HB 1377 Summary

• Requires electric utilities applying for certificates of public convenience and necessity to solicit competitive bids from alternative suppliers of the same resource or suppliers of alternative resources capable of generating required electric capacity.

• Lowers the generating capacity threshold triggering competitive bidding requirements from 80 megawatts to 50 megawatts for facility construction or purchase.

• Applies competitive bidding requirement to contracts or agreements to purchase electric capacity of more than 50 megawatts with terms of one year or more.

• Establishes that utilities may recover costs from purchased power agreements through periodic rate adjustment mechanisms only if costs are prudently incurred, and costs from other certificates only if facilities operate according to certificate terms and additional costs are due to extraordinary circumstances.

• Effective July 1, 2016; requires the commission to adopt rules establishing procedures and standards for the competitive bidding process and mandates utilities provide all bids to the office of utility consumer counselor.