HB154--PUBLICSERVICECOMMISSION
SPONSOR: O'Donnell
ThisbillspecifiesthatbeginningJuly1,2026,thetestyearfor
rateproceedings,ifrequestedbycertainutilities,willbea
futureyearconsistingofthefirst12fullcalendarmonthsafter
theoperationoflawdateforschedulesstatingnewbaserates
filedbytheutilities,unlessthePublicServiceCommissionmakes
adeterminationthatusingafuturetestyearisdetrimentaltothe
publicinterest. Theprojectedtotalratebaseattheendofthe
futuretestyearwillbeusedtoestablishnewbaserates,which
willnotgointoeffectbeforethefirstdayofthefuturetest
year.
Utilitiesthatelecttouseafuturetestyearwithin45daysof
theendofthefuturetestyearwillupdatetheirbaseratesas
specifiedinthebill.Thetotalendingratebaseandexpense
itemsintheupdatecannotbegreaterthanthetotalendingrate
baseandexpenseitemsapprovedbytheCommissioninitsreportand
order.TheCommissionandpartiestothecasehave60daysto
reviewtheaccuracyoftheupdatedinformationprovidedbythe
utility. TheCommissionmustordertheutilitytofilenewtariff
sheetsreflectingtheupdate,asspecifiedinthebill.
Utilitiesthatrequestatestyearmaynotrecoverthecostsofany
plantinvestmentsmadeduringthetestyearperiodundercertain
mechanismssetoutincurrentlaw.
Forutilitiesthatelectedtouseafuturetestyear,theutility
mustprovideareconciliation oftheratebaseattheendofthe
futuretestyeartotheCommissionwithin45daysoftheendofthe
futuretestyear.Iftheactualratebaseislessthantherate
baseusedtosetbaseratesinthepriorgeneralrateproceeding,
theportionoftheannualrevenuerequirementreflectingtherate
basedifferencemustbereturnedtocustomers. Thedifferencein
revenuerequirementwillbeplacedintoaregulatoryliabilityto
bereturnedtocustomersinthenextgeneralrateproceedingwith
suchregulatoryliabilitytoaccruecarryingcostsattheutility's
weightedaveragecostofcapital.
TheCommissionmayconsideranychangeinbusinessrisktothe
utilityresultingfromimplementation oftheadjustmentmechanism
whensettingtheutility'sallowedreturninanyrateproceeding,
inadditiontoanyotherchangesinbusinessriskexperiencedby
theutility.
Forautilitythatelectedtouseafuturetestyear,theutility
mustprovideareconciliation ofpayrollexpense,certainemployee
benefits,andratecaseexpenseattheendofthefuturetestyear
totheCommissionwithin45daysoftheendofthefuturetest
year.Iftheactualamountsarelessthantheamountsusedto calculatetherevenuerequirementinthepriorgeneralrate
proceeding,thedifferencewillbereturnedtocustomers. The
differenceinrevenuerequirementwillbeplacedintoaregulatory
liabilitytobereturnedtocustomersinthenextgeneralratecase
withsuchregulatoryliabilitytoaccruecarryingcostsatthe
utility’sweightedaveragecostofcapital.
ThisbillissimilartoSSSB740(2024).