2014 -- H 7878

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LC004972

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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 - REGULATORY POWERS OF

ADMINISTRATION

     

     Introduced By: Representatives Marshall, Ackerman, Amore, O'Brien, and Almeida

     Date Introduced: March 06, 2014

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 39-3-11 of the General Laws in Chapter 39-3 entitled "Regulatory

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Powers of Administration" is hereby amended to read as follows:

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     39-3-11. Notice of change in rates -- Suspension of change -- Hearings. -- (a) No

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change shall be made in the rates, tolls, and charges which have been filed and published by any

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public utility in compliance with the requirements of section 39-3-10, except after thirty (30) days

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notice to the commission and to the public published as provided in section 39-3-10, which shall

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plainly state the changes proposed to be made in the schedule then in force, and the time when the

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changed rates, tolls, or charges will go into effect. A public utility company shall not be allowed

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to increase its rates annually by more than five percent (5%). Any existing increase over five

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percent (5%) shall be decreased annually by one percent (1%) until the increase rate is set at five

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percent (5%) annually. In the event that the utility company wants to increase the rate by more

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than the rate set yearly, they must seek a waiver before the public utility commission and it must

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be approved prior to the additional increase being implemented. Whenever the commission

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receives notice of any change or changes proposed to be made in any schedule filed under the

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provisions of section 39-3-10, the commission shall hold a public hearing and make investigation

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as to the propriety of the proposed change or changes. After notice of any investigation, the

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commission shall have power, by any order served upon the public utility affected, to suspend the

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taking effect of the change or changes pending the decision thereof, but not for a longer period

 

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than eight (8) months beyond the time when the change or changes would otherwise take effect.

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Each hearing and investigation shall be conducted as expeditiously as may be practicable, and

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with a minimum of delay. Within ninety (90) days after the completion of any hearing, the

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commission shall make such order in reference to any proposed rate, toll, or charge as may be

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proper. Notwithstanding the provisions of this section, the commission shall periodically hold a

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public hearing and make investigation as to the propriety of rates when charged by any public

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utility and shall make such order in reference to the rate, toll, or charge as may be just. The

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hearing prescribed by this section may be held simultaneously with the hearing prescribed by

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section 39-3-7. In the event of an appeal from an order of the commission in any hearing under

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this section, the order shall remain in full force and effect during the pendency of said appeal.

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      (b) Upon receipt from a common carrier of persons and/or property upon water of a

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notice of any change proposed to be made in any schedule filed pursuant to section 39-3-10, the

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commission shall give notice as it may prescribe of the pendency of the proposal and of the time

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and place of the hearing thereon to the mayor and also any city manager of each city, and to the

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president of the town council and also any town manager of each town in which the carrier picks

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up or discharges passengers. The commission shall also publish a notice of the hearing at least ten

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(10) days prior to the date thereof in a newspaper of general circulation in each city or town in

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which the carrier picks up or discharges passengers. In all other respects, hearings and

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investigations with respect to the proposals by the carriers shall be governed by the provisions of

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subsection (a) of this section.

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      (c) The Kent County water authority shall provide notice by certified mail of rate

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increase requests to the several fire districts which purchase water from the authority.

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      (d) Costs incurred by electric distribution companies for filing rates, tolls and charges,

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for participating in hearings and investigations prior to December 31, 2000 or for appealing

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commission decisions rendered prior to December 31, 2000 pursuant to this section shall not be

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included in the rates, tolls or charges established by the commission pursuant to this section.

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     SECTION 2. 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 - REGULATORY POWERS OF

ADMINISTRATION

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     This act would require that any increase in rates for a public utility company be no more

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than five percent (5%) annually. Any preexisting increase over the five percent (5%) shall be

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decreased by one percent (1%) per year until a five percent (5%) rate is reached. Any deviation in

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rates needs to be approved by the public utility commission.

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     This act would take effect upon passage.

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