Purpose

To change how public utilities report certain expenses in rate cases, strengthen transparency around those expenses, and address sunset provisions related to cost recovery for gas utility infrastructure costs. The bill modifies the statute that governs what expenses utilities may recover and how they must report them to the state utility regulator.

What the bill would require (main provisions)

• Itemized reporting of travel, entertainment, and related employee expenses in rate cases
  • Utilities filing a general rate case must include a separate schedule that itemizes all travel, entertainment, and related expenses.
  • Categories to itemize include:
  • Travel and lodging expenses
  • Food and beverage expenses
  • Recreational and entertainment expenses
  • Board of director-related expenses (and separate itemization of all compensation and expense reimbursements)
  • Compensation and expense reimbursements for the ten highest-paid officers and employees
  • Dues and expenses for memberships in organizations or clubs
  • Gift expenses
  • Aircraft-related expenses (owned, leased, or chartered)
  • Lobbying expenses
• Level of detail for each expense
  • For each expense, provide date, amount, vendor name, and business purpose.
  • The itemization can be shown in standard accounting reports already used by the utility, in written or electronic format approved by the commission.
  • The utility must also disclose total amounts for each category and itemize expenses for executives at vice president level or higher and for board members.
  • A one-page summary of total amounts by expense category must be included in the petition’s proposed test year.
• Data access and privacy
  • Most expense data are public, but the salary data for one or more of the ten highest-paid officers and employees (other than the five highest-paid) may be treated as private data or protected by a court order if disclosure could cause competitive harm.
  • Government entities that are party to the rate case can access the data; protective orders can restrict releases if needed.
• Repeals and related provisions
  • The bill repeals a specific older law (Laws 2005, chapter 97, article 10, section 3, as amended by later laws).
• Sunset provisions
  • The bill includes a sunset for the newly added sections, stating they expire on June 30, 2023.
  • There is a stated intent in the title to eliminate the sunset on cost recovery for gas infrastructure costs, which appears to conflict with the sunset language in the text.

Significant changes to existing law

• Expands and tightens reporting requirements in rate cases for travel, entertainment, and related expenses.
• Adds detailed itemization requirements for compensation, board-related costs, and executives’ salary information, with privacy protections for certain data.
• Repeals an older statute related to these reporting requirements.
• Introduces a sunset for the new reporting requirements, which could end their effect unless extended (despite the stated goal of eliminating a sunset for gas infrastructure cost recovery).

Potential effects and considerations

• Increased transparency: customers and the public would gain clearer visibility into how utility funds are spent on travel, entertainment, lobbying, and executive compensation during rate cases.
• Administrative burden: utilities would face more detailed recordkeeping and reporting requirements.
• Privacy balance: the bill tries to protect sensitive salary information while keeping access for government entities.
• Policy tension: there is a potential clash between the bill’s stated goal to eliminate a sunset on certain cost recovery and the explicit sunset language for the new reporting provisions.

What this means in plain terms

• If passed, utilities would have to show exactly where their money goes for travel, entertainment, board costs, and executive pay when they request higher rates.
• Some salary information might be kept private, but most expense data would be public.
• An older law related to these reporting rules would be repealed.
• The new reporting rules would expire in 2023 unless the sunset is extended or removed, which could affect how long these changes apply.

Relevant Terms - rate case - recoverable expenses - public utility - operating expenses - travel and lodging - food and beverage - recreational and entertainment expenses - board of directors - compensation and expense reimbursements - ten highest paid officers - vice president or higher - dues and memberships - gifts - owned/leased/chartered aircraft - lobbying expenses - itemized - business purpose - date - amount - vendor - test year - standard accounting reports - public data - private data - protective order - repeal - sunset - gas utility infrastructure costs