HB 5447 Summary

• Amends renewable energy cost recovery provisions to allow electric providers to recover actual costs incurred before the repeal of Section 27, including capital, operating, maintenance, and financing costs for renewable and advanced cleaner energy systems over a 20-year period following commission approval.

• Establishes incremental cost calculation methodology that subtracts revenues from environmental attributes, tax credits, wholesale sales, and other sources from total reasonable and prudent costs to determine net recovery amounts.

• Authorizes electric providers to recover compliance costs through retail rates subject to retail rate impact limits in Section 45, with the ability to defer excess costs for later recovery if rate impact limits are exceeded.

• Modifies energy optimization plan cost recovery by limiting electric primary customer classes to 1.7% of retail sales revenue and residential and secondary customers to 2.2%, with provisions for capitalizing equipment costs and establishing depreciation treatment.

• Repeals former Sections 27, 77, and 81 of the 2008 Clean, Renewable, and Efficient Energy Act, which previously addressed renewable energy standards compliance and energy optimization requirements.