Sub. H.B. No. 79 Summary

• Establishes framework for electric distribution utilities to submit voluntary energy efficiency and demand reduction program portfolios to the Public Utilities Commission for approval, with a maximum term of five years.

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

• Caps utility incentives at 10% of actual program costs and limits monthly charges to residential customers at $1.50 per customer per month and nonresidential retail customers at $7.50 per customer per month.

• Permits utilities to recover approved program costs, utility incentives, and lost distribution revenues through commission-approved mechanisms, with net portfolio costs not exceeding 2.25% of the utility's annual operating revenues minus purchased power expense.

• Allows residential and nonresidential retail customers to opt out of portfolio participation within 45 days of commission approval, while mercantile customers must affirmatively opt in; requires annual cost-effectiveness reviews and reporting to the General Assembly every three years beginning July 1, 2026.