COMMERCIAL AND INDUSTRIAL LOAD CHOICE
As Utah continues to grow both economically and in population, the state’s energy needs are rapidly increasing. To keep up with these demands while fostering innovation, Utah should look to Nevada’s 704B statute as a model for its own energy market reforms. Nevada’s move to allow commercial and industrial loads to directly purchase or generate their own power has proven to be a game changer—not only for major businesses but for the entire energy grid and everyday ratepayers. Here’s why adopting a similar policy could offer substantial benefits for Utah.
First, a 704B-style policy would empower Utah’s largest loads—such as industrial facilities, data centers, and large institutions—to seek more cost-effective or cleaner energy options. By allowing these entities to contract with independent power producers or invest in renewable projects like solar, wind, geothermal, or nuclear, Utah could accelerate its transition to a more diverse and sustainable energy mix. This kind of flexibility is key to attracting businesses with strong sustainability goals, promoting economic development in sectors like tech, manufacturing, and renewables.
More importantly, such a shift would benefit the broader population of ratepayers. By allowing large loads an option to exit the traditional utility system, Utah’s main utility could focus on improving grid reliability and service quality for residential and small commercial customers. With fewer large-scale demands on the utility's resources, there’s greater opportunity to modernize the grid, invest in new technologies, and improve overall efficiency. In Nevada, the ability of major users to find their own energy solutions has relieved pressure on NV Energy, enabling it to better serve smaller customers and maintain a more resilient grid.
A similar move in Utah would also provide economic advantages. Large businesses would be motivated to invest in homegrown renewable energy projects, sparking new jobs and creating a more mature energy market to thrust Utah into the future all without impacting the ratepayer.
Lastly, with more competition in the energy market, ratepayers are likely to benefit from lower prices. As large users seek alternatives, Utah’s regulated utility could adjust its rate structure in a way that doesn’t disproportionately affect smaller users. In Nevada, competition created by the 704B statute has incentivized utilities to offer better rates and service to retain customers, which could similarly benefit Utah residents.
In summary, implementing a 704B-style policy in Utah would open doors to energy innovation, economic growth, and a more resilient, affordable grid. It’s a win for large commercial and industrial loads, the environment, and—most importantly—everyday ratepayers looking for reliable, cost-effective power solutions.