SCS/SB 207 - Currently, gas corporations may file a petition with the Public Service Commission for rate adjustments to recover costs incurred for infrastructure replacement projects. This act allows electrical corporations to follow a similar process to recover costs for infrastructure replacement projects. The types of costs that can be recovered include certain work on electric plants, certain capital projects undertaken to comply with environmental or safety regulations, and costs of facilities relocation due to public works projects.
This act details the process that an electric corporation and the Public Service Commission must follow in reviewing petition applications for an infrastructure system replacement surcharge. If a surcharge is approved by the Public Service Commission, this act requires electric corporations to submit to the Commission a reconciliation noting the differences between infrastructure system replacement revenues and appropriate pretax revenues. Additionally, this act modifies the amount of revenues that may be produced from an infrastructure system replacement from no less than $1,000,000 or half of 1% of the corporation's base revenue and no more than 10% of the corporation's base revenue. The Commission shall not approve an ISRS for any electrical corporation that has not had a general rate proceeding in the past three years. In no event shall an electrical corporation collect an ISRS for more than three years unless the corporation has filed for or is the subject of a new general rate proceeding.
At the time that an electrical corporation files a petition, it shall submit proposed ISRS rate schedules and supporting documentation, and the Commission shall publish notice of the filing. Upon the filing of the petition, the Commission shall conduct an examination of the proposed ISRS including an examination of the recovery of appropriate pretax revenue. An examination of appropriate pretax revenue shall consider only factors as set forth in this act.
While an electrical corporation is collecting an ISRS, they may only adjust the rate two times every twelve months. At the end of each year, the corporation shall reconcile the differences between ISRS revenues and appropriate pretax revenues and submit the adjustment to the Commission for recovery approval. If an electric corporation files a petition or change to an infrastructure system replacement surcharge, it shall not be considered an increase in the electric corporation's base rate.
This act also requires any electrical corporation to implement a tracking mechanism to track the differences between noncapitalized costs used to set the revenue requirement and incurred costs. The electrical corporation shall defer any amounts tracked as a regulatory asset or liability to be included in the corporation's next general rate proceeding.
This act is substantially similar to HCS/HB 398 (2013).