(1) The commission shall establish a system of operating permits for geothermal heat suppliers. Before commencing construction of distribution facilities, a geothermal heat supplier must obtain an operating permit from the commission. An operating permit:
(a) May not be denied because the area which the applicant proposes to serve is already being served by a gas or electric utility;
(b) May not convey an exclusive right to supply geothermal heat in the area which the applicant proposes to serve;
(c) Shall describe the area the applicant intends to serve and the nature of such service;
(d) Shall require the applicant to enter into a contract with each customer. The contract, of which only the form and scope are subject to commission review, must specify, at least:
(I) The period of time during which service will be provided;
(II) The rates or the method for determining rates to be charged during the term of the contract, as negotiated by the parties and not subject to commission approval;
(III) That the geothermal heat supplier will submit to the complaint procedures contained in section 40-6-108.
(2) Before issuing an operating permit, the commission must find that:
(a) The applicant is fit, willing, and able to provide the proposed services; and
(b) The applicant has made an adequate showing that the geothermal heat supply and distribution system appears reasonably capable of delivering the proposed services.
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