Utah § 54-26-901 - Transmission cost allocation.

Full text of Utah Utah Code § 54-26-901 — Transmission cost allocation., with citation guidance and answers to common questions.

§ 54-26-901. Transmission cost allocation.

Effective 5/7/2025
54-26-901.  Transmission cost allocation.
(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).


Enacted by Chapter 318, 2025 General Session

Frequently Asked Questions About Utah § 54-26-901

What does Utah Code § 54-26-901 cover?

Section 54-26-901 ("Transmission cost allocation.") 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 § 54-26-901?

A common citation format is "Utah Code § 54-26-901" (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 § 54-26-901 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.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Utah.