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H 7886Public Services

Public Utilities and Carriers - Regulatory Powers of Administration

This bill limits utility charges if companies fail to read meters quarterly and prevents passing reading costs to customers.

Held for study
Population
Affected
92
Email Legislator
Introduced Feb 27, 2026Committee House Corporations

Plain-English Summary

This legislation regulates billing practices for electric and natural gas utility companies. It requires these companies to read meters and update bills on a monthly schedule. If a company must use an estimated bill, the formula used must be approved by the Public Utility Commission. The bill imposes a strict penalty: if the utility company fails to physically read a meter at least once every quarter, they cannot collect any money for usage that exceeds their previous estimates. Furthermore, the bill prohibits utility companies from passing the costs of meter reading operations on to their customers.

For younger readers

Sometimes, the power company guesses how much electricity your house used instead of checking the meter. This bill says the power company has to check the meter at least once every three months. If they forget or don't check it, and your family used more power than the company guessed, your family does not have to pay for that extra power. It also says the company cannot charge your family extra money just for doing the job of checking the meter.

Who & Where It Applies

Impacted groups
Electric RatepayersNatural Gas RatepayersUtility CompaniesPublic Utility CommissionLow-income Households
Impacted communities
All

Constitutional & Fiscal Check

The provision forcing utilities to forfeit payment for energy actually consumed (excess over estimate) due to a failure to read the meter could be challenged as an unconstitutional "Taking" under the 5th Amendment or a violation of Due Process. It effectively confiscates the value of the utility's property (the gas/electricity) based on a procedural failure. However, given the heavy regulation of public utilities, courts often grant the state wide latitude.

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Protects low-income households from "bill shock" by preventing utilities from demanding large lump-sum payments for underestimated usage when the company fails to perform its duties.
  • Increases corporate accountability by mandating that the Public Utility Commission review and approve the formulas used for estimated billing, ensuring they are fair to the consumer.
  • Prevents utility monopolies from passing the operational costs of meter reading onto ratepayers, keeping essential services more affordable for the community.
  • Could unintentionally discourage energy conservation if consumers realize they will not be financially responsible for excess usage when the utility fails to read the meter on time.
  • Might incentivize utility companies to invest less in modernizing the grid or renewable integration if they are forced to divert resources to avoid billing penalties.
  • If utilities cannot pass on reading costs, they may look to cut costs in other areas, potentially affecting the wages or job security of unionized utility workers.
For Conservatives
  • Enforces strict contractual performance by requiring utilities to actually perform the services they are responsible for rather than relying on formulas and guesswork.
  • Protects individual ratepayers from arbitrary billing practices and financial unpredictability caused by corporate mismanagement or laziness.
  • Prevents monopolies from arbitrarily increasing fees by prohibiting the pass-through of specific operational costs (meter reading) to the consumer.
  • Represents significant government interference in private business operations by dictating specific internal billing cycles and cost structures.
  • Violates free-market principles by allowing consumers to use a product (electricity/gas) without paying for it, simply due to an administrative timing error by the provider.
  • Forcing utilities to absorb costs without passing them on acts as a form of price control that could distort the market and discourage infrastructure investment.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 19 additions

SECTION 1. Chapter 39-3 of the General Laws entitled "Regulatory Powers of Administration" is hereby amended by adding thereto the following section: 39-3-37.4. Electric and gas meter reading required quarterly.

(a) Every electric and natural gas distribution public entity shall read, record and update utility billing on a monthly scheduled interval. Bills shall be forwarded within fourteen (14) days of the scheduled record.

(b) A utility company which estimates bills shall file with the Public Utility Commission

(PUC) a statement of their formula used in preparing estimated bills. The PUC has the discretion to approve, reject or modify the proposed formula. Any amendments to the formula shall be subjected to the PUC for review and approval.

(c) Estimated bills for ratepayers shall consist of charges for utility services calculated in accordance with the formula approved by the PUC.

(d) Estimated bills shall be submitted to ratepayers for months when the quarterly reading is not scheduled or conducted.

(e) In the event the utility fails to read the meter on a quarterly basis, they shall not demand, collect, or require payment of any balance in excess of the amount required by the prior estimated monthly bills.

(f) Any amount otherwise due for use in excess of the estimated monthly bill shall be forfeited for any period in which the electric or natural gas distribution utility failed to read the ratepayer’s meter.

(g) Meter reading conducted by the utility company shall not be passed on to ratepayers.

SECTION 2. This act shall take effect on July 1, 2026