Large energy users would face new utility contract requirements

Covered utilities would submit tariffs or contracts for new or expanding large energy users for approval. This would apply to electric utilities, municipal electric utilities, and cooperative electric utilities serving data centers or other facilities with at least 20 megawatts of maximum demand. Approved contracts would require at least 20 years of service. Monthly bills would be based on at least 90% of contracted demand, even when the facility uses less electricity. A facility ending service would owe remaining minimum billing amounts and the utility's unrecovered service costs. The facility would have to provide collateral equal to the possible termination fee. The tariff or contract would have to be submitted no later than 180 days after the act adding this section takes effect.

Approved arrangements would require the large energy user to cover costs caused by its service and limit service when it could harm other customers. The requirements would apply to data centers and other facilities with at least 20 megawatts of maximum demand in a covered utility's service area. The facility would pay generation, transmission, and distribution costs caused by its service rather than shifting them to existing customers. Service could be limited if it would harm reliability or affordability for other ratepayers. The commission would decide that issue in a contested case, with the utility required to show through numbers that service would not raise other customers' rates or reduce reliability. The facility would have to curtail electricity use during an energy emergency when the utility requests it. These requirements would apply through tariffs or contracts submitted no later than 180 days after the act adding this section takes effect.

Approved arrangements would require large energy users to meet clean-energy, demand-response, interconnection, and shutdown-cost obligations. The requirements would cover data centers and other facilities with at least 20 megawatts of maximum demand, including data centers at one site or combined across sites in a utility territory. The facility would need demand-response or interruptible-load capability equal to at least 25% of maximum demand without using fossil-fueled onsite or backup generation for that capability. It would need to obtain clean energy equal to 90% of forecast annual electricity use; ordinary service from a utility pursuing state clean-energy requirements would not by itself count. It would pay at least a $100,000 application fee and enter the regional transmission organization's generation interconnection queue. It would pay decommissioning costs through a fund or comparable method, and the commission or governing board could add other requirements. The requirements would apply through tariffs or contracts submitted no later than 180 days after the act adding this section takes effect.