2014 -- H 7536

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LC004656

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - PUBLIC UTILITIES COMMISSION

     

     Introduced By: Representatives Hull, Malik, Guthrie, Bennett, and Carnevale

     Date Introduced: February 26, 2014

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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

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Utilities Commission" is hereby amended to read as follows:

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     39-1-1. Declaration of policy -- Purposes. -- (a) The general assembly finds and

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therefore declares that:

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      (1) The businesses of distributing electrical energy, producing and transporting

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manufactured and natural gas, operating water works and furnishing supplies of water for

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domestic, industrial, and commercial use, offering to the public transportation of persons and

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property, furnishing and servicing telephonic and wireless audio and visual communication

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systems, and operation of community antenna television systems are affected with a public

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interest;

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      (2) Supervision and reasonable regulation by the state of the manner in which such

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businesses construct their systems and carry on their operations within the state are necessary to

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protect and promote the convenience, health, comfort, safety, accommodation, and welfare of the

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people, and are a proper exercise of the police power of the state;

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      (3) Preservation of the state's resources, commerce, and industry requires the assurance

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of adequate public transportation and communication facilities, water supplies, and an abundance

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of energy, all supplied to the people with reliability, at economical cost, and with due regard for

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the preservation and enhancement of the environment, the conservation of natural resources,

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including scenic, historic, and recreational assets, and the strengthening of long-range, land-use

 

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planning.

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      (b) It is hereby declared to be the policy of the state to provide fair regulation of public

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utilities and carriers in the interest of the public, to promote availability of adequate, efficient and

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economical energy, communication, and transportation services and water supplies to the

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inhabitants of the state, to provide just and reasonable rates and charges for such services and

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supplies, without unjust discrimination, undue preferences or advantages, or unfair or destructive

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competitive practices, and to co-operate with other states and agencies of the federal government

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in promoting and coordinating efforts to achieve realization of this policy.

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      (c) To this end, there is hereby vested in the public utilities commission and the division

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of public utilities and carriers the exclusive power and authority to supervise, regulate, and make

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orders governing the conduct of companies offering to the public in intrastate commerce energy,

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communication, and transportation services and water supplies for the purpose of increasing and

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maintaining the efficiency of the companies, according desirable safeguards and convenience to

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their employees and to the public, and protecting them and the public against improper and

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unreasonable rates, tolls and charges by providing full, fair, and adequate administrative

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procedures and remedies, and by securing a judicial review to any party aggrieved by such an

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administrative proceeding or ruling.

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      (d) The legislature also finds and declares, as of 1996, the following:

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      (1) That lower retail electricity rates would promote the state's economy and the health

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and general welfare of the citizens of Rhode Island;

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      (2) That current research and experience indicates that greater competition in the

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electricity industry would result in a decrease in electricity rates over time;

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      (3) That greater competition in the electricity industry would stimulate economic growth;

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      (4) That it is in the public interest to promote competition in the electricity industry and

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to establish performance based ratemaking for regulated utilities;

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      (5) That in connection with the transition to a more competitive electric utility industry,

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public utilities should have a reasonable opportunity to recover transitional costs associated with

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commitments prudently incurred in the past pursuant to their legal obligations to provide reliable

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electric service at reasonable costs;

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      (6) That it shall be the policy of the state to encourage, through all feasible means and

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measures, states where fossil-fueled electric generating units producing air emissions affecting

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Rhode Island air quality are located to reduce such emissions over time to levels that enable cost

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effective attainment of environmental standards within Rhode Island;

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      (7) That in a restructured electrical industry the same protections currently afforded to

 

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low income customers shall continue.

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      (e) The legislature further finds and declares as of 2006:

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      (1) That prices of energy, including especially fossil-fuels and electricity, are rising

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faster than the cost of living and are subject to sharp fluctuations, which conditions create

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hardships for many households, institutions, organizations, and businesses in the state;

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      (2) That while utility restructuring has brought some benefits, notably in transmission

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and distribution costs and more efficient use of generating capacities, it has not resulted in

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competitive markets for residential and small commercial industrial customers, lower overall

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prices, or greater diversification of energy resources used for electrical generation;

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      (3) That the state's economy and the health and general welfare of the people of Rhode

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Island benefit when energy supplies are reliable and least-cost; and

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      (4) That it is a necessary move beyond basic utility restructuring in order to secure for

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Rhode Island, to the maximum extent reasonably feasible, the benefits of reasonable and stable

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rates, least-cost procurement, and system reliability that includes energy resource diversification,

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distributed generation, and load management.

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     (f) The legislature further finds and declares as of 2014, that the state benefits most when

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energy supplies are delivered in a safe and reliable manner; and that attempts to lower costs and

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increase profits must not take precedence over the need for the residents of the state to have

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access to customer service representatives physically located and accessible within the state.

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     SECTION 2. Chapter 39-2 of the General Laws entitled "Duties of Utilities and Carriers"

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is hereby amended by adding thereto the following section:

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     39-2-26. Duty to maintain customer service operations within the state. -- Every

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public utility operated and licensed to provide services to the residents and businesses within the

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state under chapter 39-1 shall maintain a customer service operation physically located within the

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state which is reasonably staffed to meet the expectations of the public. The customer service

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operation shall be available to answer customer inquiries, meet with customers, accept payment

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of bills, and perform any other purpose that the public utilities commission may direct from time

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to time.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - PUBLIC UTILITIES COMMISSION

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     This act would require all public utilities to maintain a customer service facility within

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the state to perform services such as customer inquiries and bill payment.

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     This act would take effect upon passage.

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LC004656

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