SB 83 — LOCAL CHOICE ENERGY ACT

h , t, B.

A local choice energy provider shall prepare and e u g e b l e e h publicly post a summary of its purchases and generation of n d d i = = o h renewable energy during the preceding calendar year.

l ] b ,d i a º e C.

A local choice energy provider shall meet the r i = r t e w d m a n o requirements and targets of the renewable portfolio standard d m :

b e d s º o t n = .218853.2AIC February 11, 2021 (1:59pm) s k m e - 4 - e a n e d r e l u [ A d pursuant to Subsection A of this section as demonstrated by the provider's retirement of renewable energy certificates associated with energy assigned to the provider.

SECTION 5.

[NEW MATERIAL ] ENROLLMENT--OPT-OUT.-- A.

An affirmative declaration shall not be required to become a customer of a local choice energy provider, but each customer shall be informed of the customer's right to opt out of the local choice energy program.

If a negative declaration is not made by a customer, that customer shall be served through the local choice energy program.

AIf an existing local choice energy providerprogram shallcustomer preparemoves andthe publiclylocation postof athe summarycustomer's ofelectric itsservice purchaseswithin andthe generationjurisdiction of renewablethe local choice energy duringprovider, the precedingcustomer calendarshall year.retain the same subscriber status as prior to the move, unless the customer affirmatively changes the customer's subscriber status.

C.If a customer moves the location h of the customer's electric service from outside to inside the g o t hr jurisdiction of a local choice energy provider, the customer g e i k shall be informed of the customer's right to opt out of the h r i s local choice energy program.

Ah local, choicet, energySECTION provider6. shall meet the requirements and targets of the renewable portfolio standard pursuant to Subsection A of this section as demonstrated by the provider's retirement of renewable energy certificates e t 17 associated with energy assigned to the provider.

w[NEW lMATERIAL n] dIMPLEMENTATION.-- 18e SECTIONu 5.g e b l e e h A.

[NEWA MATERIAL]local ENROLLMENT--OPT-OUT.--choice energy provider shall develop an n d d i = = 19o ah implementation plan detailing the process and characteristics l A.] b ,d i a º e of the local choice energy program.

AnThe affirmativeimplementation declarationplan, shallr not be required i a= e r 20t toe becomew ad customerm of a localn choiceo energyand provider,any butsubsequent achanges tto mit, m 21 each customer shall be informedconsidered ofand the customer's right to opt d rm e: 22 out of the local choice energy program.

Ifb ae negatived cs eº so kt 23n declaration= is.218853.2AIC notFebruary made11, by2021 a(1:59pm) customer,s thatk customerm shalle be- 5 - e a n be 24d servedr throughe thel localu choice[ energyA program.d adopted at a duly noticed public meeting.

uIf [the B.implementation plan is adopted, it shall be filed with the commission.

If an existing local choice energy program .218853.2 - 4 - customer moves the location of the customer's electric service within the jurisdiction of the local choice energy provider, the customer shall retain the same subscriber status as prior to the move, unless the customer affirmatively changes the customer's subscriber status.

If a customer moves the location of the customer's electric service from outside to inside the jurisdiction of a local choice energy provider, the customer shall be informed of the customer's right to opt out of the local choice energy program.

SECTION 6.

[NEW MATERIAL] IMPLEMENTATION.-- A.

A local choice energy provider shall develop an implementation plan detailing the process and characteristics of the local choice energy program.

The implementation plan, and any subsequent changes to it, shall be considered and adopted at a duly noticed public meeting.

If the implementation plan is adopted, it shall be filed with the e t 17 commission.

w l n d 18 (1) an organizational structure for the = = 19 a l program and its operations;

i a e r 20 (2) a rate-setting process and all anticipated a t m m 21 costs to participating customers, including exit fees;

d r e 22 (3) provisions for disclosure and due process c e s k 23 in rate-setting and allocating costs among participating e a n b 24 customers;

u [ (4) the methods for entering and terminating .218853.2 - 5 - agreements with other entities;

and h (7) evidence of adequate resources to meet the g o t hr energy needs of its participating customers, or a plan to g e i k procure adequate resources to meet the energy needs of its h r i s customers when the program begins service.

h , t, B.

Within ten days after a local choice energy e u g e b l e e h provider files its implementation plan with the commission, the n d d i = = o h commission shall notify any public utility serving the l ] b ,d i a º e customers eligible for service by the local choice energy r i = r t e w d m a n o provider that an implementation plan has been filed.

d m :

b e d s º o t n = .218853.2AIC February 11, 2021 (1:59pm) s k m e - 6 - e a n e d r e l u [ A d C.

Within thirty days after a local choice energy provider files its implementation plan, the commission shall acknowledge that it has received the implementation plan.

D.

Prior to serving customers, a local choice energy provider shall adopt the following documents and reports pursuant to the local choice energy provider's own decision- making rules and procedures, the adoption of which is the responsibility of the local choice energy provider and is not subject to commission oversight:

(1) an energy procurement policy that defines and includes criteria for the selection of energy resources that are the most cost-effective among feasible alternatives and meet the local choice energy provider's goals with respect to local workforce development, climate and environment and public safety;

(2) an annual budget that reflects the local h choice energy provider's projected total revenues from sales of u » r electricity and related services and its total costs, including t h g e l i the cost of electricity and distribution and any fees that are h r i s required to be charged as required by statute or by the h , e h commission in rule;

t u g e b l e e , gh (3) a fiscal management policy that provides n d d i = = o h guidance for the local choice energy provider's financial l ] b ,d i a º r decision making;

e r = t e w d m a n o (4) a determination that the local choice d m :

b r e t º o t n = .218853.2AIC February 11, 2021 (1:59pm) s k m e - 7 - e a n e d r e l u [ A d energy provider has adequate resources to meet the needs of its customers;

and (5) a determination that public safety is met for the generation facilities from which the local choice energy provider obtains the power that is ultimately sold to its customers.

SECTION 7.

[NEW MATERIAL] FORMATION.-- A.

An entity that is eligible to be a local choice energy provider and elects to implement a local choice energy program within its jurisdiction shall do so by municipal or county ordinance or, in the case of a tribal government, through the tribal government process in place.

WithinA tenmunicipality, dayscounty afteror aIndian localnation, choicetribe energyor providerpueblo, filesor any combination of the foregoing, may authorize, by affirmative resolution of its implementationgoverning plancouncil withor theboard, commission,that theanother commissionentity shallthat notifyis anyauthorized publicto utilitybe servinga thelocal customerschoice eligibleh forenergy serviceprovider byact as the local choice energy provider thaton anits implementationu plan» hasr beenbehalf. filed.

C.If a municipality, county, Indian nation, tribe or t h g e l i pueblo, or any combination of the foregoing, by resolution, h r i s authorizes another entity to be the local choice energy h , e h provider for the municipality, county, Indian nation, tribe or t u g e b l e e , gh pueblo, that authorized entity shall comply with the n d d i = = o h requirement of Subsection A of this section.

Withinl thirty] daysb after,d i a localº choicer energyC. provider files its implementation plan, the commission shall e t 17 acknowledge that it has received the implementation plan.

Two or more entities authorized to be a local e r = t e w ld m a n o choice energy provider may jointly enact a local choice energy d 18m D.:

Priorb tor servinge customers,t aº localo choicet =n = 19.218853.2AIC aFebruary l11, energy2021 provider(1:59pm) shalls adoptk them followinge documents- and8 reports- i a e r 20 pursuant to the local choice energy provider's own decision- a tn me md 21r makinge rulesl andu procedures,[ theA adoption of which is the d rprogram epursuant 22to responsibility of the localLocal choiceChoice energyEnergy providerAct andthrough isa notjoint cpowers eagency sestablished kpursuant 23to subjectthe toJoint commissionPowers oversight:Agreements Act.

eD. a n b 24 (1) an energy procurement policy that defines u [ and includes criteria for the selection of energy resources .218853.2 - 6 - that are the most cost-effective among feasible alternatives and meet the local choice energy provider's goals with respect to local workforce development, climate and environment and public safety;

(2)The ancommission annualshall budgetnot, thatas reflectsa thecondition of participation in a local choice energy provider'sprogram projectedor totalotherwise, revenuesrequire fromcustomers sales of electricitya andlocal relatedchoice servicesenergy andprogram itsto totalassume costs,debts, includingliabilities theor costobligations of electricitythe andentity distribution and any fees that areenacted required to be charged as required by statute or by the commissionlocal inchoice rule;energy program.

(3)E. a fiscal management policy that provides guidance for the local choice energy provider's financial decision making;

(4)Following aadoption determinationof thata the local choice energy providerprogram hasthrough adequatethe resourcesordinance or lawmaking required by Subsection A of this section, the program shall allow any retail customer to meetopt out and the needscustomer ofshall continue to be served by the existing public utility or cooperative, or its customers;successor in interest, on the same terms and conditions as are applicable to retail customers from the same class.

and e t 17 (5) a determination that public safety is met w l n d 18 for the generation facilities from which the local choice = = 19 a l energy provider obtains the power that is ultimately sold to i a e r 20 its customers.

a t m m 21 SECTION 7.

[NEW MATERIAL] FORMATION.-- d r e 22 A.

An entity that is eligible to be a local choice c e s k 23 energy provider and elects to implement a local choice energy e a n b 24 program within its jurisdiction shall do so by municipal or u [ county ordinance or, in the case of a tribal government, .218853.2 - 7 - through the tribal government process in place.

B.

A municipality, county or Indian nation, tribe or pueblo, or any combination of the foregoing, may authorize, by affirmative resolution of its governing council or board, that another entity that is authorized to be a local choice energy provider act as the local choice energy provider on its behalf.

If a municipality, county, Indian nation, tribe or pueblo, or any combination of the foregoing, by resolution, authorizes another entity to be the local choice energy provider for the municipality, county, Indian nation, tribe or pueblo, that authorized entity shall comply with the requirement of Subsection A of this section.

C.

Two or more entities authorized to be a local choice energy provider may jointly enact a local choice energy program pursuant to the Local Choice Energy Act through a joint powers agency established pursuant to the Joint Powers e t 17 Agreements Act.

w l n d 18 D.

The commission shall not, as a condition of = = 19 a l participation in a local choice energy program or otherwise, i a e r 20 require customers of a local choice energy program to assume a t m m 21 debts, liabilities or obligations of the entity that enacted d r e 22 the local choice energy program.

c e s k 23 E.

Following adoption of a local choice energy e a n b 24 program through the ordinance or lawmaking required by u [ Subsection A of this section, the program shall allow any .218853.2 - 8 - retail customer to opt out and the customer shall continue to be served by the existing public utility or cooperative, or its successor in interest, on the same terms and conditions as are applicable to retail customers from the same class.

Energy distribution and transmission services h shall be provided by a public utility or cooperative at the u » r same rates, terms and conditions, as approved by the t h g e l i commission, to local choice energy customers and retail h r i s customers that are served by a public utility or cooperative.

h , e h G.

Once enrolled in a local choice energy program, t u g e b l e e , gh a customer that chooses to opt out within sixty days, or two n d d i = = o h billing cycles, of the date of enrollment may do so without l ] b ,d i a º r penalty and shall be entitled to receive service pursuant to e r = t e w d m a n o Subsection E of this section.

H.d m :

Customersb thatr return to a public utility or cooperative to procure electricity services shall be subject to e t 17º theo samet terms and conditions that are applicable to retail w l n d= 18.218853.2AIC customersFebruary from11, the2021 same(1:59pm) class,s ask determinedm bye the- commission9 =- =e 19 a ln ande asd authorizedr bye thel commissionu pursuant[ toA thed PublicH. i a e r 20 Utility Act.

Customers that return to a tpublic mutility mor 21cooperative I.to procure electricity services shall be subject to the same terms and conditions that are applicable to retail customers from the same class, as determined by the commission and as authorized by the commission pursuant to the Public Utility Act.

NothingI. in this section shall be construed as d r e 22 authorizing a local choice energy provider to restrict the c e s k 23 ability of a retail customer to obtain or receive electric e a n b 24 service from any authorized electric service provider in a u [ manner consistent with law.

.218853.2Nothing -in 9this -section SECTIONshall 8.be construed as authorizing a local choice energy provider to restrict the ability of a retail customer to obtain or receive electric service from any authorized electric service provider in a manner consistent with law.

[NEWSECTION MATERIAL]8. NOTICE.-- A.

[NEW MATERIAL ] NOTICE.-- A.

(1) eligible participating customers at least twice within two calendar months, or sixty days, in advance of h the date of commencing automatic enrollment;

and g o t hr (2) enrolled participating customers for not g e i k less than two consecutive billing cycles following enrollment.

h r i s B.

Notice may be provided concurrently with h , t, billing, in direct mailings to customers or in inserts in e u g e b l e e h water, sewer or other utility bills.

n d d i = = o h C.

l ] b ,d i a º e (1) a statement that the customer will be automaticallyr enrolledi in= ther localt choicee energyw programd andm thata then customero hasautomatically theenrolled rightin to opt out of the local choice energy program withoutand penalty;d m :

b e d s º o t 17n (2)= the.218853.2AIC termsFebruary and11, conditions2021 of(1:59pm) thes servicesk wm le - 10 - e a n e d 18r offered;e l u [ A d that the customer has the right to opt out of the local choice energy program without penalty;

and(2) = = 19 a l (3) a description of the processterms byand whichconditions a i a e r 20 customer may opt out of the localservices choiceoffered; energy program.

Theand (3) a tdescription m m 21 opt-out may take the form of a self-addressed return postcard d r e 22 expressing the customer'sprocess election to remain with, or return c e s k 23 to, electrical service provided by thewhich public utility or e a n b 24 cooperative, or another direct means by which the customer may uopt [out electof to receive electrical service through the publiclocal utilitychoice .218853.2energy -program. 10 - or cooperative providing service in the area.

The opt-out may take the form of a self-addressed return postcard expressing the customer's election to remain with, or return to, electrical service provided by the public utility or cooperative, or another direct means by which the customer may elect to receive electrical service through the public utility or cooperative providing service in the area.

A public utility or cooperative shall be entitled to recover from the local h choice energy provider the reasonable costs incurred for g o t hr providing the notice.

The public utility or cooperative shall g e i k fully cooperate with the local choice energy provider in h r i s determining the feasibility and costs associated with using the h , t, public utility's or cooperative's normally scheduled monthly e u g e b l e e h billing process to provide one or more of the notices required.

n d d i = = o h SECTION 9.

[NEW MATERIAL]MATERIAL ] COOPERATION OF PUBLIC UTILITIES l ] b ,d i a º e AND COOPERATIVES.-- r i = r t e w d m a n o A.

Public utilities and cooperatives shall cooperate fully with any local choice energy provider that investigates, pursues or implements a local choice energy e t 17 program, including by providing the local choice energy w l n d 18m provider: with:

=b e d s º o t n = 19.218853.2AIC aFebruary l11, (1)2021 appropriate(1:59pm) billings andk electricalm loade i- 11 - e a n e d r 20e information;l u [ A d cooperate fully with any local choice energy provider that investigates, pursues or implements a local choice energy program, including by providing the local choice energy provider with:

a(1) tappropriate mbilling mand 21 (2) electrical consumptionload data;information;

and(2) delectrical rconsumption edata; 22 (3) other data detailing electricity usage and c e s k 23 patterns of usage, as determined by the commission and in e a n b 24 accordance with procedures established by the commission.

uand [(3) B.other data detailing electricity usage and patterns of usage, as determined by the commission and in accordance with procedures established by the commission.

PublicB. utilities and cooperatives shall continue .218853.2 - 11 - to provide metering, billing, collection and customer service to retail customers that participate in local choice energy programs;

providedPublic thatutilities ifand thecooperatives localshall choicecontinue energy program makes a formal request to theprovide public utility or cooperative to assume some or all of the metering, billing, collection orand customer service to customers,retail thecustomers that participate in local choice energy programprograms; shall assume these responsibilities.

Billsprovided shallthat identifyif the local choice energy providerprogram asmakes providinga formal request to the electricalpublic energyutility componentor ofcooperative theto billassume andsome shallor includeall billof insertsthe providedmetering, andbilling, paidcollection foror byh customer service to customers, the local choice energy providerprogram uponu request.» r shall assume these responsibilities.

C.Bills shall identify the t h g e l i local choice energy provider as providing the electrical energy h r i s component of the bill and shall include bill inserts provided h , e h and paid for by the local choice energy provider upon request.

Thet commissionu shallg expeditee theb complaintl processe fore disputes, regardinggh aC. public utility's or cooperative's violation of its obligations pursuant to this section in order that all complaints are resolved no more than one hundred eighty days following the filing of a complaint.

The commission shall expedite the complaint n d d i = = o h process for disputes regarding a public utility's or l ] b ,d i a º r cooperative's violation of its obligations pursuant to this e r = t e w d m a n o section in order that all complaints are resolved no more than d m :

b r e t º o t n = .218853.2AIC February 11, 2021 (1:59pm) s k m e - 12 - e a n e d r e l u [ A d one hundred eighty days following the filing of a complaint.

If the commission finds that a public utility or e t 17 cooperative has violated this section, the commission shall w l n d 18 consider the impact of the violation upon the local choice = = 19 a l energy provider in determining remedies.

i a e r 20 E.

The commission shall exercise its authority to a t m m 21 enforce the requirements of this section when it finds that the d r e 22 requirements of this section have been violated.

c e s k 23 SECTION 10.

[NEW MATERIAL]MATERIAL ] OPERATION WITH PUBLIC UTILITY e a n b 24 OR COOPERATIVE.-- u [ A.

A local choice energy provider shall have an .218853.2 - 12 - operating service agreement with the applicable public utility or cooperative prior to furnishing electric service to customers within its jurisdiction.

The commission shall develop and approve as part of its rulemaking a standard operating agreement that addresses h the basic rules and responsibilities of each party and includes g o t hr equitable responsibilities and remedies for all parties.

g e i k C.

A local choice energy provider shall notify the h r i s commission upon entering into an operating service agreement h , t, with a public utility or cooperative.

The commission may e u g e b l e e h require the local choice energy provider to submit basic n d d i = = o h information to the commission to ensure that the operating l ] b ,d i a º e service agreement complies with basic consumer protection rules andr legali requirements,= butr thet informatione requiredw shalld notm bea burdensomen too produce or unreasonable in cost or scope and provisionlegal ofrequirements, but the information mayrequired beshall conditionednot ond am e: t 17 confidentiality agreement or protective order.

wb le d s º o t n = .218853.2AIC February 11, 2021 (1:59pm) s k m e - 13 - e a n e d 18r D.e l u [ A d be burdensome to produce or unreasonable in cost or scope and provision of the information may be conditioned on a confidentiality agreement or protective order.

OnceD. the operating service agreement between the = = 19 a l local choice energy provider and the public utility or i a e r 20 cooperative is executed, the local choice energy provider shall a t m m 21 notify the public utility or cooperative that local choice d r e 22 energy service will commence as soon as thirty days from the c e s k 23 date of the notice or a later date determined by the local e a n b 24 choice energy provider and included in the notice.

uOnce [the E.operating service agreement between the local choice energy provider and the public utility or cooperative is executed, the local choice energy provider shall notify the public utility or cooperative that local choice energy service will commence as soon as thirty days from the date of the notice or a later date determined by the local choice energy provider and included in the notice.

OnceE. notified of the commencement of a local .218853.2 - 13 - choice energy program, the public utility or cooperative shall transfer all applicable accounts to the local choice energy program within thirty days from the date of the close of the normally scheduled monthly metering and billing process.

Once notified of the commencement of a local choice energy program, the public utility or cooperative shall transfer all applicable accounts to the local choice energy program within thirty days from the date of the close of the normally scheduled monthly metering and billing process.

[NEW MATERIAL]MATERIAL ] COST RECOVERY.-- h A.

A public utility or cooperative may charge local u » r choice energy customers in its service territory an exit fee to t h g e l i compensate remaining customers of the public utility or h r i s cooperative for the above-market cost of power that was h , e h procured on behalf of local choice energy customers prior to t u g e b l e e , gh their departure from the public utility or cooperative;

n d d i = = o h provided that the following requirements are met:

l ] b ,d i a º r (1) a public utility or cooperative shall only chargee anr exit= feet aftere thew commissiond hasm determineda then amounto ofcharge thean exit fee and after the commission has founddetermined that the publicd utilitym or: cooperative has met the requirements in e t 17 this section;

wb lr ne dt 18º (2)o at publicn utility or cooperative seeking to = =.218853.2AIC 19February a11, l2021 establish(1:59pm) ors supplementk anm exite fee- shall14 have- the burden of i a e r 20 proving in a compliancen filinge thatd ther costse thatl itu seeks[ toA ad tamount mof mthe 21exit recoverfee are just and reasonable,after in the publiccommission interesthas andfound dthat r e 22 consistent with the Localpublic Choiceutility Energyor Actcooperative andhas met the Publicrequirements cin ethis ssection; k 23 Utility Act;

and(2) e a npublic butility 24or (3)cooperative theseeking commissionto establish or supplement an exit fee shall issuehave the burden of proving in a rulingcompliance orfiling uthat [the decisioncosts that includesit findingsseeks to recover are just and approvesreasonable, orin deniesthe anpublic exitinterest .218853.2and -consistent 14with -the feeLocal asChoice describedEnergy inAct thisand section.the Public Utility Act;

and (3) the commission shall issue a ruling or decision that includes findings and approves or denies an exit fee as described in this section.

h (c) is in the public interest;

and g o t hr (d) is consistent with traditional g e i k ratemaking principles, the Local Choice Energy Act and the h r i s Public Utility Act.

h , t, B.

The exit fee described in this section shall be e u g e b l e e h limited to costs.

For purposes of this section, eligible costs n d d i = = o h shall not include return on equity or any other measures of l ] b ,d i a º e profit or net income owed to the public utility or cooperative, r i = r t e w d m a n o regardless of whether they were previously approved by the commission:d m :

(1)b ife ad publics utilityº haso been granted a e t 17 certificate of public convenience and necessity prior to w l n d 18 January 1, 2015, to construct, operate or lease an electric = =.218853.2AIC 19February a11, l2021 generation(1:59pm) facility,s ink wholem ore in- part,15 and- the investment in i a e r 20 that facility has been permitted recovery as part of the a tn me md 21r utilitye orl cooperative'su rate[ baseA befored 2015;commission:

and(1) dif ra epublic 22utility (2)has contractsbeen orgranted utility-owneda generationcertificate thatof cpublic econvenience sand knecessity 23prior haveto beenJanuary offered1, for2015, saleto inconstruct, aoperate competitiveor solicitationlease ean aelectric ngeneration bfacility, 24in processwhole sinceor thein passagepart, ofand the Localinvestment Choicein Energythat Actfacility thathas ubeen [permitted compliesrecovery withas part of the Publicutility Utilityor Actcooperative's andrate commissionbase rules.before 2015;

.218853.2and -(2) 15contracts -or Regardlessutility-owned ofgeneration thethat durationhave ofbeen theoffered contractfor orsale anticipatedin lifea cyclecompetitive ofsolicitation utility-ownedprocess generation,since nothingthe inpassage thisof subsectionthe shallLocal beChoice interpretedEnergy toAct delay,that frustratecomplies or conflict with the terminationPublic ofUtility theAct exitand feecommission containedrules. in Subsection E of this section.

C.Regardless of the duration of the contract or anticipated life cycle of utility-owned generation, nothing in this subsection shall be interpreted to delay, frustrate or conflict with the termination of the exit fee contained in Subsection E of this section.

Forh purposesC. of establishing an exit fee, a public utility or cooperative shall submit a compliance filing to the commission that contains:

(1)For apurposes ten-yearof forecastestablishing ofan departingexit loadfee, anda poweru demand» andr supplypublic presentedutility inor cooperative shall submit a loadcompliance andfiling resourcet tableh that:g e l i to the commission that contains:

(a)h takesr intoi accounts the(1) a ten-year forecast of departing load thatand ish expected, toe departh frompower thedemand publicand utilitysupply orpresented cooperativein fora localload choiceand energyresource programstable int theu publicg utility'se orb cooperative'sl servicee territory;e , gh that:

(b)n demonstratesd ind ai transparent= manner= eo th 17(a) takes into account the differentload resourcesthat inis thel public] utility'sb or,d wi la nº dr 18expected cooperative'sto portfoliodepart onfrom athe consistentpublic andutility comparableor basis,cooperative =for e r = 19t ae lw showingd allm existinga andn anticipatedo orlocal plannedchoice supplyenergy andprograms iin athe epublic rutility's 20or demand-sided resources;m :

ab r e t mº o t n = .218853.2AIC February 11, 2021 (1:59pm) s k m 21e (c)- identifies16 the- coste ofa eachn resourcee d r e 22l throughu its[ projectedA life;d cooperative's service territory;

and(b) cdemonstrates ein sa ktransparent 23manner (d)the specificallydifferent identifiesresources excessin powerthe epublic autility's nor bcooperative's 24portfolio supplyon helda byconsistent theand publiccomparable utilitybasis, orshowing cooperativeall whenexisting takingand uanticipated [or intoplanned accountsupply anticipated and existingdemand-side departingresources; load;

.218853.2(c) -identifies 16 - (2) the cost andof depreciation schedule for each resource identifiedthrough inits theprojected ten-yearlife; forecast;

(3)and a(d) comprehensivespecifically listidentifies ofexcess allpower capitalsupply expendituresheld overby one million dollars ($1,000,000) that the public utility or cooperative haswhen committedtaking tointo undertakeaccount anticipated and isexisting planningdeparting toload; undertake in the next ten years;

and(2) (4) an affirmative showing that the publiccost utilityand ordepreciation cooperativeschedule hasfor usedeach allresource reasonableidentified effortsin to reduce the valueten-year offorecast; eligible power supply costs through auctions, bilateral sales or other competitive wholesale transactions, including the sale of existing utility-owned generation, to local choice energy programs or other third parties.

D.(3) a comprehensive list of all capital expenditures over one million dollars ($1,000,000) that the public utility or cooperative has committed to undertake and is h planning to undertake in the next ten years;

Aand localu choice» energyr program(4) shallan haveaffirmative showing that the rightpublic tot inspecth andg reviewe l i utility or cooperative has used all documentationreasonable andefforts datato supportingh ther calculationi ofs reduce the exitvalue fee,of includingeligible epower tsupply 17costs documentationthrough andh data, concerninge theh ten-yearauctions, forecastbilateral ofsales wor lother ncompetitive dwholesale 18t departingu loadg ande powerb supplyl needs,e portfolioe reduction, orgh =transactions, =including 19the asale lof divestmentexisting effortsutility-owned andn underlyingd contractsd andi payment= i= ao eh rgeneration, 20to schedules,local includingchoice costenergy andprograms depreciationor schedulesother andthird al t] mb m,d 21i capitala expenditureº documentation.r parties.

Thee localr choice= energyt d r e 22w program'sd rightm to inspect and review may be conditioned on a cn eo sD. k 23 confidentiality agreement or protective order;

providedA thatlocal echoice aenergy nprogram b 24 the commission shall determinehave that the protectionsd arem u: [ necessary and in the public interest.

.218853.2b r e t º o t n = .218853.2AIC February 11, 2021 (1:59pm) s k m e - 17 - E.e a n e d r e l u [ A d right to inspect and review all documentation and data supporting the calculation of the exit fee, including documentation and data concerning the ten-year forecast of departing load and power supply needs, portfolio reduction or divestment efforts and underlying contracts and payment schedules, including cost and depreciation schedules and capital expenditure documentation.

The local choice energy program's right to inspect and review may be conditioned on a confidentiality agreement or protective order;

provided that the commission shall determine that the protections are necessary and in the public interest.

E.

These limitations shall not apply to payments made by a local choice energy program to a public utility or cooperative h pursuant to a freely negotiated agreement for the purchase of u » r energy or related goods or services.

t h g e l i F.

The commission may establish additional h r i s requirements regarding exit fees;

provided that the h , e h requirements shall be consistent with the Local Choice Energy t u g e b l e e , gh Act.

n d d i = = o h SECTION 12.

[NEW MATERIAL]MATERIAL ] EQUAL OPPORTUNITY.-- l ] b ,d i a º r A.

The commission shall not discriminate against locale choicer energy= programst ine thew administrationd orm awarda ofn funding,o eligibilitylocal forchoice energy programs orin applicability of standards under the Energyadministration Transitionor Actaward orof otherd laws.m :

b r e t 17º B.o t n = .218853.2AIC February 11, 2021 (1:59pm) s k m e - 18 - e a n e d r e l u [ A d funding, eligibility for programs or applicability of standards under the Energy Transition Act or other laws.

Local choice energy programs shall have the same w l n d 18 and equal opportunity to obtain funding, participate in = = 19 a l programs and take other actions that require approval by the i a e r 20 commission as public utilities and cooperatives.

a t m m 21 SECTION 13.

[NEW MATERIAL] COMMISSION RULEMAKING.-- d r e 22 A.

The commission shall adopt rules to implement c e s k 23 the Local Choice Energy Act within one hundred eighty days of e a n b 24 its passage.

The rules shall include the requirements and u [ mechanisms for load data sharing, operating service agreements, .218853.2 - 18 - cost recovery and fee structures.

Local choice energy programs shall have the same and equal opportunity to obtain funding, participate in programs and take other actions that require approval by the commission as public utilities and cooperatives.

SECTION 13.

[NEW MATERIAL] COMMISSION RULEMAKING.-- A.

The commission shall adopt rules to implement the Local Choice Energy Act within one hundred eighty days of its passage.

The rules shall include the requirements and mechanisms for load data sharing, operating service agreements, cost recovery and fee structures.

B.

The rules shall mandate that a public utility or h cooperative maintain authority over transmission and g o t hr distribution services and that the local choice energy provider g e i k has authority over rates and procurement.

h r i s D.

Customers of a local choice energy provider h , t, shall only be required to pay charges for goods, services or e u g e b l e e h programs for which they are eligible or that benefit them n d d i = = o h directly.

Customers of a local choice energy provider shall l ] b ,d i a º e not be required to pay charges for goods, services or programs r i = r t e w d m a n o for which they are ineligible or that do not directly benefit them.d m :

b e d s º o t n = .218853.2AIC February 11, 2021 (1:59pm) s k m e - 19 - e a n e d r e l u [ A d them.

[NEW MATERIAL] DEVELOPMENT AND PROCUREMENT.-- e t 17 A local choice energy provider:

w l n d 18 A.

shall adopt a procurement policy that defines = = 19 a l and includes criteria addressing the following:

i a e r 20 (1) local workforce development;

a t m m 21 (2) the selection and use of resources that d r e 22 are the most cost-effective among all feasible alternatives;

c e s k 23 (3) climate and environmental goals;

and e a n b 24 (4) public safety;

u [ B.

may enter into contracts with third parties, .218853.2 - 19 - including public utilities and cooperatives, to contract for energy production;

h SECTION 15.

[NEW MATERIAL]MATERIAL ] TERMINATION.-- g o t hr A.

A local choice energy provider may terminate g e i k services subject to an affirmative vote of its governing body.

h r i s Prior to termination, the local choice energy provider shall h , t, hold a duly noticed public meeting regarding termination and e u g e b l e e h provide advance notice to its customers regarding their options n d d i = = o h to obtain electrical service from other providers.

l ] b ,d i a º e B.

The commission shall not terminate the services r i = r t e w d m a n o of a local choice energy provider.

C.d m :

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