§ 54-26-504 — Closed private generation systems.

(1) A large load customer may enter into a private generation contract for all needed electric services from a large-scale generation provider through a closed private generation system under terms and conditions acceptable to the large load customer and the large-scale generation provider.
(2) A closed private generation system and a large-scale generation provider that provides service on or through a closed private generation system in accordance with this chapter:
(2)(a) are exempt from commission oversight or regulation as a public utility under this title;
(2)(b) shall ensure all generation, transmission, and related facilities remain wholly separate from facilities owned or operated by any qualified electric utility, cooperative utility, municipal utility, or other utility except to the extent authorized by this part; and
(2)(c) may connect to or receive services from a qualified electric utility only pursuant to a contract approved by the commission and consistent with Section 54-26-505.
(3) The provision of service to a large load customer on or through a closed private generation system shall utilize qualified generation resources.
(4) The commission may establish rules requiring appropriate notices and warnings regarding separation from the utility system.

Legislative History

Enacted by Chapter 318, 2025 General Session