Bill > S2088

This bill aims to protect consumers from unreasonable utility rate increases. It proposes two key provisions: 1) The Department of Public Utilities (DPU) 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 previous 4 years, unless the company can show that this would violate its constitutional rights. 2) The DPU cannot approve a performance-based ratemaking mechanism for electric and gas companies that includes a negative productivity factor, offset, or X-factor, which could automatically result in annual revenue increases higher than the rate of inflation. The second provision would apply to any new performance-based ratemaking mechanisms approved more than 30 days after the bill's effective date, and would require the DPU to exclude negative productivity factors from any existing mechanisms.

Transportation and Infrastructure

https://malegislature.gov/Bills/193/S2088