§ 37-3-117 — Limitation for recovery of costs associated with electric generation built to replace retiring coal-fired generation facility; exemption

(a) Notwithstanding any other provision of this chapter:
(i) Any electric public utility seeking to retire a
coal fired electric generation facility shall first make a good
faith effort to sell the facility for continued use as a coal
fired electric generation facility;
(ii) The rates charged by an electric public utility,
other than a cooperative electric utility, shall not include any
recovery of or earnings on the capital costs associated with new
electric generation facilities built, in whole or in part, to
replace the electricity generated from one (1) or more coal
fired electric generating facilities located in Wyoming and
retired on or after January 1, 2022, unless the commission has
determined that the public utility that owned the retired coal
fired electric generation facility made a good faith effort to
sell the facility to another person prior to its retirement and
that the public utility did not refuse a reasonable offer to
purchase the facility or the commission determines that, if a
reasonable offer was received, the sale was not completed for a
reason beyond the reasonable control of the public utility.
(b) In determining whether the public utility made a good
faith effort to sell the retired coal fired electric generation
facility under this section the commission shall consider:
(i) Whether the public utility provided sufficient
time prior to the facility's retirement for potential purchasers
to evaluate purchasing the facility;
(ii) Whether the public utility used reasonable
efforts to make potential purchasers aware of the opportunity to
purchase the facility;
(iii) Whether the public utility reasonably evaluated
any offers received by the public utility for the purchase of
the facility; and
(iv) Any other factor deemed appropriate by the
commission.
(c) In determining whether an offer to purchase a coal
fired electric generation facility under this section was
reasonable the commission shall consider:
(i) Whether accepting the offer to purchase the
retired facility would have reduced costs to the public
utility's customers as compared to retiring the facility;
(ii) Whether accepting the offer to purchase the
retired facility would have reduced risks to the public
utility's customers as compared to retiring the facility
including any diminished environmental remediation risks; and
(iii) Whether accepting the offer to purchase the
retired facility would have been in the public interest.
(d) Upon application by a public utility, the commission
may approve procedures for the solicitation and review of offers
to purchase an otherwise retiring electric generation facility
in advance of a proposed retirement. If the public utility
follows the procedures approved by the commission to solicit and
review offers to purchase an otherwise retiring electric
generation facility under this subsection, there shall be no
limitation under this section for recovery of costs or earnings
associated with electric generation built to replace a retired
coal fired electric generation facility.
(e) Any agreement between a public utility and another
person for the sale of an otherwise retiring coal fired electric
generation facility shall not be effective until approved by the
commission. In reviewing the agreement the commission shall
consider:
(i) Whether the proposed purchaser has, or has
contracted for, financial, technical and managerial abilities
sufficient to reasonably operate and maintain the facility;
(ii) Whether the proposed purchaser has, or has
contracted for, financial, technical and managerial abilities
sufficient to reasonably decommission and retire the facility if
and to the extent the facility is decommissioned and retired;
(iii) Whether the proposed purchaser has, or has
contracted for, financial, technical and managerial abilities
sufficient to reasonably satisfy any environmental obligations
associated with the operation, maintenance or potential
retirement of the facility;
(iv) If the coal fired electric generation facility
is comprised of one (1) or more generation units at a larger
power plant where the public utility will continue to own and
operate one (1) or more generation units, whether the proposed
purchaser and the public utility have made reasonable
contractual arrangements for the sharing of the costs associated
with any joint or common facilities at the plant;
(v) Whether the proposed purchaser has agreed to
reasonable terms and conditions for environmental remediation;
(vi) Whether the proposed purchase agreement contains
a provision allowing the public utility, with commission
approval, to revoke the sale in the event the purchaser is
unable to timely obtain all necessary local, state and federal
permits;
(vii) Whether the proposed purchase agreement
contains a provision to allow the public utility, with
commission approval, to revoke the sale in the event the
purchaser is unable to timely enter into any necessary
operational and labor agreements;
(viii) Whether the proposed purchaser has agreed in
the purchase agreement to obtain commission approval prior to
transferring, in whole or in part, the facility to any other
person so that the commission may ensure that the proposed new
purchaser and the new purchase agreement meet the requirements
of this section; and
(ix) Any other factor deemed appropriate by the
commission.
(f) The requirements of this section shall not apply to an
electric public utility that replaces a coal-fired electric
generation facility with an advanced nuclear reactor that is
operated in the state of Wyoming in accordance with W.S. 35-11-
2101.