37-2-133. Exemption for purchase of coal fired generation facilities that would otherwise have been retired; public utility purchase requirements; conditions for exemption.

(a) The provisions of this chapter and chapters 1 and 3 of this title shall not apply to a person who operates a coal fired electric generation facility purchased under an agreement approved by the commission under W.S. 37-3-117.

(b) Electric public utilities, other than cooperative electric utilities, shall be obligated to purchase electricity generated from a coal fired electric generation facility purchased under agreement approved by the commission under W.S. 37-3-117 provided that:

(i) The person purchasing the otherwise retiring coal fired electric generation facility offers to sell some or all of the electricity from the facility to an electric public utility;

(ii) The electricity is sold at a price that is no greater than the purchasing electric utility's avoided cost as may be determined by the commission;

(iii) The electricity is sold under a power purchase agreement with a specified term length and such other terms and conditions as may be approved by the commission; and

(iv) The commission approves a one hundred percent (100%) cost recovery in rates for the cost of the power purchase agreement and the agreement is one hundred percent (100%) allocated to the public utility's Wyoming customers unless otherwise agreed to by the public utility.

(c) In determining an electric public utility's avoided costs under this section, the commission may consider:

(i) The value of the electric energy and capacity generated from the facility;

(ii) The value of any reliability benefits associated with the operation of the facility; and

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

(d) The commission may elect to set the avoided cost price and other terms and conditions for the purchase of electricity from an otherwise retiring coal fired electric generation facility in advance of the facility's proposed retirement date to permit potential purchasers to know the avoided cost price and other terms and conditions for sales from that facility prior to entering into an agreement to purchase the facility.

(e) As used in this section, "avoided cost" means the incremental costs to an electric utility of electric energy or capacity or both which, but for the purchase from the otherwise retiring coal fired electric generation facility, the utility would generate itself or incur in a purchase from another source. As may be determined by the commission, avoided costs may change over the course of an approved power purchase agreement at specified intervals set forth in the power purchase agreement.