Commission would link utility returns to changes in retail rates

The commission may raise a utility’s allowed return on equity by up to 0.5 percentage points. This applies to an electric public utility whose all-in average retail rate did not rise by more than 1% during the previous calendar year. The utility must show the rate information at a public hearing. The commission must find that the rate rose by no more than 1%. The higher return would be based on the return allowed in the utility’s most recent general rate proceeding. The increase would last for the 12 months after the commission issues its order.

The commission may lower a utility’s allowed return on equity by up to 0.5 percentage points. This applies to an electric public utility whose all-in average retail rate rose by more than 1% during the previous calendar year. The proceeding could begin with a customer complaint or the commission’s own action. The lower return would be based on the return allowed in the utility’s most recent general rate proceeding. The commission would amend the utility’s retail rates to include changes ordered under this section. The decrease would last for the 12 months after the commission issues its order.