Bill > B26-0596

This bill, the Utility Rates and Ratemaking Amendment Act of 2026, aims to reform how utility rates are set and how infrastructure projects are approved by the Public Service Commission (PSC), the regulatory body overseeing utilities in the District of Columbia. Specifically, it mandates that the PSC can only approve multiyear rate plans, which set utility prices for several years, if these plans are based on actual past costs (historic test years) and do not allow for adjustments to make up for unexpected cost or revenue differences (no reconciliation). The bill also requires that any excess profits utilities make on their investment in equity (return on equity) must be returned to customers, and that these plans must clearly show how customers will financially benefit. Furthermore, for gas companies seeking to recover costs for infrastructure upgrades, the bill requires them to demonstrate that these projects will benefit customers and that they have explored less expensive alternatives, such as leak detection and repair, before undertaking the work. Finally, the PSC must consider any financial advantages a gas company gains from charging customers for infrastructure projects through surcharges when setting future rates.

Transportation and Infrastructure

https://lims.dccouncil.gov/Legislation/B26-0596