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 rate adjustments.
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 will oversee compliance with these requirements and may impose fines or penalties for failure to provide accurate, timely, and clear explanations of rate changes. Additionally, if a utility fails to include a clear explanation with a rate filing, the filing will be suspended until proper notifications and explanations are provided.

The bill also introduces a revenue decoupling mechanism, which separates utility revenues from sales, allowing companies to focus on efficiency and reliability without the pressure of fluctuating sales. It requires electric and gas distribution companies to file proposals that align with the goals of increasing efficiency, reducing risks, and investing in energy efficiency programs, which the commission will review to ensure they meet established standards and objectives.

Statutes affected:
385: 39-1-27.7.1