The bill amends Section 39-2-1.2 of the General Laws in Chapter 39-2, focusing on the regulation of utility base rates, particularly concerning demand-side management and renewable energy programs. It prohibits 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, including costs related to research, analysis, preparation, or planning in support of such activities, unless specifically approved or ordered by the commission.

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

Furthermore, it stipulates that for any rate proceeding or infrastructure, safety, and reliability proceeding initiated on or after July 1, 2025, these utilities shall not recover costs associated with their attendance, participation, preparation, or appeal of such proceedings, including attorney fees and expert witness fees. The recoverable costs are capped at three percent (3%) of the average of the previous three (3) years of approved Total Capital Spending, excluding Advanced Meter Functionality spending.

The commission is authorized to initiate rulemaking to implement the requirements of this chapter. The act is set to take effect upon passage.

Statutes affected:
593: 39-2-1.2