Chapter 404

2011 -- S 0412 SUBSTITUTE A AS AMENDED

Enacted 07/13/11

 

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - PUBLIC UTILITIES COMMISSION

 

     Introduced By: Senators Miller, Goodwin, Pichardo, Metts, and Crowley

     Date Introduced: March 10, 2011

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. This act shall be known and may be cited as "The Henry Shelton Act".

 

     SECTION 2. Chapter 39-1 of the General Laws entitled "Public Utilities Commission" is

hereby amended by adding thereto the following section:

 

     39-1-27.12. Low Income Home Energy Assistance Program Enhancement Plan.

     (a) The Low Income Home Energy Assistance Program Enhancement Plan (hereinafter

“LIHEAP Enhancement Plan”) is hereby created to supplement the federal Low Income

Household Assistance Program (“LIHEAP”) funding being received by customers of Rhode

Island electric and gas distribution companies.

     (b) Within a period of time sufficient to accomplish the purposes of this section, but not

longer than ninety (90) days after the effective date of this chapter, the Office of Energy

Resources shall develop a recommended monthly “LIHEAP Enhancement Charge” rate for the

following year and make a filing with the commission pursuant to this chapter recommending

rates. Thereafter annually but no later than October 15 of each year, the office shall make filings

with the commission to recommend the LIHEAP Enhancement Charge rates for each class of

electric and natural gas distribution company customer for the following year.

     (c) A LIHEAP Enhancement Charge approved by the Commission shall have the

following limitations:

     (1) For electric distribution company customers, the charge shall not be more than ten

dollars ($10.00) per year.

     (2) For natural gas distribution company customers, the charge shall not be more than ten

dollars ($10.00) per year.

     (3) The total projected annual revenue for the LIHEAP Enhancement Plan through

charges to all electric and natural gas distribution company customers shall not exceed seven

million five hundred thousand dollars ($7,500,000) and shall not be below six million five

hundred thousand dollars ($6,500,000).

     (d) The commission shall open a docket to consider for approval LIHEAP Enhancement

Charge rates proposed by the office. In reviewing the recommended rates the commission shall

give due consideration to the recommendations of the office and the standards set forth in

subsection (c) of this section. The commission shall issue a decision within sixty (60) days after

said recommendations and report are filed with the commission establishing the Enhancement

Plan Charge rates.

     (e) The electric or gas distribution company shall use the funds collected through this

Enhancement Plan Charge to provide a credit to customers accounts that are receiving federal

LIHEAP assistance payments. The office of energy resources shall designate to the gas or electric

distribution company the qualifying customer accounts and the amounts to be credited to those

customer accounts, provided that the total amount to be credited to those accounts shall be fully

funded by and not exceed the total amount collected through the Enhancement Plan Charge. The

electric or gas distribution company’s added administrative expenses to process the credit

assignments provided to it by the office of energy resources will be recoverable either from the

LIHEAP Enhancement Charge or through a separate charge approved by the Public Utilities

Commission.

     (f) As used in this section, “electric and natural gas distribution company” means a

company as defined in subsection 39-1-2(12), but not including the Block Island Power Company

or the Pascoag Utility District.

 

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

hereby amended by adding thereto the following section:

 

     39-1-37.1. Ratepayers Advisory Board. -- (a) There is hereby established the ratepayers

advisory board. The advisory board shall consist of the following public members:

     (1) Three (3) members appointed by the speaker of the house of representatives, one of

whom shall represent the interests of residential ratepayers; one of whom shall represent the

interests of the elderly and disabled; and one of whom shall represent a community-based

consumer organization representing low-income individuals.

     (2) Three (3) members appointed by the senate president, one of whom shall represent the

interests of residential ratepayers; one of whom shall represent a chamber of commerce; and one

of whom shall represent a non-profit energy consortium of businesses.

     (3) Three (3) members appointed by the governor, one of whom shall represent the

LIHEAP program administration; one of whom shall represent the interests of small business

owners; and one of whom shall represent the interests of residents of affordable housing.

     (b) The appointments to the advisory board shall be made as follows: each appointing

authority shall appoint one member to serve a term of one year, one member to serve a term of

two (2) years, and one member to serve a term of three (3) years. Thereafter, each member

appointed to the advisory board shall serve a three (3) year terms. The board members are eligible

to succeed themselves. A vacancy, other than by expiration of a term, shall be filled in the manner

of the original appointment, but only for the unexpired portion of the term.

     (c) Five (5) members shall constitute a quorum. A majority vote of the board shall be

required for all recommendations, advice, and approvals of the board, in accordance with this

section.

     (d) A board member shall not receive compensation for his or her service on the board

but may receive reimbursement for travel and other necessary expenses, while engaged in the

performance of official duties of the board.

     (e) The board shall elect annually a chairperson and vice chairperson from among its

membership.

     (f) The board shall receive staff and administrative support from the division, to organize

meetings and take and distribute minutes. The division shall also furnish the advisory board a

suitable location to hold its meetings.

     (g) The board shall meet at least quarterly and at the call of the chairperson or four (4)

board members. The administrator shall be present for all board meetings to inform the board of

the actions of the division and to respond to the board’s inquiries.

     (h) The board shall review legislative proposals and comment on existing state laws

relating to residential ratepayers.

     (i) The board shall advise the administrator on matters concerning residential ratepayers

including, but not limited to utility shut-off policies, rate affordability, conservation measures,

consumer education, smart meters and/or restricted use meters, customer service charges,

legislation pending before the general assembly, and legislative initiatives.

     (j) The advisory board shall issue an annual report of findings, including

recommendations on current or proposed state programs, policies, regulations and laws, to the

governor and the general assembly.

     (k) The board shall be subject to the provisions of chapter 38-2, Access to Public Records

Act, and chapter 42-46, Open Meetings Act.

 

        SECTION 4. The title of Chapter 39-1.1 of the General Laws entitled

"TERMINATION OF SERVICE TO PERSONS WHO ARE DISABLED AND SERIOUSLY

ILL" is hereby amended to read as follows:

 

CHAPTER 39-1.1

TERMINATION OF SERVICE TO PERSONS WHO ARE DISABLED AND SERIOUSLY ILL

CHAPTER 39-1.1

TERMINATION OF SERVICE TO PERSONS WHO ARE DISABLED, SERIOUSLY ILL OR IN ARREARS OF PAYMENT

 

     SECTION 5. Sections 39-1.1-1 and 39-1.1-2 of the General Laws in Chapter 39-1.1

entitled "Termination of Service to Persons Who Are Disabled and Seriously Ill" are hereby

amended to read as follows:

 

     39-1.1-1. Compliance with rules prior to termination. -- (a) No public utility which

distributes electricity or supplies natural or manufactured gas, electric, or water service shall

terminate service to any household in whichall adult residents are sixty-five (65) years of age or

older, or where any resident is disabled or seriously ill, for failure to pay an outstanding

indebtedness for service, without first complying with all rules and regulations for such

terminations issued by the commission.

     (b) A natural gas distribution company or an electric distribution company as defined in

subsection 39-1-2(12), but not including the Block Island Power Company or the Pascoag Utility

District, shall not shut off service to a household eligible for LIHEAP if the customer’s

outstanding bill is three hundred dollars ($300) or less and not more than two (2) months in

arrears. Service may not be terminated unless two (2) notices of termination have been sent.

 

     39-1.1-2. Determination of persons subject to nontermination. -- (a) The commission

shall promulgate appropriate rules and regulations to determine which persons who are elderly,

disabled, or seriously ill are subject to the nontermination provisions of section 39-1.1-1, and in

what manner relief will be made available to the subject persons.

     (b) Rules and regulations maintained to determine which persons are seriously ill shall

include the provision that said determination shall be through certification to the public utility or

to the Division of Public Utilities and Carriers by a licensed physician.

     (i) A licensed physician’s certification of serious illness shall be sufficient if initially

made by telephone. In such event, the public utility or the Division, whichever received initial

certification, shall inform the certifying physician that he or she must forward to the public utility

within seven (7) days a written certification indicating the name and address of the seriously ill

person, the nature of the illness, and its likely duration. The public utility shall acknowledge

receipt of such written certification and shall notify the customer in writing of the date upon

which service will be terminated, unless the customer: (1) Has arranged for payment of an

outstanding amount with the public utility, pursuant to rules and regulations promulgated by the

commission; (2) Requests a hearing, pursuant to rules and regulations promulgated by the

commission; or (3) Enrolls in a residential payment plan or other payment arrangement. The

termination date shall be not less than three (3) weeks from receipt by the public utility of the

written certification. If the duration of the illness exceeds three (3) weeks from the certification to

the public utility, the customer may request a review pursuant to rules and regulations

promulgated by the commission, to determine whether the initial exemption shall continue, for

how long, and under what circumstances.

     (ii) A public utility must honor a licensed physician’s certification of serious illness, but

may seek division review of the validity of the certification, pursuant to rules and regulations

promulgated by the commission. If a licensed physician’s certification does not comply with the

requirements promulgated by the commission and is rejected by a public utility, the public utility

shall inform the customer immediately, in writing, of the reasons for rejection of the certification

and the customer’s right to have the division review the utility’s rejection of the certification.

     (iii) Non-termination for any reason does not, in any way, relieve the customer of liability

incurred for utility services.

 

     SECTION 6. 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 Chargefunds from all utility

customers, 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 section 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 section 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) On or before May 1, 2007, the commission shall administer such rules and regulations

as may be necessary to implement the purpose of subdivision (1) of this section and to provide for

restoration of electric and/or gas service to very low income households as defined by section 42-

141-2. 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 section and to provide

for the restoration of electric and/or gas service to LIHEAP eligible households, defined as those

with a combined gross income equal to or less than sixty percent (60%) of the state median

household income as calculated by the U.S. Bureau of Census and as adjusted for family or group

size by the U.S. Department of Health and Human Services regulation 45 CFR Sec. 96.85 or its

successor regulation..

     (1) Effective July 1, 2007 until October 14, 2011, 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 very low income customer

who is 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 date specified, shall be

eligible one time to have electric and/or gas utility service restored providing the following

conditions are met:

     (i) the customer pays twenty-five percent (25%) of the customer's unpaid balance;

     (ii) the customer agrees to pay one thirty-sixth (1/36) of one half (1/2) of the customer's

remaining balance per month for thirty-six (36) months;

     (iii) the customer agrees to remain current with payments for current usage. For purposes

of this subsection remaining current with payments shall mean that the customer: (a) misses no

more than a total of three (3) payments in the thirty-six (36) month period covered by the

agreement; (b) misses more than two (2) payments in any one calendar year, provided that such

missed payments in a calendar year are not consecutive and that payments for the year are up-to

date by October 31st; and (c) that the amount due under that agreement is paid in full by the

conclusion of the period of the agreement; and

     (iv) the customer has shown, to the satisfaction of the division, that the customer is

reasonably capable of meeting the payment schedule provided for by the provisions of

subdivision 39-2-1(d)(1)(i) and (ii) in this section. The restoration of service provided for by this

subsection shall be a one-time right; failure to comply with the payment provisions set forth in

this subsection shall be grounds for the customer to be dropped from the repayment program

established by this subsection, and the balance due on the unpaid balance shall be due in full and

shall be payable in accordance with the rules of the commission governing the termination of

residential electric, gas, and water utility service. 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 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

     (2) Effective October 15, 2011, 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 makes an initial payment of ten percent (10%) of the customer's unpaid

balance; and

     (ii) The customer agrees to pay an amount equal to one-thirty sixth (1/36) of forty percent

(40%) of the customer’s unpaid balance, per month for thirty-six (36) months; and

     (iii) The customer agrees to remain current with payments for current usage. For purposes

of this subsection, remaining current with payments, shall mean that the customer: (A) Misses no

more than a total of three (3) payments in the thirty-six (36) month period covered by the

agreement; (B) Misses more than two (2) payments in any one calendar year, provided that such

missed payments in a calendar year are not consecutive and that payments for the year are up-to

date by October 31st; and (C) That the amount due under that agreement is paid in full, by the

conclusion of the period of the agreement; and

     (iv) the customer has shown, to the satisfaction of the division, that the customer is

reasonably capable of meeting the payment schedule, provided for by the provisions of

subdivision 39-2-1(d)(1)(i) and (ii) in this section. The restoration of service, provided for by this

subsection, shall be a one-time right; 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. 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.

      (2) (3) A customer terminated from service under the provisions of subdivision 39-2-

1(d)(1) or subdivision 39-2-1(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.

 

     SECTION 7. This act shall take effect upon passage.

     

=======

LC01158/SUB A/2

=======