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HB 6316

AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION-NATURAL GAS SUPPLIERS

2025 Regular Session Introduced by Mike Chippendale and 3 co-sponsors

Rhode Island Energy must lock in at least one four-year interstate natural gas pipeline capacity contract, overseen by the PUC, to stabilize supply.

05/09/2025 Introduced, referred to House Corporations
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Bill Summary · HB 6316

Summary: HB 6316 (Rhode Island)

Overview

HB 6316 is an act proposed within Rhode Island’s 2025 General Assembly to strengthen the procurement of natural gas by the public utility Rhode Island Energy. The bill would require the utility to secure at least one long-term contract for natural gas pipeline capacity with an interstate pipeline operator, lasting a minimum of four years. The measure is tied to the Public Utilities Commission’s oversight of natural gas suppliers.

Key Provisions

  • Adds new section 39-1-2.2 to Chapter 39-1 (Public Utilities Commission) titled “Long-term contracts for natural gas.”
  • Requirement: Rhode Island Energy must enter into at least one long-term contract for natural gas pipeline capacity with an interstate pipeline operator.
  • Contract duration: The long-term contract must be for not less than four (4) years.
  • Effective date: Upon passage of the act.

Affected Parties

  • Primary: Rhode Island Energy (the public utility serving Rhode Island’s natural gas customers).
  • Interstate pipeline operators providing gas transportation capacity.
  • Rhode Island Public Utilities Commission (implicit oversight and regulation of utility procurement practices).

Implementation and Timing

  • Status: Introduced May 9, 2025; referred to House Corporations (with a prior referral in January 2025 to the Joint Committee on Finance, Revenue and Bonding).
  • Effective date: Automatic on passage (no separate implementation delay).
  • The proposal modifies how Rhode Island Energy procures pipeline capacity, embedding long-term commitments into its gas supply strategy.

Potential Impacts and Considerations

  • Reliability and Security: A long-term contract for pipeline capacity could help ensure stable access to transportation for natural gas, potentially reducing exposure to short-term procurement volatility.
  • Pricing and Risk: Longer-term commitments may provide price visibility but could expose ratepayers to unfavorable terms if market conditions improve or if project economics change.
  • Regulatory Oversight: The Public Utilities Commission would oversee compliance with the new contract requirement as part of its broader statutory authority over natural gas suppliers.
  • Flexibility vs. Commitment: A four-year minimum term balances commitment with a reasonable planning horizon; however, it may limit Rhode Island Energy’s ability to adjust to rapid market changes.

This bill would represent a targeted change to gas procurement strategy for Rhode Island Energy, aligning it with longer-term capacity planning while expanding the role of the Public Utilities Commission in governing natural gas supply arrangements.

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

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