2015 -- S 0199

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LC000874

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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

     Introduced By: Senators Miller, Sosnowski, Metts, Pichardo, and Goodwin

     Date Introduced: February 11, 2015

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

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

Utilities Commission" is hereby amended to read as follows:

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

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

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

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

and gas distribution companies.

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

longer than ninety (90) days after the effective date of this chapter, the department of human

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

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

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

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

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

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

following limitations:

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

dollars ($10.00) per year.

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

dollars ($10.00) per year.

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

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

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

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

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

Charge rates proposed by the department. In reviewing the recommended rates the commission

shall give due consideration to the recommendations of the department and the standards set forth

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

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

Enhancement Plan Charge rates.

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

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

LIHEAP assistance payments. The department of human services shall designate to the gas or

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

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

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

The department of human services may authorize the credit of customers' accounts at any time

throughout the calendar year. The electric or gas distribution company's added administrative

expenses to process the credit assignments provided to it by the department of human services

will be recoverable either from the LIHEAP Enhancement Charge or through a separate charge

approved by the Public Utilities Commission.

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

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

or the Pascoag Utility District.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

service.

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

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

customers, for the funding of the LIHEAP Enhancement Fund.

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

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

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

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

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

to any public utility which distributes electricity.

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

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

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

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

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

Commission.

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

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

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

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

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

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

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

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

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

Sec. 96.85 or its successor regulation.

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

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

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

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

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

conditions are met:

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

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

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

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

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

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

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

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

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

conclusion of the period of the agreement;

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

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

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

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

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

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

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

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

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

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

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

of cost recovery by the gas or the electric company.

      (2) Effective October 15, 2011 2015, notwithstanding the provisions of part V sections

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

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

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

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

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

following conditions are met:

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

balance; and

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

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

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

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

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

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

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

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

the conclusion of the period of the agreement; and

     (i) The customer has an account balance of at least three hundred dollars ($300) that is

more than sixty (60) days past due;

     (ii) The account is enrolled in the utility low-income rate (A-60);

     (iii) The customer agrees to participate in budget counseling and energy efficient

programs;

     (iv) The customer applies for other available energy assistance programs, including fuel

assistance and weatherization;

     (v) The customer agrees to make at least twelve (12) monthly payments in an amount

determined by the utility and based on the customer's average monthly bills and the customer's

actual or anticipated fuel assistance;

     (vi) With each payment, a portion of the customer's outstanding account balance shall be

forgiven in an amount equal the total past-due balance divided by the number of months in the

customer agreement;

     (vii) Up to one thousand five hundred dollars ($1,500) shall be forgiven in a twelve (12)

month period. If the outstanding account balance is greater than one thousand five hundred

dollars ($1,500), the length of the agreement may be extended for more than twelve (12) months

to accommodate the total outstanding balance;

     (viii) The customer agrees to remain current with payments. For purposes of this

subsection, remaining current shall mean that the customer: (A) Misses no more than two (2)

payments in a twelve (12) month period covered by the agreement, provided that such missed

payments in a twelve (12) month period are not consecutive and that payments are up to date by

October 31; and (B) That the amount due under the agreement is paid in full, by the conclusion of

the period of the agreement; and

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

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

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

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

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

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

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

residential electric, gas, and water utility service, provided, that any arrearage forgiven under

paragraph (vi) of this subsection shall be credited toward the unpaid balance. A customer, who

completes the schedule of payments, pursuant to this subsection, shall have the balance of any

arrearage forgiven, and the customer's obligation to the gas and/or electric company for such

unpaid balance shall be deemed to be fully satisfied. The amount of the arrearage, so forgiven,

shall be treated as bad debt for purposes of cost recovery by the gas or the electric company.

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

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

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

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

and water service.

     (e) The commission shall complete a comprehensive review of all programs and policies

impacting protected classes and low-income ratepayers. In conducting its review, the commission

shall consult with the division, the attorney general, the utility, the department of human services,

the ratepayers advisory board established by § 39-1-37.1, and community action programs. The

commission shall submit a report of its findings and recommendations to the governor and the

general assembly no later than November 15, 2015. Going forward, the ratepayers advisory board

shall evaluate annually the customer arrearage program.

     SECTION 3. This act shall take effect upon passage.

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LC000874

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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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     This act would allow the department of human services to use low-income home energy

assistance funds throughout the calendar year, establishes an arrearage program and requires the

PUC to conduct a review of programs impacting low-income ratepayers.

     This act would take effect upon passage.

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LC000874

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