HI HB1151

Electric utilities and gas utilities must submit proposed capital expenditures exceeding $500,000 or 10% of total plant in service (whichever is less) to the Public Utilities Commission for review at least 60 days before construction or commitment to expenditure.

The PUC must hold a hearing and determine whether any portion of the proposed project is unnecessary or exceeds probable future requirements for utility purposes; portions determined to be unnecessary cannot be included in the rate base.

Utilities may later petition the PUC to include previously excluded property in the rate base if they demonstrate it is necessary and useful for public utility purposes.

If the PUC does not render a decision within 90 days of filing, the utility may include the capital expenditures in its rate base without PUC determination.

Effective date: June 30, 3000.