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2006 SESSION

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SB 380 Gas utilities; performance-based regulation.

Introduced by: Ryan T. McDougle | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Gas utilities; performance-based regulation.  Provides that performance-based ratemaking of a gas utility may include fixed or capped rates and reduction or elimination of regulatory requirements, in addition to existing elements.  A performance-based ratemaking methodology for a gas utility means a method of establishing rates and charges that are in the public interest and that departs from cost-of-service ratemaking methodology.  In deciding whether to approve a request for such methodology, the State Corporation Commission shall include, but not be limited to, in its consideration, measures that are reasonably estimated to preserve or improve system reliability, safety, supply diversity, and transportation options, and other customer benefits that are reasonably estimated to accrue from the proposal. The measure does not apply to plans for performance-based regulation pending on January 1, 2006.

SUMMARY AS PASSED SENATE:

Gas utilities; performance-based regulation.  Provides that performance-based ratemaking of a gas utility may include fixed or capped rates and reduction or elimination of regulatory requirements, in addition to existing elements.  In deciding whether to approve a request for such methodology, the State Corporation Commission shall consider measures that are reasonably estimated to preserve or improve system reliability, safety, supply diversity, and transportation options, and other customer benefits that are reasonably estimated to accrue from the proposal. The measure does not apply to plans for performance-based regulation pending on January 1, 2006.

SUMMARY AS INTRODUCED:

Gas utilities; performance-based regulation.  Clarifies that performance-based ratemaking of a gas utility does not involve the cost-of-service regulation concepts of cost of service or range of authorized return. The measure is stated to be declarative of existing law.