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. The plan is designed to ensure 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 bill specifies that each tier will provide a discount to ensure that eligible customers pay no more than three percent (3%) of their income for utility costs if they do not use electric as their primary source of heat, or six percent (6%) if they do. For those using gas as their primary source of heat, the discount will ensure that their average annual natural gas expense does not exceed three percent (3%) of their income. The payment plan will also include provisions for fixed monthly payments and forgiveness of pre-participation arrearages over a 24-month period.

Additionally, the bill mandates that the costs associated with the discounts, including administrative expenses not funded through other sources, 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.