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, it states that utilities will not be eligible for incentives that provide additional revenue to account for this lost revenue. The bill aims to ensure that consumers who engage in energy-saving practices are not penalized through increased rates that offset the utilities' revenue losses.

The legislation 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 charge consumers for revenue losses incurred from energy-saving initiatives. The sponsors of the bill argue that consumers should not face higher costs as a result of their efforts to reduce energy consumption through various conservation measures, and that the board should prioritize consumer protection in its regulatory practices.

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