§ 40-2-132 — Distribution system planning - definition - rules

(1) The
commission shall promulgate rules establishing the filing of a distribution system
plan. The commission's rules must:

(a) Define the following terms:

(I) Distributed energy resources that include:

(A) Distributed renewable electric generation;

(B) Energy storage systems connected to the distribution grid;

(C) Microgrids;

(D) Energy efficiency measures; and

(E) Demand response measures; and

(II) Non-wires alternatives;

(b) Develop a methodology for evaluating the costs and net benefits of using
distributed energy resources as non-wires alternatives;

(c) Determine a threshold for the size of a new distribution project, whether
in dollars, meters, or another factor, as determined by the commission, for when a
qualifying retail utility must consider implementation or use of non-wires
alternatives, potentially including energy efficiency measures under utility
programs for new electric service to any planned new neighborhoods or housing
developments;

(d) Direct each qualifying retail utility to file a distribution system plan;

(e) Determine what shall be included in a distribution system plan, which at a
minimum must include the following:

(I) Information regarding:

(A) System and substation historical data;

(B) Peak demand;

(C) Adoption of distributed energy resources; and

(D) Distribution system investments;

(II) To provide new electric service to any planned new neighborhoods or
housing developments expected to include more than ten thousand new
residences, a description of the qualifying retail utility's consideration of non-wires
alternatives, potentially including energy efficiency measures under utility
programs;

(III) An updated load forecast that includes any new load resulting from
projected or forecasted growth from beneficial electrification programs;

(IV) A forecast of the growth of distributed energy resources for the years
covered by the plan;

(V) A high-level summary of its planning process for addressing cyber and
physical security risks. As part of the summary, the qualifying retail utility need not
report any confidential, proprietary, or other information in the plan that could in
any way compromise or decrease the qualifying retail utility's ability to prevent,
mitigate, or recover from potential system disruptions caused by weather events,
physical events, or cyber attacks.

(VI) A proposed cost-recovery method or mechanism for any non-wires
alternative investments found to be outside the ordinary course of business;

(VII) A description of the qualifying retail utility's anticipated new
distribution system expansion investments for the years covered by the plan;

(VIII) A process to evaluate the plan's feasibility and the economic impacts of
using non-wires alternatives for certain projects;

(IX) An estimate of the year in which peak demand growth or distributed
energy resource growth would merit analysis of new non-wires alternative projects;
and

(X) Any other information that the commission deems relevant.

(2) The commission shall approve a qualifying retail utility's investment in
non-wires alternatives if the commission finds the investment to be in the public
interest.

(3) (a) The commission shall determine whether a qualifying retail utility's
ratepayers would realize benefits from a non-wires alternative investment and
whether the associated costs are just and reasonable.

(b) To evaluate the success of any non-wires alternative investment
authorized pursuant to a qualifying retail utility's distribution system plan, the
commission may adopt criteria, benchmarks, or accountability mechanisms with
which the qualifying retail utility must comply.

(4) As used in this section, qualifying retail utility has the meaning
described in section 40-2-124 (1); except that the term does not mean a municipally
owned utility or a cooperative electric association.

Legislative History

Source: L. 2019: Entire section added, (SB 19-236), ch. 359, p. 3301, � 8, effective May 30.