Bill would require PSC annual rate reports and customer notice before rate cases, staff say

At a Feb. 17 energy subcommittee briefing of the Environment and Transportation Committee, staff outlined House Bill 540, a transparency measure that would require the Public Service Commission to develop and publish an annual rate report for each investor‑owned electric and gas company beginning Jan. 1, 2028. Under the bill as discussed, utilities would be required to distribute the PSC’s annual rate report to retail customers via a bill insert or email and to include a notice before initiating proceedings that may lead to a rate change.

The bill, as described by legislative staffer Steve, clarifies that the PSC — not each utility — prepares the central annual report and that utilities would point customers to the PSC’s report in bill inserts and automatic payment emails. ‘‘The PSC, in consultation with OPC, has to develop and publish an annual rate report for each investor‑owned electric, gas, or combination company,’’ Steve said during the briefing. The Office of People’s Counsel (OPC) would be required under the bill to file a case at PSC if it determines the annual report contains incorrect or misleading information.

Members focused questions on the sponsor amendments and implementation costs. Vice Chair Guyton and others said they had not received the sponsor’s amendments; staff agreed to distribute them. Ben Baker, who reviewed a letter of information, said he could not estimate ratepayer impacts without seeing the amendments and that the primary direct costs the bill could create are the production and distribution of materials — printing and mailing for bill inserts — unless the committee opts to rely on links to PSC webpages, which could reduce costs. ‘‘The bill impact discussion is around development of materials and mailing,’’ Baker said. ‘‘Physical printing and mailing is probably where most of the cost would be with this.’’

Committee members noted that shifting some notice to a PSC website link could reduce ratepayer exposure to printing and mailing costs. Members also asked why the bill applies to investor‑owned utilities rather than municipal or cooperative utilities; staff and members observed that investor‑owned utilities are typically larger, regulated by PSC, and have more resources to produce standardized reports, while municipal utilities and co‑ops are often smaller and follow different governance processes.

No formal action or vote was taken on HB 540 at the Feb. 17 work group meeting. Staff pledged to circulate sponsor amendments and to follow up with fiscal and implementation details for the committee to review before future consideration.