HB 1423 Summary

• Authorizes certain utilities (energy utilities, water utilities, and wastewater utilities) to elect annual rate reviews as an alternative to traditional general rate proceedings.

• Requires utilities electing annual review to file forecast reports 60 days before each fiscal year and reconciliation reports within 5 months after fiscal year end, detailing projected and actual rates of return on equity or net operating income.

• Establishes a permissible range for investor-owned utilities of 50 basis points above or below the rate of return authorized in their most recent general rate proceeding, and 5% above or below net operating income for municipally-owned utilities.

• Suspends certain rate adjustment mechanisms (such as fuel and gas cost adjustments) during the period an election is in effect, and allows utilities to withdraw or rescind elections under specified conditions.

• Election expires after 6 fiscal years or when the utility receives a general rate order, unless renewed by the utility in a general rate proceeding; effective July 1, 2011.