The bill establishes a framework for 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 in the utility's return on equity by up to 0.5% for a period of 12 months. Conversely, if the average retail rate has increased by more than 1%, the commission can mandate a decrease in the return on equity by up to 0.5%, also valid for 12 months.

Additionally, the bill defines "all-in average retail rate" as the total cost per kilowatt-hour that a retail customer pays, encompassing all associated charges and fees. The commission is tasked with amending the retail rates of electric public utilities to reflect any changes ordered under this new provision. The act will take effect upon its publication in the statute book.