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SB 2645

AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION

2026 Regular Session Introduced by John Burke and 7 co-sponsors

Rhode Island would transfer ownership of electric generation facilities from distribution utilities to affiliated nonregulated producers, enabling retail competition with new tarif

06/09/2026 Senate voted to recommit to Senate Commerce
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Bill Summary · SB 2645

Summary of Bill SB 2645 (Rhode Island, 2026)

Title: AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION -- UTILITY OWNERSHIP OF ELECTRIC GENERATING FACILITIES

Jurisdiction: Rhode Island

Session: 2026

Introduced: February 27, 2026
Committee: Senate Commerce
Sponsors: Tikoian, Ciccone, Patalano, Thompson, Raptakis, Dimitri, Burke, Felag (co-sponsors listed)

Status: Scheduled for hearing/consideration (as of 2026-04-24)

1) Main purpose and intent

  • The bill seeks to restructure ownership and management of electric generating facilities and related transmission/distribution assets in Rhode Island. It would require electric distribution companies (EDCs) to transfer ownership of generation facilities to affiliated entities (nonregulated power producers) and, in some cases, to file tariffs governing nondiscriminatory access to these facilities.
  • It also provisions for the continued retail access, standard-offer service, and last-resort service during and after the restructuring process, and sets rules for transition costs, regulatory approvals, and potential exemptions for certain municipal entities.
  • The act aims to enable retail access and competition while providing a structured framework for transfers, tariffs, and ongoing service reliability.

2) Key provisions and changes

A. Ownership restructuring of electric generation facilities (Section 39-1-27)

  • Electric distribution companies (EDCs) must file a plan to transfer ownership of generation facilities to an affiliated nonregulated power producer.
  • Transmission facilities may be transferred to an affiliated electric transmission company at book value (net of depreciation and deferred taxes), though this transfer is optional.
  • Tariffs filed with FERC (for transmission) and the Rhode Island Commission (for distribution) would establish nondiscriminatory access terms for wholesale and retail customers and for nonregulated power producers.
  • Tariffs must align with FERC/commission standards and apply consistently across rate classes.
  • If wholesale suppliers transfer generation assets to a nonaffiliate as part of market valuation, direct transfer to a nonaffiliate may occur; otherwise, transfers to an affiliate consistent with the plan are authorized.
  • Rights, licenses, leases, and other approvals transfer with the underlying plant/equipment upon authorization.

B. Commission review and timing (Section 39-1-27)

  • The Public Utilities Commission must review the plan within six months of filing and authorize the transfers and related affiliate transactions if the plan complies with law.
  • The plan may be implemented in a manner consistent with the stated timetable for retail access.

C. Post-restructuring requirements for EDUs (Section 39-1-27)

  • After complete restructuring, EDUs are prohibited from selling electricity at retail or owning/operating generating facilities, though facilities may be owned by affiliates.
  • The standard-offer service and last-resort service are identified as exceptions, and new facilities acquired after Jan 1, 2025 may not violate this prohibition.

D. Wholesale supplier status and market participation (Section 39-1-27)

  • The former wholesale power supplier becomes a nonregulated power producer and may sell electricity on wholesale or retail markets, directly or via affiliates, and may seek exempt wholesale generator status under federal law.
  • This section emphasizes consumer benefit and public-interest considerations, asserting adequate regulatory authority to manage market participation.

E. Environmental considerations (Section 39-1-27(f))

  • While reducing emissions is a goal, in-state emission reductions need not be addressed in detail unless a wholesale supplier owns fossil-fired generation in another state with stricter standards.
  • If applicable, cooperation with environmental officials to reduce emissions through retirements/replacements/controls/offsets is expected.

F. Transition costs and quasi-municipal carve-outs (Section 39-1-27(g))

  • Quasi-municipal electric distribution companies that purchase hydroelectric power from Niagara/St. Lawrence projects may be exempted from certain transfer requirements if public interest dictates.
  • Exemptions may include not transferring ownership of generation/transmission facilities and suspending retail prohibition under specified conditions.

G. Last-resort and standard-offer provisions (Section 39-1-27.3)

  • Reaffirms a standard-offer framework to promote low-cost, reliable service, with specific criteria for recovery of costs, reconciliation, and penalties for over/under recoveries.
  • Customers may elect nonstandard suppliers; residential customers cannot be penalized for switching away from standard-offer service.
  • The commission may approve sophisticated tariff conditions to implement last-resort service, including flexible term lengths, rates, and customer transition rules.
  • Last-resort service is funded and accounted for similarly to standard-offer services, with annual reconciliation.

H. General definitions and authority (Sections 39-20-2, 39-20-3)

  • Defines terms related to ownership of electric-generating facilities, including “electric-generating facilities” (facilities >= 500 MW or enhanced by upgrades) and “domestic electric utility.”
  • Grants power to domestic electric utilities to participate in planning, financing, constructing, operating, and transmitting capacity both within and outside Rhode Island, subject to statutory constraints on wholesale/retail sales and regional marketplaces.

3) Who would be affected

  • Electric distribution companies (EDCs) operating in Rhode Island.
  • Generating facilities owned by or affiliated with EDCs, and their transmission assets.
  • Nonregulated power producers and affiliates that would own transferred generation facilities.
  • Wholesale power suppliers transitioning to nonregulated status.
  • End-use customers (residents and businesses) who receive electricity through standard offers, last-resort service, or alternative suppliers.
  • Quasi-municipal electric distribution entities (e.g., Pascoag Utility District, Block Island Utility District) subject to potential exemptions.
  • Federal regulators (FERC) due to new or revised transmission tariffs and access terms.

4) Procedural and timeline aspects

  • Filing and review timeline: EDCs must file restructuring plans; the Rhode Island Public Utilities Commission must review within six months and issue approvals if compliant.
  • Retail access rollout: The plan ties to the broader schedule for retail access and the standard-offer framework; the exact timetable depends on the implementation sequence and market readiness.
  • Implementation deadline: Provisions for completing corporate reorganizations and retail access within three months after retail access is available to 40% (or more) of New England kilowatt-hour sales; the commission can extend as needed for reasonable terms.
  • Effective date: The act takes effect upon passage.

5) Potential impacts and considerations

  • Increased competition: Moves toward retail access with standardized non-discriminatory access to transmission/distribution facilities.
  • Regulatory oversight: Expanded role for the Rhode Island Public Utilities Commission in approving transfers and tariffs, and overseeing transition costs and last-resort arrangements.
  • Market structure: Creation of affiliated and nonregulated entities to own and operate generation facilities; potential changes in rate design and cost recovery mechanisms.
  • Consumer protections: Tariff standards, reconciliation mechanisms, and protections for residential customers amid transitions.
  • Environmental oversight: Consideration of emissions plans if applicable to out-of-state facilities.

Note: This summary reflects the bill text as introduced and may be subject to amendments during the legislative process.

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

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