The bill amends Section 39-2-1.2 of the General Laws in Chapter 39-2, focusing on the management of utility base rates by public utilities. It introduces new legal language that prohibits the inclusion of advertising expenses related to promoting products or services in the base rates charged to customers. However, it allows for expenses related to educational or informational advertising aimed at public safety and conservation. The bill also mandates the public utilities commission to establish rules for the disclosure of advertising expenses. Additionally, it sets specific charges for electric and gas distribution companies to fund demand-side management programs and renewable energy initiatives, requiring electric companies to implement a charge per kilowatt-hour and gas companies to include a charge per deca therm delivered.

Moreover, the bill restricts public utilities serving over one hundred thousand customers from recovering costs associated with advertising, political activities, and other specified expenses through customer rates. It establishes a cap on capital spending recovery, limiting it to three percent of the average of the previous three years of approved spending, excluding advanced meter functionality expenses. The commission is empowered to initiate rulemaking to enforce these requirements. The provisions of this act will take effect upon passage, emphasizing the importance of energy efficiency and resource management while ensuring that funds are used appropriately.