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HB 5485

AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND CARRIERS

2025 Regular Session Introduced by Lauren Carson

HB 5485 aims to bar most advertising costs from base utility rates, maintain separate DSM/renewable funds with transparent project ranking, and empower PUC rulemaking.

03/31/2025 Withdrawn at sponsor's request
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Bill Summary · HB 5485

Summary — HB 5485 (2025)

Title: AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS — DUTIES OF UTILITIES AND CARRIERS
Sponsor: Rep. Lauren H. Carson
Bill No.: HB 5485
Status: Withdrawn at sponsor's request (03/31/2025)

Purpose

HB 5485 would amend R.I. Gen. Laws § 39-2-1.2 to clarify and update rules about what utility costs may be included in customer base rates, to continue and adjust funding mechanisms for demand‑side management (DSM) and renewable energy programs, and to set additional procedural and administrative requirements for renewable program administration and project selection.

Key provisions

  • Advertising costs in base rates

    • Prohibits inclusion in base rates of advertising expenses that promote a utility’s products/services or public image (direct or indirect).
    • Allows inclusion of informational/educational advertising that promotes public safety or conservation.
    • Requires the Public Utilities Commission (PUC) to promulgate rules requiring public disclosure of all advertising expenses.

  • Renewable energy and DSM charges and accounts

    • Continues the electric distribution company charge funding DSM and renewables and requires two separate accounts: one for electric DSM (administered by the distribution company under PUC oversight) and one for renewable programs (administered by the Rhode Island Commerce Corporation and held/disbursed by the distribution company per Commerce Corp direction).
    • Specifies that the existing 0.3 mills per kWh charge dedicated to renewable energy programs would remain in effect until December 31, 2033 (text marks a change from an earlier 2028 end date).
    • Permits the PUC, after notice and hearing, to increase sums and to set appropriate charges.

  • Administration, contracting, and project selection

    • Authorizes the Commerce Corporation CEO to contract with a third party to administer renewable programs; administration contracts may be competitively bid and renewed every three years.
    • Requires Commerce Corporation rules to establish transparent criteria to rank renewable projects, considering:
    • feasibility of completion;
    • anticipated renewable energy produced;
    • potential to mitigate energy costs over the project life;
    • estimated cost per kWh produced.

  • Other clarifications (existing statutory language reiterated/maintained)

    • Office of Energy Resources (and renewable program administrator) may seek to secure an equitable portion of renewable energy credits (RECs) from funded projects.
    • Defines eligible renewable energy resources and allows funding for solar space‑heating and domestic hot water technologies; allows fuel cells to be treated as energy efficiency measures.
    • Continues special low‑income rates in effect as of August 7, 1996; allows new low‑income programs with PUC approval.
    • Retains provisions for gas DSM (historical effective dates are restated in statute) and permits commission to coordinate electric and gas DSM, including through third‑party entities.

Who is affected

  • Electric, gas, water utilities and their ratepayers (charges and program funding)
  • Rhode Island Commerce Corporation (program administration and rulemaking)
  • Public Utilities Commission (rulemaking, hearings, rate-setting oversight)
  • Office of Energy Resources
  • Renewable project developers (project selection and funding criteria)
  • Low‑income customers (continuation of existing discounts; possible new programs subject to approval)

Procedural / timeline notes

  • Introduced by Rep. Carson (dates recorded: introduced 02/13/2025; filed 03/14/2025).
  • Referred to House Corporations; later legislative entries show referrals/readings by other committees.
  • Withdrawn by the sponsor on 03/31/2025 — bill did not advance to enactment.

Potential impacts

  • Increases transparency and limits utilities’ ability to pass promotional advertising costs to ratepayers.
  • Extends the policy framework and funding continuity for renewable programs (notably the renewable charge timeline) which may support additional renewable projects and administrative stability.
  • Adds transparent project ranking criteria likely to prioritize cost‑effective and feasible projects.
  • May modestly affect customer bills to the extent the PUC sets or adjusts DSM/renewable charges; preserves protections for low‑income customers through existing special rates and PUC oversight.

Compiled from official sources — confirm details with the bill’s official record.

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