Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0385 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- S 0385
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7	7	LC001809
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION
16	16	-- 2025 UTILITY COMPANY BILLING TRANSPARENCY ACT
17	17	Introduced By: Senators Ujifusa, Murray, Felag, Lauria, Lawson, Mack, Kallman,
18	18	Bissaillon, Ciccone, and E Morgan
19	19	Date Introduced: February 26, 2025
20	20	Referred To: Senate Commerce
21	21
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23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Short Title. 1
25	25	This act may be cited as the "2025 Utility Company Billing Transparency Act." 2
26	26	SECTION 2. Findings. 3
27	27	The general assembly finds as follows: 4
28	28	1. Consumers have expressed concerns that utility company bills, such as those from Rhode 5
29	29	Island Energy (RIE), contain a variety of charges that are confusing and burdensome, particularly 6
30	30	regarding how costs are calculated and how funds are used; 7
31	31	2. Clear and concise explanations of the charges on utility company bills would enable 8
32	32	consumers to better understand their utility costs and make informed decisions regarding their 9
33	33	service; 10
34	34	3. Transparency regarding the costs included in utility company bills would promote trust 11
35	35	and accountability among all stakeholders and the general public; and 12
36	36	4. Similar measures to ensure billing transparency and understanding of utility company 13
37	37	charges have been successfully implemented in other states 14
38	38	SECTION 3. Definitions. 15
39	39	For the purposes of this act: 16
40	40	(1) “Utility company bill” or “utility bill” means the utility bill issued by the electric 17
41	41	distribution company as defined by § 39-1-2(a)(12) and gas distribution company included as a 18
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45	45	public utility in § 39-1-2(a)(20) having greater than one hundred thousand (100,000) customers that 1
46	46	includes charges for residential energy services, which may include, but are not limited to, base 2
47	47	utility charges, fees, taxes, and any other charges related to the provision of energy services. 3
48	48	SECTION 4. Section 39-1-27.7.1 of the General Laws in Chapter 39-1 entitled "Public 4
49	49	Utilities Commission" is hereby amended to read as follows: 5
50	50	39-1-27.7.1. Revenue decoupling. 6
51	51	(a) The general assembly finds and declares that electricity and gas revenues shall be fully 7
52	52	decoupled from sales pursuant to the provisions of this chapter and further finds and declares that 8
53	53	any decoupling proposal submitted by an electric distribution company as defined in § 39-1-9
54	54	2(a)(12) or gas distribution company included as a public utility in § 39-1-2(a)(20) that has greater 10
55	55	than one hundred thousand (100,000) customers, shall be for the following purposes: 11
56	56	(1) Increasing efficiency in the operations and management of the electric and gas 12
57	57	distribution system; 13
58	58	(2) Achieving the goals established in the electric distribution company’s plan for system 14
59	59	reliability and energy efficiency and conservation procurement as required pursuant to § 39-1-15
60	60	27.7(d); 16
61	61	(3) Increasing investment in least-cost resources that will reduce long-term electricity 17
62	62	demand; 18
63	63	(4) Reducing risks for both customers and the distribution company including, but not 19
64	64	limited to, societal risks, weather risks, and economic risks; 20
65	65	(5) Increasing investment in end-use energy efficiency; 21
66	66	(6) Eliminating disincentives to support energy-efficiency programs; 22
67	67	(7) Facilitating and encouraging investment in utility infrastructure, safety, and reliability; 23
68	68	and 24
69	69	(8) Considering the reduction of fixed, recurring customer charges and transition to 25
70	70	increased unit charges that more accurately reflect the long-term costs of energy production and 26
71	71	delivery. 27
72	72	(b) Each electric distribution company as defined by § 39-1-2(a)(12) and gas distribution 28
73	73	company included as a public utility in § 39-1-2(a)(20) having greater than one hundred thousand 29
74	74	(100,000) customers shall file proposals at the commission to implement the policy set forth in 30
75	75	subsection (a) of this section. The commission shall approve these proposals, provided they contain 31
76	76	the features and components set forth in subsection (c) of this section, and that they are consistent 32
77	77	with the intent and objectives contained in subsection (a) of this section. Actions taken by the 33
78	78	commission in the exercise of its ratemaking authority for electric and gas rate cases shall be within 34
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82	82	the norm of industry standards and recognize the need to maintain the financial health of the 1
83	83	distribution company as a stand-alone entity in Rhode Island. 2
84	84	(c) The proposals shall contain the following features and components: 3
85	85	(1) A revenue decoupling reconciliation mechanism that reconciles annually the revenue 4
86	86	requirement allowed in the company’s base distribution-rate case to revenues actually received for 5
87	87	the applicable twelve-month (12) period. Any revenues over-recovered or under-recovered shall be 6
88	88	credited to, or recovered from, customers, as applicable; and 7
89	89	(2) An annual infrastructure, safety, and reliability spending plan for each fiscal year and 8
90	90	an annual rate-reconciliation mechanism that includes a reconcilable allowance for the anticipated 9
91	91	capital investments and other spending pursuant to the annual pre-approved budget as developed 10
92	92	in accordance with subsection (d) of this section. 11
93	93	(d) Prior to the beginning of each fiscal year, gas and electric distribution companies shall 12
94	94	consult with the division of public utilities and carriers regarding their infrastructure, safety, and 13
95	95	reliability spending plan for the following fiscal year, addressing the following categories: 14
96	96	(1) Capital spending on utility infrastructure; 15
97	97	(2) For electric distribution companies, operation and maintenance expenses on vegetation 16
98	98	management; 17
99	99	(3) For electric distribution companies, operation and maintenance expenses on system 18
100	100	inspection, including expenses from expected resulting repairs; and 19
101	101	(4) Any other costs relating to maintaining safety and reliability that are mutually agreed 20
102	102	upon by the division and the company. 21
103	103	The distribution company shall submit a plan to the division and the division shall 22
104	104	cooperate in good faith to reach an agreement on a proposed plan for these categories of costs for 23
105	105	the prospective fiscal year within sixty (60) days. To the extent that the company and the division 24
106	106	mutually agree on a plan, such plan shall be filed with the commission for review and approval 25
107	107	within ninety (90) days. If the company and the division cannot agree on a plan, the company shall 26
108	108	file a proposed plan with the commission and the commission shall review and, if the investments 27
109	109	and spending are found to be reasonably needed to maintain safe and reliable distribution service 28
110	110	over the short and long term, approve the plan within ninety (90) days. 29
111	111	(e) The commission shall have the following duties and powers, in addition to its existing 30
112	112	authorities established in this title: 31
113	113	(1) To maintain reasonable and adequate service-quality standards, after decoupling, that 32
114	114	are in effect at the time of the proposal and were established pursuant to § 39-3-7. 33
115	115	(2) The commission may exclude the low-income rate class from the revenue decoupling 34
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119	119	reconciliation-rate mechanism for either electric or gas distribution. The commission also may 1
120	120	exclude customers in the large commercial and industrial rate class from the gas-distribution 2
121	121	mechanism. 3
122	122	(3) The commission may adopt performance incentives for the electric distribution 4
123	123	company that provide a shared-savings mechanism whereby the company would receive a 5
124	124	percentage of savings realized as a result of achieving the purposes of this section while the 6
125	125	remaining savings are credited to customers. 7
126	126	(4) The commission shall review and approve, with any necessary amendments, 8
127	127	performance-based, energy-savings targets developed and submitted by the Rhode Island energy 9
128	128	efficiency and resources management council. The performance-based targets shall also be used as 10
129	129	a consideration in any shared-savings mechanism established by the commission pursuant to 11
130	130	subsection (e)(3) of this section. 12
131	131	(f) The Rhode Island energy efficiency and resources management council shall propose 13
132	132	performance-based, energy-savings targets to the commission no later than September 1, 2010. The 14
133	133	targets shall include, but not be limited to, specific energy kilowatt-hour savings overall and peak-15
134	134	demand savings for both summer and winter peak periods expressed in total megawatts as well as 16
135	135	appropriate targets recommended in the opportunities report filed with the commission pursuant to 17
136	136	§ 39-1-27.7(d)(3). The council shall revise, as necessary, these targets on an annual basis prior to 18
137	137	the reconciliation process established pursuant to subsection (c) of this section and submit its 19
138	138	revisions to the commission for approval. 20
139	139	(g) Reporting. Every electric distribution company, as defined in subsection (a) of this 21
140	140	section, shall report to the governor, general assembly, division of public utilities and carriers, and 22
141	141	public utilities commission on or before September 1, 2012. The report shall include, but not be 23
142	142	limited to, the following elements: 24
143	143	(1) A comparison of revenues from traditional rate regulation and how the revenues have 25
144	144	differed as part of an approved decoupling structure; 26
145	145	(2) A summary of how the company is achieving the performance-based targets that may 27
146	146	have been adopted pursuant to subsection (e)(4) of this section; 28
147	147	(3) A summary of any shared savings the company may have received pursuant to the 29
148	148	performance incentives authorized in subsection (e)(3) of this section; 30
149	149	(4) A summary of how the company is achieving the service-quality standards required in 31
150	150	subsection (e)(1) of this section; 32
151	151	(5) An overview of how decoupling is impacting revenue stabilization goals that have 33
152	152	resulted from decoupling; and 34
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156	156	(6) A summary of any customer education programs provided. 1
157	157	SECTION 5. Chapter 39-3 of the General Laws entitled "Regulatory Powers of 2
158	158	Administration" is hereby amended by adding thereto the following section: 3
159	159	39-3-45. Requirements prior to implementing rate changes. 4
160	160	(a) Each electric distribution company as defined by § 39-1-2(a)(12) and gas distribution 5
161	161	company included as a public utility in § 39-1-2(a)(20) having greater than one hundred thousand 6
162	162	(100,000) customers shall comply with the following: 7
163	163	(1) Before implementing rate changes, utilities shall submit a ratepayer impact analyses 8
164	164	(RIA) that estimates the impact of proposed rate changes on different customer classes. This RIA 9
165	165	shall include analysis of the cost-benefit relationship of rate adjustments, particularly how they 10
166	166	benefit or disadvantage various sectors; 11
167	167	(2) Provide monthly detailed descriptions of charges in utility company bills, including 12
168	168	how much of the charge goes toward various services in order that customers can understand the 13
169	169	effects of rate adjustments; 14
170	170	(3) Provide periodic explanations of significant rate changes or cost fluctuations, such as 15
171	171	variations in energy procurement costs, regulatory adjustments, changes in charges for supply, 16
172	172	transmission, distribution and other costs, and how those factors may change over time; as well as 17
173	173	an explanation that shall include information of how customers can reduce their bill; and 18
174	174	(4) Provide annual reports that include a breakdown of the costs contributing to rate 19
175	175	adjustments, such as energy procurement costs, infrastructure investments, revenues and profits, 20
176	176	and operational costs. 21
177	177	(b) Enforcement. 22
178	178	(1) The public utilities commission shall oversee compliance with this section and may 23
179	179	impose fines or penalties for failure to provide accurate, timely, and clear explanations of rate 24
180	180	changes. 25
181	181	(2) Failure to include with a rate filing a clear explanation as required under this section 26
182	182	shall result in suspension of the rate filing until proper notifications and explanations are provided. 27
183	183	SECTION 6. This act shall take effect upon passage. 28
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190	190	EXPLANATION
191	191	BY THE LEGISLATIVE COUNCIL
192	192	OF
193	193	A N A C T
194	194	RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION
195	195	-- 2025 UTILITY COMPANY BILLING TRANSPARENCY ACT
196	196	***
197	197	This act would impose requirements and actions that electric distribution companies and 1
198	198	gas distribution companies having over one hundred thousand (100,000) customers would need to 2
199	199	take prior to implementing rate changes. The act would also add additional requirements of 3
200	200	providing explanations and annual reports with information on costs contributing to rate 4
201	201	adjustments, for the purpose of providing greater transparency to customers and consumers of 5
202	202	electricity and gas. 6
203	203	This act would take effect upon passage. 7
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