Operating permits.

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(1) The commission shall establish a system of operating permits for geothermal heat suppliers. Before commencing construction of distribution facilities, a geothermal heat supplier must obtain an operating permit from the commission. An operating permit:

  1. May not be denied because the area which the applicant proposes to serve is alreadybeing served by a gas or electric utility;

  2. May not convey an exclusive right to supply geothermal heat in the area which theapplicant proposes to serve;

  3. Shall describe the area the applicant intends to serve and the nature of such service;

  4. Shall require the applicant to enter into a contract with each customer. The contract,of which only the form and scope are subject to commission review, must specify, at least:

  1. The period of time during which service will be provided;

  2. The rates or the method for determining rates to be charged during the term of thecontract, as negotiated by the parties and not subject to commission approval;

  3. That the geothermal heat supplier will submit to the complaint procedures containedin section 40-6-108.

(2) Before issuing an operating permit, the commission must find that:

  1. The applicant is fit, willing, and able to provide the proposed services; and

  2. The applicant has made an adequate showing that the geothermal heat supply anddistribution system appears reasonably capable of delivering the proposed services.

Source: L. 83: Entire article added, p. 1423, § 2, effective June 10.


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