The bill, S.B. No. 1022, introduces a new section, 36.2031, to the Utilities Code, which outlines the procedures for electric utilities to recover costs associated with vegetation management. It allows the commission to review and adjust the vegetation management factor for electric utilities, ensuring that costs incurred are collected in a timely manner. The bill mandates that the commission implement rules requiring utilities to allocate eligible vegetation management costs among customer classes based on actual usage and to address any material balance of under-collected or over-collected amounts through interim adjustments. Additionally, it stipulates that customers and municipalities have the right to protest adjustments, with specific provisions for hearings based on the impact of the adjustments on customer bills.

The bill also establishes that electric utilities must apply for reconciliation of vegetation management costs at least every two years, with a timeline for applications set within 180 days after the reconciliation period ends. The commission is empowered to set the timing of these reconciliations to enhance efficiency. Importantly, the bill clarifies that proceedings under this section do not constitute a rate case, thereby streamlining the process for utilities to manage their vegetation-related expenses. The act is set to take effect on September 1, 2025.

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