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H 7883Public Services

Public Utilities and Carriers - Regulatory Powers of Administration

This bill transfers utility merger approval to the Public Utilities Commission, mandates public hearings, and expands intervention rights.

Held for study
Population
Affected
65
Email Legislator
Introduced Feb 27, 2026Committee House Corporations

Plain-English Summary

This legislation changes the regulatory process for public utility mergers, acquisitions, and asset transfers in Rhode Island. It transfers the authority to approve these transactions from the Division of Public Utilities and Carriers to the Public Utilities Commission. The bill mandates that public hearings be held for such petitions, removing the option to bypass them. It also expands the definition of "public interest" to explicitly include environmental protection and competitive access. Furthermore, it requires the Commission to allow citizens, businesses, and groups to intervene and advocate in these proceedings, regardless of their private commercial interests.

For younger readers

This bill changes the rules for companies that provide electricity, gas, and water. When these big companies want to join together or buy each other, they need permission from the government. This bill says a specific group called the Commission must decide if it is allowed. The new rules say they must have a public meeting so people can talk about it. It also lets regular people and businesses speak up at these meetings to say if the deal is good or bad for things like the environment or the cost of bills.

Who & Where It Applies

Impacted groups
Public UtilitiesRatepayersEnvironmental Advocacy GroupsBusiness OwnersLegal Professionals
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Expands the legal definition of "public interest" to explicitly include environmental protection, ensuring that climate change and ecological impacts are weighed during utility merger decisions.
  • Mandates public hearings and guarantees the right of citizens and advocacy groups to intervene, preventing regulators from approving corporate consolidations behind closed doors without community input.
  • Shifts the burden of proof to the utilities to demonstrate that a transaction will not diminish services, providing a stronger check against corporate power and monopolies.
  • Explicitly prevents the Commission from denying participation to private commercial interests, which could allow corporate competitors to hijack proceedings to protect profits rather than the public good.
  • The mandatory hearing process for all transactions could create bureaucratic bottlenecks that slow down necessary infrastructure upgrades or green energy integration.
  • While opening intervention to all, the complexity of these proceedings may still favor well-funded business interests over under-resourced community groups lacking legal representation.
For Conservatives
  • Codifies the right of private businesses to intervene in regulatory proceedings, ensuring that commercial interests are not silenced or dismissed by administrative bureaucrats.
  • Establishes a clear statutory right to appeal Commission orders, strengthening due process and the rule of law against potential administrative overreach.
  • Increases transparency by mandating hearings, preventing government regulators and utility monopolies from making non-transparent agreements without public scrutiny.
  • Expands the definition of "public interest" to include broad "environmental protection" goals, potentially giving regulators a tool to block legitimate business transactions based on climate ideology.
  • Increases the regulatory burden on businesses by removing the discretion to waive hearings, forcing utilities to undergo costly and time-consuming proceedings for every transaction.
  • Shifts the standard of approval to a negative proof (proving services will *not* be diminished), creating a more hostile regulatory environment for corporate growth and efficiency.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 25 additions · 15 deletions

SECTION 1. Sections 39-3-24 and 39-3-25 of the General Laws in Chapter 39-3 entitled "Regulatory Powers of Administration" is hereby amended to read as follows: 39-3-24. Transactions between utilities for which approval required.

(a) With the consent and approval of the division, but not otherwise:

(1) Any two (2) or more public utilities doing business in the same municipality or locality within this state, or any two (2) or more public utilities whose lines intersect or parallel each other within this state, or furnish a like service or product within this state, may enter into contracts with each other that will enable the public utilities to operate their lines or plants in connection with each other.

(b) With the consent and approval of the commission, but not otherwise: (2)(1) Any public utility may purchase or lease all or any part of the property, assets, plant, and business of any other public utility or merge with any other public utility, and in connection therewith may exercise and enjoy all of the rights, powers, easements, privileges, and franchises theretofore exercised and enjoyed by any other public utility with respect to the property, assets, plant, and business so purchased, leased, or merged. (3)(2) Any public utility may merge with any other public utility or sell or lease all or any part of its property, assets, plant, and business to any other public utility, provided that the merger or a sale or lease of all or substantially all of its property, assets, plant, and business shall be authorized by a vote of at least two-thirds (⅔) in interest of its stockholders at a meeting duly called for the purpose. Any stockholder who shall not have voted in favor of the merger, sale, or lease, either in person or by proxy, shall be entitled to the rights, and the corporation shall be subject to the duties, obligations, and liabilities set forth in §§ 7-1.2-1201 and 7-1.2-1202 with respect to dissenting stockholders and to corporations that sell, lease, or exchange their entire assets respectively. (4)(3) Any public utility may directly or indirectly purchase the stock of any other public utility. 39-3-25. Proceedings for approval of transactions between utilities.

(a) The proceedings for obtaining the consent and approval of the division commission for such authority shall be as follows: There shall be filed with the division commission a petition, joint or otherwise, as the case may be, signed and verified by the president and secretary of the respective companies clearly setting forth the object and purposes desired; stating whether or not it is for the purchase, sale, lease, or making of contracts or for any other purpose in § 39-3-24 provided; and also the terms and conditions of the same. The division commission shall upon the filing of the petition, if it deem a hearing necessary, fix a time and place for the hearing thereof. If, after the hearing, or, in case no hearing is required, the division is satisfied that the prayer of the

(b) The petition should may not be granted; that unless the facilities for furnishing service to the public will not thereby be diminished; and that the purchase, sale, or lease and the terms thereof are consistent with the public interest, it shall make such order in the premises as it may deem proper and the circumstances may require. The public interest includes, but is not limited to, an interest in rates, competitive access to markets and elimination of all anti-competitive influence, in proper administration and regulation of any utility functions, in environmental protection, in any interest addressed in the petition, and in any other purpose of Rhode Island law or policy implicated by the proposed transaction.

(c) The commission shall allow intervention and advocacy of any citizen, business or any other group seeking to advocate on or for any such element of the public interest. It shall not deny participation on the premise that private commercial interests cannot also be in the public interest or that any public interest is otherwise represented by any public agency or any other party.

(d) Any commission order issued under this section is subject to appellate review under § 42-35-15.

SECTION 2. This act shall take effect upon passage.