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

The bill also requires these companies to submit proposals to the PUC aimed at increasing operational efficiency, achieving energy efficiency goals, and reducing risks for customers and the companies themselves. These proposals must include a revenue decoupling reconciliation mechanism and an annual infrastructure spending plan. Additionally, the PUC is granted the authority to maintain service-quality standards and may exclude certain customer classes from the revenue decoupling mechanism. The PUC is mandated to amend its rules and regulations as needed to align with these new provisions. The act will take effect upon passage.

Statutes affected:
5018: 39-1-27.7.1