The bill amends Chapter 39-2 of the General Laws by introducing a new section, 39-2-1.5, which establishes a tiered percentage of income payment program for residential customers of electric and gas distribution companies with over 100,000 customers. By January 2, 2027, these companies are required to file a proposed percentage of income plan with the public utilities commission for approval, aimed at ensuring that eligible customers, whose household income is at or below 150% of the federal poverty level, pay no more than a fixed percentage of their income for utility costs.

The program will include specific discount tiers based on income levels and utility usage, with provisions for a fixed monthly payment and forgiveness of pre-participation arrearages over a 24-month period. The fixed per bill discount is designed to approximate an average annual electric expense of no more than 3% of the income for customers who do not use electric as their primary source of heat, or 6% for those who do. For eligible customers using gas as their primary source of heat, the discount will approximate an average annual natural gas expense of no more than 3% of their income.

The costs associated with the discounts, including administrative expenses not funded through other sources, will be collected from all other customers of the electric and gas distribution companies in a manner determined just and reasonable by the commission. The commission is tasked with balancing the level of discounts with the administrative costs of implementing the program and must render a decision on the proposed plan by January 15, 2028. The approved plan will be included in the companies' next general rate filing and future general rate filings. Eligible customers enrolled in the program will also be offered energy efficiency programs upon enrollment. The act will take effect upon passage.