Citizen Portal
Sign In

Get Full Government Meeting Transcripts, Videos, & Alerts Forever!

Bill to cap recoverable legal expenses in rate proceedings draws split testimony; utilities warn of unintended consequences

2776425 · March 25, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Senate Bill 19 77 would limit the portion of a utility's legal expenses that may be recovered from ratepayers in a rate proceeding. Proponents said caps would protect customers; utilities and industry groups warned caps could chill legal participation, discourage investment, and run counter to the PUC's existing reasonableness review.

Senate Bill 19 77, sponsored by Senator Kolkhorst, would amend the Utilities and Water Codes to limit recovery of legal expenses in rate proceedings. The bill as filed would bar recovery of legal expenses that exceed the greater of $50,000 or 50% of a utility’s total legal expenses in a rate proceeding that commences on or after Sept. 1, 2025.

Benjamin Barclay of the Office of Public Utility Counsel (OPC) described how rate case expenses are currently recovered and noted the problem the bill seeks to address: "Because rates must be just and reasonable, utilities must invest in technical and legal experts ... these costs…

Already have an account? Log in

Subscribe to keep reading

Unlock the rest of this article — and every article on Citizen Portal.

  • Unlimited articles
  • AI-powered breakdowns of topics, speakers, decisions, and budgets
  • Instant alerts when your location has a new meeting
  • Follow topics and more locations
  • 1,000 AI Insights / month, plus AI Chat
30-day money-back on paid plans