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2020 SESSION

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SB 731 Investor-owned electric utilities; rate of return on common equity.

Introduced by: Jennifer L. McClellan | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Rate of return for investor-owned electric utilities. Provides that the State Corporation Commission, in determining a fair rate of return on common equity for an investor-owned electric utility after January 1, 2020, shall not set such rate (i) lower than the average of either (a) the average of the returns on common equity of the utility's peer group reported to the Securities and Exchange Commission for the three most recent annual periods or (b) the authorized returns on common equity that is set by the applicable regulatory commission for other investor-owned electric utilities in the utility's peer group or (ii) higher than 150 basis points above such average.

SUMMARY AS PASSED SENATE:

Rate of return for investor-owned electric utilities. Provides that the State Corporation Commission, in determining a fair rate of return on common equity for an investor-owned electric utility after January 1, 2020, shall not set such rate (i) lower than the average of the average of the returns on common equity of the utility's peer group reported to the Securities and Exchange Commission for the three most recent annual periods or the authorized returns on common equity that is set by the applicable regulatory commission for other investor-owned electric utilities in the utility's peer group or (ii) higher than 150 basis points above such average.

SUMMARY AS INTRODUCED:

Rate of return for investor-owned electric utilities. Provides that the State Corporation Commission, in determining a fair rate of return on common equity for an investor-owned electric utility after July 1, 2020, shall not set such rate (i) lower than the average of the authorized returns on common equity that is set by the applicable regulatory commission for other investor-owned electric utilities in the utility's peer group or (ii) higher than 150 basis points above such average. Under current law, the floor for such rate of return on common equity is the average of the returns on common equity of the utility's peer group reported to the Securities and Exchange Commission for the three most recent annual periods and the ceiling is 300 basis points above such average.