Senate Bill No. 998 amends existing laws regarding public utilities, specifically focusing on the cost recovery for transmission upgrades and the establishment of a regulatory asset for depreciation expenses associated with qualifying electric plants. The bill presumes that costs incurred by electric utilities for transmission upgrades approved by regional organizations are recoverable, unless evidence suggests otherwise. It also introduces a new provision allowing public utilities to defer 90% of depreciation expenses and returns related to qualifying electric plants placed in service, contingent upon notifying the Corporation Commission of their election to make such deferrals.

Additionally, the bill outlines a prudence review process by the Corporation Commission for the regulatory asset balances before they are included in the utility's rate base. It specifies that these balances will accrue carrying costs and will be amortized over twenty years once new rates take effect. The bill also establishes that the regulatory asset balances will not be offset by other factors in general rate proceedings concluded after July 1, 2025. The effective date for these provisions is set for July 1, 2025, and an emergency clause is included to ensure immediate implementation upon passage.