LB 1259

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                             LEGISLATURE OF NEBRASKA
                       ONE HUNDRED NINTH LEGISLATURE
                                 SECOND SESSION
                  LEGISLATIVE BILL 1259
 Introduced by Hansen, 16; Sanders, 45.
 Read first time January 21, 2026
 Committee: Natural Resources
1 A   BILL   FOR   AN   ACT    relating    to   electricity;   to   adopt   the    Grid
2Modernization Act.
3  Be it enacted by the people of the State of Nebraska,
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1Section 1.        Sections 1 to 21 of this act shall be known and may be
2    cited as the Grid Modernization Act.
3Sec. 2.     For purposes of the Grid Modernization Act:
4(1) Board means the Nebraska Power Review Board;
5(2)    Closed     private     generation  system     means   electric    generating
6     facilities and associated infrastructure that:
7(a)    Is   not    connected        to     and        operates   independently   from   the
8    transmission system of a public power utility;
9(b) Serves one or more customers with a minimum cumulative electric
10    demand of one hundred megawatts; and
11(c)    Serves      one   or        more    large-load        customers   through     direct
12    connection;
13(3) Connected generation system means electric generating facilities
14    and associated infrastructure that:
15(a)    Is   connected  to     and        operates    in    conjunction    with   the
16     transmission system of a public power utility;
17(b) Serves one or more large-load customers through connection to
18    the transmission system of a public power utility; and
19(c)    Except      as    provided  in     a     large-load   contract,     operates
20     independent of the generation resources of any public power utility;
21(4) Evaluation means an assessment that:
22(a) Estimates the impact of a large-scale service request on the
23    systems of a public power utility;
24(b) Identifies any necessary:
25(i) System modification or upgrades to the systems of the public
26    power utility to provide service as requested in a large-scale service
27    request;
28(ii) Generation capacity; or
29(iii) Transmission service requests;
30(c) Provides cost estimates for any required improvements; and
31(d) Establishes an estimated timeline for implementing any necessary
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1  changes to systems;
2(5)    Large-load       construction     contract     means     a    contract     for   the
3  construction of large-load facilities between:
4(a) A public power utility or a large-scale generation provider; and
5(b) A large-load customer;
6(6) Large-load contract means a large-load construction contract or
7  large-load service contract;
8(7) Large-load customer means a current or potential customer in the
9  service      territory    of    a    public   power     utility     that    requests    electric
10     service under a large-scale service request or enters into a private
11  generation contract with a large-scale generation provider;
12(8) Large-load facilities means facilities and resources reasonably
13    necessary, as determined in an evaluation, to provide safe and reliable
14    electric service as requested in a large-scale service request, including
15     the reasonably allocated share of facilities or upgrades necessary to
16     facilitate a transmission request from a public power utility or large-
17  scale generation provider to serve a large-scale service request;
18(9) Large-load flexible tariff means a tariff:
19(a) Pursuant to which a large-load customer will:
20(i)    Receive    components      of   electric      services       from   a   large-scale
21     generation provider; or
22(ii) Reduce demand at periods specified by a large-scale generation
23  provider; and
24(b)    Under     which    a   large-load       customer      receives      components   of
25  available electric services from a public power utility to the extent:
26(i) The public power utility's resources are reasonably expected to
27  be available and sufficient; and
28(ii) As determined by an agreement with the public power utility or
29  tariffs approved by the board;
30(10)    Large-load       incremental  costs   means    all     costs     reasonably
31 necessary for:
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1(a)      The   design,     engineering,     procurement,       construction,  and
2     completion    of   large-load    facilities     and    any    activities      required    to
3  provide electric service under a large-scale service request; and
4(b) The long-term operation and maintenance of large-load facilities
5    for the duration of any applicable service contract;
6(11) Large-load service contract means a contract for the provision
7  of electric service for a large-scale service request between a large-
8 load    customer      and   a   public   power   utility    or    large-scale     generation
9    provider;
10(12) Large-scale generation provider means an entity that:
11(a) Is not a public power utility;
12(b) Is registered with the board in accordance with section 11 of
13  this act; and
14(c) Owns, operates, or contracts for the output of one or more
15 qualifying generation resources intended to be used to supply certain
16     retail electric services to a large-load customer pursuant to a large-
17     load contract or a private generation contract;
18(13) Large-scale service request means a request submitted to a
19    public power utility for:
20(a) New electric service that is expected to reach a cumulative
21  demand of one hundred megawatts or greater within five years of the
22  requested initial start date; or
23(b)     Additional   electric     service   that    is    expected   to    increase    a
24     customer's total service level by one hundred megawatts or greater within
25     five years of the requested start date for the additional service;
26(14) Private generation contract means a contract for the provision
27  of electric service through a closed private generation system between a
28  large-scale generation provider and a large-load customer requesting new
29  electric service that is expected to reach a cumulative demand of one
30 hundred megawatts or greater within five years of the requested initial
31 start date;
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1(15) Public power utility means public power districts, public power
2    and    irrigation  districts,      municipalities,  registered  groups     of
3    municipalities, electric cooperatives, electric membership associations,
4    joint entities formed under the Interlocal Cooperation Act, joint public
5    agencies formed under the Joint Public Agency Act, agencies formed under
6    the   Municipal      Cooperative    Financing       Act,    and   any    other     governmental
7    entities providing electric service; and
8(16)   Qualifying       generation    sources    means      one    or   more      generation
9  resources that, in combination:
10(a)    If    connected   to   the    transmission      system      of   a   public       power
11  utility:
12(i) Meets or exceeds the resource adequacy standards of the public
13    power utility;
14(ii)    Includes      sufficient     resources        and   capacity        to    meet     all
15    requirements        imposed    by   the     North     American      Electric  Reliability
16    Corporation,        the     Southwest     Power     Pool,     the       Midwest        Reliability
17    Organization, and the Western Area Power Administration; and
18(iii) Is capable of satisfying the load and electricity requirements
19 of a large-load customer without drawing on any generation or services
20     provided by a public power utility except to the extent such services are
21  provided under a large-load contract; or
22(b) If not connected to the transmission system of a public power
23    utility:
24(i) Is capable of satisfying the load, transmission, and electricity
25 requirements of a large-load customer without drawing on any generation
26    or services provided by a public power utility; and
27(ii) Meets any other reliability standards established by the board.
28Sec.    3.      The    procedures    and    standards       set    forth    in     the    Grid
29    Modernization Act shall govern:
30(1) Large-scale service requests;
31(2) Services sought, provided, or received under either a large-
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1  scale service request or a private generation service request;
2(3)    Services       provided    through      closed    private    generation      systems
3  under private generation contracts; and
4(4) The review and approval of large-load contracts and private
5  generation contracts.
6Sec.    4.      (1)    Except     for   large-load       customers    seeking    electric
7 service       under   a   private       generation     contract,    a     large-load    customer
8     seeking electric service shall submit a large-scale service request to
9     the public power utility serving the proposed location.
10(2) A large-scale service request shall include:
11(a) A customer's identifying information;
12(b) The proposed location for electric service;
13(c) The requested amount of electric demand in megawatts;
14(d) A proposed service commencement date;
15(e) Load profile information, including anticipated annual energy
16     usage, expected hours of operation, seasonal variations, peak demand
17     requirements, and any special service requirements;
18(f) Information sufficient to demonstrate the financial capability
19  to complete the large-load customer's project that is the subject of the
20  large-scale service request; and
21(g) Confirmation that the customer will not use the electric service
22     for resale.
23(3)    After    submitting       a   large-scale        service    request    and    before
24     entering into a large-load contract, a customer shall ensure that all
25 information  submitted    under      this     section    remains    current    and   shall
26     promptly notify the public power utility of any material changes to
27  information submitted under this section.
28Sec. 5.        (1) A public power utility that receives a large-scale
29  service request shall:
30(a) Acknowledge receipt of the request;
31(b) Notify the customer of any missing required information within
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1    fifteen business days after the processing start date of the utility
2    described in subsection (2) of this section; and
3(c) Complete an evaluation as soon as reasonably practicable after
4    the processing start date provided in subsection (2) of this section, but
5    no more than six months after such date.
6(2) The processing start date of a public power utility for large-
7     scale service requests, including conducting evaluations, shall be no
8  later than:
9(a) April 1, for requests received after September 30 of the prior
10    year and on or before March 31; or
11(b) October 1, for requests received after March 31 and on or before
12  September 30.
13(3) During the evaluation process, the public power utility shall
14     provide the customer with regular updates and notify the customer when
15     the evaluation is completed.
16(4) Within fifteen business days after completing an evaluation, the
17    public power utility shall provide to the customer a written service
18    proposal that includes:
19(a)     Whether   the    public    power    utility   can   provide  the   requested
20    service within the time frame required by the customer;
21(b)     The   estimated    large     load    incremental  costs    that      will   be
22    allocated to the customer, based on the information provided by the
23    customer;
24(c)     Any   required    system    upgrades,    improvements,  or    transmission
25  service requests;
26(d) The estimated timeline for commencing the requested electric
27     service; and
28(e)     The   proposed     terms    and     conditions      of    service,  including
29 provisions for addressing long-term operation and maintenance costs for
30 large load facilities.
31(5) A public power utility:
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1(a) May charge reasonable fees for costs incurred in evaluating a
2 large-scale        service   request      and        necessary       subsequent      or   related
3 assessments; and
4(b)   Is   not   required   to    begin      work    on    an   evaluation    until    the
5 customer pays applicable fees and provides the information required for
6 the public power utility to conduct an evaluation.
7Sec. 6.      (1) Electric service for a large-scale service request
8 shall be provided only under one or more large-load contracts with a
9 public power utility, a large-scale generation provider, or a combination
10 of both.
11(2) A large-load customer shall:
12(a)   Contract     for   all     of    the     customer's       projected     electrical
13 requirements under the large-scale service request; and
14(b) Maintain contracts with resources or load-shedding capabilities
15     sufficient to meet the customer's actual electrical requirements at all
16 times.
17(3) A large-load contract with a public power utility shall:
18(a) Require that all large-load incremental costs are allocated to
19 and paid by the large-load customer;
20(b) Comply with all system requirements;
21(c) Require the large-load customer to maintain financial security
22 sufficient to cover the customer's obligations;
23(d) Specify points of interconnection, power delivery points, the
24 amount of electrical capacity contracted for, the length of service, and
25 any arrangements for backup power supply;
26(e)   Provide    curtailment     provisions  if    the   large-load    customer's
27 demand exceeds the amount of contractually supported demand;
28(f) Identify the generation resources that the public power utility
29 will use to serve the large-load customer; and
30(g)   Include    provisions    addressing       the       allocation   and   payment   of
31     long-term operation and maintenance costs for large-load facilities.
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1(4) A large-load contract with a large-scale generation provider
2 that provides service through a connected generation system shall:
3(a) Ensure that all large-load incremental costs are allocated to
4     and paid by the large-load customer;
5(b) Comply with all system requirements;
6(c) Specify points of interconnection, power delivery points, the
7 amount of electrical capacity contracted for, the length of service, and
8 any arrangements for backup power supply; and
9(d)   Provide       curtailment   provisions     if   the    large-load   customer's
10 demand exceeds the real-time dispatch, net of transmission losses of the
11 large-scale generation provider's resource under the large-load contract.
12(5) Except as explicitly provided in a large-load contract, a public
13 power utility shall have no duty to serve a large-load customer and is
14     not required to provide backup power.
15(6) A public power utility shall not be required to commence design
16 and construction of large-load facilities until after executing a large-
17 load construction contract and obtaining board approval in accordance
18 with section 8 of this act.
19(7) A public power utility or large-scale generation provider shall:
20(a) Obtain board approval in accordance with section 8 of this act
21 before providing electric service under a large-load contract; and
22(b) Negotiate the terms of a large-load contract with a large-load
23 customer on a case-by-case basis.
24Sec. 7.    A customer seeking to receive electric service through a
25 closed private generation system:
26(1) May negotiate directly with a large-scale generation provider;
27     and
28(2) Is not required to submit a large-scale service request to a
29 public power utility.
30Sec. 8.   (1) Within fifteen business days after executing a large-
31 load       contract,      a    public   power    utility   or   a     large-scale   generation
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1  provider executing the contract shall submit an application for approval
2  or denial of the contract to the board. Such application shall include:
3(a) A copy of the large-load contract; and
4(b) Evidence sufficient to demonstrate compliance with subsection
5  (2) of this section.
6(2) The board shall approve the application and contract if the
7     board finds by a preponderance of the evidence that:
8(a)    The   contract   complies   with     the    requirements   of   the    Grid
9  Modernization Act;
10(b) The large-load customer bears all incremental costs reasonably
11    attributable to receiving the requested electric service; and
12(c) Existing ratepayers do not bear costs reasonably attributable to
13  providing electric service for the large-load customer.
14(3) Board review of an application and contract under this section
15  is limited to review of compliance with subsection (2) of this section
16     and shall not include review of other contract terms.
17(4) The board shall approve or deny an application and contract
18  submitted pursuant to this section within sixty days after receipt of the
19  application.
20(5) The board may adopt and promulgate rules and regulations to
21  expedite the review of applications for approval or denial of large-load
22  contracts under this section.
23Sec. 9.      (1) Subject to subsection (2) of this section, a public
24  power utility shall have sole right to provide electric service to a
25  large-load customer in the public power utility's service territory.
26(2) A public power utility shall not be required to provide electric
27     service:
28(a) In response to a large-scale service request if:
29(i)    The   large-load   customer    has    not    complied   with    the    Grid
30  Modernization Act;
31(ii) The public power utility cannot provide the requested service
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1 within the timeframe required by the large-scale service request;
2      (iii) The large-load customer and the public power utility cannot
3 agree upon terms for a large-load contract;
4      (iv) The large-load customer fails or refuses to comply with the
5 requirements of a large-load contract; or
6      (v) The large-load customer is receiving service from a large-scale
7 generation provider; or
8      (b) To a large-load customer that receives service pursuant to a
9 private generation contract.
10      (3) A public power utility that does not agree to terms with a
11 large-load customer for a large-load contract:
12      (a) Has no right or duty to serve the large-load customer;
13      (b) Is not required to provide ancillary or backup services to the
14 large-load customer; and
15      (c)    Is    not     required    to   provide     any   services    to   a     large-scale
16 generation provider.
17      Sec. 10.       (1) A large-load customer may enter into a large-load
18 contract    with     a     large-scale     generation        provider    if   the     following
19 conditions are met:
20      (a)    A    public    power     utility   fails    to    complete   an   evaluation    or
21 provide a written response within the time periods described in section 5
22 of this act; or
23      (b) The public power utility and large-load customer cannot agree to
24 a large-load contract within ninety days after the day on which the
25 large-load customer receives the evaluation described in this title,
26 unless the public power utility and the large-load customer mutually
27 agree to a longer period of time.
28      (2) After submitting a large-scale service request, a large-load
29 customer:
30      (a) May negotiate a contract with one or more large-scale generation
31  providers; and
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1(b)     Shall    not     execute      a   contract      with     a    large-scale       generation
2     provider    unless    the     conditions  described      in       subsection   (1)     of    this
3  section are met.
4Sec. 11.  (1) Before providing electric service to a large-load
5    customer, a large-scale generation provider shall:
6(a) Register with the board;
7(b) Maintain any reasonable technical and financial qualifications
8    required by the board;
9(c)     Provide    electric  service     only    through       qualifying       generation
10  resources;
11(d)     Post     security       as    reasonably        negotiated        with    a     large-load
12    customer, as required by contract with a transmission provider, or as
13     required by the board for services to be provided by a public power
14  utility;
15(e) Submit to the board:
16(i) Proof of financial capability as reasonably negotiated with the
17    large-load customer;
18(f) The provider's operational history and experience;
19(g)     A   description  of     the      portfolio      of      qualifying       generation
20     resources the provider intends to use to serve the large-load customer
21    without    reliance     on    any     public       power     utility,       cooperative       utility,
22    municipal utility, or other utility except as provided under a large-load
23    contract; and
24(h) Documentation of all required permits obtained for generation
25  resources, including any environmental permits, and the estimated impact
26 of    the     generation       sources      on   the    state    implementation  plan    for    air
27    quality.
28Sec.     12.      (1)    A   large-scale  generation  provider    that    fails    to
29    satisfy the requirements of the Grid Modernization Act:
30(a) Shall not initiate new service to a large-load customer;
31(b) Shall remedy any deficiency under the Grid Modernization Act
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1    within ninety days after the day the deficiency arises; and
2(c) May have reasonable conditions imposed by the board on the
3    provider's registration under the Grid Modernization Act.
4(2)     If    the   board      suspends      or    revokes      a   large-scale   generation
5    provider's registration under the Grid Modernization Act:
6(a) The provider shall not continue to provide electric service to a
7     large-load       customer    after       the   large-load       customer    has   been   given   a
8  reasonable opportunity to secure alternative service arrangements; and
9(b) The large-load customer shall not receive electric service from
10     another large-scale generation provider or a public power utility except
11     pursuant to a large-load contract approved by the board.
12Sec. 13.        (1) If the provision of electric service to a large load
13  customer requires transmission service:
14(a) The public power utility or the large-scale generation provider
15     shall submit a transmission service request to the transmission service
16     provider;
17(b) To the fullest extent allowed under applicable federal law and
18    regulations, the large-scale generation provider or large-load customer
19    shall:
20(i) Pay for:
21(A) Any interconnection-related or transmission-related studies;
22(B) Any identified necessary interconnection upgrades, transmission
23     upgrades, network upgrades, distribution system upgrades, or other system
24     upgrades; and
25(C)     The    transmission       service  rates    in   the   transmission   service
26     provider's open access transmission tariff; and
27(ii) Pay and provide for any necessary ancillary services, balancing
28  services, and backup services.
29(2) Nothing in this section shall be construed to:
30(a)     Conflict        with    or     superseded  any   applicable    federal    law,
31 regulation, or order regarding transmission cost allocation; or
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1(b) Require cost allocation methods inconsistent with Federal Energy
2    Regulatory Commission requirements or orders.
3(3)     The     board     shall    review    transmission     cost     allocation      methods
4    consistent with the requirements of federal law and regulations and may
5     adopt and promulgate rules and regulations for implementation of this
6  section.
7Sec.      14.      (1)     A    large-load    customer     may   enter      into   a   private
8    generation contract for all needed electric services from a large-scale
9    generation provider through a closed private generation system under
10    terms and conditions acceptable to the large-load customer and the large-
11    scale generation provider.
12(2) Any closed private generation system or large-scale generation
13 provider that provides electric service on or through a closed private
14    generation system in accordance with the Grid Modernization Act:
15(a) Is exempt from any other powers of the board over public power
16    utilities under state law;
17(b)       Shall        ensure     all    generation,      transmission,        and     related
18    facilities remain wholly separate from facilities owned or operated by
19    any public power utility except to the extent authorized by the Grid
20    Modernization Act; and
21(c) May connect to or receive services from a public power utility
22     only pursuant to a contract consistent with state law and approved by the
23  board under the Grid Modernization Act.
24(3)       A    closed     private       generation   system      may   operate       prior   to
25     receiving     a     request    from     a    public   power   utility      to   purchase     power
26    generated by the system and prior to board approval of a large-load
27    service contract.
28(4) The provision of electric service to a large-load customer on or
29    through   a       closed    private     generation    system    shall      utilize     qualifying
30    generation resources.
31(5) The board may adopt and promulgate rules and regulations to
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1  require appropriate notices and warnings regarding separation from the
2  systems of the public power utility.
3Sec. 15.      (1) A large-load customer may obtain all needed electric
4  services      from   a   large-scale   generation    provider     through    a    connected
5  generation system consistent with the Grid Modernization Act.
6(2) A large-scale generation provider may provide service on or
7  through a connected generation system if the provider:
8(a) Registers with the board in accordance with section 11 of this
9  act;
10(b) Uses only qualifying generation resources;
11(c) Maintains sufficient generation capacity to serve all contracted
12  loads;
13(d) Has submitted system design, operational information, emergency
14     response   procedures,     and     notification    of    any   changes        in    system
15     configuration or operation to the board; and
16(e) Maintains commercial liability insurance required by state law.
17(3) A large-scale generation provider that provides service on or
18  through a connected generation system consistent with the requirements of
19  this act is exempt from any other powers of the board over public power
20  utilities under state law.
21(4) A closed private generation system or a large-scale generation
22     provider that provides service through a closed private generation system
23     may connect to the interstate transmission of a transmission service
24  provider only if:
25(a) The closed private generation system is interconnected to the
26     interstate transmission system pursuant to the open access transmission
27     tariff of the transmission service provider approved by Federal Energy
28  Regulatory Commission; and
29(b) The board determines that the closed private generation system
30 or     large-scale       generation    provider     has    complied   with       the    Grid
31    Modernization Act for the provision of service on or through a connected
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1  generation system.
2(5) A closed private generation system or a large-scale generation
3  provider that provides service through a closed private generation system
4    may receive services from a public power utility only if it has complied
5     with subsection (4) of this section and if it has an agreement with the
6     public power utility that has been approved by the board.
7(6) A public power utility:
8(a) Is not required to purchase or accept any power from a connected
9  generation system;
10(b) Shall not accept power from a connected generation system unless
11     explicitly authorized in an agreement that has been approved by the
12  board; and
13(c) May elect to purchase up to ten percent of the power generated
14     by a large-scale generation provider. Such election shall be made in
15  writing no later than the deadline for the board to approve or deny a
16  large-load contract as provided in subsection (4) of section 8 of this
17  act unless otherwise agreed to in writing by the large-scale generation
18  provider and the public power utility. Election by a public power utility
19  to purchase power under this subsection shall not be grounds to delay or
20  deny approval of a large-load contract or to prevent operation of a
21     closed generation system.
22Sec. 16.    A large-load customer shall pay all large-load incremental
23     costs necessary to receive electric service, including the costs of:
24(1) Generation resources;
25(2) Distribution system upgrades;
26(3)   To   the   extent   permitted   and   applicable   by   federal   law   and
27     approved by the Federal Energy Regulatory Commission:
28(a) Transmission system improvements, including network upgrades;
29  and
30(b) Interconnection facilities;
31(4) Transmission service; and
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1(5) Other necessary infrastructure.
2Sec. 17.     (1) A large-scale generation provider shall:
3(a)   Maintain      separate    accounting   records       for   all    investments,
4    revenues, and expenses associated with large-scale service requests using
5    generally accepted accounting principles;
6(b) Take reasonable measures to ensure costs are properly allocated
7    between large-load customers and other customers;
8(c) Provide all contracted energy services without reliance on any
9    public power utility except as provided under a large-load contract;
10(d)   Meet    all    applicable     North    American      Electric      Reliability
11    Corporation standards; and
12(e) Maintain reasonable commercial liability insurance as determined
13  by contract or the board.
14(2) A public power utility shall:
15(a)   Maintain      separate    accounting   records       for   all    investments,
16  revenues, and expenses associated with large-scale service requests using
17     generally accepted accounting principles; and
18(b) Take reasonable measures to ensure costs are properly allocated
19    between large-load service and other operations.
20(3) All revenues and large-load incremental costs associated with a
21     large-scale    service     request     shall     be     excluded     from     any     rate
22  determinations by the board.
23(4) In connection with any rate determination or other appropriate
24    proceeding before the board, a public power utility shall provide:
25(a)   Operational     data     identifying   when    and    to   what    extent   the
26    generation resources identified in a large-load contract were dispatched
27    to serve large-load customers;
28(b) An identification of the timing, magnitude, and duration of:
29(i) The public power utility's dispatch of the resources described
30    in subdivision (4)(a) of this section;
31(ii) Any periods in which the amount of the electric service of
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1 large-load customers exceeded the dispatch of resources described in
2    subdivision (4)(a) of this section; and
3(iii) Any periods in which the dispatch of resources described in
4  subdivision (4)(a) of this section exceeded the amount of the electric
5  service of large-load customers;
6(c) The method by which costs for the provision of electric service
7  from the public power utility to a large-load customer will be excluded
8  from rates paid by retail customers; and
9(d) Any other information the board requires to ensure that the
10  costs    associated    with       electric    service     to    a    large-load        customer     are
11  excluded from the rates paid for by retail customers.
12(5)   A    public    power    utility      shall   not       be   required      to    publicly
13  disclose     specific       revenue      information       from  individual        large-load
14  customers in any proceeding described in subsection (4) of this section.
15Sec. 18.     (1) The board shall:
16(a)   Investigate      a     large-load      flexible        tariff     for    public    power
17  utilities; and
18(b) Adopt a large-load flexible tariff if the board determines that
19     the tariff is in the public interest and fair and reasonable.
20(2) In conducting an investigation for a large-load flexible tariff,
21  the board shall consider:
22(a) The conditions and timing for the tariff;
23(b)   The   means    of     determining      the   rates,  terms,      and   conditions
24  pursuant to which a public power utility may provide electric services to
25  a large-load customer; and
26(c) The conditions under which a public power utility may require a
27  large-load       customer    to    reduce    or   eliminate  electric      usage     under   the
28  large-load flexible tariff.
29Sec. 19.      Beginning in 2029 and ever three years thereafter, the
30     board shall:
31(1) Conduct a review of the Grid Modernization Act;
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1(2)   Conduct       an    investigation  with   stakeholder    input    and    public
2 comments and prepare a report that includes:
3(a)   Data     on    overall        use    of     and   participation    with    the       Grid
4 Modernization Act;
5(b) Analysis of impacts of the Grid Modernization Act on electrical
6 rates;
7(c) Assessment of transmission system reliability; and
8(d)    Recommendations  regarding  whether    to     expand     the       Grid
9 Modernization Act or modify the act; and
10(3) Provide the report described in subsection (2) of this section
11 and     any   recommendations  to    the     Natural     Resources     Committee      of    the
12     Legislature.
13Sec. 20.     (1) The board shall:
14(a) Adopt and promulgate rules and regulations for the allocation of
15 transmission costs between large-load customers and retail customers for
16 all large-load contracts executed on or after January 1, 2027;
17(b)   Retain    a    qualified       independent        consultant    with   expertise       in
18 transmission cost allocation methodologies to:
19(i)    Analyze  potential        methodologies       for     transmission  cost
20 allocation, taking into account the factors listed in subsection (2) of
21 this section; and
22(ii) Make recommendations to the board; and
23(c) Adopt and promulgate such rules and regulations no later than
24 January 1, 2027.
25(2) In developing rules and regulations pursuant to subsection (1)
26     of this section, the board shall consider the following factors:
27(a) Federal Energy Regulatory Commission policies and precedents
28 regarding transmission cost allocation;
29(b) The projected increase in electricity demand from large-load
30 customers;
31(c) The incremental transmission costs required to serve large-load
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1  customers;
2(d) The economic development benefits associated with serving large-
3    load customers;
4(e)    The   need   to    maintain      fair    and   reasonable   rates    for   retail
5     customers;
6(f)    The   extent   to      which   new     large-load   facilities     are    required
7    specifically for service of large-load customers;
8(g)    The   extent      to   which    large-load      customers   utilize       existing
9    transmission infrastructure;
10(h) Methods to apportion costs based on cost causation and system
11  benefits; and
12(i)    Any    other      factors      the     board   determines   are     relevant    to
13     establishing a fair and reasonable allocation of transmission costs.
14(3) The board may establish different cost allocation methodologies
15  based on the timing of large-load customer interconnection, the size of
16  the    load     being   served,      the     cost    causation    attributable     to    various
17  customer classes, the benefits accruing to various customer classes, or
18  other relevant distinctions.
19(4) Nothing in this section limits the board's existing authority to
20  determine fair and reasonable rates.
21(5)(a) The board shall impose and collect a fee from each large-load
22     customer that submits a large-scale service request to cover the cost of:
23(i) The retention of qualified independent consultants and experts
24  by the board to evaluate large-scale service requests and large-load
25  contracts; and
26(ii) Any other reasonable costs incurred in conducting proceedings
27  and evaluations under the Grid Modernization Act.
28(b) The fee shall be:
29(i) Assessed on a semi-annual basis established by the board;
30(ii) Determined based on the anticipated needs given the number and
31  complexity of requests received; and
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1(iii)    Proportionately    allocated    among   large-load   customers     with
2  pending requests.
3(c)     All   fees   collected   under   this    subsection   shall   be    used
4    exclusively to cover the costs described in subdivision (5)(a) of this
5    section.
6Sec. 21.      The board may adopt and promulgate rules and regulations
7  necessary to carry out the Grid Modernization Act.
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