Amendment #83 to H5151

Utility Rate of Return Limitation

Mr. Kearney of Scituate moves to amend the bill by adding the following section:

"SECTION XXXX. Chapter 164 of the General Laws is hereby amended by inserting after section 94I the following section:

Section 94J. (a) Notwithstanding any general or special law to the contrary, the department of public utilities shall ensure that the total authorized annual rate of return on equity for any gas company, electric company, or distribution company regulated under this chapter shall not exceed 5 per cent.

(b) In establishing or approving rates, the department shall disallow any recovery of revenues, charges or adjustments that would result in a rate of return in excess of the limitation established in subsection.

(c) The department shall annually review utility financial filings to ensure compliance with this section and shall order refunds or rate adjustments as necessary to protect ratepayers.

(d) Nothing in this section shall be construed to impair the department’s authority to ensure safe, reliable and affordable utility service.”

Additional co-sponsor(s) added to Amendment #83 to H5151

Utility Rate of Return Limitation