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IN SB0516
Bill
AI Summary
SB 516 Summary
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Expands infrastructure cost recovery provisions to include municipally owned utilities and not-for-profit utilities, previously limited to public utilities.
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Allows eligible utilities (public, municipally owned, and not-for-profit) providing water or wastewater service to petition the commission for rate adjustments to recover infrastructure improvement costs.
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Defines "infrastructure improvement costs" differently by utility type: public utilities may recover depreciation and pretax return; municipally owned utilities may recover debt service and depreciation; not-for-profit utilities may recover debt service only.
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Caps total adjustment revenues at 10% of the utility's base revenue level approved in its most recent general rate proceeding.
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Requires utilities to reconcile actual adjustment revenues against infrastructure costs every 12 months and refund or recover differences through additional adjustments.
Legislative Description
Utility infrastructure improvements. Amends the law on water and wastewater utility distribution system improvement charges so that the law applies to municipally owned utilities and not-for-profit utilities as well as to public utilities. Allows a municipally owned utility or not-for-profit utility that is under the jurisdiction of the utility regulatory commission (commission) for the approval of rates and charges to petition the commission for the adjustment of its basic rates and charges to provide for the recovery of infrastructure improvement costs. Provides that "infrastructure improvement costs", for a municipally owned utility, means debt service and depreciation expenses associated with eligible
Last Action
Public Law 212
5/5/2015