Relating to electric power generation, energy storage, and transmission facility ratemaking principles, and including applicability provisions

Division I of the bill provides that a rate-regulated public utility may seek ratemaking principles from the board when there are construction-related costs of an electric power generating facility with a nameplate generating capacity equal to or greater than 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 alternate energy production facility, or to significantly alter an existing generating facility or a new alternate energy production facility, the board shall specify in advance the ratemaking principles that will apply. Division I of the bill modifies the requirements for a significant alteration of an existing generating facility to qualify for the establishment of ratemaking principles. Division I of 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. Division I of 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. Division I of 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 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 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. Division I of the bill provides that the board may require an integrated resource plan (plan) as a condition of an advance ratemaking petition approval. The board shall adopt rules for the plan and the plan shall include proposals for the use of certain resources. Division I of the bill requires the board to adopt rules for proceedings to conclude months after a petition is filed. Division I of the bill applies to an application for new or changed rates, charges, schedules, or regulations filed by a public utility on or after the effective date of the bill. Division II of the bill requires the board to conduct a review of the performance-based regulation frameworks and various components to ensure utility services are safe, adequate, reliable, and affordable and provided at rates that are nondiscriminatory, just, reasonable, and based on the cost of the utility to provide service to customers within the state. The board shall submit a report containing the findings and recommendations of the review to the general assembly by October 1, 2026.