The bill, S.B. No. 1438, amends the Utilities Code to establish a procedure for periodic rate adjustments by electric utilities. It allows the commission to approve a tariff or rate schedule that enables nonfuel rates to be adjusted based on changes in the utility's invested capital related to distribution. Key provisions include a requirement for a 90-day period for the commission to approve or deny rate adjustments, with participation from the office and affected parties. The bill also stipulates that the adjustments must consider customer changes and energy consumption impacts, and it maintains the commission's authority to alter rates if deemed unreasonable.

Additionally, the bill modifies the timeline for the commission to issue a final order on rate adjustment requests, extending it from 60 days to 90 days, with a possible 15-day extension for good cause. The changes apply only to proceedings that begin on or after the effective date of the Act, which is set for September 1, 2025. Any proceedings that commenced prior to this date will continue to be governed by the existing law.

Statutes affected:
Introduced: Utilities Code 36.210 (Utilities Code 36)