H 7112Public Services

Public Utilities and Carriers - Regulatory Powers of Administration

This bill caps electric rate increases at 5.5% or the inflation rate, unless the legislature approves a higher amount.

Held for study

Population
Affected

Introduced Jan 15, 2026Committee House Corporations

Plain-English Summary

This bill limits the amount that large electric companies in Rhode Island can increase their rates. It states that an electric company cannot raise rates by more than 5.5% or the rate of inflation (Consumer Price Index) from the previous year, whichever is higher. If a company wants to raise rates higher than this cap, the Rhode Island General Assembly must vote to approve the increase. This regulation applies only to electric companies with 7,500 or more customers, effectively exempting smaller local utility providers.

For younger readers

This bill makes a new rule for big electric power companies. It says they cannot raise the price of electricity too much at one time. They can only raise the price a little bit, based on how much prices for other things have gone up (inflation) or a set number (5.5%). If the electric company wants to raise the price more than that, the people we elect to make laws have to say yes first. This rule is mostly for the biggest electric company in the state to help keep bills lower for families.

Who & Where It Applies

Impacted groups

Electric ratepayersElectric distribution companiesBusiness ownersGeneral Assembly membersPublic Utilities Commission

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Protects working-class families and low-income individuals from sudden, drastic spikes in electricity costs, ensuring essential utility services remain more affordable/accessible.
Increases democratic accountability by requiring the General Assembly to vote on excessive rate hikes, rather than leaving decisions solely to unelected regulators or corporate boards.
Checks corporate power by placing a statutory cap on revenue increases for large monopolistic utility companies, preventing them from prioritizing profits over public welfare.
The provision allowing rate increases based on the Consumer Price Index (if higher than 5.5%) could still result in steep price hikes during periods of high inflation, failing to fully shield struggling households.
Limiting revenue streams for utility companies might inadvertently slow down necessary investments in green energy infrastructure and grid modernization required to combat climate change.
Shifting rate approval to the General Assembly could politicize technical utility decisions, potentially leading to short-sighted policies that neglect long-term system maintenance or environmental goals.

For Conservatives

Reduces the power of unelected bureaucrats in regulatory agencies by requiring elected representatives in the General Assembly to approve significant rate increases.
Provides businesses and homeowners with more predictable energy costs, preventing sudden, massive rate hikes that disrupt budgeting and economic planning.
Limits the ability of a government-sanctioned monopoly to arbitrarily raise prices on consumers, enforcing fiscal discipline on the utility provider.
Imposes heavy-handed government price controls on private industry, which interferes with free market principles and corporate autonomy.
Creates a dangerous precedent where politicians, rather than economic experts or market forces, determine the pricing of essential commodities.
May force utility companies to cut corners on service reliability or infrastructure maintenance if they cannot raise sufficient revenue to cover operational costs.

Votes

Loading votes...

Full Bill Text

Changes to existing Rhode Island law · 10 additions

SECTION 1. Chapter 39-3 of the General Laws entitled "Regulatory Powers of Administration" is hereby amended by adding thereto the following section: 39-3-45. Electric rates tied to the consumer price index.

(a) Notwithstanding any provisions of the general laws to the contrary, any increase in rates proposed to be charged by an electric distribution company as defined in chapter 1 of this title, shall be no greater than five and one-half percent (5.5%) or the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor Bureau of Labor Statistics determined as of September 30 of the prior calendar year, whichever is greater, unless the increase shall have been previously approved by affirmative action of the general assembly.

(b) The provisions of this section shall not apply to any electric distribution company having fewer than seven thousand five hundred (7,500) electricity customer accounts.

SECTION 2. This act shall take effect upon passage.