Georgia House Bill HB92

Georgia 2023-2024 Regular Session

• Introduced: 1/26/23
• Report Pass: 2/8/23

Caption

Public utilities and public transportation; percentage limitation as to amount of investments an electric membership corporation may make and maintain in a gas affiliate; modify

Impact

By raising the investment cap, the bill is expected to facilitate greater capital flows from EMCs to their gas affiliates. Proponents argue that this will enable EMCs to diversify their service offerings, potentially improving energy service accessibility and reliability for consumers. Moreover, this shift could encourage EMCs to engage more actively in the gas market, fostering competitive pricing and innovation in energy solutions. The adjustment reflects a legislative move towards recognizing the evolving needs of energy markets and the importance of integrated utility services.

Summary

House Bill 92 proposes an amendment to Title 46 of the Official Code of Georgia Annotated, specifically regarding public utilities and public transportation. The bill aims to modify the existing percentage limitation on the investments that electric membership corporations (EMCs) can make in their gas affiliates. Under the current statute, EMCs face restrictions on the extent of their financial involvement with gas affiliates. HB92 seeks to increase this limit from 15% to 30% of an EMC's net utility plant, effectively allowing these corporations to enhance their investment in gas-related operations.

Contention

The bill may encounter opposition due to concerns over regulatory implications and the potential for increased market concentration. Critics worry that allowing greater investments in gas affiliates could lead to conflicts of interest or reduced competition within the sector. Additionally, there may be apprehensions about the environmental impacts of expanded gas operations, which could be a point of contention in discussions among lawmakers and stakeholders. Affected parties may argue that the increase in investment potential should be coupled with stricter oversight to safeguard consumer interests and maintain equitable market practices.