The bill amends Section 39-1-2 of the General Laws in Chapter 39-1, "Public Utilities Commission," by introducing new definitions and classifications for public utilities and electricity consumers. It defines terms such as "Costs of serving," "Facility," "Large energy use facility," and "Retail electricity consumer," which clarify the costs associated with electricity services and the characteristics of facilities that consume significant energy.

The Public Utilities Commission (PUC) is tasked with creating a distinct classification of service for retail electricity consumers that are large energy use facilities, defined as facilities that use or are able to use twenty megawatts (20 MW) or more and are primarily engaged in providing services related to infrastructure, such as cloud storage, application hosting (excluding software publishing), and data entry services. This classification ensures that their tariff and rate schedules are separate and distinct from those of other commercial or industrial retail electricity consumers.

The bill outlines requirements for the PUC when establishing tariffs for these large energy use facilities, focusing on equitable cost allocation and risk mitigation for other consumers. It mandates that any tariff and rate schedule adopted by the commission for this class must allocate the costs of serving the class in a manner that is equal or proportional to the costs of serving the class or directly assign the costs to individual large energy use facilities. The PUC must also consider the potential impact of tariffs on other retail electricity consumers and ensure that they do not impede the electric company's ability to meet clean energy targets.

Additionally, the bill requires electric companies providing electricity service to large energy use facilities to enter into contracts that cover the provision of electricity services, specifying the duration of the contract (which must be ten years or longer), payment obligations, and conditions for delays in service commencement. The contracts must also allow for the possibility of charges for excess demand.

Finally, the PUC is required to submit a report to the governor and general assembly every even-numbered year starting September 1, 2028, reviewing trends in load requirements from large electricity consumers and may include recommendations for further legislation while protecting proprietary information.

Statutes affected:
7270: 39-1-2