SB 512 Summary

• Authorizes utilities (energy, water, and wastewater) to elect annual rate reviews instead of traditional general rate proceedings, subject to commission approval within 120 days of filing notice.

• Establishes a range for investor-owned utilities of 50 basis points below and above their most recent authorized rate of return on common equity, and 5% below and above for municipally-owned utilities' net operating income.

• Requires utilities to file annual forecast reports 60 days before fiscal year start projecting rates of return/net operating income, and annual reconciliation reports within 5 months of fiscal year end showing actual results.

• Suspends certain rate adjustment mechanisms (including fuel and gas cost adjustment charges) while an election is in effect, and allows the annual adjustment to auto-approve if the commission does not act within 45 days of the forecast report filing.

• Allows interested parties to request evidentiary hearings on the initial election and on reconciliation reports, with the commission issuing compliance orders within 120 days of the reconciliation report filing.