Clarifying the valuation and determination of used and useful property for rate making purposes.
Summary
Specifies the Utilities and Transportation Commission (UTC) may ascertain and determine the fair value of a regulated company's property that is used and useful for service in the state by or during the rate effective period for ratemaking purposes.
Authorizes the UTC to provide changes to rates for up to 48 months after the rate effective date using any standard, formula, method, or theory of valuation reasonably calculated to arrive at fair, just, reasonable, and sufficient rates.
Specifies the UTC's authority to consider and implement performance and incentive-based regulation, multiyear rate plans, and other flexible regulatory mechanisms.
From the Senate Bill Report (SB 5816), written by the Legislature's nonpartisan staff. Read the full report ↗
Did not passDid not pass · stalled on the Senate floor