2015 -- H 6352 | |
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LC002931 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2015 | |
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A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS | |
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Introduced By: Representatives Handy, Slater, Diaz, Barros, and Tobon | |
Date Introduced: June 25, 2015 | |
Referred To: House Corporations | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 39-2-1 of the General Laws in Chapter 39-2 entitled "Duties of |
2 | Utilities and Carriers" is hereby amended to read as follows: |
3 | 39-2-1. Reasonable and adequate services -- Reasonable and just charges. -- (a) |
4 | Every public utility is required to furnish safe, reasonable, and adequate services and facilities. |
5 | The rate, toll, or charge, or any joint rate made, exacted, demanded, or collected by any public |
6 | utility for the conveyance or transportation of any persons or property, including sewage, between |
7 | points within the state, or for any heat, light, water, or power produced, transmitted, distributed, |
8 | delivered, or furnished, or for any telephone or telegraph message conveyed or for any service |
9 | rendered or to be rendered in connection therewith, shall be reasonable and just, and every unjust |
10 | or unreasonable charge for the service is prohibited and declared unlawful, and no public utility |
11 | providing heat, light, water, or power produced, transmitted, distributed, delivered, or furnished |
12 | shall terminate the service or deprive any home or building, or whatsoever, of service if the |
13 | reason therefor is nonpayment of the service without first notifying the user of the service, or the |
14 | owner or owners of the building as recorded with the utility of the impending service termination |
15 | by written notice at least ten (10) days prior to the effective date of the proposed termination of |
16 | service. |
17 | (1) Effective immediately, following the issuance of a decision by the commission under |
18 | 39-1-27.2(d), the utility shall collect a LIHEAP Enhancement Chargefunds from all utility |
19 | customers, for the funding of the LIHEAP Enhancement Fund. |
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1 | (b) Any existing rules and regulations dealing with the termination of utility service and |
2 | establishing reasonable methods of debt collection promulgated by the commission pursuant to |
3 | this chapter and the provisions of § 39-1.1-3, including but not limited to, any rules and |
4 | regulations dealing with deposit and deferred payment arrangements, winter moratorium and |
5 | medical emergency protections, and customer dispute resolution procedures, shall be applicable |
6 | to any public utility which distributes electricity. |
7 | (c) The commission shall promulgate such further rules and regulations as are necessary |
8 | to protect consumers following the introduction of competition in the electric industry and which |
9 | are consistent with this chapter and the provisions of § 39-1.1-3. In promulgating such rules and |
10 | regulations, the commission shall confer with the Retail Electric Licensing Commission and shall |
11 | give reasonable consideration to any and all recommendations of the Retail Electric Licensing |
12 | Commission. |
13 | (d)(1) On or before May 1, 2007, the commission shall administer such rules and |
14 | regulations as may be necessary to implement the purpose of subdivision (1) of this section and to |
15 | provide for restoration of electric and/or gas service to very low income households as defined by |
16 | § 42-141-2. On or before August 15, 2011, the commission shall administer such rules and |
17 | regulations, as may be necessary, to implement the purpose of subdivision (2) of this section and |
18 | to provide for the restoration of electric and/or gas service to LIHEAP-eligible households, |
19 | defined as those with a combined gross income equal to or less than sixty percent (60%) of the |
20 | state median household income as calculated by the U.S. Bureau of Census and as adjusted for |
21 | family or group size by the U.S. Department of Health and Human Services regulation 45 CFR |
22 | Sec. 96.85 or its successor regulation. |
23 | (1) Effective July 1, 2007 until October 14, 2011, notwithstanding the provisions of part |
24 | V sections 4(E)(1)(B) and (C) of the public utilities commission rules and regulations governing |
25 | the termination of residential electric, gas, and water utility service, a very low income customer |
26 | who is terminated from gas and/or electric service or is recognized pursuant to a rule or decision |
27 | by the division as being scheduled for actual shut-off of service on a date specified, shall be |
28 | eligible one time to have electric and/or gas utility service restored providing the following |
29 | conditions are met: |
30 | (i) The customer pays twenty-five percent (25%) of the customer's unpaid balance; |
31 | (ii) The customer agrees to pay one thirty-sixth (1/36) of one half (1/2) of the customer's |
32 | remaining balance per month for thirty-six (36) months; |
33 | (iii) The customer agrees to remain current with payments for current usage. For |
34 | purposes of this subsection remaining current with payments shall mean that the customer: (a) |
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1 | misses no more than a total of three (3) payments in the thirty-six (36) month period covered by |
2 | the agreement; (b) misses more than two (2) payments in any one calendar year, provided that |
3 | such missed payments in a calendar year are not consecutive and that payments for the year are |
4 | up-to-date by October 31st; and (c) that the amount due under that agreement is paid in full by the |
5 | conclusion of the period of the agreement; |
6 | (iv) The customer has shown, to the satisfaction of the division, that the customer is |
7 | reasonably capable of meeting the payment schedule provided for by the provisions of |
8 | subdivision 39-2-1(d)(1)(i) and (ii) in this section. The restoration of service provided for by this |
9 | subsection shall be a one-time right; failure to comply with the payment provisions set forth in |
10 | this subsection shall be grounds for the customer to be dropped from the repayment program |
11 | established by this subsection, and the balance due on the unpaid balance shall be due in full and |
12 | shall be payable in accordance with the rules of the commission governing the termination of |
13 | residential electric, gas, and water utility service. A customer who completes the schedule of |
14 | payments pursuant to this subsection, shall have the balance of any arrearage forgiven, and the |
15 | customer's obligation to the gas and/or electric company for such balance shall be deemed to be |
16 | fully satisfied. The amount of the arrearage so forgiven shall be treated as bad debt for purposes |
17 | of cost recovery by the gas or the electric company. |
18 | (2) Effective October 15, 2011 October 1, 2015, notwithstanding the provisions of part V |
19 | sections 4(E)(1)(B) and (C) of the public utilities commission rules and regulations governing the |
20 | termination of residential electric, gas, and water utility service, a LIHEAP-eligible customer, as |
21 | defined above in this section, who has been terminated from gas and/or electric service or is |
22 | recognized, pursuant to a rule or decision by the division, as being scheduled for actual shut-off |
23 | of service on a specific date, shall not be deprived electric and/or gas utility service provided the |
24 | following conditions are met: |
25 | (i) The customer makes an initial payment of ten percent (10%) of the customer's unpaid |
26 | balance; and |
27 | (ii) The customer agrees to pay an amount equal to one-thirty sixth (1/36) of forty |
28 | percent (40%) of the customer's unpaid balance, per month for thirty-six (36) months; and |
29 | (iii) The customer agrees to remain current with payments for current usage. For |
30 | purposes of this subsection, remaining current with payments, shall mean that the customer: (A) |
31 | Misses no more than a total of three (3) payments in the thirty-six (36) month period covered by |
32 | the agreement; (B) Misses more than two (2) payments in any one calendar year, provided that |
33 | such missed payments in a calendar year are not consecutive and that payments for the year are |
34 | up-to date by October 31st; and (C) That the amount due under that agreement is paid in full, by |
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1 | the conclusion of the period of the agreement; and |
2 | (iv) The customer has shown, to the satisfaction of the division, that the customer is |
3 | reasonably capable of meeting the payment schedule, provided for by the provisions of |
4 | subdivision 39-2-1(d)(1)(i) and (ii) in this section. The restoration of service, provided for by this |
5 | subsection, shall be a one-time right; failure to comply with the payment provisions set forth in |
6 | this subsection shall be grounds for the customer to be removed from the repayment program |
7 | established by this subsection and the balance due on the unpaid balance, shall be due and |
8 | payable in full, in accordance with the rules of the commission governing the termination of |
9 | residential electric, gas, and water utility service. A customer, who completes the schedule of |
10 | payments, pursuant to this subsection, shall have the balance of any arrearage forgiven, and the |
11 | customer's obligation to the gas and/or electric company for such unpaid balance shall be deemed |
12 | to be fully satisfied. The amount of the arrearage, so forgiven, shall be treated as bad debt for |
13 | purposes of cost recovery by the gas or the electric company. |
14 | (i) The customer has an account balance of at least three hundred dollars ($300) that is |
15 | more than sixty (60) days past due; |
16 | (ii) The customer is eligible for the federal low-income home energy assistance program |
17 | and the account is enrolled in the utility low-income rate if offered; |
18 | (iii) If utility service has been terminated the customer shall make an initial payment of |
19 | twenty-five percent (25%) of the unpaid balance, unless the commission has enacted emergency |
20 | regulations in which case the customer shall pay the down payment required by the emergency |
21 | regulations; |
22 | (iv) The customer agrees to participate in energy efficient programs; |
23 | (v) The customer applies for other available energy assistance programs, including fuel |
24 | assistance and weatherization; |
25 | (vi) The customer agrees to make at least twelve (12) monthly payments in an amount |
26 | determined by the utility and based on the customer's average monthly usage of the previous year, |
27 | and the customer's actual or anticipated fuel assistance, if known. The electric and/or gas utility |
28 | company shall review the payment plan every three (3) months and may adjust said plan based on |
29 | the following: the amount of or change in fuel assistance; the customer moves, actual usage |
30 | differs from estimated usage; and/or significant changes in the company’s energy costs or rates |
31 | from the time of anticipated enrollment. |
32 | (vii) With each payment, a portion of the customer's outstanding account balance shall be |
33 | forgiven in an amount equal to the total past-due balance divided by the number of months in the |
34 | customer agreement; |
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1 | (viii) Up to one thousand five hundred dollars ($1,500) shall be forgiven in a twelve (12) |
2 | month period. If the outstanding account balance is greater than one thousand five hundred |
3 | dollars ($1,500), the length of the agreement may, at the request of the customer, be extended for |
4 | more than twelve (12) months to accommodate the total outstanding balance, provided that the |
5 | customer is current with payments at the conclusion of the previous twelve (12) month period; |
6 | (ix) The customer agrees to remain current with payments. For purposes of this |
7 | subsection, remaining current shall mean that the customer: (A) Misses no more than two (2) |
8 | payments in a twelve (12) month period covered by the agreement; and (B) That the amount due |
9 | under the agreement is paid in full, by the conclusion of the twelve (12) month period of the |
10 | agreement; and |
11 | (x) Failure to comply with the payment provisions set forth in this subsection shall be |
12 | grounds for the customer to be removed from the repayment program established by this |
13 | subsection and the balance due on the unpaid balance, shall be due and payable in full, in |
14 | accordance with the rules of the commission governing the termination of residential electric, gas, |
15 | and water utility service, provided, that any arrearage already forgiven under subsection (d)(2)(ii) |
16 | of this section shall remain forgiven and be written off by the utility. The amount of the arrearage, |
17 | so forgiven, shall be recovered by the electric and/or gas company through an annual reconciling |
18 | factor approved by the commission. |
19 | (xi) The commission may promulgate rules and regulations to implement this section that |
20 | ensures efficient administration of the program in a non-discriminatory manner consistent with |
21 | the goal of providing assistance to customers who are willing and able to meet their obligations to |
22 | the utility under this program. |
23 | (xii) Each public utility that provides gas or electric service to residential ratepayers shall |
24 | file tariffs implementing the requirements of this section on a date to be determined by the |
25 | commission which shall allow for the program to be in place by October 1, 2015. |
26 | (xiii) After two (2) years from the date of completion of the plan or removal from the |
27 | plan for failure to remain current with payments and upon recommendation from a community |
28 | action partnership agency, a customer shall be eligible to enroll in a subsequent arrearage |
29 | forgiveness plan. |
30 | (3)(2) A customer terminated from service under the provisions of subdivision 39-2- |
31 | 1(d)(1) or subdivision 39-2-1(d)(2) shall be eligible for restoration of service in accordance with |
32 | the applicable provisions of part V section 4(E)(1)(C), or its successor provision, of the public |
33 | utilities commission rules and regulations governing the termination of residential electric, gas, |
34 | and water service. |
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1 | (e) The commission shall complete a comprehensive review of all utility and energy |
2 | related programs and policies impacting protected classes and low-income ratepayers. In |
3 | conducting its review, the commission shall consult with the division, the attorney general, the |
4 | utility, the department of human services, the ratepayers advisory board established by § 39-1- |
5 | 37.1, community based organizations, and community action agencies, each of whom shall |
6 | cooperate with meetings scheduled by the commission and any requests for information received |
7 | by the commission by providing responses within twenty-one (21) days from issuance. The |
8 | commission shall submit a report of its findings and recommendations to the governor and the |
9 | general assembly no later than November 1, 2016. No later than November 15, 2016, and |
10 | annually thereafter, the commission shall submit to the governor, the senate president and the |
11 | speaker of the house a report on the effectiveness of the customer arrearage program which shall |
12 | include a cost benefit analysis and recommendations to improve effectiveness of the arrearage |
13 | program. |
14 | SECTION 3. This act shall take effect upon passage. |
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LC002931 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS | |
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1 | This act would allow the department of human services to use low-income home energy |
2 | assistance funds throughout the calendar year, establishes an arrearage program and requires the |
3 | PUC to conduct a review of programs impacting low-income ratepayers. |
4 | This act would take effect upon passage. |
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LC002931 | |
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