HB 517

The Energy Security Act of 2015 contains language providing for the sunset of the act in 2023

This bill would remove the sunset provision from the Energy Security Act of 2015

Relating to electricity utility services; to amend Section 37-4-150, Code of Alabama 1975, to remove the sunset provision from the Energy Security Act of 2015.

Section 1

Section 37-4-150, Code of Alabama 1975, is amended to read as follows:

§37-4-150.

(a) This section shall be known and may be cited as the Energy Security Act of 2015.

(b) The Legislature hereby finds and declares that due to the economic, financial, and service impacts associated with the development of electric transmission facilities used for the furnishing of electric service to consumers in this state, it is in the public interest to provide incumbent electric suppliers the right to construct, own, operate, and maintain new transmission facilities that connect to their own electric systems. The Legislature further finds and declares that providing incumbent electric suppliers this right furthers their ability to satisfy their respective obligations to provide service to Alabama consumers. This section implements these findings.

(c) As used in this section, the following words have the following meanings:

(1) COMMISSION. The Alabama Public Service Commission.

(2) ELECTRIC TRANSMISSION FACILITY. Any transmission line, substation, equipment, or other facility at a design voltage greater than 35,000 volts.

(3) INCUMBENT ELECTRIC SUPPLIER. A utility that furnishes electric service for end-use to retail customers or non-jurisdictional electric supplier that furnishes electric service for end-use to retail customers or at wholesale for resale in Alabama.

(4) NON-JURISDICTIONAL ELECTRIC SUPPLIER. Any of the following:

a. A municipality that owns or operates an electric system.

b. Any public corporation, cooperative corporation, membership corporation, agency, authority, board, or other entity or body which is engaged in the business of selling electricity to its members at wholesale, or purchasing electricity from, or distributing or selling electricity to, retail electric consumers in the state, which is not subject to the jurisdiction of the commission and which is organized and existing pursuant to the provisions of any of the following:

1. A local act providing that the governing body of the entity is to be appointed by the governing body of a municipality and is authorized to furnish electricity to the public in the municipality or in the municipality and the surrounding territory.

2. Article 9 of Chapter 50 of Title 11.

3. Chapter 50A of Title 11.

4. Article 15 of Chapter 50 of Title 11.

5. Article 16 of Chapter 50 of Title 11.

6. Chapter 5 of this title.

7. Chapter 6 of this title.

8. Chapter 7 of this title.

9. Chapter 7 of Title 39.

(5) UTILITY. A utility as defined in paragraph a. of subdivision (7) of Section 37-4-1 that is subject to the jurisdiction of the commission.

(d) Subject to the requirements of applicable Alabama law, an incumbent electric supplier shall have the right to construct, own, operate, and maintain both the following:

(1) Any new electric transmission facility in the state that would connect to its electric system.

(2) Any upgrade to any electric transmission facility that it owns in this state.

(e) The right to construct, own, operate, and maintain a new electric transmission facility that would connect to the electric systems of two or more incumbent electric suppliers belongs individually and proportionally to each such incumbent electric supplier whose electric system would connect to the new electric transmission facility, subject to any existing written agreement between the incumbent electric suppliers respecting the facilities, unless otherwise agreed upon in writing.

(f) In recognition of the duty of a utility established in Section 37-1-49 to maintain its plant, facilities, and equipment in good operating condition, to render adequate service to the public, and to make such reasonable improvements, extensions, and enlargements of its plants, facilities, and equipment as may be necessary to meet the growth and demand of the territory which it is under the duty to serve, a utility may not waive its right to construct, own, operate, and maintain any new electric transmission facility in the state that would connect to its electric system such that an entity who is not an incumbent electric supplier would have that right unless the utility has first applied to and received an order from the commission authorizing the waiver.

(g) In the event of a dispute between incumbent electric suppliers concerning the right described in subsection (d) or (e), an incumbent electric supplier may petition the circuit court for the judicial circuit in which all or any portion of the electric transmission facility would be located to determine matters that are in dispute.

(h) Nothing in this section shall do any of the following:

(1) Subject any non-jurisdictional electric supplier to the jurisdiction or control of the commission.

(2) Affect the right and power of any non-jurisdictional electric supplier to construct, own, operate, and maintain an electric transmission facility except as specifically provided herein, or the authority of the governing body thereof to determine whether to do so.

(3) Apply to any electric transmission facility to be constructed, owned, operated, and maintained by a nonutility as defined by subdivision (5) of Section 37-4-1.

(i) This section shall sunset on July 1, 2023. By July 1, 2022, the Speaker of the House and the Senate President Pro Tempore shall appoint a committee of individuals knowledgeable in the subjects addressed in this section and that committee shall report to the Legislature by January 1, 2023."

Section 2

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.