Performance-based rate-making - investigation - report - repeal.

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(1) The commission shall conduct an investigation of financial performance-based incentives and performance-based metric tracking to identify mechanisms that may serve to align regulated utility operations, expenditures, and investments with public benefit goals including safety, reliability, cost efficiency, emissions reductions, and expansion of distributed energy resources. The investigation, which shall be conducted in an investigatory proceeding, must consist of a review of existing and potential metrics, including future test years, and consideration of new performance-based incentives.

(2) (a) Within eighteen months after May 30, 2019, the commission shall report its findings to the senate transportation and energy committee and the house of representatives energy and environment committee, or their successor committees. The report must include the following:

  1. A general determination as to whether a transition to performance-based metrics regulation of a regulated utility would be net beneficial to the state, in terms of meeting stated objectives of the commission and other related statutory requirements;

  2. Actions that the commission may pursue to guide the change to a performance-basedmetrics regulation;

  3. Directives to be given to utilities;

  4. A list of types of future litigated proceedings within which the report could beimplemented; and

  5. A proposed timeline for transition to performance-based metrics regulation.

(b) The report may include any recommendations of legislation needed to fully realize the benefits of performance-based metrics regulation, including identifying any existing statute that would serve as an impediment to realizing the full benefits of a transition to performancebased metrics regulation and suggested recommended changes to the existing statute.

(3) This section is repealed, effective September 1, 2021.

Source: L. 2019: Entire section added, (SB 19-236), ch. 359, p. 3306, § 11, effective May 30.


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