AI-generated summary, not yet reviewed by Better Utah staff. Please consult the bill text.

Electricity rate-setting for power costs like fuel and purchased electricity would change under this bill, which affects how much of those costs electric utilities can pass on to customers. Currently, utilities with an energy balancing account can recover 100% of their actual, prudently incurred power costs from customers, even when those costs run higher than expected. Under this bill, the Public Service Commission would set an "energy cost baseline"—a forecast of expected power costs—during each utility rate case, and for costs incurred on or after January 1, 2026, utilities could only recover 80% of any amount by which actual costs exceed that baseline, while also being required to return 80% of any savings to customers when actual costs come in below the baseline; costs incurred before that date would remain eligible for full 100% recovery or repayment under the old rules. This means utilities would bear 20% of the risk when costs run over the forecast, and customers would keep 20% of the benefit when costs run under the forecast, for costs incurred starting in 2026.