The bill amends Chapter 39-3 of the General Laws by introducing a new section, 39-3-45, which regulates the rate increases that electric distribution companies can impose. It stipulates that any proposed increase in electric rates shall not exceed five and one-half percent (5.5%) or the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U), as published by the U.S. Department of Labor Bureau of Labor Statistics as of September 30 of the prior calendar year, whichever is greater. Any increase beyond these limits would require prior approval from the General Assembly.

Additionally, the provisions of this section do not apply to electric distribution companies with fewer than seven thousand five hundred (7,500) electricity customer accounts. The act is set to take effect upon passage.