The bill amends Section 39-1-27.3 of the General Laws in Chapter 39-1, which deals with the Public Utilities Commission, to update the requirements for electric distribution companies concerning retail access, standard offer, and last-resort service. It mandates that electric distribution companies, except for the Pascoag Utility District, must offer retail access from nonregulated power producers to all customers and arrange for a standard power-supply offer to customers not in contract with nonregulated power suppliers through 2020. The rates for this service are designed to recover only the company's costs and are subject to commission approval. The bill allows for the recovery of costs incurred from providing the standard offer, including wholesale agreements and other prudent arrangements made after January 1, 2002, and permits companies to enter into financial contracts to hedge variable costs. Over and under recoveries are to be reconciled at least annually, with over recoveries refunded and under recoveries recovered through a commission-approved uniform adjustment factor.

Furthermore, the bill requires electric distribution companies to procure last-resort service supply from wholesale power suppliers, with acquisition plans subject to commission review and approval. It introduces changes to the acquisition process, such as staggered acquisitions from multiple suppliers to lower prospective ratepayer charges, and mandates the commission to review the acquisition plan as appropriate. The bill also requires the commission to promulgate regulations for the terms and conditions of last-resort service and mandates an annual review of the acquisition plan. It changes references from "standard offer service" to "last resort service" after December 31, 2020, and repeals Sections 39-1-27.3.1 and 39-1-27.8 of the General Laws in Chapter 39-1, which allowed customers to return to standard-offer service under certain conditions and outlined the procurement process for power supply. The act will take effect upon passage, indicating immediate changes to the legal framework governing public utilities in relation to the Public Utilities Commission.

Statutes affected:
6048: 39-1-27.3