This bill allows the state corporation commission to adjust the return on equity for electric public utilities based on their all-in average retail rates. If a utility demonstrates that its average retail rate has not increased by more than 1% in the previous calendar year, the commission may authorize an increase of up to 0.5% in the utility's return on equity for the following 12 months. Conversely, if the average retail rate has increased by more than 1%, the commission can mandate a decrease of up to 0.5% in the return on equity for the same duration.

Additionally, the bill stipulates that the commission must amend the retail rates of the electric public utility to reflect any changes ordered under this section. The term "all-in average retail rate" is defined to encompass the total cost of electricity per kilowatt-hour, including all associated charges and fees. The act will take effect upon its publication in the statute book.