SB998 Summary

• Establishes that costs incurred by electric utilities for transmission upgrades approved by regional transmission organizations and ordered by federal regulatory authorities are presumed recoverable, with a rebuttable presumption if costs exceed project scope.

• Allows electric utilities to file applications for Commission authorization to construct, purchase, or enter long-term contracts for electric generation facilities, with Commission decisions required within 240 days (or 180 days for natural gas facilities) following notice and hearing.

• Requires utilities constructing natural-gas-fired generation facilities to secure firm natural gas transportation contracts through competitive solicitation, with costs presumed recoverable through fuel adjustment clauses.

• Creates a new regulatory asset deferral mechanism allowing public utilities to defer 90% of depreciation expenses and return on incremental electric plants placed in service, with Commission prudence review and 20-year amortization beginning July 1, 2025.

• Provides that regulatory asset balances created under the deferral mechanism shall accrue carrying costs at the utility's weighted average cost of capital plus applicable taxes, with balances not included in rate base accruing carrying costs until recovery.