Utility bills could come with a 10-year paper trail

New York’s proposal would make gas, electric and combined gas-and-electric companies show a 10-year record of dividends, investments, expenses and program spending before state regulators let a major rate change move ahead. The requirement would apply to applications filed on or after Jan. 1, 2027.

That means regulators would not just see what a company says it needs now. They would also see what it paid shareholders, what it promised to invest, what it actually spent, and where the numbers diverged.

What the filing must show

The disclosure would have to spell out dividends paid to shareholders, including the total amount and the dates of payment. It would also have to compare planned capital investments from earlier rate cases with what was actually built or bought, and explain any projects that were delayed, dropped or added later.

The same goes for operating expenses. Companies would need to show their costs for the prior decade and explain differences between projected and actual spending. Programmatic and policy expenditures, including required state programs, income-based assistance, customer service initiatives and related capital costs, would have to be set out in a separate standardized section.

A closer look at dividends

If a company raised dividends within the prior four years, the filing would need an extra explanation of why. It would also have to address whether it could have kept safety, reliability and certain affordability, efficiency and electrification programs intact without increasing dividends.

When the commission finds that a dividend increase was more than needed to show a just and reasonable return, and the company’s finances are still stable, the bill creates a rebuttable presumption that the utility can keep the same level of spending without risking those programs. The act would take effect Jan. 1, 2027, and apply to rate applications filed on or after that date.