An Act Regarding the Allocation of Net Energy Billing Costs and Long-term Contract Costs and Benefits
Sponsored By: Nicole C. Grohoski (Democratic)
Became Law
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 0 benefits, 0 costs, 4 mixed.
Annual sharing of long-term contract costs
Each year, the Commission identifies the eligible costs and benefits from long‑term energy contracts. It assigns each investor‑owned utility a pro rata share based on retail kWh sales to customers who get the benefits and pay the costs. The Commission may use transfers between utilities. For allocations and rate designs on or after July 1, 2028, the Commission groups similar customer classes across utilities and aims for fair sharing.
New net energy billing cost sharing
The Commission allocates net energy billing costs to each investor‑owned utility by its share of retail kWh sales to customers who pay these costs. If distributed generation gives a monetized net benefit not already in rates, the Commission applies it to cut the allocated costs. Starting July 1, 2028, the Commission groups similar customer classes across utilities and shares costs and benefits fairly among them. The Commission may use transfers between utilities to carry out the allocation.
Three-year electric rates and stranded costs
Beginning July 1, 2028, the Commission sets stranded cost allocations and electric rate designs for three-year periods. It allocates post‑restructuring stranded costs to customer classes by each class’s share of statewide retail kWh sales. The orders are reconciled each year. Rates must promote beneficial electrification in every customer class. The Commission can use transfers between utilities to make the allocations.
Track and bill local distributed generation costs
The Commission and each standard buyer track eligible costs and benefits from buying distributed generation. The Commission reviews these each year. It allocates and recovers the net amounts from customers of the investor‑owned utility where the project is located, using rules like those for long‑term contracts. Eligible items include the buyer’s extra costs, customer bill credits and payments, and revenue from selling the project’s output.
Sponsors & Cosponsors
Sponsor
Nicole C. Grohoski
Democratic • Senate
Cosponsors
Matt A. Harrington
Republican • Senate
Sophia Warren
Democratic • House
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
ACTPUB Chapter 555
5/1/2026PASSED TO BE ENACTED, in concurrence.
3/5/2026SenatePASSED TO BE ENACTED. Sent for concurrence. ORDERED SENT FORTHWITH.
3/3/2026HouseReports READ.On motion of Representative SACHS of Freeport, the Majority Ought to Pass as Amended Report was ACCEPTED.The Bill was READ ONCE.Committee Amendment "A" (S-495) was READ and ADOPTED.Under suspension of the rules, the Bill was given its SECOND READING without REFERENCE to the Committee on Bills in the Second Reading.The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (S-495). In concurrence. ORDERED SENT FORTHWITH.
2/26/2026HouseCOMMITTEE ON BILLS IN THE SECOND READING REPORTS NO FURTHER VERBAL AMENDMENTS NECESSARY. REPORT ACCEPTED.READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED BY Committee Amendment "A" (S-495).Ordered sent down forthwith for concurrence.
2/24/2026SenateTaken from the table by the President On motion by Senator LAWRENCE of York The Majority Ought to Pass As Amended by Committee Amendment "A" (S-495) Report ACCEPTED. Bill READ ONCE. Committee Amendment "A" (S-495) READ and ADOPTED.ASSIGNED FOR SECOND READING NEXT LEGISLATIVE DAY.
2/12/2026SenateReports READ On motion by Senator PIERCE of Cumberland Tabled until Later in Today's Session, pending ACCEPTANCE OF EITHER REPORT. Unfinished Business
2/10/2026SenateCARRIED OVER, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.
6/25/2025SenateThe Bill was REFERRED to the Committee on ENERGY, UTILITIES AND TECHNOLOGY.In concurrence. ORDERED SENT FORTHWITH.
5/7/2025HouseCommittee on ENERGY, UTILITIES AND TECHNOLOGY suggested and ordered printed REFERENCE to the Committee on ENERGY, UTILITIES AND TECHNOLOGY Ordered sent down forthwith for concurrence
5/7/2025Senate
Bill Text
Enacted
Engrossed
Introduced
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