The bill 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 approval process for rate adjustments, which allows participation from the office and affected parties, and mandates that the adjustments consider customer changes and the impact of energy consumption on revenue. Additionally, the bill ensures that the commission retains the authority to change existing rates if deemed unreasonable.

Notably, the bill changes the deadline for the commission to issue a final order on a periodic rate adjustment request from 60 days to 90 days, with a possible extension of up to 15 days for good cause. The changes will apply only to proceedings that begin on or after the effective date of the Act, which is set for September 1, 2025. Proceedings that started before this date will continue to be governed by the previous law.

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