Utah PSC Gives OK to Wind Farm Transmission Line
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The Utah Public Service Commission issued an order last week approving the request by Milford Wind Corridor Phase I, LLC and Milford Corridor Phase II, LLC (collectively, “Milford Wind”) for a certificate of public convenience and necessity (“CPCN”) for the construction of a 90-mile transmission line interconnecting the wind farm to facilities for ultimate delivery of output to Southern California (Docket No. 08‑2490-01).
Although the Commission applied the CPCN statute only to Milford Wind’s transmission line, the exemption it applied with respect to the generation facilities is applicable only to cogeneration facilities or independent power production facilities that produce electric energy “solely by the use, as a primary energy source, of biomass, waste, a renewable resource, a geothermal resource, or any combination of the preceding sources.” As it now reads, that exemption would not be available to other types of generation projects that might be constructed by independent power producers in Utah.
As I noted previously, the Commission initially concluded early in this proceeding that legislation enacted this year exempted Milford Wind from Commission jurisdiction and regulation with respect to Milford Wind’s entire project, including the transmission line. However, the Commission revisited its determination in response to a motion for rehearing filed by the Utah Associated Municipal Power Systems (“UAMPS”), and ultimately agreed with UAMPS and the Division of Public Utilities that the exemption provided by the new legislation does not apply to transmission facilities. Thus Milford Wind was required to go forward and obtain a CPCN for the transmission line.
Whether legislation will be proposed in next year's general session of the Utah State Legislature to further address the question of the Commission's jurisdiction over independent power producers remains to be seen.
