This bill provides that the Public Utilities Commission may establish performance- based metrics and rate adjustment mechanisms in a proceeding for a general increase in rates. The bill directs the commission to:
1. Establish a framework to enhance the performance-based metrics in current law. The framework must set clear objectives benefiting ratepayers and the public and may include, but is not limited to, objectives such as operational efficiency and cost- effectiveness; resilience and emergency response; affordability and customer empowerment and satisfaction; and advancement of the State's climate policies. The framework must also detail specific standards and metrics for assessing transmission and distribution utility performance relative to these objectives. The commission must also consider performance-based metrics and rate adjustment mechanisms used in other states;
2. Identify how the standards and metrics set out in the framework must be applied;
3. Identify specific and innovative rate adjustment mechanisms to be implemented to align transmission and distribution utility performance with such standards and metrics;
4. Establish a technical policy group within the commission to collect data, conduct analysis, develop standards and metrics, monitor performance and recommend rate adjustment based on performance. The group must also conduct the assessments of innovative rate adjustment mechanisms. The commission is authorized to hire 3 full-time employees for this purpose; and
5. Submit a report, including recommended legislation, to the joint standing committee of the Legislature having jurisdiction over utility matters no later than January 15, 2025.