All Roll Calls
Yes: 170 • No: 79
Sponsored By: David W. Marsden (Democratic)
Became Law
Public utilities; water and sewerage companies; discounted rates for low-income customers. Provides that a public utility engaged in the business of furnishing water or sewerage facilities may propose and the State Corporation Commission may approve rates and tariff provisions that provide discounted service to customers with an annual household income equal to or less than 200 percent of the federal poverty level. The bill permits the utility to recover the costs of providing such discounted service through its rates for commercial and industrial customers. The bill has a delayed effective date of January 1, 2027, and is identical to HB 770.
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4 provisions identified: 1 benefits, 0 costs, 3 mixed.
Starting January 1, 2027, small water and sewer companies (fewer than 10,000 accounts, including subsidiaries) must file a class cost-of-service study when they split costs among more than one customer group. The study must assign costs based on who causes them and credit customer or developer construction contributions if not already handled in an acquisition or the last rate case. The Commission generally cannot assign more costs to a class than the study shows without strong proof, other than approved low-income discounts. Rates for any class cannot target a return on equity more than 25% above or below the company-wide return, unless clear and convincing evidence supports it or for low-income discounts.
Beginning January 1, 2027, water and sewer utilities can offer discounted rates to households with income at or below 200% of the federal poverty level, as set by the Department of Social Services. Discounts may be tiered. Utilities may recover the cost of these discounts through their base and general rates.
Starting January 1, 2027, phone companies may meet service duties using wireline or terrestrial wireless service. They do not have to build new lines if one or more other providers already offer similar service at prevailing market rates (rates like those in competitive areas for the same service). When restoring service for an existing wireline customer, the company must offer a wireline option. Anyone, or a phone company, can ask the State Corporation Commission to decide if the available service is a reasonably adequate alternative. Using these technologies does not give the Commission extra power over them.
Beginning January 1, 2027, the Commission must issue a final order on an investor-owned electric utility’s voluntary rate or rate-design test within six months of filing, or within three months after any hearing, whichever is earlier. This speeds decisions on trial rate designs.
David W. Marsden
Democratic • Senate
There are no cosponsors for this bill.
All Roll Calls
Yes: 170 • No: 79
Senate vote • 3/10/2026
House substitute agreed to by Senate
Yes: 23 • No: 17
House vote • 3/6/2026
Passed House with substitute
Yes: 63 • No: 34 • Other: 1
House vote • 3/3/2026
Reported from Labor and Commerce with substitute
Yes: 15 • No: 7
Senate vote • 2/17/2026
Read third time and passed Senate
Yes: 23 • No: 17
Senate vote • 2/16/2026
Engrossed by Senate (Voice Vote)
Yes: 0 • No: 0
Senate vote • 2/13/2026
Constitutional reading dispensed Block Vote (on 1st reading)
Yes: 35 • No: 0
Senate vote • 2/12/2026
Reported from Commerce and Labor
Yes: 11 • No: 4
Fiscal Impact Statement from State Corporation Commission (SB650)
Acts of Assembly Chapter text (CHAP0218)
Approved by Governor-Chapter 218 (effective 7/1/2026)
Governor's Action Deadline 11:59 p.m., April 13, 2026
Enrolled Bill communicated to Governor on March 31, 2026
Signed by Speaker
Bill text as passed Senate and House (SB650ER)
Enrolled
Signed by President
Fiscal Impact Statement from State Corporation Commission (SB650)
House substitute agreed to by Senate (23-Y 17-N 0-A)
Passed House with substitute (63-Y 34-N 1-A)
Engrossed by House - committee substitute
committee substitute agreed to
Read third time
Read second time
Committee substitute printed 26109086D-H1
Reported from Labor and Commerce with substitute (15-Y 7-N)
Referred to Committee on Labor and Commerce
Read first time
Placed on Calendar
Read third time and passed Senate (23-Y 17-N 0-A)
Engrossed by Senate (Voice Vote)
Read second time
Constitutional reading dispensed Block Vote (on 1st reading) (35-Y 0-N 0-A)
Chaptered
4/6/2026
Enrolled
3/30/2026
Substitute
3/3/2026
Introduced
1/14/2026
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