Senate Bill 23-291 Summary

• Limits discount rates used in electric utility resource planning to the long-term rate of inflation when calculating net present value of future carbon-based fuel costs.

• Requires the Public Utilities Commission to establish rules limiting the amount of rate case expenses utilities can recover from ratepayers, including considerations for symmetrical incentives, expert/consultant costs, and discovery parameters.

• Prohibits utilities from recovering certain costs from customers including more than 50% of board member compensation, tax penalties, lobbying expenses, charitable contributions, political contributions, travel/entertainment expenses, and advertising that doesn't directly relate to required programs.

• Requires gas utilities to submit gas price risk management plans by November 1, 2023 and mandates the Commission adopt fuel cost sharing mechanisms by January 1, 2025 to align utility financial incentives with customer interests.

• Eliminates gas service incentives and line extension allowances for new customers, establishes procedures for customer disconnection from gas service, and directs studies on stranded gas infrastructure risks and beneficial electrification barriers.