The proposed legislation, known as the 2025 Utility Company Billing Transparency Act, aims to enhance transparency and understanding of utility bills for consumers of electric and gas distribution companies with over 100,000 customers. The bill mandates that these companies comply with several requirements prior to implementing rate changes, including:

1. Conducting a ratepayer impact analysis (RIA) that estimates the impact of proposed rate changes on different customer classes, including a cost-benefit analysis of how rate adjustments may benefit or disadvantage various sectors.
2. Providing monthly detailed descriptions of charges on utility bills, indicating how much of each charge goes toward various services to help customers understand the effects of rate adjustments.
3. Offering periodic explanations of significant rate changes or cost fluctuations, such as variations in energy procurement costs and other charges, along with information on how customers can reduce their bills.
4. Submitting annual reports that break down the costs contributing to rate adjustments, including energy procurement costs, infrastructure investments, revenues and profits, and operational costs.

The Public Utilities Commission is tasked with overseeing compliance with these requirements and may impose fines or penalties for failure to provide accurate, timely, and clear explanations of rate changes. Additionally, failure to include a clear explanation with a rate filing will result in the suspension of the rate filing until proper notifications and explanations are provided. The act is designed to provide greater transparency to customers and consumers of electricity and gas.

Statutes affected:
5577: 39-1-27.7.1