The bill amends Section 39-2-1.2 of the General Laws in Chapter 39-2, focusing on the duties of utilities and carriers, by introducing new provisions that prohibit public utilities serving more than one hundred thousand (100,000) customers from recovering through rates any direct or indirect costs associated with advertising, marketing, communications, or public education that seek to influence public opinion. This includes costs related to research, analysis, preparation, or planning undertaken in support of such activities, unless specifically approved or ordered by the commission.

Additionally, the bill establishes a new section, 39-2-1.5, which further prohibits these utilities from recovering costs associated with non-essential expenses, including membership dues, charitable contributions, lobbying, political contributions, litigation to influence regulations, marketing for unregulated products, tax penalties, and certain expenses related to the board of directors and officers.

Effective July 1, 2025, the bill restricts these utilities from recovering costs related to their attendance, participation, preparation for, or appeal of rate proceedings, including attorney fees and expert witness fees, capping recoverable costs at no more than three percent (3%) of the average total capital spending over the previous three years, excluding advanced meter functionality spending. The commission is empowered to initiate rulemaking to implement these requirements. The act will take effect immediately upon passage.

Statutes affected:
593: 39-2-1.2