Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.
Impact
The legislation requires customers to certify their construction projects to the Board of Public Utilities within 90 days, providing a clear framework for compliance. If customers fail to provide this certification, they may be liable for the costs incurred by the utility for the infrastructure upgrades necessitated by their construction. This provision serves to ensure that utilities can recover costs while simultaneously not imposing undue financial pressure on customers engaging in preventative construction against disasters.
Summary
Senate Bill S61 seeks to address the financial implications of utility upgrades that result from customer construction projects aimed at mitigating damage from natural disasters. Under this bill, utilities are prohibited from charging customers for the costs associated with necessary upgrades to their infrastructure when those upgrades are linked to a 'qualified construction project' done to safeguard customers' properties from natural disasters. This aims to incentivize customers to undertake such projects without the added financial burden of utility charges.
Contention
Debate around S61 may arise from concerns about the balance between utility management and customer protection. Opponents might argue that the bill could create financial uncertainty for utilities that may rely on these costs for revenue stability. Proponents, however, see it as a necessary measure to protect homeowners and encourage proactive construction efforts following natural disaster threats. The requirement for certification and clear definitions in the bill strives to mitigate potential misuse while serving public interests.
Carry Over
Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.
Carry Over
Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.
Same As
Prohibits utility from billing customer for costs incurred for certain upgrades to utility infrastructure; allows costs for certain upgrades to utility infrastructure be recovered in utility's rate base.