This bill establishes limits on electric public utility rate increases specifically for low- and middle-income households, defined as residential households with annual incomes at or below 200% and 400% of the federal poverty level, respectively. Under the new provisions, electric public utilities are prohibited from raising rates for these eligible households by more than the all-items index, which reflects the rate of inflation as reported by the United States Bureau of Labor Statistics. If a utility fails to comply with this limit, it will face fines and other penalties determined by the Board of Public Utilities.

Additionally, the bill mandates that electric public utilities report annually to the Board on the number of eligible households benefiting from the program, the financial impact of the program on the utility, and any recommendations for adjustments. The Board is also required to compile this information into an annual report for the Legislature. The bill aims to provide financial protections for vulnerable households against rising electricity costs while ensuring accountability and transparency from electric public utilities.