2012 -- H 7155

=======

LC00667

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION

     Introduced By: Representatives Slater, and Diaz

     Date Introduced: January 18, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 39-2-1 of the General Laws in Chapter 39-2 entitled "Duties of

1-2

Utilities and Carriers" is hereby amended to read as follows:

1-3

     39-2-1. Reasonable and adequate services -- Reasonable and just charges. -- (a)

1-4

Every public utility is required to furnish safe, reasonable, and adequate services and facilities.

1-5

The rate, toll, or charge, or any joint rate made, exacted, demanded, or collected by any public

1-6

utility for the conveyance or transportation of any persons or property, including sewage, between

1-7

points within the state, or for any heat, light, water, or power produced, transmitted, distributed,

1-8

delivered, or furnished, or for any telephone or telegraph message conveyed or for any service

1-9

rendered or to be rendered in connection therewith, shall be reasonable and just, and every unjust

1-10

or unreasonable charge for the service is prohibited and declared unlawful, and no public utility

1-11

providing heat, light, water, or power produced, transmitted, distributed, delivered, or furnished

1-12

shall terminate the service or deprive any home or building, or whatsoever, of service if the

1-13

reason therefor therefore is nonpayment of the service without first notifying the user of the

1-14

service, or the owner or owners of the building as recorded with the utility of the impending

1-15

service termination by written notice at least ten (10) days prior to the effective date of the

1-16

proposed termination of service.

1-17

      (1) Effective immediately, following the issuance of a decision by the commission under

1-18

39-1-27.2(d), the utility shall collect a LIHEAP Enhancement Chargefunds from all utility

1-19

customers, for the funding of the LIHEAP Enhancement Fund.

2-20

      (b) Any existing rules and regulations dealing with the termination of utility service and

2-21

establishing reasonable methods of debt collection promulgated by the commission pursuant to

2-22

this chapter and the provisions of section 39-1.1-3, including but not limited to, any rules and

2-23

regulations dealing with deposit and deferred payment arrangements, winter moratorium and

2-24

medical emergency protections, and customer dispute resolution procedures, shall be applicable

2-25

to any public utility which distributes electricity.

2-26

      (c) The commission shall promulgate such further rules and regulations as are necessary

2-27

to protect consumers following the introduction of competition in the electric industry and which

2-28

are consistent with this chapter and the provisions of section 39-1.1-3. In promulgating such rules

2-29

and regulations, the commission shall confer with the Retail Electric Licensing Commission and

2-30

shall give reasonable consideration to any and all recommendations of the Retail Electric

2-31

Licensing Commission.

2-32

      (d) On or before May 1, 2007, the commission shall administer such rules and

2-33

regulations as may be necessary to implement the purpose of subdivision (1) of this section and to

2-34

provide for restoration of electric and/or gas service to very low income households as defined by

2-35

section 42-141-2. On or before August 15, 2011, the commission shall administer such rules and

2-36

regulations, as may be necessary, to implement the purpose of subdivision (2) of this section and

2-37

to provide for the restoration of electric and/or gas service to LIHEAP-eligible households,

2-38

defined as those with a combined gross income equal to or less than sixty percent (60%) of the

2-39

state median household income as calculated by the U.S. Bureau of Census and as adjusted for

2-40

family or group size by the U.S. Department of Health and Human Services regulation 45 CFR

2-41

Sec. 96.85 or its successor regulation.

2-42

      (1) Effective July 1, 2007 until October 14, 2011, notwithstanding the provisions of part

2-43

V sections 4(E)(1)(B) and (C) of the public utilities commission rules and regulations governing

2-44

the termination of residential electric, gas, and water utility service, a very low income customer

2-45

who is terminated from gas and/or electric service or is recognized pursuant to a rule or decision

2-46

by the division as being scheduled for actual shut-off of service on a date specified, shall be

2-47

eligible one time to have electric and/or gas utility service restored providing the following

2-48

conditions are met:

2-49

      (i) The customer pays twenty-five percent (25%) of the customer's unpaid balance;

2-50

      (ii) The customer agrees to pay one thirty-sixth (1/36) of one half (1/2) of the customer's

2-51

remaining balance per month for thirty-six (36) months;

2-52

      (iii) The customer agrees to remain current with payments for current usage. For

2-53

purposes of this subsection remaining current with payments shall mean that the customer: (a)

2-54

misses no more than a total of three (3) payments in the thirty-six (36) month period covered by

3-1

the agreement; (b) misses more than two (2) payments in any one calendar year, provided that

3-2

such missed payments in a calendar year are not consecutive and that payments for the year are

3-3

up-to-date by October 31st; and (c) that the amount due under that agreement is paid in full by the

3-4

conclusion of the period of the agreement;

3-5

      (iv) The customer has shown, to the satisfaction of the division, that the customer is

3-6

reasonably capable of meeting the payment schedule provided for by the provisions of

3-7

subdivision 39-2-1(d)(1)(i) and (ii) in this section. The restoration of service provided for by this

3-8

subsection shall be a one-time right; failure to comply with the payment provisions set forth in

3-9

this subsection shall be grounds for the customer to be dropped from the repayment program

3-10

established by this subsection, and the balance due on the unpaid balance shall be due in full and

3-11

shall be payable in accordance with the rules of the commission governing the termination of

3-12

residential electric, gas, and water utility service. A customer, who completes the schedule of

3-13

payments pursuant to this subsection, shall have the balance of any arrearage forgiven, and the

3-14

customer's obligation to the gas and/or electric company for such balance shall be deemed to be

3-15

fully satisfied. The amount of the anticipated arrearage so forgiven and other costs of

3-16

administering this program shall be treated as bad debt for purposes of cost recovery by the gas or

3-17

the electric company fully recovered by the gas or the electric distribution company for each year

3-18

from all gas and electric customers through a fully reconciling funding mechanism to be

3-19

submitted annually, no later than April 1 of each year, to the public utilities commission for

3-20

review and approval.

3-21

      (2) Effective October 15, 2011, notwithstanding the provisions of part V sections

3-22

4(E)(1)(B) and (C) of the public utilities commission rules and regulations governing the

3-23

termination of residential electric, gas, and water utility service, a LIHEAP-eligible customer, as

3-24

defined above in this section, who has been terminated from gas and/or electric service or is

3-25

recognized, pursuant to a rule or decision by the division, as being scheduled for actual shut-off

3-26

of service on a specific date, shall not be deprived electric and/or gas utility service provided the

3-27

following conditions are met:

3-28

      (i) The customer makes an initial payment of ten percent (10%) of the customer's unpaid

3-29

balance; and

3-30

      (ii) The customer agrees to pay an amount equal to one-thirty sixth (1/36) of forty

3-31

percent (40%) of the customer's unpaid balance, per month for thirty-six (36) months; and

3-32

      (iii) The customer agrees to remain current with payments for current usage. For

3-33

purposes of this subsection, remaining current with payments, shall mean that the customer: (A)

3-34

Misses no more than a total of three (3) payments in the thirty-six (36) month period covered by

4-1

the agreement; (B) Misses more than two (2) payments in any one calendar year, provided that

4-2

such missed payments in a calendar year are not consecutive and that payments for the year are

4-3

up-to date by October 31st; and (C) That the amount due under that agreement is paid in full, by

4-4

the conclusion of the period of the agreement; and

4-5

      (iv) The customer has shown, to the satisfaction of the division, that the customer is

4-6

reasonably capable of meeting the payment schedule, provided for by the provisions of

4-7

subdivision 39-2-1(d)(1)(i) and (ii) in this section. The restoration of service, provided for by this

4-8

subsection, shall be a one-time right; failure to comply with the payment provisions set forth in

4-9

this subsection shall be grounds for the customer to be removed from the repayment program

4-10

established by this subsection and the balance due on the unpaid balance, shall be due and

4-11

payable in full, in accordance with the rules of the commission governing the termination of

4-12

residential electric, gas, and water utility service. A customer, who completes the schedule of

4-13

payments, pursuant to this subsection, shall have the balance of any arrearage forgiven, and the

4-14

customer's obligation to the gas and/or electric company for such unpaid balance shall be deemed

4-15

to be fully satisfied. The amount of the arrearage, so forgiven, shall be treated as bad debt for

4-16

purposes of cost recovery by the gas or the electric company.

4-17

      (3) A customer terminated from service under the provisions of subdivision 39-2-1(d)(1)

4-18

or subdivision 39-2-1(d)(2) shall be eligible for restoration of service in accordance with the

4-19

applicable provisions of part V section 4(E)(1)(C), or its successor provision, of the public

4-20

utilities commission rules and regulations governing the termination of residential electric, gas,

4-21

and water service.

4-22

     SECTION 2. This act shall take effect upon passage.

=======

LC00667

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION

***

5-1

     This act would amend the “Shelton Act” relating to the termination of electric and gas

5-2

service by, providing a recovery of anticipated arrearages from all gas and electric customers

5-3

through a reconciling funding mechanism to be submitted annually, no later than April 1 of each

5-4

year, to the public utilities commission for review and approval.

5-5

     The act would take effect upon passage.

=======

LC00667

=======