Revise the natural gas infrastructure development rider
Impact
The proposed changes under SB121 are expected to provide a clearer framework for natural gas companies when it comes to infrastructure investments. By revising the allowable recovery limits from customers, which is set not to exceed $1.50 per customer monthly, the bill seeks to balance the need for utility companies to finance infrastructure improvements while protecting consumers from excessive cost burdens. This bill is poised to set a precedent in how customer billing structures for infrastructure development costs are handled in the future.
Summary
Senate Bill 121 aims to amend the existing regulations concerning the natural gas infrastructure development rider under sections 4929.16 and 4929.162 of the Revised Code. The bill intends to make adjustments that affect how natural gas companies can recoup costs associated with the construction and development of infrastructure for natural gas transmission and distribution. Specifically, the bill seeks to redefine the parameters of what constitutes 'infrastructure development costs' and how these costs are recovered from customers, thereby impacting state regulatory policies regarding utility expenses.
Contention
While supporters of the bill may argue that it enhances the financial viability of natural gas projects and fosters economic growth through improved infrastructure, there could be contentions regarding the fairness of cost distributions among customers. Critics might raise concerns about potential inequities in how these costs are allocated and whether the cap set on recovery adequately protects customers from paying for inefficiencies or mismanagement in infrastructure projects. Furthermore, discussions around economic development benefits versus consumer protection will likely be a key point of debate among stakeholders.