AN ACT REPEALING THE COMBINED PUBLIC BENEFITS CHARGE AND REQUIRING LEGISLATIVE APPROVAL FOR ANY FUTURE COMBINED PUBLIC BENEFITS CHARGE.

2025 Regular Session Introduced by Tim Ackert and 13 co-sponsors

Repeals the combined public benefits charge and requires express General Assembly approval for any future CPBC, shifting funding oversight from regulators to lawmakers.

REF. TO JOINT COMM. ON Energy and Technology

#electricdistributioncompanies #generalassembly #publicdeposits

HB 5402 — Summary

Title: An Act Repealing the Combined Public Benefits Charge and Requiring Legislative Approval for Any Future Combined Public Benefits Charge
Bill No.: HB 5402
Introduced: March 14, 2025
Status: Referred to Joint Committee on Energy and Technology (and subsequent chamber activity listed below)
Companion: SB 923

Overview / Purpose

HB 5402 would eliminate the existing "combined public benefits charge" (CPBC) and prohibit the imposition of any future combined public benefits charge unless it is explicitly approved by the General Assembly. The bill’s intent is to remove an administratively established charge on electric service and to shift any future creation of such a unified charge to the legislative process.

(Note: the bill text is not provided here. “Combined public benefits charge” typically refers to charges collected through electric bills to fund programs such as energy efficiency, low‑income assistance, renewable energy incentives, or other publicly directed energy programs. The precise programs affected would depend on how the CPBC is defined in state law and regulation.)

Key Provisions

Repeals the statutory authorization (or existing statutory mechanism) for the combined public benefits charge.

Adds a requirement that any future proposal to create a combined public benefits charge must receive express approval from the General Assembly before it can be imposed.

Likely removes or alters any statutory references that allowed electric distribution companies or utility regulators to collect a combined public benefits charge without separate legislative authorization.

Who would be affected

Electric distribution companies (administration/collection of the charge).

Electric ratepayers (would no longer see the CPBC on bills if the charge is eliminated).

State energy and public‑benefit programs funded in whole or part by the CPBC (funding sources may be reduced or require replacement).

The Public Utilities/utility regulators and the General Assembly (shift in authority/oversight).

Procedural history (selected)

Filed: 2025‑03‑14

Referred to Joint Committee on Energy and Technology: 2025‑01‑17 (record shows referral)

Read 1st time / Referred to State Affairs: 2025‑04‑07

Committee public hearing and testimony: 2025‑04‑30 (left pending)

Reported favorably without amendment: 2025‑05‑01; committee report filed and distributed: 2025‑05‑06

Placed on General State Calendar and considered in Calendars: May 2025

Passed and read 3rd time: 2025‑05‑16 (record votes and statements recorded)

Received from the House: 2025‑05‑19

Potential impacts / considerations

Program funding: repeal would eliminate a dedicated revenue stream for programs currently financed by the CPBC, potentially requiring the General Assembly to appropriate alternative funding or leave programs unfunded.

Ratepayer effects: short‑term bill reductions for customers if the charge is removed; long‑term effects depend on whether funding is reallocated to other surcharges or the state budget.

Policy oversight: requiring legislative approval increases democratic oversight and could slow or politicize the creation of future consolidated public benefits funding mechanisms.

Regulatory adjustments: utility commissions and utilities may need to modify tariffs and administrative processes if the charge is repealed.

Bill