HB2529 Summary: Utilities Infrastructure Rate

• Amends the Public Utilities Act to establish a performance-based formula rate structure allowing participating electric utilities serving over 1 million customers to recover infrastructure investment costs through annual rate updates without traditional rate case proceedings.

• Requires participating utilities to invest $1.3-2.6 billion over 5-10 years in distribution upgrades, smart grid technology, and training facilities, while creating 2,000+ full-time equivalent jobs during peak program years.

• Establishes customer assistance programs with minimum $10 million annual contributions (5 years) or $1 million annually (10 years) for low-income and hardship assistance, disabled veterans, and budget counseling.

• Implements performance metrics tied to service reliability improvements (20-75% reduction targets), meter accuracy, energy efficiency, and diversity in business contracting, with financial penalties (up to 38 basis points) for non-compliance applied to return on equity.

• Expires December 31, 2017 (or 2022 if conditions not met), with a 2.5% annual rate increase cap; if exceeded, the performance-based formula terminates and utility returns to standard rate-setting procedures under Article IX.