This bill amends existing legislation to prohibit electric and gas public utilities from implementing rate adjustment mechanisms that would allow them to recover lost revenue due to decreased energy usage resulting from customer participation in energy efficiency, peak demand reduction, conservation, or renewable energy programs. Specifically, the bill states that utilities shall not be eligible for incentives that provide additional revenue to account for this lost revenue. This change aims to ensure that consumers who actively engage in energy-saving measures are not penalized through increased rates that offset the utilities' revenue losses.

The bill also emphasizes the need for the Board of Public Utilities to focus on consumer interests rather than utility profits. It reflects concerns raised by the Division of Rate Counsel regarding the fairness of allowing utilities to recoup losses from energy conservation efforts through rate increases. The sponsors of the bill argue that consumers should not face financial penalties for reducing their energy consumption through various conservation measures, as this undermines the benefits of their efforts to save energy and reduce costs.

Statutes affected:
Introduced: 48:3-87.9, 48:3-98.1