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HB 7824

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

2026 Regular Session Introduced by Charlene Lima

Rhode Island could shift statewide energy efficiency programs to a potential third-party administrator, clarifying funding, governance, and accountability to maximize customer bene

06/02/2026 Committee recommended measure be held for further study
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Bill Summary · HB 7824

Summary of HB 7824 (Rhode Island, 2026 Session)

Purpose and intent

  • This act makes multiple revisions to the duties of public utilities and carriers, with a focus on how advertising, demand-side management (DSM), and renewable energy programs are funded, administered, and disclosed.
  • It also revises who administers statewide energy efficiency programs (potentially shifting to a third-party administrator) and clarifies funding mechanisms, governance, and reporting requirements.

Key provisions and changes

  • Advertising restrictions and disclosures (a)

    • Prohibits public utilities from including in base rates any expenses for advertising that promotes use of their product/service or the public image of the industry.
    • Prohibits furnishing support for advertising to subsidiaries, groups, associations, or individuals if included in base rates.
    • Allows base-rate recovery for advertising, informational, or educational content that promotes public safety or conservation.
    • Requires the Rhode Island Public Utilities Commission (PUC) to promulgate rules ensuring disclosure of all advertising expenses (direct or indirect).

  • DSM and renewable energy funding (b)

    • For electric distribution companies (EDCs): starting Jan 1, 2008, a charge per kilowatt-hour (kWh) to fund DSM programs for 20 years; a separate 0.3 mill/kWh charge for Renewable Energy Programs (REPs) remains until Dec 31, 2028.
    • Establishes two separate accounts:
    • DSM Account (funded by the DSM charge), administered by the utility subject to PUC oversight.
    • Renewable Energy Programs Account (administered by the Rhode Island Commerce Corporation under § 42-64-13.2) to fund REPs.
    • The PUC may adjust the charges after notice and public hearing; may determine the charge levels; may pursue equitable portions of Renewable Energy Credits (RECs) related to projects funded by these programs.
    • Defines “renewable energy resources” broadly to include on-grid/off-grid Rhode Island projects, R&D in RI related to eligible renewables, and projects implementing renewables in RI. Solar space heating and domestic hot water technologies may be funded; fuel cells may be considered energy-efficiency tech within DSM.

  • Administration of REP funds (b, continued)

    • Rules for ranking and selecting REP projects will be established by the Rhode Island Commerce Corporation, considering feasibility, expected energy output, cost per kWh, and long-term energy-cost mitigation.

  • Gas DSM funding and administration (e)–(i)

    • Electric provisions mirror gas provisions: gas distribution companies must charge a gas DSM fee per decatherm (starting Jan 1, 2007, for 21 years) to fund DSM activities, with a separate Gas DSM Account overseen by the utility and subject to the PUC.
    • The commission may exempt certain gas uses (e.g., distribution generation or manufacturing processes under approved plans) from DSM charges.
    • The commission may coordinate/elevate DSM administration between electric and gas programs, potentially via third-party administrators after Mar 1, 2009, through competitive procurement.

  • Administration coordination and expert funding (i)–(k)

    • Starts allocating up to 3% of DSM funds annually for expert consultants and costs for the Energy Efficiency and Resource Management Council (EERMC) planning, management, and evaluation, with potential coordination with the Office of Energy Resources (OER).

  • Funding allocations to EERMC and OER (j)

    • From 2016 onward: annual DSM fund allocations split (up to 40% to EERMC for specified purposes; 60% of the 3% DSM funds to OER for planning/management/evaluation activities). OER would have exclusive authority over the use of its funds.

  • Annual reporting (k)

    • By April 15 each year, the OER and the EERMC must report on DSM program funding, including sector contributions, recipients of funds, and administration funds.

  • Rhode Island Infrastructure Bank contributions (l–m, o)

    • Beginning Aug 1, 2015: Electric DSOs (excluding Pascoag and Block Island) must remit 2% of the 2014 electric DSM charge to the RI Infrastructure Bank; same 2% for gas DSM charges.
    • Since Jan 1, 2022: The Commission must allocate $5 million annually from DSM funds to the RI Infrastructure Bank for financing energy efficiency, renewables, clean transportation/heating, energy storage, etc. The Bank must report on utilization within 90 days of year-end.
    • The act clarifies that DSM funds can be used for energy efficiency and related projects financed by the Infrastructure Bank, subject to existing restrictions.

  • Statewide energy efficiency administration—possible third-party administrator (o)

    • ORER, in coordination with EERMC, may issue requests for proposals (RFPs) for a third-party administrator to run statewide energy efficiency programs no later than Sept 30, 2023.
    • The ORER will evaluate proposals and decide whether a third party or the electric/gas distribution companies should administer the programs, aiming to maximize net benefits to Rhode Island customers.
    • If a third party is chosen, the PUC must allow full cost recovery for the administrator, under terms of the approved contract and budget; the third party must comply with the same oversight standards as utilities.
    • If a third-party administrator begins after June 1, 2024, the gas and electric DSOs must transfer DSM funds to the third party; otherwise, the utilities will continue administering the programs.
    • The third-party administrator must develop an annual energy efficiency program plan with OER/EERMC input and must be filed with the PUC by Sept 30, 2024, and annually thereafter. They must answer information requests and be accountable to the same standards as the utilities.

  • Alternatives if no third-party administrator is advanced (8)

    • If the OER/EERMC does not advance a third-party administrator, the electric and gas distribution companies will continue to administer statewide energy efficiency programs.

  • Effective date

    • The act takes effect upon passage.

Who is affected

  • Electric distribution companies (EDCs) and gas distribution companies (GDCs) serving Rhode Island’s publicCustomers.
  • Rhode Island Public Utilities Commission (PUC) with authority to set charges, approve rules, and oversee DSM/RE programs.
  • Rhode Island Commerce Corporation (formerly RI Commerce Corporation) for administration of REP funds.
  • Rhode Island Office of Energy Resources (OER) and Energy Efficiency and Resource Management Council (EERMC) for program planning, evaluation, and reporting.
  • Rhode Island Infrastructure Bank, which may receive annual DSM-related transfers for financing energy projects.
  • Potential third-party administrator (if selected) to manage statewide energy efficiency programs.
  • Low-income customers (special rates and programs referenced; existing low-income discounts may continue or be adapted).

Procedural and timeline notes

  • Initial DSM/RE funding framework existing since 2008 and 2007 (various dates in the bill) with ongoing annual adjustments, hearings, and reporting.
  • RFP process for third-party administrator required by Sept 30, 2023; potential implementation no earlier than 2024.
  • Public reporting due by April 15 each year.
  • Annual $5 million transfer to RI Infrastructure Bank from DSM funds begins in 2022, with ongoing reporting requirements.

Overall impact

  • The bill tightens oversight and disclosure of advertising by utilities.
  • It formalizes and potentially restructures how DSM and REP funding are funded, administered, and evaluated, including a potential shift to a third-party administrator.
  • It strengthens accountability through reporting, performance metrics, and consumer-focused evaluation to maximize net benefits for Rhode Island electric and gas customers.

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

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