ELECTRIC COOP MEMBER-REGULATION H.B. 5383 (H-1):
FLOOR SUMMARY
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House Bill 5383 (Substitute H-1 as reported without amendment)
Sponsor: Representative Terry Brown
House Committee: Energy and Technology
Senate Committee: Energy Policy and Public Utilities
CONTENT
The bill would create the "Electric Cooperative Member-Regulation Act" to do the following:
-- Allow the board of directors of a cooperative electric utility to elect member-regulation for rates, charges, accounting standards, billing practices, and terms and conditions of service.
-- Prescribe procedures by which a board of directors could become member-regulated, including approval by two-thirds of the voting members of a member-regulation proposal.
-- Prescribe procedures by which cooperative members could overturn an adopted member-regulation proposal.
-- Provide for the Public Service Commission (PSC) to retain jurisdiction over all areas served and line extension disputes involving a member-regulated cooperative and a regulated electric utility.
Legislative Analyst: Julie Cassidy
FISCAL IMPACT
The bill would reduce the administrative costs of the Public Service Commission by an unknown amount. To the extent that electric cooperatives changed to member-regulation pursuant to the bill, the costs currently incurred by the PSC for some aspects of regulating these utilities would be reduced. The PSC, however, would retain many regulatory responsibilities for member-regulated utilities, including those for safety and customer service. The administrative costs of the PSC are appropriated in the budget for the Department of Labor and Economic Growth and are funded by assessments on regulated utilities.
Date Completed: 6-5-08 Fiscal Analyst: Elizabeth Pratt
Maria TyszkiewiczAnalysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb5383/0708