost recovery., with citation guidance and answers to common questions.
§ 54-17-403. Cost recovery.
Effective 5/1/2024 54-17-403.
Cost recovery.
(1)
(a)
Except as otherwise provided in this section, and excluding cost recovery for costs associated with proven dispatchable generation resources, which is governed by Section 54-17-1002, if the commission approves any portion of an energy utility's resource decision under Section 54-17-402, the commission shall, in a general rate case or other appropriate commission proceeding, include in the energy utility's retail rates the state's share of costs:
(i)
relevant to that proceeding;
(ii)
incurred by the energy utility in implementing the approved resource decision; and
(iii)
up to the projected costs specified in the commission's order issued under Section 54-17-402.
(b)
Except to the extent that the commission issues an order under Section 54-17-404, any increase from the projected costs specified in the commission's order issued under Section 54-17-402 shall be subject to review by the commission as part of a rate hearing under Section 54-7-12.
(c)
If the commission approves a request for approval of rural gas infrastructure development under Section 54-17-402, the commission may approve the inclusion of rural gas infrastructure development costs within the gas corporation's base rates if:
(i)
the inclusion of those costs will not increase the base distribution non-gas revenue requirement by more than 2% in any three-year period;
(ii)
the distribution non-gas revenue requirement increase related to the infrastructure development costs under Subsection (1)(c)(i) does not exceed 5% in the aggregate; and
(iii)
the applicable distribution non-gas revenue requirement is the annual revenue requirement determined in the gas corporation's most recent rate case.
(2)
(a)
Subsequent to the commission issuing an order described in Subsection (2)(a)(i) or (ii), the commission may disallow some or all costs incurred in connection with an approved resource decision if the commission finds that an energy utility's actions in implementing an approved resource decision are not prudent because of new information or changed circumstances that occur after:
(i)
the commission approves the resource decision under Section 54-17-402; or
(ii)
the commission issues an order to proceed under Section 54-17-404.
(b)
In making a determination of prudence under Subsection (2)(a), the commission shall use the standards identified in Section 54-4-4.
(3)
Notwithstanding any other provision of this chapter, the commission may disallow some or all of the costs incurred by an energy utility in connection with an approved resource decision upon a finding by the commission that the energy utility is responsible for a material misrepresentation or concealment in connection with an approval process under this chapter.
Section 54-17-403 ("Cost recovery.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 54-17-403?
A common citation format is "Utah Code § 54-17-403" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 54-17-403 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
