An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in rates and distribution systems, providing for return on equity; in service and facilities, further providing for billing procedures; and, in restructuring of electric utility industry, further providing for revenue-neutral reconciliation.

This bill establishes a new framework for Pennsylvania public utilities to earn a return on their equity investments, directly affecting investor-owned electric, gas, and water companies regulated by the state commission. It creates a competitive auction process where utilities can bid to set their own return rates based on market conditions, while also providing a default rate of the 10-year U.S. Treasury yield plus 2 percent if no auction occurs. To support this system, the legislation requires utilities to separate their services into distinct legal entities and mandates annual reporting to ensure transparency. Ultimately, the law aims to determine how much profit these utility companies can make on their investments while maintaining oversight through the state commission.