Rhode Island House Bill H5849

Rhode Island 2023 Regular Session

• Introduced: 3/1/23
• Refer: 3/1/23
• Report Pass: 6/6/23
• Engrossed: 6/8/23
• Enrolled: 6/13/23
• Passed: 6/19/23

Caption

Public Utilities Commission

Impact

If enacted, H5849 is set to significantly influence the existing framework governing public utilities in Rhode Island. The bill mandates that electric and gas distribution companies implement decoupling proposals designed to stabilize revenues, which may, in turn, facilitate increased capital investment in utility infrastructure and safety measures. Additionally, companies will be required to provide annual reports on their progress towards achieving performance-based energy-saving targets, which emphasizes a commitment not only to financial health but also to enhanced customer service and accountability.

Summary

House Bill 5849 aims to amend the operations of the Rhode Island Public Utilities Commission regarding revenue decoupling for gas and electric distribution companies serving more than 100,000 customers. The bill establishes a framework for fully decoupling electricity and gas revenues from sales, which is intended to increase operational efficiency, enhance system reliability, and encourage investment in energy-efficient resources. The proposed changes are designed to help both customers and distribution companies by reducing risks associated with revenue fluctuations and ensuring a more predictable revenue stream while transitioning to more accurate pricing mechanisms for energy production and delivery.

Contention

Notably, the bill has sparked discussions regarding its implications for low-income customers, as the Public Utilities Commission is given the authority to exclude these rate classes from the revenue decoupling reconciliation-rate mechanism. Concerns have been voiced about ensuring that the interests of vulnerable populations are not overlooked in the drive for operational efficiencies. This aspect has led to debates among legislators and advocacy groups about the potential impacts on energy prices and service quality for lower-income households, raising questions about equitable access to energy services amidst changing regulatory frameworks.