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S 2641Public Services

Public Utilities and Carriers - Duties of Utilities and Carriers

This bill prohibits electric companies from sending estimated bills for more than six consecutive months without a valid reason.

Held for study
Population
Affected
75
Email Legislator
Introduced Feb 27, 2026Committee Senate Commerce

Plain-English Summary

This legislation mandates that the Division of Public Utilities and Carriers establish strict standards for electric utility billing. It requires regular meter readings and prohibits electric companies from sending estimated bills for more than six consecutive months, unless the customer prevents access to the meter or safety issues exist. If a utility relies on estimated billing beyond this limit without correcting the issue or obtaining a waiver, it may be barred from collecting payment for subsequent billing periods. The bill aims to ensure customers are billed based on actual usage rather than prolonged estimates.

For younger readers

Sometimes, electric companies guess how much electricity a house used instead of checking the meter. This bill says the electric company cannot just keep guessing for more than six months in a row. They must come and check the meter to make sure the bill is correct. If they keep guessing for too long without a good reason, they might not be allowed to charge the customer for that extra time. This helps make sure people only pay for the electricity they actually used.

Who & Where It Applies

Impacted groups
Electric Utility CompaniesResidential Electricity CustomersCommercial Business OwnersIndustrial Facility ManagersDivision of Public Utilities and Carriers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Protects low-income and vulnerable ratepayers from "bill shock," where months of low estimated bills are followed by a massive correction bill that the customer cannot afford to pay.
  • Holds monopoly utility corporations accountable by preventing them from cutting costs on labor/meter reading at the expense of consumer accuracy and financial stability.
  • Increases transparency in essential services by mandating that bills clearly state meter reading dates and actual usage quantities, empowering consumers to monitor their consumption.
  • The waiver provision allows utility companies to bypass the billing prohibition if they claim "experienced difficulties," which could be used as a loophole to continue poor practices.
  • The sunset clause (expiring in 2028 or upon rule adoption) means these statutory protections are temporary and could be weakened by future administrative rule changes.
  • Does not explicitly mandate that service cannot be disconnected during disputes over estimated billing, potentially leaving vulnerable people at risk of losing power.
For Conservatives
  • Enforces the principle that customers should only pay for the specific goods and services they actually received, rather than arbitrary estimates generated by a corporation.
  • Imposes financial discipline on utility providers by preventing them from recovering funds if they fail to perform their contractual duty of reading meters.
  • Prevents potential fraud or laziness by utility companies that might otherwise rely on estimates to artificially smooth out revenue streams or reduce operational efforts.
  • Increases government regulation on private utility businesses by dictating specific operational procedures and billing cycles.
  • May result in increased operational costs for utilities to ensure compliance and manual meter reading, which could eventually be passed down to ratepayers as higher prices.
  • Interferes with the free market by legally barring a company from collecting debts owed to them (revenue recovery) based on procedural timelines set by the state.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 36 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. Electric utility billing and metering standards.

(a) The division of public utilities and carriers shall promulgate rules and regulations establishing minimum statewide standards governing electric utility meter reading and billing practices, which shall include, at a minimum, the following:

(1) Regular meter reading. All electric service meters shall be read at regular intervals and, to the extent practicable, on approximately the same calendar day of each meter reading period.

(2) Billing transparency. Bills shall be rendered at regular intervals and shall clearly state:

(i) The date of the current meter reading; and

(ii) The amount or quantity of electric service provided during the billing period.

(3) Customer billing records. Each electric utility shall maintain accurate accounts of all charges billed to each customer and shall retain records sufficient to demonstrate how each bill rendered was calculated.

(4) Limit on estimated billing. No electric utility shall render estimated bills for more than six (6) consecutive billing periods on any residential, commercial, or industrial account, except where access to the meter is unavailable due to customer action or safety concerns, as determined by the division pursuant to the provisions of subsection (a)(5) of this section.

(5) Once the electric utility has used estimated bills for a six (6) month period, the company shall act to correct the problem within two (2) months. Absent a waiver the electric utility shall not be allowed to recover billing beyond two (2) months after the use of estimated bills for a six (6) month period. However, the division shall permit the electric utility to seek a waiver from the division with respect to the foregoing billing prohibition. The waiver request shall include details of the electric utility’s efforts and experienced difficulties in accessing the customer’s property in order to obtain an actual reading. The waiver shall be filed with the division prior to the expiration of the two (2) month billing deadline.

(6) Billing issuance standards. The division shall establish reasonable standards governing the relationship between the billing date and the date of issuance or mailing of a bill, including allowances for electronic billing and circumstances beyond the control of the utility. In promulgating regulations pursuant to this section, the division shall consider:

(i) Existing utility tariffs approved by the public utilities commission; and

(ii) The deployment of advanced metering or automated meter reading technology.

(b) Nothing in this section shall be construed to impair the authority of the public utilities commission to approve tariffs or rates, provided such tariffs and rates are consistent with the standards established pursuant to this section.

(c) The provisions of this section shall, unless extended by the general assembly, sunset upon the adoption of rules and regulations promulgated by the division that satisfy the conditions of this section, or on January 30, 2028, whichever shall occur first.

SECTION 2. This act shall take effect upon passage.