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Senate advances bill to let regulated utility negotiate separate contracts for large power users, sponsor plans more edits

February 14, 2025 | 2025 Utah Legislature, Utah Legislature, Utah Legislative Branch, Utah


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Senate advances bill to let regulated utility negotiate separate contracts for large power users, sponsor plans more edits
Senator Bridal moved the first substitute of Senate Bill 132, a measure that would allow Rocky Mountain Power to negotiate individual supply contracts with very large electricity customers and permit certain behind‑the‑meter or nontraditional generation to meet those customers' baseload needs.

The bill's sponsor said the measure is structured to protect existing customers: "We've been very careful as we've tried to craft this bill to make sure that there is a definite wall between our current customers and rate base," Senator Bridal said on the floor, adding that the framework would let a large power consumer explore an alternative supplier if negotiations do not progress over roughly a six‑month period.

Why this matters: supporters say the change could help attract large industrial or data‑center customers that need long‑term, reliable power and are sometimes willing to pay premium rates. Opponents and questioners pressed for clear limits so that residential and other retail customers do not shoulder higher costs.

During floor questions, senators asked whether the bill would affect cooperatives and municipal utilities. Bridal said the measure is targeted to Rocky Mountain Power's service territory and "we have completely exempted them out. This only applies to the Rocky Mountain Power geographical space that they have under their, governance model." Senator Milner, speaking in support of moving the bill forward, added: "If we're going to be able to provide access and reliability at an affordable price, we have to be able to think creatively," and said he supported sending the bill to third reading so stakeholders could continue negotiations.

Sponsor's intent and next steps: Bridal said a substitute is being prepared and requested the Senate allow the first substitute to be read a third time so members could examine final language before a vote on passage.

Votes/actions: The Senate voted to read the first substitute for third reading. The roll call on that motion was recorded as 22 yeas, 1 nay, 6 absent, and the measure moved forward to third reading for further work and substitution on the language.

Ending: Bridal emphasized the bill remains a work in progress and said members would receive the substitute language and time to review it before any final passage vote.

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