The Utility Rates and Ratemaking Amendment Act of 2026 aims to address the rising utility costs faced by District residents and businesses, which have been exacerbated by external factors and local utility practices. The bill seeks to amend the Public Utilities Act of 1989 by establishing stricter criteria for the approval of multiyear rate plans and gas infrastructure projects by the Public Service Commission (PSC). Specifically, it requires that multiyear rate plans be based on actual historic costs, exclude reconciliation mechanisms, and demonstrate clear customer benefits. Additionally, gas infrastructure projects must show that cost-effective alternatives were considered and that any benefits from surcharges will be accounted for in future rate cases.

The legislation introduces new provisions that mandate a quantitative cost-benefit analysis for both multiyear rate plans and gas infrastructure projects, ensuring that ratepayers can expect positive net benefits from these investments. It also stipulates that any excess return on equity must be refunded to customers within a specified timeframe. By implementing these changes, the bill aims to rebalance the financial responsibilities between utility companies and customers, ultimately protecting District ratepayers from the burden of rising utility costs.