An amendment numbered 1 printed in part B of House Report 110-300 to title IX would encourage natural gas utilities to plan for and prioritize energy efficiency. It requires state regulators to consider crafting rate policies that align utility revenue recovery measures with incentives for energy conservation.

1. Adds Subtitle G--Natural Gas Utilities SEC. 9511. NATURAL GAS UTILITIES after subtitle F of title IX

   Adds a section

   Inserted: Subtitle G--Natural Gas Utilities SEC. 9511. NATURAL GAS UTILITIES.

   Inserted: (a) In General.--Section 303(b) of the Public Utility Regulatory Policies Act of 1978 (15 U.S.C. 3203(b)) is amended by adding at the end the following:

   Inserted: "(5) Energy efficiency.--Each natural gas utility shall--

   Inserted: "(A) integrate energy efficiency resources into the plans and planning processes of the natural gas utility; and

   Inserted: "(B) adopt policies that establish energy efficiency as a priority resource in the plans and planning processes of the natural gas utility. For purposes of applying the provisions of this subtitle to this paragraph, any reference in this subtitle to the date of enactment of this Act shall be treated as a reference to the date of the enactment of this paragraph.

   Inserted: "(6) Rate policy modifications to promote energy efficiency investments.--

   Inserted: "(A) In general.--The rates allowed to be charged by a natural gas utility shall align utility incentives with the deployment of cost-effective energy efficiency.

   Inserted: "(B) Policy options.--In complying with subparagraph (A), each State regulatory authority and each nonregulated utility shall consider--

   Inserted: "(i) ensuring that utilities' recovery of authorized revenues is independent of the amount of customers' natural gas consumption;

   Inserted: "(ii) providing to utilities incentives for the successful management of energy efficiency programs, such as allowing utilities to retain a portion of the cost-reducing benefits accruing from the programs;

   Inserted: "(iii) promoting the impact on adoption of energy efficiency as 1 of the goals of retail rate design, recognizing that energy efficiency must be balanced with other objectives; and

   Inserted: "(iv) adopting rate designs that encourage energy efficiency for each customer class. For purposes of applying the provisions of this subtitle to this paragraph, any reference in this subtitle to the date of enactment of this Act shall be treated as a reference to the date of the enactment of this paragraph.".

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   Inserted: (b) Conforming Amendment.--Section 303(b)(2) of such Act is amended by striking "and (4)" inserting "(4), (5), and (6)" in lieu thereof.

   Original wording

   In title IX, after subtitle F, insert:

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As printed