2017 -- H 5869

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LC001785

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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 Ruggiero, Handy, Casimiro, Kazarian, and Morin

     Date Introduced: March 08, 2017

     Referred To: House Corporations

     (Lieutenant Governor)

It is enacted by the General Assembly as follows:

     SECTION 1. Sections 39-1-27, 39-1-27.7.1 and 39-1-38 of the General Laws in Chapter

39-1 entitled "Public Utilities Commission" are hereby amended to read as follows:

     39-1-27. Electric distribution companies required to file restructuring plans.

     (a) Each electric distribution company shall file with the commission a plan for

transferring ownership of generation facilities into a separate affiliate of the electric distribution

company. The transmission facilities owned by the electric distribution company also may be

transferred to an affiliated electric transmission company at a price that shall equal the book value

of the transmission facilities on the electric distribution company's accounts net of depreciation

and deferred taxes as the date of transfer, but such a transfer is not required. The generation plant,

equipment, and facilities owned by an electric distribution company shall be transferred to an

affiliate that is a nonregulated power producer at a price that shall equal the book value of the

generation plant, equipment, and facilities on the electric distribution company's accounts net of

depreciation and deferred taxes as of the date of the transfer. Consistent with the schedule for

implementing retail access in § 39-1-27.3, each electric transmission company shall file tariffs

with the federal energy regulatory commission (FERC) and electric distribution companies shall

file tariffs with the commission. The tariffs will provide the terms, conditions and rates for

nondiscriminatory access to transmission and distribution facilities to wholesale and retail

customers and to nonregulated power producers. The tariffs shall (1) conform to the standards,

policies, and requirements of the federal energy regulatory commission or the commission as

appropriate with respect to nondiscriminatory access to transmission and distribution services, (2)

fulfill such standards with respect to both transmission and distribution services for the benefit of

both wholesale and retail customers and their suppliers, and (3) provide retail access in

accordance with the schedule set forth in § 39-1-27.3. For purposes of this section,

"nondiscriminatory access" means access to transmission and distribution services on rates, terms

and conditions found to be reasonable by the FERC or the commission as appropriate and applied

consistently to all customers in a rate class regardless of their supplier. When establishing terms

and conditions for distribution service, the commission shall implement standards, policies, and

requirements consistent with those established by the federal energy regulatory commission for

transmission service unless it determines that alternative terms and conditions are in the public

interest.

     (b) The commission shall review the plan within six (6) months of filing and if the plan is

in compliance with chapter 3 of this title, shall authorize the property transfers, securities

issuances, and affiliate transactions pursuant to this title and shall grant all necessary regulatory

approvals. All existing state and local rights, authorizations, and approvals, including but not

limited to, permits, licenses, locations, indentures, leases, orders, or similar rights associated with

the ownership and operation of plant and equipment, shall be deemed transferred with the

associated plant and equipment upon the commission's authorization of the transfer effective as of

the date of transfer. Notwithstanding any provisions of this section, if the electric distribution

company's wholesale power supplier chooses to transfer its generation assets to a nonaffiliate of

the electric distribution company for purposes of carrying out the market valuation required by §

39-1-27.4(g), and such transfer to a nonaffiliate is specified in the electric distribution company's

restructuring plan filed with the commission pursuant to subsection (a) of this section, the transfer

of the electric distribution company's interest in the generation facilities may be made directly to

the nonaffiliate. In the case of such a transfer directly to a nonaffiliate, all of the state and local

rights, authorizations and approvals, including those enumerated above, shall be deemed

transferred with the associated plant and equipment upon the commission's authorization of the

transfer effective as of the date of the transfer.

     (c) The electric distribution company shall implement the corporate reorganizations and

property transfers specified in such restructuring plan, terminate its all requirements contract with

its wholesale power supplier on the terms set forth in § 39-1-27.4 and provide retail access for all

customers in Rhode Island with a standard offer as set forth in § 39-1-27.3 no later than three (3)

months after retail access is available to forty percent (40%) or more of the kilowatt-hour sales in

New England. The commission may extend this time if it determines that additional time is

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necessary to implement the transactions on reasonable terms and in accordance with a reasonable

schedule; provided, however, that nothing in this section shall be construed to limit the effect of §

39-1-27.3 or permit the commission to unduly discriminate in providing retail access among or

within rate classes.

     (d) Following the complete implementation of the restructuring plans, electric

distribution companies shall be prohibited from selling electricity at retail and from owning,

operating, or controlling generating facilities, although such facilities may be owned by affiliates

of electric distribution companies. For purposes of this paragraph providing the standard offer

service and last resort power supply in accordance with subsections (d) and (f) of § 39-1-27.3

shall not be construed as selling electricity at retail. Furthermore:

     (1) Generation activities shall remain separate from transmission and distribution

activities;

     (2) Electric distribution companies shall be removed from the business of electric

generation;

     (3) The commission shall not approve any petition, plan, contract or schedule that shifts

the risks of generation investments toward ratepayers and away from private investors in the

competitive market, including, but not limited to, the following:

     (i) The commission shall not approve ratepayer-backed, long-term contracts by electric

distribution companies for gas capacity; and

     (ii) The commission shall not approve any rate increase for an electric distribution

company to finance the construction or expansion of natural gas pipelines or related facilities.

     (e) Following the termination of the electric distribution company's contracts with its

wholesale power supplier, the wholesale power supplier shall become a nonregulated power

producer, and shall be free, subject to the requirements of the standard offer set forth in § 39-1-

27.3(e) and retail electric licensing commission plan requirements pursuant to § 39-1-27.1 to sell

electricity generated from each of its facilities on either the wholesale or retail markets at market

prices, either directly or through an affiliate, which shall also become a nonregulated power

producer. The former wholesale power supplier and its affiliates shall be free to apply to become

exempt wholesale generators pursuant to section 32 of the Public Utility Holding Company Act

of 1935, 15 U.S.C. § 79z-5a, and other federal law, rules and regulations, and each and every

generating facility of the former wholesale power supplier shall become an eligible facility

pursuant to that statute. Accordingly, the legislature hereby finds and declares that the division

has sufficient regulatory authority, resources, access to books and records to exercise its duties;

and that the full participation of former wholesale power suppliers and affiliated nonregulated

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power producers in the market and the designation of each of the former wholesale power

supplier's facilities as eligible facilities will benefit consumers, is consistent with state law, will

not provide any unfair competitive advantage by virtue of their status as a former wholesale

power supplier or as affiliates of electric distribution companies, and is in the public interest.

     (f) Although reducing air emissions from power plants is a goal of electricity industry

restructuring, power plants in Rhode Island already have low emissions relative to their

counterparts in other states. For this reason, it is unnecessary for the restructuring plans required

by this section to address in-state air emission reductions. However, to the extent a wholesale

power supplier receiving contract termination fees pursuant to § 39-1-27.4(b)(4) owns and

operates as of December 31, 1995 fossil fired generation in another state which does not meet air

emission standards applicable as of that date to new electric generating facilities in that state, such

wholesale power suppliers shall cooperate with the appropriate environmental officials in the

state or states where such generating facilities are located to develop a plan for reducing the

emissions of nitrogen oxides, sulfur dioxide, and particulate matter from such plants on an overall

basis through retirements, replacements, controls or offsets or any combination of the above

toward the air emissions standards applicable to new electric generating facilities in effect in the

state or states where the plants are located as of January 1, 1996. Such plans shall be implemented

in connection with electric industry restructuring in the state or states where the generating

facilities are located.

     (g) An electric distribution company, whether public, quasi-municipal or investor owned,

that as of January 1, 1996 did not purchase power at wholesale from a wholesale power supplier

under an all requirements contract shall include proposals for recovering transition costs

consistent with the elements which would be comparable in nature to the elements included in

termination fees pursuant to § 39-1-27.4(b) through (g) and for providing a standard offer

consistent with requirements of § 39-1-27.3(d) in its plan filed with the commission pursuant to

this section. The filing by an electric distribution company that is a quasi-municipal corporation

shall also address any unique circumstances affecting the electric distribution company including

special contract requirements or charter restrictions and the conditions that the quasi-municipal

corporation must satisfy in order to participate in retail competition. In reviewing the filing and

determining the appropriate level of transition cost recovery, the commission shall apply

standards consistent with those contained in § 39-1-27.4(b) through (g) and with this subsection.

The commission shall be authorized to take any action or to grant any approval necessary to

maintain hydro-electric power purchases from the Niagara and St. Lawrence power projects by

quasi-municipal corporations. Notwithstanding any other provision of this section, quasi-

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municipal electric distribution companies that purchase hydro-electric power from the Niagara

and St. Lawrence power projects shall be authorized to continue to resell such power to

residential customers within their service territories. After notice and public hearing, the

commission may exempt electric distribution companies subject to this paragraph from: (1) the

requirement to transfer ownership of generation and transmission facilities to affiliated companies

pursuant to subsection (a); and (2) the prohibition against selling electricity at retail pursuant to

subsection (d) of this section with respect to sales within the service territory of such electric

distribution company, if it determines that such exemptions are in the public interest.

     (h) With the exception of the requirements of the standard offer set forth in § 39-1-

27.3(e) and (f) and retail electric licensing commission plan requirements pursuant to § 39-1-27.1,

nothing in this section shall be construed or interpreted to constrain the application of anti-trust

laws to nonregulated power producers, whether affiliated or not with an electric distribution

company.

     39-1-27.7.1. Revenue decoupling.

     (a) The general assembly finds and declares that electricity and gas revenues shall may be

fully decoupled from sales pursuant to the provisions of this chapter and further finds and

declares that any decoupling proposal submitted by an electric-distribution company as defined in

subdivision 39-1-2(12) or gas-distribution company included as a public utility in subdivision 39-

1-2(20) that has greater than one hundred thousand (100,000) customers, shall be for the

following purposes:

     (1) Increasing efficiency in the operations and management of the electric- and gas-

distribution system;

     (2) Achieving the goals established in the electric-distribution company's plan for system

reliability and energy efficiency and conservation procurement as required pursuant to subsection

39-1-27.7(c);

     (3) Increasing investment in least-cost resources that will reduce long-term electricity

demand;

     (4) Reducing risks for both customers and the distribution company including, but not

limited to, societal risks, weather risks, and economic risks;

     (5) Increasing investment in end-use energy efficiency;

     (6) Eliminating disincentives to support energy-efficiency programs;

     (7) Facilitating and encouraging investment in utility infrastructure, safety, and

reliability; and

     (8) Considering the reduction of fixed, recurring customer charges and transition to

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increased unit charges that more accurately reflect the long-term costs of energy production and

delivery.

     (b) Each electric-distribution company as defined by subdivision 39-1-2(12) and gas-

distribution company included as a public utility in subdivision 39-1-2(20) having greater than

one hundred thousand (100,000) customers shall file proposals at the commission to implement

the policy set forth in subsection (a). The commission shall may approve such proposals,

provided they contain the features and components set forth in subsection (c), and that they are

consistent with the intent and objectives contained in subsection (a). Actions taken by the

commission in the exercise of its ratemaking authority for electric- and gas-rate cases shall be

within the norm of industry standards and recognize the need to maintain the financial health of

the distribution company as a stand-alone entity in Rhode Island.

     (c) The proposals shall contain the following features and components:

     (1) A revenue decoupling reconciliation mechanism that reconciles annually the revenue

requirement allowed in the company's base distribution-rate case to revenues actually received for

the applicable twelve-month (12) period; provided that the mechanism for gas distribution shall

be determined on a revenue-per-customer basis, in a manner typically employed for gas-

distribution companies in the industry. Any revenues over-recovered or under-recovered shall be

credited to, or recovered from, customers, as applicable; and

     (2) An annual infrastructure, safety, and reliability spending plan for each fiscal year and

an annual rate-reconciliation mechanism that includes a reconcilable allowance for the anticipated

capital investments and other spending pursuant to the annual pre-approved budget as developed

in accordance with subsection (d).

     (d) Prior to the beginning of each fiscal year, gas- and electric-distribution companies

shall consult with the division of public utilities and carriers regarding their infrastructure, safety,

and reliability spending plan for the following fiscal year, addressing the following categories:

     (1) Capital spending on utility infrastructure;

     (2) For electric-distribution companies, operation and maintenance expenses on

vegetation management;

     (3) For electric-distribution companies, operation and maintenance expenses on system

inspection, including expenses from expected resulting repairs; and

     (4) Any other costs relating to maintaining safety and reliability that are mutually agreed

upon by the division and the company.

     The distribution company shall submit a plan to the division and the division shall

cooperate in good faith to reach an agreement on a proposed plan for these categories of costs for

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the prospective fiscal year within sixty (60) days. To the extent that the company and the division

mutually agree on a plan, such plan shall be filed with the commission for review and approval

within ninety (90) days. If the company and the division cannot agree on a plan, the company

shall file a proposed plan with the commission and the commission shall review and, if the

investments and spending are found to be reasonably needed to maintain safe and reliable

distribution service over the short and long term, approve the plan within ninety (90) days.

     (e) Prior to making any filing related to revenue decoupling, and at least annually, the

company shall submit a report to the commission and division, with supporting documentation,

which shall include, but not be limited to, the following elements:

     (1) A detailed summary of how the company is achieving increased efficiency in the

operations and management of the electric- or gas-distribution system;

     (2) A detailed summary of how the company has encouraged investment in end-use

energy efficiency and supported energy-efficiency programs;

     (3) A detailed summary of customer service-related complaints received by the company

(with or without division or commission involvement), the company's method for tracking and

responding to such complaints, and the timing for resolving such service-related complaints;

     (4) A detailed summary of customer billing-related complaints received by the company

(with or without division or commission involvement), the company's method for tracking and

responding to such complaints, and the timing for resolving such billing-related complaints; and

     (5) A detailed summary of all incentive payments received by the company, including the

total earned under each incentive program, and any actions taken by the company to earn such

incentive payments.

     (f) Every electric- or gas-distribution company, included in subsection (a) of this section,

shall submit a general rate schedule change filing (i.e. full rate filing) no later than January 1,

2018, and at least every three (3) years thereafter.

     (e)(g) The commission shall have the following duties and powers, in addition to its

existing authorities established in title 39 of the general laws:

     (1) To maintain reasonable and adequate service-quality standards, after decoupling, that

are in effect at the time of the proposal and were established pursuant to § 39-3-7.

     (2) The commission may exclude the low-income rate class from the revenue decoupling

reconciliation-rate mechanism for either electric or gas distribution. The commission also may

exclude customers in the large commercial and industrial rate class from the gas-distribution

mechanism.

     (3) The commission may adopt performance incentives for the electric-distribution

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company that provides a shared-savings mechanism whereby the company would receive a

percentage of savings realized as a result of achieving the purposes of this section while the

remaining savings are credited to customers.

     (4) The commission shall review and approve, with any necessary amendments,

performance-based, energy-savings targets developed and submitted by the Rhode Island energy

efficiency and resources management council. Said performance-based targets shall also be used

as a consideration in any shared-savings mechanism established by the commission pursuant to

subdivision (3) herein.

     (5) The general assembly recognizes that the revenue decoupling mechanism

substantially reduces the risk to the company and its investors. The commission shall consider the

availability of revenue decoupling during any rate filing by reducing the appropriate profit level

to offset the full impact of the company's reduced risk attributable to decoupling.

     (f)(h) The Rhode Island energy efficiency and resources management council shall

propose performance-based, energy-savings targets to the commission no later than September 1,

2010. The targets shall include, but not be limited to, specific energy kilowatt-hour savings

overall and peak-demand savings for both summer- and winter-peak periods expressed in total

megawatts as well as appropriate targets recommended in the opportunities report filed with the

commission pursuant to § 39-1-27.7(c)(3). The council shall revise, as necessary, these targets on

an annual basis prior to the reconciliation process established pursuant to subsection (c) and

submit its revisions to the commission for approval.

     (g) Reporting.(i) Every electric-distribution company, as defined in subsection (a) shall

report to the governor, general assembly, division of public utilities, and public utilities

commission annually on or before September 1, 2012. Said report shall include, but not be limited

to, the following elements:

     (1) A comparison of revenues from traditional rate regulation and how the revenues have

differed as part of an approved decoupling structure;

     (2) A summary of how the company is achieving the performance-based targets that may

have been adopted pursuant to subdivision (e)(g)(4);

     (3) A summary of any shared savings the company may have received pursuant to the

performance incentives authorized in subdivision (e)(g)(3);

     (4) A summary of how the company is achieving the service-quality standards required in

subdivision (e)(g)(1);

     (5) An overview of how decoupling is impacting revenue stabilization goals that have

resulted from decoupling; and

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     (6) A summary of any customer education programs provided.

     39-1-38. Liberal construction -- Incidental powers -- Severability.

     The provisions of this title shall be interpreted and construed liberally in aid of its

declared purpose. The commission and the division shall have, in addition to powers specified in

this chapter, all additional, implied, and incidental power which may be proper or necessary to

effectuate their purposes. The commission, notwithstanding any mandatory approval language set

forth elsewhere throughout the general laws or any rule or regulation, shall always have the

overriding right and duty to review all commission filings and to modify them as the commission

deems necessary and desirable to ensure the result is just and reasonable for ratepayers. No rule,

order, act or regulation of the commission and of the division shall be declared inoperative,

illegal, or void for any omission of a technical nature. If any provision of this title, or of any rule

or regulation made thereunder, or the application thereof to any company of circumstance, is held

invalid by a court of competent jurisdiction, the remainder of the title, rule, or regulation, and the

application of such provision to other companies or circumstances shall not be affected thereby.

The invalidity of any section or sections or parts of any section or sections of this title shall not

affect the validity of the remainder of the title.

     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 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 charge from all utility customers,

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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) (1) 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 subsection

and to provide for the restoration of electric and/or gas service to low-income home energy

assistance program (LIHEAP)-eligible households, as this eligibility is defined in the current

LIHEAP state plan for Rhode Island filed with the U.S. Department of Health and Human

Services.

     (2) Effective no later than September 1, 2016, 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:

     (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 customer is eligible for the federal low-income home-energy assistance program

and the account is enrolled in the utility low-income rate if offered;

     (iii) If utility service has been terminated, the customer shall make an initial payment of

twenty-five percent (25%) of the unpaid balance, unless the commission has enacted emergency

regulations in which case the customer shall pay the down payment required by the emergency

regulations;

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     (iv) The customer agrees to participate in energy efficiency programs;

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

assistance and weatherization;

     (vi) 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 usage of the previous year,

and the customer's actual or anticipated fuel assistance, if known. The electric- and/or gas-utility

company shall review the payment plan every three (3) months and may adjust said plan based on

the following: the amount of or change in fuel assistance; the customer moves, actual usage

differs from estimated usage; and/or significant changes in the company's energy costs or rates

from the time of anticipated enrollment;

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

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

customer agreement;

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

month (12) period. If the outstanding account balance is greater than one thousand five hundred

dollars ($1,500), the length of the agreement may, at the request of the customer, be extended for

more than twelve (12) months to accommodate the total outstanding balance, provided that the

customer is current with payments at the conclusion of the previous twelve-month (12) period;

     (ix) 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-month (12) period covered by the agreement; and (B) That the amount due

under the agreement is paid in full, by the conclusion of the twelve-month (12) period of the

agreement;

     (x) 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 already forgiven under subsection

(d)(2)(ii) of this section shall remain forgiven and be written off by the utility. The amount of the

arrearage, so forgiven, shall be recovered by the electric and/or gas company through an annual

reconciling factor approved by the commission;

     (xi) The commission may promulgate rules and regulations to implement this section that

ensure efficient administration of the program in a non-discriminatory manner consistent with the

goal of providing assistance to customers who are willing and able to meet their obligations to the

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utility under this program;

     (xii) Each public utility that provides gas or electric service to residential ratepayers shall

file tariffs implementing the requirements of this section on a date to be determined by the

commission which shall allow for the program to be in place no later than October 1, 2016; and

     (xiii) After two (2) years from the date of completion of the plan or removal from the

plan for failure to remain current with payments and upon recommendation from a community

action partnership agency, a customer shall be eligible to enroll in a subsequent arrearage

forgiveness plan.

     (xiv) 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 up to the amount allowed in the gas and/or electric company's most recent

general rate filing. In the event the gas or electric company's bad debt for a calendar year exceeds

the amount allowed in the most recent general-rate filing for the same period, the gas or electric

company shall be entitled to recovery of those write-offs that were the result of the arrearage

forgiveness plan set forth in this section.

     (3) A customer terminated from service under the provisions of subdivision (d)(1) or

(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 utility- and energy-

related 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, community-based organizations, a homeless advisory group, and community action

agencies, each of whom shall cooperate with meetings scheduled by the commission and any

requests for information received by the commission by providing responses within twenty-one

(21) days from issuance. The commission shall submit a report of its findings and

recommendations to the governor and the general assembly no later than November 1, 2018. No

later than November 15, 2017, and annually thereafter, the commission shall submit to the

governor, the senate president, and the speaker of the house a report on the effectiveness of the

customer arrearage program which shall include a cost-benefit analysis and recommendations to

improve effectiveness of the arrearage program.

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     (f) Every public utility shall provide prompt and adequate customer service to its rate

payers as provided in §39-2-1.5.

     SECTION 3. Chapter 39-1 of the General Laws entitled "Public Utilities Commission" is

hereby amended by adding thereto the following section:

     39-1-27.13. Alternative suppliers and purchase of receivables program.

     (a) The general assembly recognizes the importance of competitive choice in electric

generation service.

     (b) Residential or commercial customers:

     (1) Initiating new utility service;

     (2) Reinstating service following a change of residence or business location;

     (3) Making an inquiry regarding their rates; or

     (4) Seeking information regarding energy efficiency shall be offered the option to learn

about their ability to enroll with a participating alternative supplier of energy. Customers

expressing an interest in learning about their electric supply options shall be informed of offers

available by participating alternative suppliers. The electric distribution company shall describe

then available offers using a method approved by the commission.

     (c) Participating alternative suppliers of energy may list qualifying electric offers to

provide electric generation service to residential or commercial customers in each customer's

utility bill. The commission shall determine the manner such information may be presented in

customers' utility bills.

     (d) For electric suppliers who have chosen the complete billing service, as described in

Narragansett Electric Company's Terms and Conditions for Nonregulated Power Producers,

R.I.P.U.C. No. 1191. Section 2.1.1, the electric distribution company shall make timely payments

to such suppliers in accordance with this subsection. The distribution company shall:

     (1) Bill all of the electric supplier's customers in a service class according to complete

billing;

     (2) Pay such suppliers the full amounts due from customers for generation services in a

time period consistent with the average payment period of the participating class of customer, less

a percentage of such amounts that reflects the average of the uncollectible bills for the

participating customer classes of the electric distribution company and other reasonable

development, operating or carrying costs incurred, as approved by the commission.

     SECTION 4. Chapter 39-2 of the General Laws entitled "Duties of Utilities and Carriers"

is hereby amended by adding thereto the following section:

     39-2-1.5. Minimum customer service levels.

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     (a) Every public utility shall provide prompt and adequate customer service which shall

include prompt installation of new service and service upgrades to its ratepayers, and compliance

with statutory and regulatory deadlines for all projects.

     (b) Each electric-distribution company as defined by §39-1-2 having greater than one

hundred thousand (100,000) customers and each gas-distribution company included as a public

utility in §39-1-2 having greater than one hundred thousand (100,000) customers shall complete

the installation of new service or upgrade of service as follows:

     (1) New service installations requiring no construction of electric or gas facilities or

construction of electric or gas facilities with a total cost of less than two thousand dollars ($2,000)

shall be completed within three (3) business days after the utility has been notified that the service

location is ready for service and all necessary tariff and regulatory requirements have been met.

     (2) Service upgrades or new service installations that require construction of electric or

gas facilities with a total of cost of two thousand dollars ($2,000) or greater shall be completed

within fourteen (14) business days after the utility has been notified that the service location is

ready for service and all necessary tariff and regulatory requirements have been met. The division

may grant reasonable extensions to the utility for good cause shown.

     (c) Each electric-distribution company as defined by §39-1-2 having greater than one

hundred thousand (100,000) customers and each gas-distribution company included as a public

utility in §39-1-2 having greater than one hundred thousand (100,000) customers shall take

measures necessary to keep sufficient records to report the following data to the division:

     (1) The percent of telephone calls answered at each company's call center or business

office, or both, within thirty (30) seconds with a company representative ready to render

assistance and to accept information necessary to process the call. An acknowledgment that the

customer or applicant is waiting on the line does not constitute an answer.

     (2) The number of calls to a company's call center or business office that received a busy

signal divided by the number of calls that were received for each call center, business office, or

both.

     (3) The number of calls to a company's call center or business office that were abandoned

divided by the total number of calls received at the company's call center, business office, or both.

     (4) The actual number of disputes for which the company did not provide a response to

the complaining party within fourteen (14) days of the initiation of the dispute.

     (d) Beginning in 2018, each company set forth in section (b) of this section shall file a

report annually with the division on or before February 1. Each report shall contain all data set

forth in subsection (c) of this section, reported by month, as well as a twelve (12) month

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cumulative average for the preceding calendar year. Each report shall contain an analysis and

comparison of the data reported under this chapter for the previous two (2) years. Each report

shall include the name and telephone number for the utility contact person responsible for the

report.

     (e) The commission shall evaluate and address the customer service performance of any

company that requests a rate increase as part of the rate case review process. The commission

may require improved customer service, as well as proof of improvement, prior to approving any

rate increase.

     (f) Any ratepayer who alleges that a utility has failed to provide prompt and adequate

customer service, has failed to promptly install service upgrades or new service, or has failed to

comply with any statury or regulatory deadline may submit a formal or informal complaint with

the division. The division shall investigate and rule upon such complaints in an expedited manner

and shall provide status updates to the ratepayer or project manager as the investigation proceeds.

     (g) The division shall have the authority to assess a penalty against any utility that fails or

neglects to provide prompt and adequate customer service, promptly install service upgrades or

new service, or to comply with any statury or regulatory project deadline as determined by the

division.

     (1) The penalty may include:

     (i) Costs and reasonable attorney's fees for any ratepayers who filed complaints, to be

paid to the injured ratepayers;

     (ii) Consequential damages sustained by any ratepayers who filed complaints, including,

but not limited to, lost profits due to unreasonable delays, to be paid to the injured ratepayers; and

     (iii) A sum not to exceed ten thousand dollars ($10,000), for each separate offense, which

shall be remitted to, or for the benefit of, all ratepayers in a manner to be determined by the

division.

     (2) Any payment as a result of a penalty as provided in this section, and the cost of

litigation and investigation related to any such penalty, shall not be recoverable from ratepayers.

     (3) The remedies provided by this section are in addition to any other remedies provided

in law.

     (h) Any ratepayer that is overcharged for any service or assessment shall be given the

option of receiving either a bill credit or a full refund. Credits or refunds to the ratepayer shall be

within thirty (30) days following a final determination by the division.

     SECTION 5. Chapter 39-3 of the General Laws entitled "Regulatory Powers of

Administration" is hereby amended by adding thereto the following sections:

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     39-3-12.3. Incentive information required.

     (a) No utility regulated by the commission shall be allowed to file its rate schedules or

notice of changes in rates unless it shall also file a statement containing the following

information:

     (1) A detailed summary of all incentive payments received by the company, including the

total earned under each incentive program, and

     (2) A detailed summary of all actions taken by the company to earn such incentive

payments.

     (b) Notwithstanding any other provision of the general laws, whether of specific or

general application, any incentive payments authorized by law and approved by the commission

shall be:

     (1) Considered billed distribution revenue for the purpose of determining any revenue

decoupling mechanism adjustment factor authorized by law and approved by the commission;

and

     (2) Considered billed distribution revenue in any future rate case.

     39-3-37.4. Itemized charges -- Electrical distribution company.

     (a) Every electrical distribution company which shall charge for the distribution of

electricity to any house, building, tenement or estate shall provide an itemized bill or statement

following any installation, construction, site visit, work associated with an interconnection

agreement, or any other service for which there is any fee assessed.

     (b) The electrical distribution company shall provide a detailed written estimate prior to

performing any chargeable service, unless the total estimated cost for such service is less than one

hundred dollars ($100).

     (c) The bill, statement, or estimate shall include the following information:

     (1) Total cost of installation, construction, site visit or other service;

     (2) Number of hours worked and hourly rate of work performed;

     (3) Itemized costs for supplies or materials, if any;

     (4) Permit fees, if any;

     (5) Relocation costs, if any;

     (6) All other costs or fees related to installation, construction, site visit or other service.

     SECTION 6. 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

***

     This act would remove electric distribution companies from the business of electric

generation, promote alternative supplier and purchaser of receivables programs.

     The act would also improve the efficiency and management of electric and gas

distribution systems, while promoting better customer service complaints' resolution.

     This act would take effect upon passage.

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