2023 -- S 0518

========

LC002067

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

____________

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND

CARRIERS

     Introduced By: Senators Sosnowski, Miller, Ciccone, DiPalma, Euer, Britto, Acosta,
Ujifusa, and Kallman

     Date Introduced: March 07, 2023

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. 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. Tiered percentage of income payment program.

     (a) Notwithstanding any other law to the contrary, no later than January 2, 2024, each

electric distribution company, as defined in § 39-1-2(a) or a gas distribution company included as

a public utility in § 39-1-2(a), that has greater than one hundred thousand (100,000) customers,

shall file with the public utilities commission a proposed percentage of income plan applicable to

residential customers whose household income is at or below one hundred fifty percent (150%) of

the federal poverty level. The public utilities commission shall be authorized to approve or amend

the filed plan.

     (1) Each tier shall provide a discount designed to ensure that the eligible customer pay no

more than a fixed percent of the income level for that tier for their utility costs.

     (2) The payment plan shall be designed to provide for a fixed monthly payment and

forgiveness of pre-participation arrearages over a twenty-four (24) month period.

     (3) The fixed per bill discount shall be designed to approximate an average annual electric

expense of not more than three percent (3%) of the income of customers within the applicable tiered

class for customers who do not use electric as their primary source of heat, or six percent (6%) of

the income of customers within the applicable tiered class who use electric as their primary source

of heat.

     (4) The fixed per bill discount shall be designed to approximate an average annual natural

gas expense of not more than three percent (3%) of the income of customers within the applicable

tiered class for eligible customers who use gas as their primary source of heat.

     (5) To establish the discount tiers and customer eligibility, the commission may consider

targeted annual average expense for participants.

     (6) Notwithstanding the foregoing, a maximum annual benefit and minimum monthly

payment shall be established by the commission with input from the electric distribution company,

the division of public utilities and carriers, and stakeholders.

     (b) The cost of the discount, including administrative costs not funded through other

sources, shall be collected in rates from all other customers of the electric and gas distribution

companies in a manner determined just and reasonable by the commission.

     (c) In reviewing the proposed payment plan under this section, the commission shall

balance the level of discounts with the administrative costs that would be incurred to implement

the payment plan.

     (d) The commission shall render a decision on the proposed percentage of income plan no

later than January 15, 2025. The approved plan shall be included as part of the electric and gas

company’s next general rate filing and future general rate filings.

     (e) An electric or gas distribution company shall enroll an eligible customer in the

appropriate tier at such time as the electric or gas distribution company receives verification of

income level or in some other manner determined to be efficient and cost effective by the

commission.

     (f) Customers enrolled in the tiered discount rate under this section shall be offered energy

efficiency programs as appropriate upon enrollment.

     SECTION 2. This act shall take effect upon passage.

========

LC002067

========

LC002067 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND

CARRIERS

***

     This act would create an income-sensitive tiered subsidy program to ensure that home

energy utility costs are affordable for eligible low-income households.

     This act would take effect upon passage.

========

LC002067

========

LC002067 - Page 3 of 3