Bill
HB 5687
Authorizes partial undergrounding of E-183, sets funding and rate-recovery paths, potentially raising Providence/East Providence electric rates to cover incremental non-regional costs
Status: Effective without Governor’s signature, 06/26/2025
Introduced: April 23, 2025 (Substitute A dated Feb 26, 2025 included in text)
Related/companion: SB 3058
Statutory location amended: R.I. Gen. Laws § 42-98-1.1 (Energy Facility Siting Act)
Purpose
- Authorize and set terms for pursuing partial undergrounding (burial) of portions of the E‑183 115 kV transmission line (the “Underground Alignment” / “Bridge Alignment South – Hybrid”) along the southern shore of Fox and India Points in Providence and in East Providence.
- Clarify funding, permitting, and rate‑recovery mechanisms to allow construction of underground sections and allocation of incremental costs.
Key provisions and changes
- Legislative findings recap prior settlement, PUC/EFSP orders, and the Supreme Court’s 2022 affirmation that portions of E‑183 were not undergrounded; notes that municipal customer credits set aside in 2004 remain segregated and accruing interest for Providence and East Providence ratepayers.
- Municipal relinquishment of customer credit: permits the cities of Providence and East Providence, upon municipal petition and city‑council ratification, to forego some or all of their pro rata share of a customer refund to fund undergrounding.
- Storm Contingency Fund: authorizes the Attorney General, by petition, to use up to $2,000,000 from Narragansett Electric Company’s Storm Contingency Fund toward undergrounding the referenced portion of E‑183.
- Regional cost allocation: requires Narragansett Electric Company to apply to the regional grid operator (or successor) for approval to allocate eligible capital costs to New England regional network service customers; costs deemed ineligible for regional allocation remain chargeable to Providence/East Providence customers.
- License modification and Board jurisdiction: grants the Energy Facility Siting Board authority to consider a license modification to include burial of the line without re‑requiring the showings in §§ 42‑98‑11(b)(1) and (b)(2). Following Board approval and required municipal resolutions agreeing to local rate treatment of incremental costs, the company may proceed (and acquire property rights as needed).
- Rate recovery: if actual undergrounding costs exceed available project funding (including federal or other sources), the company may include incremental costs in its distribution rate base and reflect the revenue requirement (including interest, tax changes, billing system costs) in rates charged to electric distribution customers in Providence and East Providence, subject to PUC approval. Rate adjustments are to be implemented within six months of project completion using standard distribution ratemaking principles.
Who is affected
- Narragansett Electric Company (now part of National Grid) — permitted to seek approvals, acquire property rights, construct the underground portions, and seek cost recovery.
- Electric customers of Providence and East Providence — may fund non‑regional shares of incremental costs through their rates if municipal councils ratify the funding approach.
- New England regional network ratepayers — may be asked to carry a portion of capital costs if the regional operator approves regional allocation.
- State entities: Public Utilities Commission, Energy Facility Siting Board, Attorney General, and municipal governments.
Procedural/timeline notes
- Municipal ratification: the bill conditions certain local rate treatments on passage of city‑council resolutions by Providence and East Providence (the text references delivery deadlines and some legacy dates tied to the original 2004 settlement; readers should consult the full statutory text for precise timing and any retroactive provisions).
- Company must apply to the regional operator for cost allocation; the Board must approve any license modification before construction proceeds.
- Rate adjustments for local customers are to be reflected within six months of project completion, subject to PUC approval.
Potential impacts
- Enables progress toward partial undergrounding of E‑183 by defining funding and regulatory paths, but may result in higher local distribution rates for customers in Providence and East Providence to cover incremental costs not eligible for regional allocation.
- Uses up to $2,000,000 from the company’s Storm Contingency Fund as a state‑authorized funding source (via AG petition).
For full implementation details, including exact statutory language, deadlines, and interplay with prior settlement orders, consult the enacted bill text and subsequent PUC / Energy Facility Siting Board proceedings.
Compiled from official sources — confirm details with the bill’s official record.
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