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2014 SESSION

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SB 643 Electric utility regulation; recovery of costs of offshore wind facilities, etc.

Introduced by: A. Donald McEachin | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Electric utilities; costs of offshore wind facilities. Limits the portion of all costs incurred by an electric utility between July 1, 2007, and December 31, 2013, in developing an offshore wind facility that are recoverable through a rate adjustment clause to 30 percent of such amount. The remaining 70 percent of all such costs related to such a facility shall be recovered ratably through existing base rates as determined by the SCC in the test periods under review in the utility's next biennial review filed after July 1, 2014. All of the costs incurred after December 31, 2013, may be deferred for recovery through a rate adjustment clause as may be approved by the SCC. The measure also states that the planning and development activities for new generation facilities utilizing energy derived from offshore wind are in the public interest.

SUMMARY AS PASSED SENATE:

Electric utilities; costs of offshore wind facilities. Limits the portion of the costs incurred by an electric utility between July 1, 2007, and December 31, 2013, in developing an offshore wind facility that are recoverable through a rate adjustment clause to 30 percent of such amount. The remaining 70 percent of such costs may be recovered through existing base rates as determined by the SCC in the test periods under review in the utility's next biennial review filed after July 1, 2014. All of the costs incurred after December 31, 2013, may be deferred for recovery through a rate adjustment clause as may be approved by the SCC. The measure also states that the planning and development activities for new generation facilities utilizing energy derived from offshore wind are in the public interest.

SUMMARY AS INTRODUCED:

Electric utilities; costs of offshore wind facilities. Requires a utility planning or developing a generating facility utilizing energy derived from offshore wind to cease deferral of at least 70 percent of any previously deferred or capitalized costs associated with such facility that the utility incurred between July 1, 2007, and December 31, 2013. This portion of the costs shall be (i) eligible for recovery only through the utility's base rates as a current period expense and (ii) deemed to have been reasonably and prudently incurred. The measure authorizes the State Corporation Commission to permit the utility to restore to common equity of the utility's capital structure any amounts charged to period expense resulting from this provision.