{"AmendmentNumber":"100","ParentBillNumber":"H5151","Bill":null,"Sponsor":{"Id":"M_C1","Name":"Mike Connolly","Type":1,"Details":"https://malegislature.gov/api/GeneralCourts/194/LegislativeMembers/M_C1","ResponseDate":"2026-02-25T15:59:52.727"},"Category":null,"Action":"Consolidated","RollCall":[],"Title":"Increasing financial transparency and accountability for investor-owned utilities","Branch":"House","RedraftNumber":null,"IsFurther":false,"GeneralCourtNumber":194,"Text":"Mr. Connolly of Cambridge moves to amend the bill by adding the following section:\r\n\"SECTION  XXXX.  SECTION 1. Legislative Findings.\r\nThe General Court finds that:\r\n(a) Electric and gas distribution companies operate as regulated monopolies within the Commonwealth.\r\n(b) Increased public access to standardized, jurisdiction-specific financial information is necessary to ensure rates are just and reasonable pursuant to chapter 164 of the General Laws.\r\n(c) Transparency regarding corporate earnings, return on equity, executive compensation, and lobbying expenditures promotes public confidence in rate-setting proceedings and enhances regulatory accountability.\r\n(d) Existing federal and Securities and Exchange Commission disclosures do not provide Massachusetts jurisdictional transparency sufficient for public oversight.\r\nSECTION 2. Definitions.\r\nFor purposes of this section:\r\n“Department” means the Massachusetts Department of Public Utilities.\r\n“Distribution Company” means any investor-owned electric or gas distribution company subject to regulation under chapter 164.\r\n“Jurisdictional Financial Information” means financial data allocable to Massachusetts-regulated distribution operations, excluding non-regulated and out-of-state operations except as necessary for allocation transparency.\r\n“Authorized Return on Equity (ROE)” means the rate of return approved by the Department in the most recent base distribution rate proceeding.\r\n“Earned Return on Equity” means the actual return achieved by the distribution company on its Massachusetts jurisdictional rate base.\r\nSECTION 3. Rulemaking Requirement.\r\n(a) Within 180 days of enactment, the Department shall promulgate regulations requiring each distribution company to file standardized annual and quarterly public reports containing jurisdictional financial information.\r\n(b) Regulations shall ensure public accessibility through a centralized online transparency portal maintained by the Department.\r\n(c) The Department shall be authorized to utilize its powers to ensure the complete and timely production of said standardized annual and quarterly public reports\r\nSECTION 4. Required Annual Reporting.\r\nThe Department’s regulations shall require, at minimum, annual disclosure of: Authorized ROE and achieved ROE; Massachusetts jurisdictional net income and operating income; Rate base and rate base growth; Revenue requirement components; Capital expenditures; Operations and maintenance expenses; Debt-to-equity ratio; Dividend payments allocable to Massachusetts operations; Affiliate transactions affecting Massachusetts ratepayers; Any earnings in excess of authorized ROE.\r\nSECTION 5. Quarterly Reporting.\r\nQuarterly reports shall include: Earned ROE year-to-date; Variance from authorized ROE; Capital spending relative to forecast; Major project updates; O&M cost trends; Interest expense and cost of debt.\r\nSECTION 6. Executive Compensation Disclosure.\r\nRegulations shall require annual public reporting of: Total compensation of senior executives with operational authority over Massachusetts distribution operations; Breakdown of salary, bonus, stock awards, and other incentive compensation; Performance metrics used to determine incentive compensation; Identification of any incentive metrics tied to earnings or financial performance; Portion of executive compensation included in Massachusetts revenue requirements. The Department may limit disclosure to amounts reasonably allocable to Massachusetts-regulated operations.\r\nSECTION 7. Lobbying and Political Expenditures.\r\nRegulations shall require annual disclosure of: State and federal lobbying expenditures; Trade association dues; Political contributions; Public relations and advertising expenditures related to legislative or regulatory matters; Any such expenditures recovered, directly or indirectly, through Massachusetts rates. The Department shall identify whether such expenditures are treated as above-the-line or below-the-line for ratemaking purposes.\r\nSECTION 8. Jurisdictional Allocation Standards.\r\n(a) The Department shall establish uniform allocation methodologies to determine the portion of parent company financial activity attributable to Massachusetts-regulated distribution operations. (b) Regulations shall ensure transparency regarding cost allocation methods.\r\nSECTION 9. Confidential Information.\r\n(a) The Department may permit narrowly tailored redactions of bona fide trade secrets.\r\n(b) Aggregate financial data necessary for evaluating earnings and ratepayer impacts shall not be deemed confidential.\r\nSECTION 10. Public Hearing Requirement.\r\nThe Department shall conduct an annual public hearing reviewing:\r\nReported earnings relative to authorized ROE; Trends in rate base growth; Executive compensation trends; Lobbying and political expenditure trends.\r\nSECTION 11. Enforcement and Remedies.\r\n(a) Failure to comply with reporting requirements shall constitute a violation of chapter 164.\r\n(b) The Department may impose administrative penalties or initiate investigations based on reported data.\r\n(c) Nothing in this act shall alter the Department’s authority to order refunds or rate adjustments pursuant to existing law.\r\nSECTION 12. No Conflict with Federal Law.\r\nRegulations shall be implemented consistent with federal jurisdiction under the Federal Power Act and Natural Gas Act and shall not require disclosure in violation of federal securities law, but may require supplemental Massachusetts jurisdictional reporting.”.\r\n\r\n"}