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H 7880Public Services

Public Utilities and Carriers - Duties of Utilities and Carriers

This bill creates a discount program for low-income families where utility bills are based on a percentage of their income.

Held for study
Population
Affected
32
Email Legislator
Introduced Feb 27, 2026Committee House Corporations

Plain-English Summary

This legislation mandates that large electric and gas utility companies in Rhode Island create a "percentage of income" payment plan for low-income households. Specifically, residential customers earning at or below 150% of the federal poverty level would pay a fixed percentage of their income—capped at roughly 3% to 6%—toward their utility bills. The plan also includes a mechanism to forgive past-due balances over a two-year period. The costs associated with these discounts and the administration of the program will be covered by increasing rates for all other utility customers.

For younger readers

This law helps families who don't have a lot of money pay for their electricity and heat. Instead of paying a regular bill that might be too high, these families will pay a small amount based on how much money they earn. If they already owe money to the electric or gas company, that debt will be wiped away over two years. To pay for this help, other people who use electricity and gas will have to pay a little bit more on their own bills.

Who & Where It Applies

Impacted groups
Low-income householdsElectric distribution companiesGas distribution companiesResidential ratepayersBusiness ratepayers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Other Ratepayers: Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Ensures energy justice by capping utility costs at a manageable percentage of income, preventing low-income families from choosing between heating their homes and buying food.
  • Provides a pathway out of debt for disadvantaged households through the forgiveness of pre-participation arrearages, stabilizing the financial health of the community.
  • Strengthens the social safety net by mandating that essential services like heat and electricity remain accessible regardless of market price fluctuations.
  • Shifts the financial burden to other ratepayers, including the working poor who just miss the eligibility cutoff, rather than funding the program through progressive taxation or corporate profits.
  • The implementation timeline is slow, with plans not required to be filed until 2027 and decisions not rendered until 2028, delaying urgent help for struggling families.
  • Relies on means-testing and income verification, which can create bureaucratic barriers that discourage eligible individuals from applying for the assistance they need.
For Conservatives
  • Encourages personal responsibility and budget management by establishing a fixed monthly payment plan rather than allowing debts to accumulate indefinitely.
  • May reduce the administrative overhead and financial losses utility companies face regarding collections and bad debt write-offs, potentially stabilizing the market.
  • Includes provisions to offer energy efficiency programs to enrollees, which could reduce overall load demand and promote efficient resource use.
  • Redistributes wealth by forcing compliant, paying customers and businesses to subsidize the utility bills of others through rate increases, effectively acting as a hidden tax.
  • Interferes with free-market principles by decoupling the price of the service from the actual consumption and cost of delivery for a specific class of customers.
  • Expands government bureaucracy and the regulatory power of the Public Utilities Commission to dictate pricing structures and business operations of private companies.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 40 additions

SECTION 1. Chapter 39-2 of the General Laws entitled "Duties of Utilities and Carriers" is hereby amended by adding thereto the following section: 39-2-1.5. Tiered percentage of income payment program.

(a) Notwithstanding any other law to the contrary, no later than January 2, 2027, each electric distribution company, as defined in § 39-1-2(a) or a gas distribution company included as a public utility in § 39-1-2(a), that has greater than one hundred thousand (100,000) customers, shall file with the public utilities commission a proposed percentage of income plan applicable to residential customers whose household income is at or below one hundred fifty percent (150%) of the federal poverty level. The public utilities commission shall be authorized to approve or amend the filed plan.

(1) Each tier shall provide a discount designed to ensure that the eligible customer pay no more than a fixed percent of the income level for that tier for their utility costs.

(2) The payment plan shall be designed to provide for a fixed monthly payment and forgiveness of pre-participation arrearages over a twenty-four (24) month period.

(3) The fixed per bill discount shall be designed to approximate an average annual electric expense of not more than three percent (3%) of the income of customers within the applicable tiered class for customers who do not use electric as their primary source of heat, or six percent (6%) of the income of customers within the applicable tiered class who use electric as their primary source of heat.

(4) The fixed per bill discount shall be designed to approximate an average annual natural gas expense of not more than three percent (3%) of the income of customers within the applicable tiered class for eligible customers who use gas as their primary source of heat.

(5) To establish the discount tiers and customer eligibility, the commission may consider targeted annual average expense for participants.

(6) Notwithstanding the foregoing, a maximum annual benefit and minimum monthly payment shall be established by the commission with input from the electric distribution company, the division of public utilities and carriers, and stakeholders.

(b) The cost of the discount, including administrative costs not funded through other sources, shall be collected in rates from all other customers of the electric and gas distribution companies in a manner determined just and reasonable by the commission.

(c) In reviewing the proposed payment plan under this section, the commission shall balance the level of discounts with the administrative costs that would be incurred to implement the payment plan.

(d) The commission shall render a decision on the proposed percentage of income plan no later than January 15, 2028. The approved plan shall be included as part of the electric and gas company’s next general rate filing and future general rate filings.

(e) An electric or gas distribution company shall enroll an eligible customer in the appropriate tier at such time as the electric or gas distribution company receives verification of income level or in some other manner determined to be efficient and cost effective by the commission.

(f) Customers enrolled in the tiered discount rate under this section shall be offered energy efficiency programs as appropriate upon enrollment.

SECTION 2. This act shall take effect upon passage.