The Grid Modernization Act establishes a comprehensive framework for managing large-scale electric service requests and contracts in Nebraska. It introduces key definitions related to electric generation systems, such as "closed private generation system," "connected generation system," and "large-load customer." The Act mandates public power utilities to acknowledge and evaluate large-scale service requests within specified timeframes, requiring that electric service for these requests be provided under large-load contracts. The legislation also allows customers to negotiate directly with large-scale generation providers, bypassing the formal request process, and clarifies that utilities are not obligated to serve large-load customers unless specified in a contract.

Additionally, the bill outlines the responsibilities of public power utilities and large-load customers, including the requirement for utilities to submit applications for large-load contract approval to the board within fifteen business days of execution. The board is responsible for reviewing these applications within sixty days, focusing on compliance with the Act. The legislation also stipulates that all revenues and incremental costs associated with large-scale service requests will be excluded from rate determinations, ensuring that large-load customers bear all associated costs. Furthermore, the board is tasked with reviewing the Act every three years and developing rules for the allocation of transmission costs, aiming to create a structured and fair regulatory environment for large-load customer contracts while protecting retail customers' interests.