Vote Solar v. Public Service Commn.

2023 UT 13
CourtUtah Supreme Court
DecidedJune 22, 2023
DocketCase No. 20210041
StatusPublished
Cited by1 cases

This text of 2023 UT 13 (Vote Solar v. Public Service Commn.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vote Solar v. Public Service Commn., 2023 UT 13 (Utah 2023).

Opinion

2023 UT 13

IN THE

SUPREME COURT OF THE STATE OF UTAH

VOTE SOLAR, Petitioner, v. PUBLIC SERVICE COMMISSION OF UTAH, 1 Respondents

No. 20210041 Heard September 12, 2022 Filed June 22, 2023

On Petition from the Public Service Commission of Utah

Public Service Commission No. 17-035-61

Attorneys: 2 Brian W. Burnett, Salt Lake City, Jennifer M. Selendy, Philippe Z. Selendy, Caitlin J. Halligan, Joshua S. Margolin, Lauren J. Zimmerman, Hannah O. Belitz, Samuel R. Breidbart, New York, NY, for petitioner Michael J. Hammer, Salt Lake City, for respondent Public Service Commission of Utah Emily L. Wegener, Stephen K. Christiansen, Heidi K. Gordon, Salt Lake City, for respondent Rocky Mountain Power Sean D. Reyes, Att’y Gen., Stanford E. Purser, Deputy Solic. Gen., Erin T. Middleton, Patricia E. Schmid, Asst. Solic. Gens., Salt Lake City, for respondent Utah Office of Consumer Services

_____________________________________________________________ 1Other respondents to this review are: ROCKY MOUNTAIN POWER, UTAH OFFICE OF CONSUMER SERVICES, and UTAH DIVISION OF PUBLIC UTILITIES. 2Amicus Curiae: Hunter H. Holman, Salt Lake City, for Utah Clean Energy; Stephen F. Mecham, Salt Lake City, for Solar Energy Industries Association VOTE SOLAR v. PUBLIC SERVICE COMMISSION Opinion of the Court

Sean D. Reyes, Att’y Gen., Justin C. Jetter, Spl. Asst. Att’y Gen., Robert J. Moore, Steven W. Snarr, Asst. Att’y Gens., Salt Lake City, for respondent Utah Division of Public Utilities

ASSOCIATE CHIEF JUSTICE PEARCE authored the opinion of the Court in which CHIEF JUSTICE DURRANT, JUSTICE PETERSEN, JUSTICE HAGEN, and JUSTICE POHLMAN joined.

ASSOCIATE CHIEF JUSTICE PEARCE, opinion of the Court: INTRODUCTION ¶1 In 2002, the Utah Legislature mandated that the Public Service Commission (PSC) create a “net metering” program for customers who also generate electricity. This prompted the PSC to order utility companies to implement a net metering system. The net metering system compensated consumers who installed solar panels for the excess power they exported to the electric grid. In 2014, the Legislature required the PSC to evaluate the costs and benefits of the net metering program and, if necessary, modify the program based on those findings. UTAH CODE § 54-15-105.1. In 2017, the PSC entered into a settlement agreement with major stakeholders. As part of the settlement agreement, the parties stipulated to the creation of an “export credit rate” system, which would eventually replace the net metering program. ¶2 The PSC then engaged in a lengthy public process to decide what factors it should consider to calculate the export credit rate (ECR). Several parties, including Vote Solar, testified and presented evidence. In October 2020, the PSC issued an order that set forth the inputs it would use to calculate the ECR (October Order). The October Order also set an initial ECR. Vote Solar, among others, moved the PSC to reconsider the inputs it would incorporate into the rate, the appropriateness of calculating the rate at all, whether it was arbitrary and capricious for the PSC to annually update the rate, and whether the PSC’s decision to have unused credits expire annually was arbitrary and capricious. ¶3 In December 2020, the PSC denied in part and granted in part the motions for reconsideration (December Order). The PSC agreed to reconsider some of the components of the ECR calculation but made clear that it would not revisit other aspects of the October Order. Vote Solar seeks review of the December Order.

2 Cite as: 2023 UT 13 Opinion of the Court

¶4 The PSC then held hearings during which it accepted additional testimony and evidence on those aspects of the ECR that the PSC had agreed to reconsider. In April 2021, the PSC adjusted the ECR formula and recalculated the ECR (April Order). Vote Solar does not seek review of the April Order. ¶5 Vote Solar asks us to reverse a number of the decisions the PSC announced in the December Order. Vote Solar principally argues that we should set that order aside because the PSC did not comply with multiple statutory mandates when it discontinued the net metering program and set the initial ECR. Vote Solar also contends that the PSC’s decisions were not supported by substantial evidence. ¶6 The Office of Consumer Services (OCS) moves to dismiss Vote Solar’s petition for review, arguing that our jurisdiction extends only to the PSC’s final agency action and that the December Order was not final agency action. Rocky Mountain Power (RMP) joins in OCS’s motion. ¶7 We grant OCS’s motion in part and deny it in part. We cannot reach the substance of Vote Solar’s arguments concerning three of the issues decided in December 2020 because the Administrative Procedures Act limits our review to “final agency action.” UTAH CODE § 63G-4-403(1). The following decisions, from the December Order, were not final agency actions: that the PSC had met its statutory burden to analyze costs and benefits of net metering, that the PSC would only analyze cost-of-service costs and benefits in creating the ECR, and that integration costs should be included in the ECR calculation. For ease of reference, we refer to these as the ECR Calculation Decisions. We therefore lack jurisdiction and have no choice but to dismiss the petition as to these issues. ¶8 We deny OCS’s motion with respect to two issues decided in the December Order: the decision to annually update the ECR and the decision to require that unused credits expire. For ease of reference, we refer to these as the ECR Operation Decisions. The December Order represented the PSC’s final agency action on these issues. When we turn to the merits of Vote Solar’s arguments on these decisions, we conclude that the PSC did not exceed the bounds of its authority, and we affirm the PSC. BACKGROUND ¶9 The Utah Legislature enacted the “Net Metering Statute” in 2002. That statute required utility companies to buy back excess power from customers who generate their own electricity. UTAH

3 VOTE SOLAR v. PUBLIC SERVICE COMMISSION Opinion of the Court

CODE §§ 54-15-102, -103. The statute mandated that this be implemented through a “net metering program.” See id. §§ 54-15- 102(12), -103(1). Under the net metering program, customers who generated excess power (Customer Generators) could cancel out the amounts they would have been billed by exporting unused energy to the electric grid. See id. §§ 54-15-102(2)–(3), -104(3). Customer Generators also received credits for any exported energy that exceeded the Customer Generators’ use. Id. §§ 54-15-102(12)(c), - 104(3). These credits expired at the end of each year. Id. § 54-15- 104(3)(a)(ii). ¶10 The Net Metering Statute also required that the value of the credits for exported power equal at least the utility company’s “avoided cost,” although the statute gave the PSC discretion to mandate a more generous credit to Customer Generators. Id. §§ 54- 15-102(8)(b), -104(3)(a)(i). The original statute allowed an electric company to cap the number of Consumer Generators who could participate in the net metering program if the total energy generating capacity from customer generation systems reached 0.1% of the company’s peak demand during 2001. See id. § 54-15-103(2). The Net Metering Statute was amended in 2008 to change the allowable cap to 0.1% of peak demand in 2007 and to permit the PSC to raise this cap. Id. § 54-15-103(2)–(3). ¶11 In 2009, the PSC changed the net metering program in two important ways. It increased the credit for exported power, and it raised the cap on the net metering program to 20% of peak demand in 2007. Participation in the net metering program soared.

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Bluebook (online)
2023 UT 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vote-solar-v-public-service-commn-utah-2023.