69-8-419. Default supply resource planning and procurement -- duties of default supplier -- objectives -- commission rules. (1) The default supplier shall:
     (a) plan for future default supply resource needs;
     (b) manage a portfolio of default supply resources; and
     (c) procure new default supply resources when needed.
     (2) The default supplier shall pursue the following objectives in fulfilling its duties pursuant to subsection (1):
     (a) provide adequate and reliable default supply services at the lowest long-term total cost;
     (b) conduct an efficient default supply resource planning and procurement process that evaluates the full range of cost-effective electricity supply and demand-side management options;
     (c) identify and cost-effectively manage and mitigate risks related to its obligation to provide default electricity supply service;
     (d) use open, fair, and competitive procurement processes whenever possible; and
     (e) provide default supply services at just and reasonable rates.
     (3) By December 31, 2003, the commission shall adopt rules that guide the default supply resource planning and procurement processes used by the default supplier and facilitate the achievement of the objectives in subsection (2) by the default supplier. The rules must establish:
     (a) goals, objectives, and guidelines that are consistent with the objectives in subsection (2) for:
     (i) planning for future default supply resource needs;
     (ii) managing the portfolio of default supply resources; and
     (iii) procuring new default supply resources;
     (b) standards for the evaluation by the commission of the reasonableness of a power supply purchase agreement proposed by the default supplier; and
     (c) minimum filing requirements for an application by the default supplier for advanced approval of a proposed power supply purchase agreement.

     History: En. Sec. 1, Ch. 509, L. 2003.