Bill > HSB519

Introduced Session

This bill relates to energy production including the modification of electric power generation, energy storage, and transmission facility ratemaking principles. The bill modifies intent language to reflect an intent to attract energy storage and develop nuclear power generation for consumers in the state. The bill alters ratemaking principle processes and modifies when a rate-regulated public utility may seek ratemaking principles. In addition to electric power generating facilities and alternate energy production facilities, the utilities commission (commission) may specify the ratemaking principles applying to an energy storage facility. The bill provides that a rate-regulated public utility may seek ratemaking principles from the commission when there are construction-related costs of an electric power generating facility with a nameplate generating capacity equal to or greater than 40 megawatts, an alternate energy production facility, or an energy storage facility, or significant alterations to an existing electric power generating facility, alternate energy production facility, or energy storage facility. Current law generally provides that when a rate-regulated public utility files an application to construct a baseload electric power generating facility with a nameplate generating capacity equal to or greater than 300 megawatts or a combined-cycle electric power generating facility or an H.F. _____ alternate energy production facility, or to significantly alter an existing generating facility, the commission shall specify in advance the ratemaking principles that will apply. The bill modifies the requirements for a significant alteration of an existing generating facility to qualify for the establishment of ratemaking principles. The bill provides that to qualify for ratemaking principles, the significant alteration can convert an electric power generating facility to an alternate fuel type, add carbon capture and carbon storage to an electric power generating facility, add a facility to capture exhaust heat to an electric power generating facility, repower an alternate energy production facility, or add energy storage to an existing electric power generating facility, alternate energy production facility, or energy storage facility. Current law provides that to qualify for ratemaking principles, the significant alteration can convert a coal fueled facility into a gas fueled facility, add carbon capture and carbon storage to a coal fueled facility, add gas fueled capability to a coal fueled facility, add a biomass fueled capability to a coal fueled facility, or repower an alternate energy production facility. The bill provides that a utility investment to convert an electric power generating facility to a different fuel type, add carbon capture and carbon storage to an electric power generating facility, or add a fuel type to an electric power generating facility shall be eligible to apply the ratemaking principles established by an order issued prior to construction or lease of a facility. The bill provides that a rate-regulated public utility may seek ratemaking principles for leasing or owning a new electric power generating facility with a nameplate generating capacity equal to or greater than 40 megawatts, a new energy storage facility, or a new alternate energy production facility. Current law provides that a rate-regulated public utility leasing or owning a new baseload electric power generating H.F. _____ facility with a nameplate generating capacity equal to or greater than 300 megawatts, a combined-cycle electric power generating facility, or a new alternate energy production facility may seek ratemaking principles. The bill requires the commission to issue an order after the contested case proceeding that the ratemaking principles will apply when the costs of the electric power generating facility or alternate energy production facility are included in regulated electric rates once the commission finds that the rate-regulated public utility’s application for ratemaking principles meets all the commission’s requirements. The bill requires the return on equity for a utility’s wind energy systems and solar energy systems to be the same as the utility’s most recent rate proceeding.

Committee Categories

No sponsors listed

Other Sponsors (1)

Subcommittee recommends passage. (on 01/22/2026)

Official Document