2017 -- H 5641

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LC001741

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - PUBLIC UTILITIES COMMISSION

     

     Introduced By: Representatives Kennedy, Johnston, Kazarian, and Messier

     Date Introduced: March 01, 2017

     Referred To: House Corporations

     (DPUC)

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 39-1-26 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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     39-1-26. Public utilities reserve fund created -- Appropriations -- Recovery of

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expenses from utility companies.

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     (a) There is hereby created a fund to be known as the public utilities reserve account, an

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account within the public utilities commission in the general fund. Such account, hereinafter

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referred to as the "fund", shall be used for the purpose of providing the financial means for the

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commission and division to purchase materials, and to employ on a contract or other basis, legal

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counsel, official stenographers, engineers, accountants, economists, and other expert witnesses,

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and for other necessary expenses of the commission and division in investigations and hearings

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related to applications and filings made by public utilities, or commission or division initiated

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investigations into utility operating practices, or related appeals to state or federal courts or in

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relevant regulatory matters before federal agencies. The general assembly shall annually

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appropriate to the fund a sum equal to twenty-five one thousandths of one percent (.00025%) of

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the gross annual operating revenues of gas, electric, and telephone companies attributable to their

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conduct of intrastate operations in this state during the year next preceding; provided, however,

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that if at June 30, in any year the balance in the fund shall be in excess of one hundred thousand

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dollars ($100,000), the amount of the excess shall forthwith be transferred to the general fund of

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the state. Prebilled revenue shall be excluded from an excess balance to be transferred to the

 

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general fund. The state controller is authorized and directed to draw his or her orders upon the

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general treasurer for the payment from the fund of such sums as may be required from time to

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time upon receipt by him or her of proper vouchers approved by the administrator.

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     (b) The public utility making an application or filing to the commission or division, or

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subject to a commission or division initiated investigation, or any public utility distributing

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electricity or gas whose retail rates would be affected by a proceeding filing made by the

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administrator or a federally regulated electric or gas company before an agency of the federal

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government or a federal court, shall be charged with and shall pay a portion of the expenses

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reasonably so incurred by the commission and by the division for the purchase of materials and

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for the employment of legal counsel, official stenographers, engineers, accountants, and expert

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witnesses, and for travel and other necessary expenses as are reasonably attributable to the

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investigation or the hearing of the proposal by the commission and the division, or to the

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administrator's representation of the state before the federal or state courts or an agency of the

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federal government. The administrator or the commission chairperson as appropriate, shall

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ascertain the expenses and shall determine the amount to be paid by the public utility company or

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companies, and bills shall be rendered therefor either at the conclusion of the investigation or

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hearing, or from time to time during its progress, and the amount of each bill so rendered shall be

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paid by the public utility to the administrator or the commission, as appropriate, within thirty (30)

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days from the date of its rendition unless, within the thirty (30) day time period, the public utility

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so billed shall request an opportunity to be heard by the commission as to the amount thereof. The

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commission shall comply with any such request. Any amount of the bill not paid within thirty

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(30) days from the date of service of the determination upon the hearing, or, if none shall be

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requested, within thirty (30) days from the date of rendition of the bill, shall draw interest at the

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rate of twelve percent (12%) per annum. At the discretion of the administrator, or the commission

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chairperson, as appropriate, utility companies may be prebilled for contractual services utilized by

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the commission or division. Any revenue received from public utilities not expended upon the

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completion of the case will be promptly reimbursed to the utility company. The total amount

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which may be charged to any public utility under authority of this section for proceedings before

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the commission or division or in related appeals before state or federal courts in any calendar year

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shall not exceed five hundred thousand dollars ($500,000) seven hundred and fifty thousand

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dollars ($750,000), provided that any indirect cost recovery obligations pursuant to § 35-4-27

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shall constitute a separate and additional assessment to public utilities to be added to the

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foregoing expense assessment limit; in addition, the total amount which may be charged against

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any public utility under authority of this section for the administrator's representation of the state

 

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before agencies of the federal government in any calendar year shall not exceed five hundred

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thousand dollars ($500,000) two hundred and fifty thousand dollars ($250,000). All moneys

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collected by the administrator or the commission pursuant to this section shall be paid by him or

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her monthly to the general treasurer to be added to the public utilities reserve fund.

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     (c) The division of public utilities shall adopt by regulation, a fee schedule for all

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telecommunications filings, including initial applications and annual registrations, by

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telecommunications providers which are not otherwise subject to the provisions of subsections (a)

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or (b) of this section. The money assessed and paid shall be paid into the general fund and shall

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not be a part of the public utilities reserve fund.

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     (d) The general assembly shall annually appropriate such sums as it may deem necessary

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for the salaries of the commissioners and their expenses incurred in the performance of their

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duties, and for the operations of the commission and the division and payment of such office

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expenses and assistance as from time to time may be required. The state controller is authorized

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and directed to draw his or her orders upon the general treasurer for the payment of such sum, or

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so much thereof, as may be required from time to time upon receipt by him or her of vouchers

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approved by the administrator or his or her authorized agent.

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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 - PUBLIC UTILITIES COMMISSION

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     This act would expand the use of the public utilities reserve fund to appeals to state courts

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and in relevant regulatory matters before federal agencies and increase the amount chargeable to

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any public utility to $750,000 but not more than $250,000 for the administrator’s representation

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of the state before agencies of the federal government.

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     This act would take effect upon passage.

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