The "2025 Utility Company Billing Transparency Act" seeks to improve consumer understanding of utility bills by requiring electric and gas distribution companies with over 100,000 customers to provide clearer explanations of charges. The bill defines a "utility company bill" and mandates that these companies conduct a ratepayer impact analysis (RIA) before implementing rate changes. Additionally, it requires detailed monthly descriptions of charges on utility bills, periodic explanations of significant rate changes, and annual reports on costs contributing to rate adjustments. The act emphasizes transparency to build trust and accountability among consumers.

Key amendments to existing law include the introduction of a revenue decoupling mechanism, which separates utility revenues from sales to encourage efficiency and investment in energy resources. The bill removes previous language that prioritized the financial health of distribution companies as standalone entities, shifting the focus towards consumer interests and service quality. The public utilities commission is granted new powers to establish service-quality standards and performance incentives, ensuring compliance with these requirements. The act will take effect upon passage, with penalties for non-compliance, including the suspension of rate filings lacking clear explanations.