Section 54-2-201 - Independent energy producer - Exemption from commission jurisdiction(1) As used in this section: (a) "Customer generation system" means the same as that term is defined in Section 54-15-102.(b) "Net metering program" means the same as that term is defined in Section 54-15-102.(2) An independent energy producer is exempt from regulation by the commission as a public utility for an independent power production facility if the independent energy producer produces a commodity or delivers a service: (a) solely for the use of a state-owned facility;(b) not for sale to the public, without charge, solely for the use of: (i) the independent energy producer;(ii) an independent energy producer's tenant; or(iii) an association of unit owners formed under Title 57, Chapter 8, Condominium Ownership Act;(c) for sale solely to an electrical corporation or other wholesale purchaser; or(d)(i) for use by: (A) an entity the independent energy producer controls, is controlled by, or is an affiliate of; or(B) a user located on real property that the independent energy producer manages or controls; and(ii) for use on real property that is contiguous to, or is separated only by a public road or easement from, real property that the independent energy producer owns or controls.(3) In addition to the exemptions described in Subsection (2), an independent energy producer that supplies energy, for direct consumption by a customer, via a customer generation system, is exempt from regulation by the commission as a public utility for an independent power production facility if: (a) the customer is: (i) a United States governmental entity, including an entity of the United States military;(ii) a state entity, including a political subdivision of the state;(iii) a state institution of higher education;(iv) a school district, charter school, or an entity within the state system of public education;(v) a federal income tax exempt charitable organization under 26 U.S.C. Sec. 501(c)(3) that can provide proof of the entity's tax-exempt status; or(vi) a residential customer participating in a net metering program in an area served by an electrical corporation with more than 200,000 retail customers in the state;(b) the customer generation system is: (i) for use on the real property where the customer generation system is located; and(ii) designed to supply a maximum amount of electricity equal to the lesser of: (A) 90% of the customer's average annual electricity consumption, based on an annualized billing period; or(B) the maximum amount allowed under a net metering program, as defined in Section 54-15-102;(c) the independent energy producer notifies the customer, before installing the customer generation system, of:(i) the total cost a customer is required to pay for the customer generation system, including an interconnection cost; and(ii) the potential for a change in: (A) the amount the customer pays for energy from a public utility; and(B) customer fees associated with net metering and generation;(d) the independent energy producer enters into an interconnection agreement: (i) with a public utility that provides retail electric service to the real property on which the customer generation system is located; and(ii) that is subject to approval by a public utility's governing authority; and(e) except for a customer described in Subsection (3)(a)(vi), the independent energy producer installs the customer generation system by December 31, 2021.(4) An independent energy producer that supplies electric service to a customer described in Subsection (3)(a)(vi) via a customer generation system shall provide the electric service under an agreement that includes: (a) the notification described in Subsection (3)(c);(b) a description of the incentives, including any renewable energy certificate, generated by the agreement, or by the installation or use of the customer generation system;(c) a description of an incentive described in Subsection (4)(b) that the customer forfeits or assigns to the independent energy producer under the agreement;(d) the property, equipment, or liability that the independent energy producer will insure under the agreement, and what property, equipment, or liability that the customer is responsible for insuring; and(e) the Internet address of a Division of Public Utilities website, if any, that describes considerations for a net metering customer.(5) An independent energy producer may not provide electric service to a customer described in Subsection (3)(a)(vi) until the commission makes the first determination about a net metering program under which the independent energy producer will provide service required by Subsection 54-15-105.1(2), and the determination becomes final agency action.(6) A public utility shall serve a customer in the public utility's service area that is partially served by an independent energy producer.Added by Chapter 267, 2016 General Session ,§ 2, eff. 5/10/2016.