As used in this part 2, unless the context otherwise
requires:
(1)Electric utility means an investor-owned electric utility subject to
regulation under articles 1 to 7 of this title 40.
(2)Energy storage system means commercially available technology that
is capable of retaining energy, storing the energy for a period of time, and
delivering the energy after storage by chemical, thermal, mechanical, or other
means.
(3)Procure or procurement means to acquire by ownership or by a
contractual right to use the energy from, or the capacity of, an energy storage
system.
Source: L. 2018: Entire part added, (HB 18-1270), ch. 360, p. 2152, � 2,
effective August 8.
40-2-203. Procurement mechanisms - determination by commission -
rules.
(1)On or before February 1, 2019, the commissi
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As used in this part 2, unless the context otherwise
requires:
(1) Electric utility means an investor-owned electric utility subject to
regulation under articles 1 to 7 of this title 40.
(2) Energy storage system means commercially available technology that
is capable of retaining energy, storing the energy for a period of time, and
delivering the energy after storage by chemical, thermal, mechanical, or other
means.
(3) Procure or procurement means to acquire by ownership or by a
contractual right to use the energy from, or the capacity of, an energy storage
system.
Source: L. 2018: Entire part added, (HB 18-1270), ch. 360, p. 2152, � 2,
effective August 8.
40-2-203. Procurement mechanisms - determination by commission -
rules. (1) On or before February 1, 2019, the commission shall establish, by rule, as
part of the planning process, mechanisms for the procurement of energy storage
systems by an electric utility; except that these mechanisms must not affect any
ongoing resource acquisitions or competitive bidding processes that existed on
February 1, 2018.
(2) In adopting the rules required by subsection (1) of this section, the
commission shall use its best efforts to create conditions under which the
procurement of energy storage systems by an electric utility will provide systemic
benefits, including:
(a) Increased integration of energy into the grid of the electric utility;
(b) Improved reliability of the grid;
(c) A reduction in the need for the increased generation of electricity during
periods of peak demand; and
(d) The avoidance, reduction, or deferral of investment by the electric utility.
(3) Pursuant to subsection (1) of this section, and in consideration of all
known and measurable benefits and costs to an electric utility, the commission
shall adopt rules:
(a) Establishing mechanisms for the inclusion of benefits and costs
associated with energy storage systems into the planning conducted by electric
utilities;
(b) Requiring electric utilities to provide to the commission, and allowing
electric utilities to provide to third parties as approved by the commission,
appropriate data and analysis of potential storage acquisitions in their planning
processes, including potential interconnection points. The commission shall treat
information provided to the commission or to approved third parties under this
subsection (3)(b) as confidential and ensure that the commission and any approved
third party manages the information in accordance with all commission rules and
federal and state laws concerning customer data and personally identifiable
information. If the commission finds that a third party has failed to comply with any
applicable rules, laws, or conditions of approval under this subsection (3)(b), the
commission may deem that party ineligible to bid or develop storage systems in the
subsequent electric resource plan.
(c) Ensuring that any storage system project added to the electric grid will
not compromise the security, safety, or reliability of the electric grid or any part of
the electric grid;
(d) Establishing that an energy storage system may be owned by an electric
utility or by any other person;
(e) (I) Establishing requirements for the filing by an electric utility of
acquisition plans containing an analysis of the integration and use of electric
storage systems.
(II) The requirements under this subsection (3)(e) must include the
requirement that an electric utility provide in its acquisition plans:
(A) Modeling assumptions used to assess the costs and benefits of energy
storage systems; and
(B) Model contracts for procurement of energy storage systems.
(f) Requiring the electric utility to include such other information as the
commission may require in its documentation relating to planning.
(4) On or before May 1, 2019, electric utilities may file applications for rate-based projects, not to exceed fifteen megawatts of capacity, for energy storage
systems. Nothing in this section is intended to prohibit or deter cost-effective
storage deployment.
Source: L. 2018: Entire part added, (HB 18-1270), ch. 360, p. 2152, � 2,
effective August 8.