The bill amends Section 39-1-27.7.1 of the General Laws concerning the Public Utilities Commission, introducing a new provision for "Revenue decoupling." It mandates that electric and gas distribution companies with over 100,000 customers must submit proposals to decouple their revenues from sales. The proposals should aim to enhance operational efficiency, achieve reliability and energy efficiency goals, reduce risks, and encourage investment in energy efficiency and infrastructure. Additionally, the bill outlines a reconciliation mechanism for revenue and requires annual spending plans for infrastructure, safety, and reliability.

A significant insertion in the bill is the stipulation that, effective July 1, 2025, the profit margin for any electric or gas distribution company cannot exceed four percent in any calendar year. This profit margin is defined as the return on equity allowed by the commission. The bill also empowers the Public Utilities Commission to adopt performance incentives and mandates reporting requirements for electric distribution companies to assess the impact of decoupling on revenue stabilization and service quality. The act will take effect upon passage.

Statutes affected:
5018: 39-1-27.7.1