The bill amends Section 39-2-1.2 of the General Laws in Chapter 39-2, focusing on the regulation of utility base rates concerning advertising, demand-side management, and renewable energy initiatives. It explicitly prohibits public utilities from including expenses for advertising that promotes their products or services in their base rates, while allowing for educational or informational advertising aimed at public safety and conservation. The bill also requires the public utilities commission to establish rules for disclosing advertising expenses. Additionally, it mandates specific charges for electric and gas distribution companies to fund demand-side management programs and renewable energy projects, ensuring that low-income customers are not disproportionately affected by these costs.

Moreover, the bill introduces a new section that prohibits public utilities serving over one hundred thousand customers from recovering costs related to advertising, political activities, and other specified expenses through customer rates. It outlines a comprehensive list of non-recoverable costs, including lobbying expenses and contributions to trade associations. The bill also restricts the recovery of costs associated with rate or infrastructure proceedings initiated after July 1, 2025, and grants the commission the authority to implement necessary rulemaking. The act is set to take effect upon passage, with provisions for the allocation of funds to support energy efficiency and renewable energy projects, including a significant annual allocation to the Rhode Island infrastructure bank starting in 2022.