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S 2248Public Services

Public Utilities and Carriers - Duties of Utilities and Carriers

This bill creates a program allowing low-income households to pay a fixed percentage of income for utilities, funded by other ratepayers.

Held for study
Population
Affected
28
Email Legislator
Introduced Jan 23, 2026Committee Senate Finance

Plain-English Summary

This bill mandates that large electric and gas utility companies in Rhode Island create a "tiered percentage of income payment plan" for low-income residential customers. Specifically, households earning at or below 150% of the federal poverty level would pay a fixed percentage of their income (approximately 3% to 6%) toward utility bills rather than standard rates. The program also allows for the forgiveness of past-due balances over a two-year period. The costs to fund these discounts and administrative expenses will be recovered by increasing rates for all other utility customers.

For younger readers

This new rule helps families who do not have a lot of money pay for their electricity and gas. Instead of paying a regular bill that might be too high for them, these families will pay a small part of the money they earn each month. 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 buy electricity and gas will see a small increase in their own bills.

Who & Where It Applies

Impacted groups
Low-income households (at or below 150% FPL)Electric distribution companiesGas distribution companiesGeneral residential ratepayersPublic Utilities Commission
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Establishes a critical safety net by ensuring that essential utility services remain affordable for low-income families, preventing service terminations due to inability to pay.
  • Provides a pathway out of debt for impoverished households through a mandated arrearage forgiveness program, helping families achieve financial stability.
  • Integrates energy efficiency programs into the enrollment process, ensuring that low-income communities have access to green technology and consumption-reducing measures.
  • The funding mechanism relies on rate increases for "all other customers," which is regressive and places the financial burden on the working class rather than funding it through progressive taxation on the wealthy.
  • The implementation timeline is slow, with plans not due until 2027 and decisions until 2028, leaving vulnerable families without relief for several years.
  • The eligibility cap of 150% of the federal poverty level may exclude many working-poor families who are struggling with inflation and high energy costs but technically earn just above the limit.
For Conservatives
  • Reduces the hidden costs of "bad debt" that utilities often write off and pass on to consumers anyway, potentially stabilizing the market by formalizing collections.
  • Requires strict income verification for enrollment, ensuring that only those who meet specific poverty criteria receive the benefit, minimizing fraud.
  • May reduce the strain on other emergency public services and charities that currently scramble to assist people facing sudden utility shut-offs.
  • Redistributes wealth by forcing one group of private citizens (general ratepayers) to directly subsidize the living expenses of another group, akin to a hidden tax.
  • Interferes with the free market by imposing artificial price controls based on income rather than usage, distorting the actual value of the energy consumed.
  • Creates a new administrative bureaucracy within utility companies to manage income verification and tiered billing, the costs of which will further bloat utility rates.

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.