The bill establishes a framework for the regulation of electric public utilities' return on equity based on their average retail rates. If an electric public utility demonstrates to the state corporation commission that its all-in average retail rate has not increased by more than 1% in the previous calendar year, the commission may authorize an increase in the utility's return on equity by up to 0.5% above the rate set in its most recent general rate proceeding. This increase would be valid for 12 months following the commission's order. Conversely, if the commission finds that the utility's average retail rate has increased by more than 1%, it may order a decrease in the return on equity by up to 0.5% below the previously authorized rate, also valid for 12 months.

Additionally, the bill mandates that the state corporation commission amend the retail rates of electric public utilities to reflect any changes ordered under this new regulation. 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.