The bill amends Section 39-1-27.7.1 of the General Laws concerning the Public Utilities Commission, specifically addressing revenue decoupling for electric distribution companies and gas distribution companies. Effective July 1, 2026, the profit margin of any electric distribution company or gas distribution company shall not exceed four percent (4%) in any given calendar year. This profit margin is defined as the return on equity, which refers to the return on the equity portion of the base rate allowed by the commission.

The bill requires these companies to submit proposals to decouple their revenues from sales, aiming to enhance operational efficiency, achieve energy efficiency goals, reduce risks, and encourage investment in infrastructure and energy efficiency programs. The proposals must include a revenue decoupling reconciliation mechanism and an annual infrastructure spending plan. The commission is tasked with approving these proposals if they align with the outlined objectives.

Additionally, the bill outlines the commission's responsibilities, including maintaining service quality standards and potentially excluding certain customer classes from the revenue decoupling mechanism. It also mandates reporting requirements for electric distribution companies to assess the impact of decoupling on revenue stabilization and performance against set targets.

Statutes affected:
7888: 39-1-27.7.1