Bill No.: HB0205                  Drafter:  DKG

LSO No.:  07LSO-0339              Effective Date:  7/1/2007

Enrolled Act No.:  HEA0110

Chapter No.:

Prime Sponsor:     Representative Samuelson

Catch Title:       Rate regulation of cooperative utilities.

Subject:  Exemption from Public Service Commission retail rate regulation by a cooperative electric utility; mechanism to return to rate regulation.

Summary/Major Elements:

· Allows a cooperative electric utility to opt out of the Public Service Commission's (PSC) retail rate regulation if:

o The co-op's net annual sales are less than 2 billion kilowatt hours; and

o A majority of the co-op members vote to opt out of the rate regulation.

· Provides a mechanism for filing a complaint with the co-op if at least 5% of the co-op members sign the complaint. Further provides for a hearing and resolution of the complaint by the co-op board of directors and an appeal process to the PSC.

· A co-op that has opted out of PSC rate regulation can return to it upon an affirmative vote of a majority of the co-op members during a co-op's annual meeting or by mail ballot.

· PSC regulatory provisions, other than rate regulations, would still apply to co-ops.