(1) The commission shall require an electric public utility subject to commission jurisdiction to consider the cost of carbon dioxide emissions, as set forth pursuant to subsection (4) of this section, when determining the cost, benefit, or net present value of any plan or proposal submitted in one of the following proceedings:
Electric resource plans or any utility plan or application that considers or proposesthe acquisition of new electric generating resources or the retirement of existing utility generation;
Applications related to section 40-2-124;
Applications related to section 40-3.2-104; or
A plan or application for transportation electrification or other forms of beneficialelectrification.
(2) In a proceeding listed in subsection (1)(a) of this section, a utility shall:
At a minimum, model an optimization of a base case portfolio of resources using thecost of carbon dioxide emissions, as set forth pursuant to subsection (4) of this section. The cost of carbon dioxide emissions must apply to the evaluation of all existing electric generation resources and to any new resources evaluated or proposed as part of the resource modeling. The commission may require a utility to file or propose additional base cases. The utility may propose, and the commission shall consider, alternative optimized portfolios of resources in addition to the base case, utilizing different levels of costs for carbon dioxide.
(I) Present a calculation of the net present value of revenue requirement for the resources in each optimized portfolio. To show the net present value of revenue requirement that would be incurred by the utility for implementing the portfolio, in addition to presenting the full net present value of revenue requirement through a calculation using the cost of carbon dioxide emissions set forth pursuant to subsection (4) of this section, the utility shall also present the full net present value of revenue requirement through a calculation without using the cost of carbon dioxide emissions set forth pursuant to subsection (4) of this section.
(II) In addition to the net present value of revenue requirement calculations required in subsection (2)(b)(I) of this section, for each optimized model run, the utility must provide a present value calculation showing the net present value of the total cost of carbon dioxide emissions of each portfolio, calculated by multiplying the total emissions of that portfolio by the cost of carbon dioxide set forth pursuant to subsection (4) of this section.
(3) In approving a resource plan, the commission shall consider:
The net present value of the cost of carbon dioxide emissions;
The net present value of revenue requirements that would be incurred by the utilityfor implementing the portfolio; and
Other relevant factors, as determined by the commission.
The commission shall base the cost of carbon dioxide emissions on the most recentassessment of the social cost of carbon dioxide developed by the federal government. Starting in 2020, the commission shall use a social cost of carbon dioxide of not less than forty-six dollars per short ton. The commission shall modify the cost of carbon dioxide emissions based on escalation rates of the 2020 base cost by an amount that is equal to or greater than the central value escalation rates established in the technical support document. When calculating the cost of carbon dioxide emissions for any proceeding listed in subsection (1) of this section, the commission shall use the same discount rate as that used to develop the federal social cost of carbon dioxide, as set forth in the technical support document. Notwithstanding the discount rate used to develop the social cost of carbon dioxide value over the planning period, the commission shall continue to discount any net present value analysis of any optimized resource portfolio in the electric resource planning process using discount rates that the commission deems appropriate.
The commission shall apply a cost of carbon dioxide emissions to the nonenergybenefits for programs that are defined to be beneficial electrification.
As used in this section:
(a) "Beneficial electrification" means a utility's change in the energy source powering an end use from a nonelectric source to an electric source, including transportation, water heating, space heating, or industrial processes, if the change:
Reduces system costs for the utility's customers;
Reduces net carbon dioxide emissions; or
Provides for a more efficient utilization of grid resources.
(b) "Technical support document" means the 2016 technical support document of the federal interagency working group on social cost of greenhouse gases, entitled "Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866".
Source: L. 2019: Entire section added, (SB 19-236), ch. 359, p. 3309, § 13, effective May 30.