The bill amends Chapter 39-3 of the General Laws by adding 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 cannot 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, whichever is greater. Any increase beyond these limits would require prior approval from the General Assembly.

Additionally, the bill includes a provision that exempts electric distribution companies with fewer than 7,500 electricity customer accounts from these regulations. The act is set to take effect upon its passage.