The bill amends Section 39-1-27.7.1 of the General Laws concerning revenue decoupling for electric and gas distribution companies in Rhode Island. It establishes that effective July 1, 2025, the profit margin for any electric distribution company or gas distribution company, as defined in Section 39-1-2, shall not exceed four percent (4%) in any given calendar year. This profit margin is defined as the return on equity, which is the return on the equity portion of the base rate allowed by the Public Utilities Commission (PUC).

The bill requires these companies to submit proposals to the PUC aimed at increasing operational efficiency, achieving energy efficiency goals, and reducing risks for customers. The proposals must include a revenue decoupling reconciliation mechanism and an annual infrastructure spending plan. Additionally, the bill allows the PUC to adopt performance incentives and mandates that the Rhode Island Energy Efficiency and Resources Management Council propose performance-based energy-savings targets.

The PUC is also required to amend its rules and regulations as needed to be consistent with the provisions of this chapter. The act will take effect upon passage.

Statutes affected:
5018: 39-1-27.7.1