What changes
The bill allows electric distribution utilities and the Department of Energy to issue RFPs for multi-year energy agreements and authorizes the PUC to approve such agreements.
Who is affected
Investor-owned electric distribution utilities, the state Department of Energy, energy providers, and utility ratepayers.
Requirements and enforcement
Utilities must petition the PUC, provide notice, participate in hearings, and demonstrate that agreements are just and reasonable.
Costs and funding
The LBA states no fiscal impact on state, county, or local expenditures/revenue; however, potential rate impacts for customers are indirect and not estimated.
When it takes effect
The bill would have taken effect 60 days after passage, but has been effectively set aside following an interim study.
Potential benefits
Potential for improved price stability, long-term procurement planning, and regional coordination on energy reliability.
Risks and tradeoffs
Potential for locking in higher costs, bias toward existing/legacy energy sources, and reduced market competition.
What is still unknown
The exact structure of the contracts and their impact on long-term electricity rates are unknown.