HB 1662 Summary

• Amends the Formula Rate Review Act to update cost allocation requirements for public utilities, changing reference dates from January 1, 2015 to January 1, 2021 for determining rate classes and allocation methodologies.

• Provides mandatory five-year extension of formula rate review terms for electric utilities with high-consumption customer classes exceeding 7 million megawatt hours (7,000,000 MWh) annually if extension requested by March 15, 2021.

• Establishes specific cost allocation methods using the 1992 National Association of Regulatory Utility Commissioners manuals for electric utilities and 1989 manuals for natural gas utilities, with adjustments allowed only under limited public interest circumstances or to prevent rate increases exceeding 10%.

• Requires utilities using projected year test periods to support projections primarily through historical averages rather than corporate budgets, and mandates 45-day advance notice to other parties regarding construction projects and planned investments.

• Declares an emergency clause making the act effective immediately upon governor approval to maintain stable utility rates and clarify the regulatory framework for public utility investments.