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:

     SECTION 1. Section 39-1-26 of the General Laws in Chapter 39-1 entitled "Public

Utilities Commission" is hereby amended to read as follows:

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

expenses from utility companies.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

telecommunications filings, including initial applications and annual registrations, by

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

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

not be a part of the public utilities reserve fund.

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

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

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

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

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

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

approved by the administrator or his or her authorized agent.

     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

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

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

of the state before agencies of the federal government.

     This act would take effect upon passage.

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LC001741

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