Pennsylvania HB2224 establishes a competitive equity auction process for determining the authorized return on equity for regulated utilities.

Pennsylvania HB2224 amends Title 66 of the Pennsylvania Consolidated Statutes to introduce a competitive equity auction process for determining the authorized return on equity for regulated utilities. The bill sets a default authorized return on equity, which is the sum of the 10-year treasury rate plus 2%, unless a competitive equity auction is conducted. The Pennsylvania Public Utility Commission (PUC) can initiate an auction if it believes the default return exceeds the utility's cost of equity.

Pennsylvania HB2224 establishes a competitive equity auction process for determining the authorized return on equity for regulated utilities.

Pennsylvania HB2224 amends Title 66 of the Pennsylvania Consolidated Statutes to introduce a competitive equity auction process for determining the authorized return on equity for regulated utilities. The bill sets a default authorized return on equity, which is the sum of the 10-year treasury rate plus 2%, unless a competitive equity auction is conducted. The Pennsylvania Public Utility Commission (PUC) can initiate an auction if it believes the default return exceeds the utility's cost of equity.