Bill > S2143

This bill aims to protect consumers from unreasonable utility rate increases. It proposes two key provisions: 1) The state regulatory department cannot approve an allowed return on equity (ROE) for electric and gas companies that is higher than the average ROE approved in neighboring states over the preceding 4 years, unless the company can show this would violate its constitutional rights. This excludes compensation related to energy efficiency and performance incentive programs. 2) The department cannot approve a performance-based ratemaking mechanism with a negative productivity factor, offset, or X-factor, which would automatically result in annual revenue increases higher than inflation. This applies to any such mechanisms approved before December 2019, requiring the exclusion of the negative productivity factor from future filings.

Transportation and Infrastructure

https://malegislature.gov/Bills/192/S2143