House Bill 475 Alabama 2026 Session

Summary

Primary Sponsor

Mack N. ButlerRepresentative

Republican

Session

2026 Regular Session

Title

Utilities; Public Service Commission required to hold rate cases, certain costs prohibited from use in calculation of rates

Summary

HB475 would require the Public Service Commission to hold rate cases every three years with public participation, create a public process for evaluating solar and wind facilities, and prohibit certain lobbying costs and high returns on equity from rate calculations.

What This Bill Does

The bill mandates triennial rate cases before the PSC for investor-owned utilities, conducted as evidentiary hearings with public notice and participation, and allows the PSC to investigate related issues like costs and infrastructure. It requires solar and wind facility proposals to be submitted to the PSC, followed by a public notice, a at least 60-day public comment period, and a public hearing to discuss externalities. It also bans certain costs from being included in rate calculations (lobbying, influencing laws/regulations/elections, and competitive/political advantage-related expenses), caps the return on equity to the regional average, requires an oath affirming these limits, and provides for investigations if such costs or ROE are found.

Who It Affects

• Investor-owned utilities regulated by the Public Service Commission, who must conduct rate cases every three years and comply with cost and ROE restrictions.
• The general public and utility customers, who gain public notice, comment opportunities, and hearings on rates and facility proposals.
• Developers proposing large solar or wind facilities, who must submit proposals and go through public notice, comment periods, and hearings.
• PSC leadership and commissioners, who could face impeachment for failure to hold rate cases, attend hearings, or provide required notices.

Key Provisions

• Section 1: Requires rate cases every three years for each investor-owned utility; rate cases run as evidentiary hearings with oath and subpoena power; public notice and participation required; PSC may investigate related regulatory and infrastructure issues; impeachment for failure to hold or attend rate cases or provide notice.
• Section 2: Establishes process for solar and wind facility proposals; requires submission to PSC, public notice, at least 60 days of public comment, and a public hearing; hearings must facilitate public participation and address externalities; notice to the public per Open Meetings Act.
• Section 3: Prohibits certain costs from being included in rate calculations (lobbying, political influence, and attendance/preparation for regulatory proceedings intended to gain advantage); caps return on equity to a regional average, based on ROE of neighboring states; requires an oath affirmations that prohibited costs are not included and ROE isn’t above the regional average; violations trigger investigations and possible voiding of rate regulations.
• Section 4: Severability.
• Section 5: Effective date of October 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 17, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Telecommunications & Utilities