1. (1) The commission shall:

   1. (a) conduct a proceeding to establish rules for the allocation of transmission costs between large load customers and retail customers for large load contracts executed on or after January 1, 2026;

   2. (b) retain a qualified independent consultant with expertise in transmission cost allocation methodologies to:

      1. (i) analyze potential methodologies for transmission cost allocation, taking into account the factors listed in Subsection (2); and
      2. (ii) make recommendations to the commission; and
   3. (c) issue a rule no later than January 1, 2026.

2. (2) In developing rules under Subsection (1), the commission shall consider:

   1. (a) Federal Energy Regulatory Commission policies and precedents regarding transmission cost allocation;
   2. (b) the projected increase in electricity demand from large load customers;
   3. (c) the incremental transmission costs required to serve large load customers;
   4. (d) the economic development benefits associated with serving large load customers;
   5. (e) the need to maintain just and reasonable rates for retail customers;
   6. (f) the extent to which new large load facilities are required specifically to serve large load customers;
   7. (g) the extent to which large load customers utilize existing transmission infrastructure;
   8. (h) methods to apportion costs based on cost causation and system benefits; and
   9. (i) any other factors the commission determines are relevant to establishing a fair and reasonable allocation of transmission costs.

3. (3) The commission may establish different cost allocation methodologies based on:

   1. (a) the timing of large load customer interconnection;
   2. (b) the size of the load being served;
   3. (c) the cost causation attributable to various customer classes;
   4. (d) the benefits accruing to various customer classes; or
   5. (e) other relevant distinctions.
4. (4) Nothing in this section limits the commission's existing authority to determine just and reasonable rates.

5. (5)

   1. (a) The commission shall impose and collect a fee from each large load customer that submits a large-scale service request to cover the cost of:

      1. (i) retaining qualified independent consultants and experts by the commission, the Division of Public Utilities, and the Office of Consumer Services to evaluate large-scale service requests and large load contracts; and
      2. (ii) any other reasonable costs incurred in conducting proceedings and evaluations under this chapter.

   2. (b) The fee shall be:

      1. (i) assessed on a semi-annual basis corresponding to the study periods established in Section 54-26-202;
      2. (ii) determined based on the anticipated needs given the number and complexity of requests received in each study period; and
      3. (iii) proportionately allocated among large load customers with pending requests.

   3. (c) All fees collected under this subsection shall be:

      1. (i) remitted to the state treasurer;
      2. (ii) credited to the Public Utility Regulation Fee Account created in Section 54-5-1.5; and
      3. (iii) used exclusively for the purposes described in Subsection (5)(a).

Enacted by Chapter 318, 2025 General Session