Ratepayer Mobility, Equity, Reimbursement Act (RMERA)

SECTION 1: Legislative Findings and Declaration of Policy

1.1 Findings. The Legislature finds that while Construction Work in Progress (CWIP) financing mechanisms may provide utilities with lower capital costs, these mechanisms impose a significant, involuntary capital contribution upon residential ratepayers for assets that are not yet "used and useful" in providing utility service. This contravenes the established legal principle of utility regulation, as articulated in precedents like Smyth v. Ames (1898), which prohibits utility earnings on property not currently serving the public. This practice effectively forces the ratepayer to act as an involuntary, uncompensated equity investor. Current law fails to compensate the ratepayer for this involuntary contribution or adequately protect them from the risk of project failure or the penalty of forced investment upon relocation or death.

1.2 Declaration of Policy. It is the policy of this State to ensure that any ratepayer who is compelled to contribute capital to a utility construction project through CWIP charges shall be justly compensated for the use of that capital and protected from both project risk and loss of investment due to mobility or mortality.

SECTION 2: Definitions

2.1 Capital Contribution (CC). The aggregate amount of all charges collected from a Ratepayer and recognized by the Commission as Construction Work in Progress (CWIP) charges for a specific project.

2.2 Ongoing Credited Return (OCR). The annual return calculated on the Ratepayer’s Net Unrecovered Capital Contribution (NUCC), equivalent to the Utility’s Commission-Authorized Return on Equity (ROE) for that specific project, compounded monthly.

2.3 Net Unrecovered Capital Contribution (NUCC). The Ratepayer’s total Capital Contribution (CC) minus the total amount of all accrued Ongoing Credited Returns (OCR) and any refunds, expressed as a positive number.

2.4 Project Failure (PF). Any utility construction project funded in whole or in part by CWIP charges that is: (a) officially canceled, (b) determined by the Commission to be permanently suspended, or (c) not placed into commercial operation by a date exceeding the Commission-approved in-service date by twenty-four (24) months or more.

SECTION 3: Ratepayer Equity and Mobility Protection

3.1 Ongoing Credited Return Mandate. Effective immediately upon the imposition of any CWIP charge, the Utility shall credit the ratepayer’s account with an Ongoing Credited Return (OCR) calculated monthly on the Ratepayer’s Net Unrecovered Capital Contribution (NUCC). This OCR shall be equivalent to the Utility’s Commission-Authorized Return on Equity (ROE) for that project. The OCR is an in-kind credit and shall be applied to the Ratepayer’s subsequent monthly utility bills, or upon request, provided as a payment to the Ratepayer.

3.2 Mobility Reimbursement. Upon the cessation of utility service due to the Ratepayer moving residence outside the Utility’s service territory, the Utility shall, within sixty (60) days, provide a full reimbursement payment to the Ratepayer equal to the total remaining Net Unrecovered Capital Contribution (NUCC).

3.3 Estate Reimbursement. In the event of the death of the primary Ratepayer, the Utility shall, within ninety (90) days of notification, provide a full reimbursement payment to the ratepayer's Estate equal to the total remaining Net Unrecovered Capital Contribution (NUCC).

SECTION 4: Project Failure and Risk Mitigation

4.1 Project Failure Reimbursement. In the event of a Project Failure (PF), the Utility is expressly forbidden from recovering the costs associated with the failed project from ratepayers. The Utility shall, within sixty (60) days of the Commission’s determination of Project Failure, provide a full, lump-sum refund to every affected Ratepayer equal to the entire Capital Contribution (CC) collected, plus any accrued and unpaid Ongoing Credited Return (OCR). All costs associated with the Project Failure shall be borne exclusively by the Utility’s shareholders.

4.2 Utility Accountability. The burden of proof to demonstrate the necessity and continued viability of any project utilizing CWIP financing shall rest exclusively with the Utility. The commission shall conduct annual, independent third-party audits to verify project milestones and expenditures.

SECTION 5: Enforcement and Applicability

5.1 Violation Penalty. Any Utility found by the Commission to be in violation of this RMERA shall be subject to a civil penalty not to exceed Two Million Dollars (\text{\$2,000,000}) per violation and shall be ordered to pay for all legal and administrative costs incurred by the Commission in the course of enforcement.

Sincerely,

John Dady

iwriteyoushare.com

citizensagainsttyranny.net

citizensagainsttyranny1776@gmail.com