2018 -- S 2176

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - THE RHODE ISLAND PUBLIC

POWER UTILITY COUNCIL ACT

     Introduced By: Senators Satchell, Seveney, Calkin, Goldin, and Euer

     Date Introduced: February 01, 2018

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND

GOVERNMENT" is hereby amended by adding thereto the following chapter:

CHAPTER 140.5

THE RHODE ISLAND PUBLIC POWER UTILITY COUNCIL ACT

     42-140.5-1. Short title.

     This chapter shall be known as "The Rhode Island Public Power Utility Council Act".

     42-140.5-2. Legislative findings.

     It is hereby found and declared:

     (1) Rhode Island continues to experience an energy cost crisis and faces the prospect of

ever-increasing energy prices in the future as well as failures of customer service and continuity

of operations in emergency circumstances for utility customers.

     (2) Public power utilities are not-for-profit community-owned utility companies typically

governed by elected or appointed boards made up of municipal officials and community citizens.

This is contrasted to for-profit investor-owned utility companies such as National Grid which are

governed by private boards and operate to benefit shareholders rather than the consumer public.

     (3) Fifteen percent (15%) of all electricity consumers in the United States (49 million

consumers in 49 states) are currently served by public not-for-profit power utilities, including the

customers of the Pascoag Utility District in Rhode Island and nationwide public power customers

pay rates that are on average thirteen percent (13%) less than the rates paid by customers of for-

profit investor owned utility companies.

     (4) Locally-owned not-for-profit public power utilities are economic development

engines for their local communities. Public power utilities employ ninety three thousand (93,000)

people nationally and provide consumer service and response at the local level.

     42-140.5-3. Establishment of council - Purposes.

     (a) There is hereby authorized, created and established a council to be known as "The

Rhode Island Public Power Utility Council" with the powers and duties set forth in this chapter.

     (b) The purposes of this council are to:

     (1) Evaluate and make recommendations for the most appropriate and effective form of

public not-for-profit power utility enabling legislation to best serve the needs of power consumers

in Rhode Island including consideration of lowest cost for the utility consumer, local control and

effective response to local consumer needs in terms of economics, customer service, emergency

response and continuation of operations.

     (2) Develop and implement a process for comprehensive stakeholder involvement in the

design and implementation of a new statutory model for public not-for-profit power utilities in

Rhode Island.

     (3) Promote public understanding of the benefits of municipal level or regional public

not-for-profit power utilities.

     (4) After passage of public not-for-profit power utilities enabling legislation suitable to

the conditions in Rhode Island continue to provide public stakeholder involvement in the

establishment and implementation of public not-for-profit power utilities in Rhode Island at the

municipal level.

     42-140.5-4. Composition and appointment.

     (a) The council shall consist of fifteen (15) members appointed by the governor, with the

advice and consent of the senate; eleven (11) members shall be voting members, and the governor

shall give due consideration to appointment of persons with knowledge of:

     (1) Public not-for-profit power utilities establishment and operation;

     (2) Energy generation, distribution and regulation;

     (3) The needs of residential users, large commercial/industrial users, small

commercial/industrial users, large nonprofit institutional users, small nonprofit institutional users,

and municipal users;

     (4) Specific knowledge of the needs of low-income utility customers. Four (4) members

shall be ex officio, non-voting members, including three (3) municipal officials and the

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commissioner of the office of energy resources. From the eleven (11) voting members, the

governor shall appoint one person to be chairperson of the council and one person to be vice

chairperson of the council; the commissioner of the office of energy resources shall be the

executive secretary and executive director of the council.

     (b) With the exception of the commissioner of the office of energy resources; of the

initial appointments; three (3) members shall be appointed for a term of one year; three (3)

members shall be appointed for a term of two (2) years, and four (4) members shall be appointed

for a term of three (3) years; thereafter members shall be appointed for a term of three (3) years

and may be reappointed.

     (c) A simple majority of the total number of voting members shall constitute a quorum.

     (d) A vacancy other than by expiration shall be filled in the manner of the original

appointment but only for the unexpired portion of the term. The appointing authority shall have

the power to remove an appointee for just cause.

     (e) The members of the council shall not be compensated for their service but shall be

reimbursed for their actual expenses necessarily incurred in the performance of their duties. The

provisions of this subsection shall not apply to the executive secretary/executive director.

     42-140.5-5. Power and duties.

     The council shall have the power to:

     (1) Develop and recommend the optimal statutory form for public not-for-profit power

utilities to meet the needs of Rhode Island utility consumers;

     (2) Monitor and evaluate implementation of public not-for-profit power utilities in Rhode

Island including making findings and recommendations with regard to changes, modifications or

continuation of any statutory framework for public power in Rhode Island;

     (3) Submit to the joint committee on energy an annual report on/or before April 15 of

each year, commencing in 2019, regarding public power establishment and implementation in

Rhode Island including recommendations regarding any improvements to the statutory structure

for public power which might be necessary or desirable;

     (4) Participate in proceedings of the public utilities commission that pertain to the

purposes of the council; and

     (5) Consider such other matters as it may deem appropriate to the fulfillment of its

purposes, and may advise the governor, the general assembly, other parties, and the public with

regard to matters pertaining to its purposes and duties, which advice may include findings and

recommendations.

     42-140.5-6. Additional general powers.

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     In order to effectuate its powers and duties the council has the following powers:

     (1) To make any studies of conditions, activities, or problems related to the state's

adoption and implementation of public not-for-profit power utilities;

     (2) To adopt and amend bylaws, to establish committees, to elect and/or appoint officers

and agents, and to engage consultants and professional services as necessary and appropriate to

fulfill its purposes;

     (3) To accept and administer grants from the federal government and from other sources,

public or private, for the carrying out of any of its functions, which loans or grants shall not be

expended for other than the purposes for which provided;

     (4) To work with the appropriate federal, regional, state and municipal agencies and

authorities and private entities;

     (5) To apply for, accept and expend allocations, grants and bequests of funds, for the

purpose of carrying out the lawful responsibilities of the council.

     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 STATE AFFAIRS AND GOVERNMENT - THE RHODE ISLAND PUBLIC

POWER UTILITY COUNCIL ACT

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     This act would establish the Rhode Island public power utility council in order to develop

public not-for-profit power utilities to meet the needs of Rhode Island utility consumers.

     This act would take effect upon passage.

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