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July 28, 2008

Utah Public Service Commission Asserts Jurisdiction over Wind Farm Transmission Line

By Stoel Rives LLP

Salt Lake City, UT

Reversing its own earlier decision, the Utah Public Service Commission (the "Commission") has concluded that a wind power project must obtain a certificate of public convenience and necessity ("CPCN") for a 90-mile transmission line proposed in connection with a wind farm to be built in southwest Utah. Order on Petition for Rehearing, Docket No. 08-2490-01.

Because it was unclear under the Utah Public Utilities Act whether the project required a CPCN, the project entities for the two-phase wind project ("Milford I and II") filed an application for a CPCN and simultaneously filed a motion to dismiss on the basis that they are not required to obtain a CPCN. Time was of the essence, as the output from the first phase of the project is under contract with the Southern California Public Power Authority. While the case was pending, legislation was enacted that the Commission initially concluded exempted Milford I and II from Commission jurisdiction and regulation with respect to the entire project, including the transmission line.

The Commission revisited its determination in response to a motion for rehearing filed by the Utah Associated Municipal Power Systems ("UAMPS"), and agreed with UAMPS and the Division of Public Utilities that the exemption provided by the new legislation did not apply to transmission facilities. Thus the matter is now set for an evidentiary hearing in late September as to whether Milford I and II should be granted a CPCN for the transmission line. However, Milford I and II have now requested a rehearing or reconsideration, creating the potential that the Commission could still conclude that a CPCN is not required for any aspect of the wind farm. One way or another, we haven’t heard the last of this case.

For more information, contact Ashley Henry, Energy Industry Liaison, 503-294-9506, ahenry@stoel.com.

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