The bill amends Chapter 39-2 of the General Laws by introducing a new section, 39-2-1.5, which establishes a tiered percentage of income payment program for residential customers of electric and gas distribution companies with over 100,000 customers. By January 2, 2026, these companies are required to submit a proposed percentage of income plan to the public utilities commission for approval. The plan aims to ensure that eligible customers, whose household income is at or below 150% of the federal poverty level, pay no more than a fixed percentage of their income for utility costs.

The program includes provisions for fixed monthly payments, forgiveness of pre-participation arrearages over a 24-month period, and specific discount tiers based on whether customers use electric or gas as their primary heating source. The fixed per bill discount is designed to approximate an average annual electric expense of no more than 3% of the income for customers who do not use electric as their primary source of heat, or 6% for those who do. For customers using gas as their primary source of heat, the discount is designed to approximate an average annual natural gas expense of no more than 3% of their income.

The bill outlines that the costs associated with the discounts, including administrative expenses not covered by other funding sources, will be collected from all other customers in a manner deemed just and reasonable by the commission. The commission is tasked with balancing the level of discounts with the administrative costs of implementing the program and must render a decision on the proposed plan by January 15, 2027. Eligible customers will be enrolled in the appropriate tier upon verification of their income level, and they will also be offered energy efficiency programs upon enrollment. The act will take effect upon passage.