The bill amends Section 39-1-27.7.1 of the General Laws in Chapter 39-1, which pertains to the Public Utilities Commission, to revise the revenue decoupling mechanism for electricity and gas distribution companies in Rhode Island with more than 100,000 customers. The amendment introduces a new section titled "39-1-27.7.1. Revenue decoupling," which outlines the purposes of decoupling proposals, including increasing efficiency, achieving energy efficiency goals, reducing risks, and encouraging investment in infrastructure, safety, and reliability. It also suggests transitioning to unit charges that reflect the long-term costs of energy production and delivery. The bill requires these companies to file proposals with the commission to implement the policy, and the commission must approve these proposals if they are consistent with the intent and objectives of the new section.

The bill also details the features and components that the proposals must contain, such as a revenue decoupling reconciliation mechanism and an annual infrastructure, safety, and reliability spending plan. It removes the requirement that the mechanism for gas distribution be determined on a revenue-per-customer basis. Additionally, the bill outlines the duties and powers of the commission, including maintaining service-quality standards, potentially excluding certain rate classes from the reconciliation mechanism, adopting performance incentives, and reviewing energy-savings targets. The Rhode Island energy efficiency and resources management council is tasked with proposing energy-savings targets. Finally, the bill mandates reporting by electric distribution companies on the impact of decoupling, including a comparison of revenues, summaries of performance targets, shared savings, service-quality standards, revenue stabilization, and customer education programs. The act would take effect upon passage.

Statutes affected:
468: 39-1-27.7.1