The Wyoming Joint Minerals, Business and Economic Development Interim Committee is reviewing a proposal that could significantly impact the state’s industrial energy landscape. The draft bill aims to exempt specific electricity generators from public utility regulations, allowing them to operate independently if they serve a single customer with a demand of at least 25 megawatts or up to four customers with a combined demand of 100 megawatts. This move is intended to address the growing power needs of Wyoming’s industries, including mining and data centers.
Industrial Concerns and Support
Supporters of the bill argue that current utility regulations hinder economic growth and fail to meet the needs of industrial consumers. Pete Obermueller, president of the Petroleum Association of Wyoming, emphasized the challenges faced by electricity customers across the state, citing issues with price, capacity, and reliability. Jody Levin from the Wyoming Mining Association highlighted the vulnerability of the trona industry to power disruptions, sharing an incident where a brief outage caused significant operational and financial setbacks.
Mary Throne, representing data center developer Prometheus Hyperscale, supported the bill, stating that generation flexibility is crucial for data center development. The proposed 1.5-gigawatt data center project on the Natrona-Converse county line underscores the need for reliable power solutions.
Opposition from Utilities
Utilities have expressed opposition to the proposed legislation, concerned about the financial implications for residents. Thom Carter of Rocky Mountain Power warned that bypassing the grid could leave existing customers to shoulder the costs of stranded assets and maintaining backup power reserves. Similarly, David Bush of Black Hills Energy noted that the bill could threaten existing power contract tariffs that help keep rates low for other customers.
Rural electric cooperatives also voiced their concerns, stating that they are already working on tariffs and micro-grid concepts to serve customers without the need for legal changes. Chris Petrie, deputy chairman of the Wyoming Public Service Commission, emphasized the importance of ensuring safe, adequate, and reliable service at reasonable rates across the state.
Legislative Actions
The committee decided to carry the bill forward to its next meeting in August without immediate amendments. Rep. Martha Lawley, R-Big Horn/Washakie counties, initially moved to advance the bill using the first option of the draft but withdrew the motion after legislative staff clarified that no motion was needed. Additionally, Sen. Tara Nethercott, R-Laramie County, proposed drafting a second bill to incorporate the Public Service Commission’s proposed rules into law, aiming to provide statutory authority and a legislative solution to the issue.
Original reporting: Oil City News (Casper WY) — read the source article.
