Senate Bill No. 246 mandates the Commissioner of Energy and Environmental Protection to conduct a study on natural gas rates specifically for commercial and agricultural customers with intermittent peak monthly demand. The study aims to assess whether these customers are being charged unfair rates due to demand charges that do not accurately reflect their usage. If the commissioner finds that these demand charges are indeed leading to unfair rate increases, they are required to provide detailed recommendations on how to recalculate or adjust these charges. The findings and recommendations must be reported to the relevant joint standing committee by January 15, 2027.

The bill will take effect on October 1, 2026, and introduces a new section to the law regarding this study. There are no fiscal impacts anticipated for the state or municipalities, as the Department of Energy and Environmental Protection has the necessary resources to carry out the study without incurring additional costs.