This bill amends Chapter 39-2 of the General Laws by introducing a new section, 39-2-1.5, which prohibits public utilities serving over 100,000 customers from recovering costs related to advertising, political contributions, charitable giving, and other specified expenses through their rates. The bill outlines various categories of costs that are not recoverable, including those associated with marketing and public education aimed at influencing public opinion, membership dues to trade associations, lobbying activities, and expenses related to the company's board of directors.

Additionally, for rate proceedings initiated after July 1, 2026, these utilities cannot recover costs associated with their attendance, participation, preparation for, or appeal of such proceedings, including attorneys' fees, expert witness fees, and employee salaries related to these activities.

The bill also amends Section 39-1-27.7.1 regarding revenue decoupling for electric distribution companies and gas companies with more than 100,000 customers. It establishes that these companies shall not increase their annual budgets for infrastructure, safety, and reliability plans by more than 3% over the average of the approved "total capital spending" budgets for the previous five years. Spending on specific capital investment projects approved by the commission outside of the infrastructure, safety, and reliability plan may be excluded from this annual budget limit, subject to commission discretion.

The bill aims to enhance accountability and transparency in utility spending while ensuring that costs are kept in check for consumers.

Statutes affected:
2779: 39-1-27.7.1