Bill > H5018

This bill proposes to limit the profit margin of electric and gas distribution companies with more than 100,000 customers to no more than 4% in any calendar year, starting July 1, 2025. The bill defines "profit margin" specifically as the return on equity (ROE), which is the return on the equity portion of the base rate as allowed by the Public Utilities Commission. By inserting this provision into existing law about revenue decoupling, the bill aims to provide additional financial oversight of utility companies, ensuring they do not generate excessive profits. The legislation requires the Public Utilities Commission to amend its rules and regulations to be consistent with this new profit margin limitation. This change is part of broader efforts to balance the financial interests of utility companies with consumer protection, recognizing the need to maintain utility companies' financial health while preventing what could be perceived as unreasonable profit-taking in essential service industries. The bill will take effect immediately upon its passage, signaling the legislature's intent to implement these changes promptly.

Business and Industry

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