HB 5872 Summary

• Amends section 47 of the Clean, Renewable, and Efficient Energy Act to allow electric utilities to recover all reasonable and prudent costs incurred before October 6, 2008 to implement commission-approved renewable energy plans.

• Permits utilities to recover incremental compliance costs over a 20-year period beginning when their renewable energy plan is approved, including capital, operating, maintenance, and financing costs at a fixed rate of return on equity.

• Establishes a detailed calculation methodology for incremental costs including renewable energy system costs, infrastructure expenses, ancillary service costs, renewable energy credits, and certain governmental action costs, offset by offsetting revenues including environmental attributes and tax credits.

• Requires the commission to establish an annual price per megawatt hour for renewable energy sold to retail customers and allows utilities to recover the lower of the commission-established price or actual price paid through power supply cost recovery mechanisms.

• Repeals section 27 of the Clean, Renewable, and Efficient Energy Act, eliminating the renewable energy portfolio standard requirement.