Pennsylvania HB2740 amends the state's public utility regulations to establish a mandatory hypothetical capital structure for ratemaking purposes.
Pennsylvania HB2740 amends Title 66 of the Pennsylvania Consolidated Statutes to introduce a mandatory hypothetical capital structure for ratemaking purposes. This structure consists of 50% equity and 50% debt. The Public Utility Commission must use this hypothetical structure exclusively for establishing just and reasonable rates, without requiring public utilities to maintain this specific capital structure in reality.
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