CASPER, Wyo. — The Wyoming Joint Minerals, Business and Economic Development Interim Committee is considering a proposal to exempt some electricity generators from public utility regulations to meet power demands from state industries^.

The draft bill would allow electricity producers to operate outside utility rules if they serve one customer with a demand of at least 25 megawatts. It would also apply if they serve up to four customers with a combined demand of at least 100 megawatts. A staff alternative would limit the exemption to new or expanded power demands after July 1, 2027.

Supporters said utility rules slow economic growth and fail to meet the needs of industrial consumers^.

“The facts on the ground have not changed,” said Pete Obermueller, president of the Petroleum Association of Wyoming. “We are in a situation where electricity customers in the entire state essentially are facing one of three, and in some cases multiple, problems as it relates to electricity price, capacity and reliability.”

Jody Levin, representing the Wyoming Mining Association and the trona industry, said her sector is vulnerable to power disruptions. She said the industry can’t rely on the alternate draft that only addresses future load growth. A recent 15-minute power disruption damaged a boiler, took a plant offline for three months and cost revenue, she said.

“We are not asking for widespread deregulation, but we are asking for when you find yourself in these very challenging situations, you can’t get power, you’re seeing reliability disruptions, when is it appropriate for you to then have a mechanism to protect your operations,” Levin said^.

Mary Throne, representing data center developer Prometheus Hyperscale, the developer behind the proposed 1.5-gigawatt data center project straddling the Natrona-Converse county line, also supported the bill.

“I think generation flexibility is necessary to meet the demands of data center development,” Throne said^{. She said third-party generation is a tweak to the utility model.}

Utilities opposed the legislation^{. They said bypassing the grid could leave residents to pay the costs.}

Thom Carter, representing Rocky Mountain Power, said the current draft fails to protect customers from the financial risks of stranded assets or the costs of maintaining backup power reserves.

“Both versions … do not exempt the risk for if you’re going to leave,” he said, adding that without protections, “my current ratepayer then has to carry the cost and the risk for the backup.” Carter said the company is developing an alternative to offer different tools for varying load sizes.

David Bush of Black Hills Energy said the bill could threaten the company’s power contract tariff in Cheyenne. The tariff uses industrial growth to keep base rates low for other customers, a tool that’s been cited by Cheyenne city leaders as being directly responsible for protecting ratepayers amid the city’s recent data center industry’s growth.

Rural electric cooperatives also opposed the draft bill. They said they’re already developing tariffs and micro-grid concepts to serve customers quickly without legal changes.

Chris Petrie, deputy chairman of the Wyoming Public Service Commission, said his agency is working on rules to create a designation for non-public utility generators. Utilities have a legal obligation to serve their territories, he said.

“The idea here is that we want safe, adequate, and reliable service at just and reasonable rates to be available everywhere in the state,” he said.

The committee opted to carry the bill forward to its next meeting in August without making any immediate amendments.

Rep. Martha Lawley, R-Big Horn/Washakie counties, introduced a motion to advance the bill using only the first option of the draft, but withdrew it after legislative staff said no motion was needed to advance a bill as-is.

The committee also supported a motion by Sen. Tara Nethercott, R-Laramie County, to draft a second bill to put the Public Service Commission’s proposed rules into law. The senator said the new draft would “provide some statutory authority which is more powerful than rulemaking” and give the Legislature a vehicle to solve the issue.

Related

CASPER, Wyo. — State lawmakers rejected a proposal to require industrial companies to post bonds for upfront impact assistance to local governments.

The Joint Minerals, Business and Economic Development Interim Committee let the draft bill die without a motion during its recent meeting. Lawmakers instead advanced an alternative that uses state funds to help communities facing financial strain from industrial projects before construction begins.

The defeated draft bill, 27LSO-0021, would have authorized prepayments to local communities, but it required the permit applicant to submit a bond to cover that amount.

Mills Mayor Leah Juarez told the committee the current system is broken because towns must wait for construction to start before receiving funds. She said Mills is waiting on hundreds of thousands of dollars for the delayed Dinosaur Solar Energy Project and Settler wind developments.

“Mills can’t afford this. We can’t afford to keep shouldering this burden,” Juarez said^.

She echoed earlier comments from Natrona County Commissioner Dave North that cities and towns often enter contracts for expensive equipment long before a project breaks ground. He called for upfront funding, specifically pointing to long lead times to purchase fire trucks and ambulances.

He said local governments just want an advance on future tax revenues.

“We are not asking for anything additional from the companies at this point in time,” he said, suggesting a prepayment of up to 50% might be appropriate rather than the 20% cap in the draft bill.

Rep. Jayme Lien asked the committee to mandate a 100% upfront bond.

“Without adequate upfront resources, our citizens suffer things like overcrowded schools, strained emergency response, deteriorating roads, increased pressure on housing, infrastructure,” Lien said^{. “The upfront payment ensures accountability. If the project does not proceed responsibly, the bond is available to mitigate harm.”}

Industry advocates and some lawmakers opposed the bonding suggestion. Holland & Hart LLP attorney Cindy DeLancey, who represents industrial clients, said Wyoming competes with neighboring states to attract large facilities.

“To add additional burdens in the process, additional costs … really undermines that position that we’re trying to signal to the world that we want business in Wyoming,” DeLancey said.

Rep. Christopher Knapp, R-Campbell County, said he was initially interested in the original bill but withdrew his support when the bonding requirement was introduced. He also spoke against the bill draft that provides upfront payments to local governments from state legislative reserve funds, thereby placing the risk on the state. The state would then recoup the funds through withheld payments once the project begins.

Knapp said the state shouldn’t bear the financial burden for speculative improvements or equipment, adding there are alternative funding avenues available to communities, such as the State Loan and Investment Board.

“When it comes to a very specialized piece of equipment, often times industry themselves provide that equipment on site,” he said, citing Campbell County’s coal mines as an example.

Sweetwater County Rep. J.T. Larson said lawmakers shouldn’t fear investing in the state’s communities.

“If a project falls through, why are we afraid? We’re helping those local communities get something they need or replace something that they have needed to replace for many years,” he said.

Related

Wyoming saw its first rabies case of the season in Sheridan County, the state’s Department of Health reported Wednesday.

The case was reported in May in Sheridan County. A rabid bat was found in the backyard of a home in a downtown residential neighborhood, according to the health department.

Humans and pets can become infected from bites and scratches of an animal with rabies. Rabies is not spread through the touch of an infected animal or its feces or urine.

Bat bites are not always visible. Anyone who has direct contact with a bat or who wakes up with a bat in their room should immediately contact a doctor or public health provider for assessment.

There were six confirmed cases of rabies in Wyoming animals last year.

Tips for preventing rabies:

• Don’t touch or feed wild or stray animals.
• Treat animal bites with soap and water and contact a medical professional immediately.
• People waking to find a bat in their room or a child’s room should contact a medical professional immediately.
• Vaccinate dogs, cats, ferrets, horses and other selected livestock for rabies and keep vaccinations up to date.

For more information about rabies exposure in Wyoming, please visit:

https://health.wyo.gov/publichealth/infectious-disease-epidemiology-unit/disease/rabies/ [links-2.govdelivery.com]