HB 4308 Summary

• Amends Section 47 of the Clean, Renewable, and Efficient Energy Act to allow electric utilities to recover actual costs incurred before October 6, 2008 for implementing commission-approved renewable energy plans as a cost of service.

• Establishes a 20-year cost recovery period beginning when a utility's renewable energy plan is approved, allowing recovery of incremental compliance costs including capital, operating, maintenance, and financing costs for renewable and advanced cleaner energy systems.

• Specifies that utilities may recover authorized rate of return on equity for approved costs, with the rate of return and debt-to-equity ratio fixed at the level in effect when the plan was approved.

• Requires utilities to subtract offsetting revenues from cost recovery calculations, including environmental attribute sales, tax credits, wholesale energy sales, and revenues from renewable energy contracts subject to power supply cost recovery clauses.

• Repeals Section 27 of the 2008 Act and includes provisions for deferred cost recovery if compliance costs exceed maximum retail rate impacts specified in Section 45, with recovery limited to a 5-year period after the initial 20-year period ends.