Relating to an alternative capital recovery process for certain utilities.

Contracts

• Construction & Engineering (EPC): Review all Master Service Agreements (MSAs) for Permian Basin projects. You must align vendor delivery deadlines strictly with the December 31, 2030 statutory cutoff.
• Indemnification Clauses: Amend contracts to require vendors to indemnify the utility for lost equity returns if their delays cause the utility to miss the 2030 in-service deadline.
• Financing Covenants: Treasury must verify that the 18-month amortization period for the regulatory asset created by this law does not violate existing bond indentures or credit facility covenants.

Hiring/Training

• Regulatory Teams: Staff must be trained on the new "300% Test" (CapEx vs. Depreciation) to determine annual eligibility.
• Project Managers: Train project leads on the new evidentiary standard. They can no longer explain delays retroactively; they must document the "why" in real-time to survive a PUC prudency review.

Reporting & Record-Keeping

• Contemporaneous Delay Documentation: You must implement a rigorous logging system for project delays. If a project pushes past 2030, you must produce contemporaneous records proving the delay was not due to "utility actions." Post-hoc justifications will likely fail.
• Notice of Intent: You must file a Notice of Intent and supporting CapEx documentation with the PUC 60 days before filing the actual rate adjustment application.
• REP Notification: You must notify Retail Electric Providers (REPs) of approved rates 45 days before they take effect.

Fees & Costs

• Refund Risk (Temporary Rates): If you implement temporary rates after 165 days and the PUC later approves a lower rate, you must refund the difference plus interest.
• Penalty Risk (2030 Deadline): Missing the December 31, 2030 deadline due to utility actions will result in a forced refund of the realized equity portion of carrying costs. This is a direct hit to shareholder value.