Rhode Island House Bill H7015

Rhode Island 2022 Regular Session

• Introduced: 1/10/22
• Refer: 1/10/22

Caption

Regulatory Powers Of Administration

Impact

The implementation of HB 7015 would significantly curb the ability of electric distribution companies to increase rates without legislative oversight. Essentially, any rate increase would require prior approval from the General Assembly, providing a safeguard for consumers against unchecked increases. This provision aims to protect consumers from steep rate hikes while considering inflationary trends reflected in the Consumer Price Index, thereby potentially stabilizing the cost of electricity for households and businesses across the state.

Summary

House Bill 7015 proposes amendments to Chapter 39-3 of the General Laws concerning public utilities and carriers, specifically targeting the regulatory powers of the administration in relation to electric rates. The bill establishes that any proposed increase in rates by electric distribution companies cannot exceed five and one-half percent (5.5%) or the percentage increase in the Consumer Price Index for all Urban Consumers, whichever is greater. This approach is aimed at providing a more predictable rate-setting process for consumers, aligning utility rate increases with broader economic indicators.

Contention

While the bill has been introduced with the intention of protecting consumers, there may be contention surrounding the enforcement of these regulations. Proponents of the bill argue that it prevents arbitrary rate increases by utilities, which could disproportionately affect lower-income households. Conversely, opponents may argue that limiting rate increases could impede the ability of utility companies to invest in infrastructure and maintain service quality, presenting a potential dilemma between consumer protection and utility sustainability.