Relating to the recovery of certain expenses by an electric utility or a water and sewer utility in a rate proceeding.

HB 4427 limits how much electric and water utilities can charge customers for legal fees in rate proceedings. It caps recoverable legal expenses at either $50,000 or 50% of the utility’s total legal costs for the proceeding, whichever is greater. The bill also explicitly prohibits including legislative advocacy costs, executive salaries, advertising, or other expenses deemed unreasonable by regulators in rate calculations. These changes apply only to rate cases beginning on or after September 1, 2025.