HB 5015 Summary

• Establishes a power supply cost recovery clause allowing electric utilities to adjust rates monthly to recover fuel and purchased power costs, subject to Public Service Commission approval after a contested case hearing.

• Requires utilities to file annual power supply cost recovery plans describing expected power sources and anticipated cost changes for a 12-month period, along with a 5-year forecast of supply requirements and costs.

• Creates a power supply cost reconciliation proceeding conducted annually after each 12-month period to reconcile revenues collected against actual costs, with authority to disallow specific categories of expenses (including fuel costs from affiliated companies, demurrage charges, and unloading costs).

• Requires utilities to refund or credit customers for overcollections and permits recovery of undercollections, with interest determined based on the utility's borrowing rate or authorized return on equity, depending on the circumstances.

• Adds section 6u establishing procedures for the Public Service Commission to update rates and contracts for cogeneration facilities and small power production facilities under the federal Public Utility Regulatory Policies Act of 1978, requiring just and reasonable rates that do not discriminate.