1. (1) To the fullest extent allowable under applicable federal law and regulations, each interconnection and transmission-related study and any identified interconnection upgrades, transmission upgrades, network upgrades, distribution system upgrades, and system upgrades a qualified electric utility or large-scale generation provider will incur or pay to provide service to a large load customer shall be directly assigned to the large load customer.

2. (2) If a large load customer will be provided transmission service using a project that was previously identified as a part of the qualified electric utility's long-term transmission plan, the large load customer's share of project costs will be assigned

   to the large load customer giving consideration to the size of the project, project scope, the proportion of the project's transmission capacity the large load customer will use, and any impact on the transmission plan.

3. (3) To carry out this policy, an application for Commission approval of a large load contract that includes large load customer transmission costs shall provide:

   1. (a) evidence sufficient to allow the Commission to determine whether each incremental transmission cost is allocated to the large load customer, including:

      1. (i) a description of costs for transmission upgrades associated with providing service to a large load customer;

      2. (ii) a description of how the addition of the applicant's use will impact the qualified electric utility's transmission system, including:

         1. (A) the projected increase in electricity demand from the large load customer;
         2. (B) the transmission upgrades needed to meet the large load customer's transmission service needs;
      3. (iii) an explanation of if and how the qualified electric utility proposes to recover from ratepayers any transmission costs that are in excess to, and should not be directly assigned to, the large load customer; and
      4. (iv) a description of how each incremental cost allocated to the large load customer can reasonably be expected to be recovered from the large load customer given the duration of the large load contract and any contractually required security or guarantees.

4. (4) To determine whether the large load customer bears each incremental cost attributable to receiving the requested electric service, the Commission may consider the following non-exclusive list of factors:

   1. (a) the timing and extent of the relevant generation resources, distribution system upgrades, and any other costs that would not occur absent the large load contract;
   2. (b) the extent to which the large load contract will change the costs, timing, and efficacy of any project that was already planned; and
   3. (c) how each of these factors might affect rate base and customer rates.

KEY: public utilities, large-scale electric service requirements

Date of Last Change: January 1, 2026

Authorizing, and Implemented or Interpreted Law: 54-26-302(5); 54-26-503(3); 54-26-504(4); 54-26-901(1)(a)