37-3-117. Limitation for recovery of costs associated with electric generation built to replace retiring coal fired generation facility.

(a) Notwithstanding any other provision of this chapter, the rates charged by an electric public utility, other than a cooperative electric utility, shall not include any recovery of or earnings on the capital costs associated with new electric generation facilities built, in whole or in part, to replace the electricity generated from one (1) or more coal fired electric generating facilities located in Wyoming and retired on or after January 1, 2022, unless the commission has determined that the public utility that owned the retired coal fired electric generation facility made a good faith effort to sell the facility to another person prior to its retirement and that the public utility did not refuse a reasonable offer to purchase the facility or the commission determines that, if a reasonable offer was received, the sale was not completed for a reason beyond the reasonable control of the public utility.

(b) In determining whether the public utility made a good faith effort to sell the retired coal fired electric generation facility under this section the commission shall consider:

(i) Whether the public utility provided sufficient time prior to the facility's retirement for potential purchasers to evaluate purchasing the facility;

(ii) Whether the public utility used reasonable efforts to make potential purchasers aware of the opportunity to purchase the facility;

(iii) Whether the public utility reasonably evaluated any offers received by the public utility for the purchase of the facility; and

(iv) Any other factor deemed appropriate by the commission.

(c) In determining whether an offer to purchase a coal fired electric generation facility under this section was reasonable the commission shall consider:

(i) Whether accepting the offer to purchase the retired facility would have reduced costs to the public utility's customers as compared to retiring the facility;

(ii) Whether accepting the offer to purchase the retired facility would have reduced risks to the public utility's customers as compared to retiring the facility including any diminished environmental remediation risks; and

(iii) Whether accepting the offer to purchase the retired facility would have been in the public interest.

(d) Upon application by a public utility, the commission may approve procedures for the solicitation and review of offers to purchase an otherwise retiring electric generation facility in advance of a proposed retirement. If the public utility follows the procedures approved by the commission to solicit and review offers to purchase an otherwise retiring electric generation facility under this subsection, there shall be no limitation under this section for recovery of costs or earnings associated with electric generation built to replace a retired coal fired electric generation facility.

(e) Any agreement between a public utility and another person for the sale of an otherwise retiring coal fired electric generation facility shall not be effective until approved by the commission. In reviewing the agreement the commission shall consider:

(i) Whether the proposed purchaser has, or has contracted for, financial, technical and managerial abilities sufficient to reasonably operate and maintain the facility;

(ii) Whether the proposed purchaser has, or has contracted for, financial, technical and managerial abilities sufficient to reasonably decommission and retire the facility if and to the extent the facility is decommissioned and retired;

(iii) Whether the proposed purchaser has, or has contracted for, financial, technical and managerial abilities sufficient to reasonably satisfy any environmental obligations associated with the operation, maintenance or potential retirement of the facility;

(iv) If the coal fired electric generation facility is comprised of one (1) or more generation units at a larger power plant where the public utility will continue to own and operate one (1) or more generation units, whether the proposed purchaser and the public utility have made reasonable contractual arrangements for the sharing of the costs associated with any joint or common facilities at the plant;

(v) Whether the proposed purchaser has agreed to reasonable terms and conditions for environmental remediation;

(vi) Whether the proposed purchase agreement contains a provision allowing the public utility, with commission approval, to revoke the sale in the event the purchaser is unable to timely obtain all necessary local, state and federal permits;

(vii) Whether the proposed purchase agreement contains a provision to allow the public utility, with commission approval, to revoke the sale in the event the purchaser is unable to timely enter into any necessary operational and labor agreements;

(viii) Whether the proposed purchaser has agreed in the purchase agreement to obtain commission approval prior to transferring, in whole or in part, the facility to any other person so that the commission may ensure that the proposed new purchaser and the new purchase agreement meet the requirements of this section; and

(ix) Any other factor deemed appropriate by the commission.