- Introduced -

SB 366 - This act allows electrical and gas corporations to seek preapproval from the Public Service Commission (PSC) for certain projects in order to assure the financial community that a reasonable return will be realized. This act would allow gas and electrical corporations to file a petition with the PSC for a determination of ratemaking principles and treatment which would apply to the recovery of costs for the construction of a new facility. In order to be eligible for such a determination, the facility must be a gas or electric plant which would have a total investment or least cost of at least $5 million for companies serving between 100,000 and 1 million customers and $25 million for companies serving more than 1 million customers.

The PSC must then issue an order setting forth the ratemaking principles and treatment in all rate cases after the facility is placed in service. If the PSC fails to issue a determination within 180 days of the petition, the ratemaking principles and treatment proposed by the company will apply. Once the order is issued by the PSC, the company has 12 months to notify the PSC whether it will proceed with the project.

CINDY KADLEC