Ensuring Reliable and Affordable Electricity Act
What changed between versions
Added a new definition for 'Rate of return' (RoR) that includes a specific mathematical formula to calculate the percentage of profit a utility company is allowed to earn on its invested capital, considering debt and equity splits.
Modified the definition of 'Electric Generation Unit' to explicitly include pumped hydroelectric storage, lithium-ion batteries, and any other device or asset used to store energy for later use as electricity.
Removed the definition for 'Reliability' that referenced 16 U.S.C. §824o and replaced it with a definition that includes the definition set forth in 16 U.S.C. §824o and regulations promulgated pursuant thereto.
Modified the bill's introductory text to change the purpose from 'relating to energy' to 'relating to ensuring energy reliability and affordability,' providing clearer legislative intent.
Added new commission directives requiring the Public Service Commission to adjust the allowed rate of return to reflect the capacity value of resources when approving rate increases for electric generation units.
Added new commission directives requiring the Public Service Commission to include specific findings in rate orders regarding whether assets meet chapter requirements and whether proposed actions will negatively impact reliability during peak demand.
Added new commission directives requiring the Public Service Commission to include specific information in boldface type in rate orders, including total dollar amounts of approved rate increases and summaries of denied costs.
Added new burden of proof requirements stating that applicants must establish by clear and convincing evidence that proposed assets meet capacity contributions to bulk-power system reliability during times of peak demand.