11-13-301 - Project entity and generation output requirements. - Utah Statutes

11-13-301. Project entity and generation output requirements.
(1) Each project entity shall:
(a) before undertaking the construction of a project or of facilities to provide additionalproject capacity, offer to sell or make available at least 50% of the generation output of orelectric energy produced by the project or additional project capacity, respectively;
(b) establish rules and procedures for an offer under Subsection (1)(a) that provide atleast 60 days for a prospective power purchaser to accept the offer before the offer is consideredrejected; and
(c) make each offer under Subsection (1)(a):
(i) under a long-term arrangement that may be an undivided ownership interest, aparticipation interest, a power sales agreement, or otherwise; and
(ii) to one or more power purchasers in the state that supply electric energy at wholesaleor retail.
(2) (a) The generation output or electric energy production available to power purchasersin the state from a project shall be at least 5% of the total generation output or electric energyproduction of the project.
(b) (i) Subject to Subsection (2)(b)(ii), at least a majority of the generation capacity,generation output, or electric energy production facilities providing additional project capacityshall be:
(A) made available as needed to meet the estimated electric requirements of entities orconsumers within the state; and
(B) owned, purchased, or consumed by entities or consumers within the state.
(ii) (A) As used in this Subsection (2)(b)(ii), "default provision" means a provisionauthorizing a nondefaulting party to succeed to or require the disposition of the rights andinterests of a defaulting party.
(B) The requirements of Subsection (2)(b)(i) do not apply to the extent that thoserequirements are not met due to the operation of a default provision in an agreement providingfor ownership or other interests in facilities providing additional project capacity.

Amended by Chapter 21, 2003 General Session