The act removes "new natural gas units" from the definition of "qualifying electric plant".

Electrical corporations shall defer to a regulatory asset 85% of all depreciation expense and return associated with all qualifying electric plant recorded to plant-in-service on the utility's books through August 27, 2024. The act repeals certain deadlines relating to such deferrals.

Beginning August 28, 2024, an electrical corporations shall defer to a regulatory asset 85% of all depreciation expense and return as described in the act, except for a qualifying electric plant that consists of investment in new generating units for which the deferral shall be 90%.

The act excludes the cost of investments in new generating units and energy storage systems from the requirement that at least 25% of the cost of investments reflected in each year’s capital investment plan shall be comprised of grid modernization projects.

The act extends the sunset date of certain provisions relating to deferrals by electrical corporations from December 31, 2028 to December 31, 2035. The deadline to file an application seeking permission from the Public Service Commission relating to deferrals shall be extended from December 31, 2026 to December 31, 2033.

Provisions relating to electrical corporations seeking deferrals shall expire on December 31, 2040, instead of on December 31, 2033.

The act is identical to a provision in SCS/HCS/HB 1746 (2024), and similar to HCS/HB 2541 (2024).

JULIA SHEVELEVA