SCS/SB 240 - The act requires the Public Service Commission to specify in its decisions the annual amount of net write-off incurred by a gas corporation. Such amount shall be determined as of the date revenues, rate base, and expenses were last updated in the general rate case proceeding. After such a decision, the gas corporation shall be allowed to recover from customers 90% of the increase in net write-offs. For decreases in net write-offs, the gas corporation must return to customers 90% of the decrease. Such recoveries or returns shall occur over a period not to exceed five years.
Currently, the Public Service Commission cannot approve an ISRS without having issued a rate proceeding decision within the last three years. A gas corporation cannot collect an ISRS for more than three years unless a rate proceeding occurs. This act modifies these provisions to five years. The act also increases the amount a gas corporation may recover through infrastructure system replacement surcharges (ISRS) from 10% of the gas corporation's base revenue level to 15%.
This act contains an emergency clause for certain sections.