Rates: prohibited cost recovery.
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Majority
Fiscal committee
No
Appropriation
No
Current location
In Floor Process
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill prohibits electrical, gas, water, sewer, and telephone corporations from inappropriately recovering costs in their rates. Specifically, it prevents utilities from recording costs to an ‘above-the-line account’ if those costs meet certain criteria, such as being excluded from ratepayer recovery by law or exceeding the commission’s authorization. If a utility is found to be engaging in inappropriate cost recovery, the commission can disallow the recovery and impose a financial penalty, which could be up to three times the amount of the inappropriate recovery, unless the utility proactively identified and corrected the issue. The bill also extends the deadline for the Transmission Infrastructure Accelerator to submit its public-private partnership plan to the legislature.
Key provisions
- Prohibits inappropriate cost recovery by utilities recording costs to an ‘above-the-line account’ under specific circumstances.
- Requires the Public Utilities Commission to disallow recovery of inappropriate costs and impose a financial penalty.
- Financial penalty can be up to three times the amount of the inappropriate cost recovery.
- Extends the deadline for the Transmission Infrastructure Accelerator to submit its public-private partnership plan to December 1, 2027.
- Defines ‘above-the-line account’ and ‘utility’ for clarity.
- Allows for a penalty reduction if the utility proactively corrects the issue.
- Addresses instances of repeated inappropriate cost recovery.
- Specifies the accelerator’s role in identifying and developing public-private partnerships.
Who is affected
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