Signed by Governor Eric Holcomb

Vote Smart's Synopsis:

Vote to pass a bill that authorizes utilities to raise rates outside of the typical "rate case" process.

Highlights:

• Defines  “TDSIC plan” as a public utility plan for eligible transmission, distribution, and storage system improvements over the course of a period of at least five years but no more than seven years (Sec. 2).

• Authorizes a public utility that provides electric or gas services to file with the commission rate schedules establishing TDSIC that will allow the periodic adjustment of basic rates and charges to provide for recovery of 80 percent of approved capital expenditures and TDSIC costs (Sec. 3).

• Authorizes a public utility to terminate an existing TDSIC plan before the end of the original plan period by providing the utility regulatory commission of a notice of termination at least 60 days before the date on which the plan will terminate (Sec. 4).

• Authorizes eligible transmission, distribution, and storage improvements receiving TDSIC treatments before termination of the plan shall continue to receive TDSIC treatment until after termination of the plan until a final order is issued (Sec. 4).

• Specifies that a public utility that seeks to terminates a TDSIC  plan (Sec. 4):

• May petition the commission for approval of a new TDSIC plan under this bill; and

• Must petition the commission for review and approval of the public utility’s rates and charges with respect to the same type of utility services before the expiration date of the terminated plan.

• Requires the commission to conduct a hearing and issue an order on the petition no more than 120 days after a public utility has filed a petition (Sec. 6).

• Specifies that if the public utility has requested approval of new targeted economic development projects or new transmission, distribution, and storage system improvements, the commission’s order must include the following (Sec. 6):

• A finding of the best estimate of the cost of the new projects or improvements;

• A determination of whether public convenience and necessity require or wil require the new projects or improvements; and

• A determination of whether the estimated costs are justified by incremental benefits attributable to the new projects or improvements.

• Specifies that if the commission determines that the public utility’s new projects or improvements are reasonable, the commission shall approve the new projects and authorizes TDSIC treatment for said projects or improvements (Sec. 6).

• Authorizes the commission to not approve a TDSIC that would result in an average aggregate increase in a public utility’s total retail revenues of more than two percent in a 12 month period (Sec. 7).

• Authorizes the commission to consider the combined 12 month revenue impact of the TDSIC approved under a terminated plan (Sec. 7).

Full Bill Text