Bill would let larger nonresidential customers choose other electricity suppliers

Eligible customers would be allowed to buy some or all of their electricity from another supplier or generate it on their property. New or existing nonresidential customers must have estimated peak demand of at least 100 kilowatts at one point where electricity enters their property. Homes would not qualify. Power generated on the customer's property must serve only that customer, with generating capacity no greater than its estimated peak demand. Purchases from another supplier must follow this chapter and federal laws and rules. The provisions would take effect upon the Governor's approval.

Customers choosing another supplier would sign an agreement with their usual supplier and take responsibility for meeting their electricity needs. These requirements would cover eligible customers buying some or all of their electricity from another supplier. The agreement must identify the supply arrangements and any amount the customer commits to buy from its usual supplier. The usual supplier would no longer owe electricity or reserve capacity for the portion supplied by another supplier. Backup service could be agreed upon, with Public Service Commission approval for utilities whose rates it approves. The usual supplier must have remote cutoff equipment. The agreement must address service cuts outside grid emergencies when the customer lacks a backup service rate.

Customers choosing another supplier would arrange reliable transmission service and pay costs tied to that choice. These duties would cover eligible customers using another supplier. The usual supplier must cooperate on transmission arrangements and remain responsible for transmission on its own system. Customers must pay costs associated with choosing another supplier and any transmission upgrade that benefits only them. For upgrades also benefiting others, customers and their usual suppliers may agree on payments lasting no more than 20 years. Customers paying upgrade costs would be exempt from the continuing payment rule for earlier investments. Continuing payments apply when a customer's demand prompted investments reflected in rates and the customer leaves the usual supplier's territory. Growth exceeding the departing customer's demand would be evidence, open to challenge, that others assumed those costs. The commission must determine payments without affecting other customers' electricity rates. Payments for earlier investments would continue until the customer's share is fully paid or another customer assumes it.

The Public Service Commission would approve standard contract terms for customers and their usual suppliers. Commission review would cover agreements with the usual supplier. The commission would not regulate contracts between eligible customers and their chosen outside suppliers. The standard contract would bind both parties. The commission must approve a different signed contract unless it conflicts with the public interest. A customer could commit to an unsigned contract, which the commission must adopt if its terms are fair and reasonable. Customers returning to their usual utility would receive service on the same terms, rates, and priority as new eligible customers. The commission must approve the service rules containing the standard contract no later than January 1, 2027.