2012 -- S 2434

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LC01557

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO PUBLIC UTILITIES - LOW INCOME ENERGY ASSISTANCE

     Introduced By: Senator Michael J. McCaffrey

     Date Introduced: February 16, 2012

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 39-1-27.12 of the General Laws in Chapter 39-1 entitled "Public

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Utilities Commission" is hereby repealed.

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     39-1-27.12. Low Income Home Energy Assistance Program Enhancement Plan. --

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(a) The Low Income Home Energy Assistance Program Enhancement Plan (hereinafter "LIHEAP

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Enhancement Plan") is hereby created to supplement the federal Low Income Household

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Assistance Program ("LIHEAP") funding being received by customers of Rhode Island electric

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and gas distribution companies.

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      (b) Within a period of time sufficient to accomplish the purposes of this section, but not

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longer than ninety (90) days after the effective date of this chapter, the Office of Energy

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Resources shall develop a recommended monthly "LIHEAP Enhancement Charge" rate for the

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following year and make a filing with the commission pursuant to this chapter recommending

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rates. Thereafter annually but no later than October 15 of each year, the office shall make filings

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with the commission to recommend the LIHEAP Enhancement Charge rates for each class of

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electric and natural gas distribution company customer for the following year.

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      (c) A LIHEAP Enhancement Charge approved by the Commission shall have the

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following limitations:

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      (1) For electric distribution company customers, the charge shall not be more than ten

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dollars ($10.00) per year.

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      (2) For natural gas distribution company customers, the charge shall not be more than ten

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dollars ($10.00) per year.

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      (3) The total projected annual revenue for the LIHEAP Enhancement Plan through

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charges to all electric and natural gas distribution company customers shall not exceed seven

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million five hundred thousand dollars ($7,500,000) and shall not be below six million five

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hundred thousand dollars ($6,500,000).

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      (d) The commission shall open a docket to consider for approval LIHEAP Enhancement

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Charge rates proposed by the office. In reviewing the recommended rates the commission shall

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give due consideration to the recommendations of the office and the standards set forth in

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subsection (c) of this section. The commission shall issue a decision within sixty (60) days after

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said recommendations and report are filed with the commission establishing the Enhancement

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Plan Charge rates.

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      (e) The electric or gas distribution company shall use the funds collected through this

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Enhancement Plan Charge to provide a credit to customers accounts that are receiving federal

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LIHEAP assistance payments. The office of energy resources shall designate to the gas or electric

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distribution company the qualifying customer accounts and the amounts to be credited to those

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customer accounts, provided that the total amount to be credited to those accounts shall be fully

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funded by and not exceed the total amount collected through the Enhancement Plan Charge. The

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electric or gas distribution company's added administrative expenses to process the credit

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assignments provided to it by the office of energy resources will be recoverable either from the

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LIHEAP Enhancement Charge or through a separate charge approved by the Public Utilities

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Commission.

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      (f) As used in this section, "electric and natural gas distribution company" means a

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company as defined in subsection 39-1-2(12), but not including the Block Island Power Company

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or the Pascoag Utility District.

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

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

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

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

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

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

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

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

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

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

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

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

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reason therefor is nonpayment of the service without first notifying the user of the service, or the

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

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

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service.

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

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

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customers, for the funding of the LIHEAP Enhancement Fund.

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

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

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

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

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

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to any public utility which distributes electricity.

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

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

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

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

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

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Licensing Commission.

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

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

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

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

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

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

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

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

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

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Sec. 96.85 or its successor regulation.

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

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

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

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

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

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

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conditions are met:

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

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

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

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

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

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

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

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

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

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conclusion of the period of the agreement;

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

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

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

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

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

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

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

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

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

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

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

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of cost recovery by the gas or the electric company.

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

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

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

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

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

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

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following conditions are met:

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

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balance; and

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

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

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

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

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

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

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

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

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the conclusion of the period of the agreement; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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and water service.

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     SECTION 3. This act shall take effect upon passage.

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LC01557

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC UTILITIES - LOW INCOME ENERGY ASSISTANCE

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     This act would repeal the requirement that utility customers contribute to a fund to pay

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utility bills for those whose bills are unpaid.

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     This act would take effect upon passage.

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LC01557

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