Chapter 108
2016 -- H 7846
Enacted 06/17/2016

A N   A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS-DUTIES OF UTILITIES AND CARRIERS

Introduced By: Representatives Handy, Slater, Diaz, McNamara, and Bennett
Date Introduced: March 03, 2016

It is enacted by the General Assembly as follows:
     SECTION 1. 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 Eenhancement Cchargefunds 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 § 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 Rretail Eelectric Llicensing Ccommission and
shall give reasonable consideration to any and all recommendations of the Rretail Eelectric
Llicensing Ccommission.
      (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 subsection
and to provide for restoration of electric and/or gas service to very low-income households as
defined by § 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
subsection and to provide for the restoration of electric and/or gas service to low-income home
energy assistance program (LIHEAP) 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 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.
      (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)
(A) mMisses no more than a total of three (3) payments in the thirty-six- (36) month (36) period
covered by the agreement; (b) (B) mMisses 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) (C) tThat the amount due under
that agreement is paid in full by the conclusion of the period of the agreement;
      (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
subdivisions 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 company.
      (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
subdivisions 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.
      (3) A customer terminated from service under the provisions of subdivisions 39-2-
1(d)(1) or subdivisions 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 2. This act shall take effect upon passage.
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LC004986
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