Sub. H. B. No. 389 Summary

• Permits electric distribution utilities to submit applications to the Public Utilities Commission for approval of voluntary energy efficiency and demand reduction portfolios to help customers save energy.

• Requires portfolios to achieve at least 0.5% gross annual energy savings, include at least one program for low-income residential customers (earning at or below 200% of federal poverty level) with minimum 15% of residential program costs dedicated to low-income programs, and emphasize smart technology measures.

• Limits net portfolio costs to 2.25% of the difference between a utility's annual total electric operating revenues minus purchased power expenses, with a residential rate cap of $1.50 per customer per month.

• Allows residential and nonresidential customers to opt out of participation within 21 days of portfolio approval, while automatically opting out mercantile customers unless they affirmatively opt in; recovery of lost distribution revenues excluded from portfolio cost calculations.

• Requires utilities to submit annual cost-effectiveness and compliance reports by April 15 each year, with the Public Utilities Commission submitting tri-annual reports to the General Assembly beginning July 1, 2026.