Bill > H3452

This bill aims to protect consumers from unreasonable utility rate increases by placing a cap on the return on equity (ROE) that electric and gas companies can earn in rate proceedings. Specifically, the bill limits utility companies' allowed ROE to no higher than the average ROE approved in neighboring states (Connecticut, Rhode Island, Maine, Vermont, and New Hampshire) over the past four years. The department overseeing utility rates can only waive this cap if a utility company can demonstrate that the restriction would violate its constitutional rights. The bill explicitly states that this ROE limitation does not include compensation related to specific energy efficiency or performance incentive programs designed to promote efficient, clean, and reliable energy systems. By tying utility companies' potential earnings to regional averages, the bill seeks to ensure that consumers are not burdened with excessive rates while still allowing utilities a reasonable opportunity to earn a fair return on their investments.

Transportation and Infrastructure

https://malegislature.gov/Bills/194/H3452