Bill Summary: SB 123

• Changes revenue decoupling for gas and electric distribution companies from mandatory ("shall") to discretionary ("may") for rate cases initiated after October 1, 2023, allowing the Public Utilities Regulatory Authority flexibility in determining decoupling mechanisms.

• Modifies settlement procedures for rate cases to require detailed analysis of rate increases, testimony from settling parties, and positions from non-settling parties, with strict filing deadlines and evidentiary support requirements.

• Increases renewable energy portfolio standards significantly, raising Class I renewable energy requirements from 26% (2023) to 44% (2030) while eliminating separate Class II renewable energy standards.

• Eliminates Class II renewable energy as a distinct category and redirects Class II compliance payments to a sustainable materials management account instead of the Clean Energy Fund.

• Establishes a task force to study electric distribution companies' procurement practices for standard service and report recommendations by January 1, 2024, with the goal of lowering energy costs for ratepayers.