The "Lower Energy Prices Act" seeks to regulate electric utility rates by prohibiting the public utilities commission from approving any rate increase that exceeds the previous year's rate adjusted for inflation by more than 4 percent, as inserted into RSA 365:8 as a new paragraph III. The bill also mandates the commission to establish performance incentive mechanisms that align utility revenues with performance metrics, focusing on operational efficiency and customer service. Additionally, the existing RSA 374:3-a is repealed and replaced with a new framework requiring the commission to evaluate and potentially implement these performance metrics within a year of the bill's enactment.

Moreover, the bill introduces a new section on Total Expenditures (TOTEX) ratemaking, allowing the commission to combine capital and operating expenditures for ratemaking purposes. This section defines "Total expenditures" or "TOTEX" and grants the commission authority to adopt related rules. Utilities will also be able to propose multi-year rate plans that incorporate performance incentives, with a review process for approved plans. The act is expected to increase the workload of the Department of Energy, necessitating outside consultants at an estimated cost of $150,000 to $300,000, funded by a special assessment on electric and natural gas utilities. The bill includes a severability clause and is set to take effect 60 days after passage, with an indeterminable fiscal impact on utility costs for the state and local governments.

Statutes affected:
Introduced: 365:8
SB597 text: 365:8