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 this limit would require prior approval from the General Assembly.

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