HB 2224
An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in rates and distribution systems, providing for return on equity; in service and facilities, further providing for billing procedures; and, in restructuring of electric utility industry, further providing for revenue-neutral reconciliation.
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill aims to reform Pennsylvania’s electric utility industry by establishing a new system for determining the return on equity utilities can earn. It introduces a ‘competitive equity auction’ process where investors bid for the right to receive a portion of a utility’s profits, potentially leading to lower rates for consumers. The bill also includes provisions for billing procedures, restructuring of the industry, and a ‘revenue-neutral reconciliation’ process to ensure rate adjustments are fair and balanced.
Key provisions
- Establishes a ‘competitive equity auction’ process for determining the cost of equity for electric utilities.
- Sets a default authorized return on equity, which can be adjusted through the auction process.
- Requires utilities to form regulated service corporations and LLCs to manage equity investments.
- Includes provisions for billing procedures and transparency.
- Provides for revenue-neutral reconciliation to ensure rate adjustments are fair.
- Defines key terms related to the auction process and regulated service structures.
- Addresses securities law compliance for auction equity interests.
- Establishes rules for the capital structure and debt of regulated service LLCs.
Who is affected
- Electric utility customers
- Electric utility companies
- Pennsylvania consumers
- The Pennsylvania Public Utility Commission
- Investors
Notable changes
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