Energy (Pipeline Infrastructure)

By Ms. Jehlen, a petition (accompanied by bill, Senate, No. 2291) of Patricia D. Jehlen for legislation to protect ratepayers from gas pipeline expansion costs. Telecommunications, Utilities and Energy.

SD 1092 prevents utility companies from passing costs for new interstate gas pipeline construction or expansion to ratepayers (customers who pay utility bills). It amends state law to require the department to reject any contract for gas, pipeline capacity, or storage where those costs would be recovered through customer rate increases. The bill directly affects utility companies seeking to build or expand interstate gas infrastructure and their ratepayers. This provision blocks such projects from being funded via future rate hikes without specific legislative approval. The law applies to contracts requiring new pipeline construction or expansion, not existing infrastructure.