The bill amends Section 39-2-1.2 of the General Laws in Chapter 39-2, introducing a new title, "Utility base rate — Advertising, demand-side management, and renewables." It prohibits public utilities from including advertising expenses that promote their products or services in their base rates, while allowing for the inclusion of educational or informational advertising that promotes public safety or conservation. The public utilities commission is tasked with creating rules for the disclosure of all advertising expenses and implementing these provisions. Additionally, starting January 1, 2008, electric distribution companies are required to include a charge per kilowatt-hour to fund demand-side management programs, with a specific charge for renewable energy programs until December 31, 2028. Gas distribution companies must also include a charge per deca therm for similar programs, with the commission authorized to establish administrative procedures.

The bill further modifies the allocation of funds for energy efficiency and resource management in Rhode Island by removing the requirement for the public utilities commission to allocate $5 million annually to the Rhode Island infrastructure bank for energy efficiency programs. Instead, it emphasizes the allocation of funds from the demand-side management program to the energy efficiency and resource management council and the office of energy resources, specifying percentages for their activities. The Rhode Island office of energy resources is also empowered to issue requests for proposals for the administration of statewide energy efficiency programs, potentially allowing for a third-party administrator to manage these initiatives. The bill establishes reporting requirements to ensure transparency regarding the financial and performance aspects of the demand-side management programs, aiming to enhance the management of energy efficiency initiatives while ensuring accountability and effective use of funds.