Natural Gas - Strategic Infrastructure Development and Enhancement - Surcharge and Plans (STRIDE Act of 2022)
Impact
The introduction of HB 801 aims to streamline the process for gas companies to recover costs related to necessary infrastructure updates and maintenance. By permitting these project costs to be incorporated into base rates, the bill ensures that utility providers can secure continued funding for operational requirements while managing the infrastructure lifecycle effectively. This could potentially lead to improved service reliability and safety for consumers, as outdated infrastructure can be upgraded in a timely manner.
Summary
House Bill 801, officially titled the 'Natural Gas - Strategic Infrastructure Development and Enhancement - Surcharge and Plans (STRIDE Act of 2022)', is aimed at managing and financing infrastructure replacement projects within the natural gas sector. The bill proposes that the costs related to infrastructure replacement projects be included in the base rates set for gas utilities, during a designated multiyear rate plan. Additionally, it calls for an annual surcharge to be applied for upcoming infrastructure projects not covered within the established base rates, thereby allowing ongoing cost recovery for the utilities involved in such projects.
Contention
However, the bill has drawn concerns regarding the impact of surcharges on consumer utility bills. Critics argue that continuous surcharges could lead to increased costs for consumers without sufficient oversight on how these funds are being utilized. There are also worries that the provisions for surcharges may provide gas companies with excessive leeway to pass costs onto customers, necessitating strict regulatory oversight to ensure that the charges align with actual expenses incurred. This issue highlights the critical balance between ensuring utility infrastructure integrity and protecting consumer interests.
Electricity and Gas - Emissions Reductions, Rate Regulation, Cost Recovery, Infrastructure, Planning, Renewable Energy Portfolio Standard, and Energy Assistance Programs (Next Generation Energy Act)