2022 -- H 7530

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LC004948

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION

     

     Introduced By: Representatives Slater, Diaz, Alzate, Williams, Morales, Kislak, Handy,
and Fogarty

     Date Introduced: February 18, 2022

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 39-1-27.12 of the General Laws in Chapter 39-1 entitled "Public

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Utilities Commission" is hereby amended to read as follows:

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     39-1-27.12. Low Income Home Energy Assistance Program Enhancement Plan.

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     (a) The Low Income Home Energy Assistance Program Enhancement Plan (hereinafter

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"LIHEAP Enhancement Plan") is hereby created to supplement the federal Low Income Home

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Energy Assistance Program ("LIHEAP") funding being received by customers of Rhode Island

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electric and gas distribution companies.

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     (b) Within a period of time sufficient to accomplish the purposes of this section, but not

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longer than ninety (90) days after the effective date of this chapter, the department of human

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services shall develop a recommended monthly "LIHEAP enhancement charge" rate for the

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following year and make a filing with the commission pursuant to this chapter recommending rates.

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Thereafter annually, but no later than October 15 of each year, the department shall make filings

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with the commission to recommend the LIHEAP enhancement charge rates for each class of

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electric and natural gas distribution company customer for the following year.

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     (c) A LIHEAP enhancement charge approved by the commission shall have the following

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limitations:

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     (1) For electric distribution company customers, the charge shall not be more than ten

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dollars ($10.00) per year.

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     (2) For natural gas distribution company customers, the charge shall not be more than ten

 

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dollars ($10.00) per year.

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     (3) The total projected annual revenue for the LIHEAP enhancement plan through charges

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to all electric and natural gas distribution company customers shall not exceed seven million five

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hundred thousand dollars ($7,500,000) and shall not be below six million five hundred thousand

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dollars ($6,500,000).

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     A minimum of five percent (5%) shall be allocated to provide assistance to customers who

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are seeking LIHEAP certification for the sole purpose of entering into an arrearage plan as defined

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in § 39-2-1(d)(2) between April 15 and September 30 of each year. Such customers must be a

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homeless family or individual transitioning from a shelter into housing and who have provided

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documentation acceptable to the department of human services. Any funds remaining at the end of

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the fiscal year shall be available for the upcoming winter season.

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     (d) The commission shall open a docket, to consider for approval, LIHEAP enhancement

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charge rates proposed by the department. In reviewing the recommended rates, the commission

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shall give due consideration to the recommendations of the department and the standards set forth

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in subsection (c). The commission shall issue a decision within sixty (60) days after said

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recommendations and report are filed with the commission establishing the enhancement plan

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charge rates.

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     (e) The electric or gas distribution company shall use the funds collected through this

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enhancement plan charge to provide a credit to customers' accounts that are receiving federal

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LIHEAP assistance payments enrolled in a percentage of income payment rate as approved by the

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commission pursuant to § 39-2-1.5 in a manner determined by the department of human services.

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The department of human services shall designate to the gas- or electric distribution company the

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qualifying customer accounts and the amounts to be credited to those customer accounts, provided

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that the total amount to be credited to those accounts shall be fully funded by, and not exceed, the

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total amount collected through the enhancement plan charge. The electric or gas distribution

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company's added administrative expenses to process the credit assignments provided to it by the

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department of human services will be recoverable either from the LIHEAP enhancement charge or

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through a separate charge approved by the public utilities commission.

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     (f) As used in this section, "electric and natural gas distribution company" means a

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company as defined in § 39-1-2(a)(12), but not including the Block Island Power Company or the

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Pascoag Utility District.

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     SECTION 2. Chapter 39-2 of the General Laws entitled "Duties of Utilities and Carriers"

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is hereby amended by adding thereto the following section:

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     39-2-1.5. Tiered percentage of income payment program.

 

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     (a) Notwithstanding any other law to the contrary, the public utilities commission is

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authorized to approve rates to residential customers of an electric distribution company, as defined

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in § 39-1-2(a)(12) or a gas distribution company included as a public utility in § 39-1-2(a)(20) that

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has greater than one hundred thousand (100,000) customers, whose household income is at or

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below one hundred fifty percent (150%) of the federal poverty level and who are eligible to receive

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assistance through the low income home energy assistance program (LIHEAP) or are enrolled in

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Medicaid, that provide one or more tiers of discount off the residential rate based on income levels,

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regardless of whether the utility has proposed such rates.

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     (1) For purposes of calculating a customer's income for determination of the appropriate

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tier, any LIHEAP or LIHEAP enhancement grant shall count toward the calculation of income.

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     (2) Each tier of discount rate shall provide a fixed per bill discount to all eligible customers

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within the applicable tiered class.

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     (3) The fixed per bill discount shall be designed to approximate an average annual electric

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expense of not more than three percent (3%) of the income of customers within the applicable tiered

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class for customers who do not use electric as their primary source of heat, or six percent (6%) of

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the income of customers within the applicable tiered class who use electric as their primary source

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of heat.

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     (4) The fixed per bill discount shall be designed to approximate an average annual natural

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gas expense of not more than three percent (3%) of the income of customers within the applicable

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tiered class for eligible customers who use gas as their primary source of heat.

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     (5) To establish the discount tiers and customer eligibility, the commission may consider

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targeted annual average expense.

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     (6) Notwithstanding the foregoing, a maximum annual benefit shall be established by the

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commission with input from the electric distribution company, the division of public utilities and

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carriers, and stakeholders.

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     (b) The cost of the discount, including administrative costs, not funded through other

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sources, shall be collected in rates from all other customers of the electric and gas distribution

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companies in a manner determined just and reasonable by the commission.

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     (c) In setting the number of tiers of discount rates under this section, the commission shall

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balance the level of discount with the administrative costs that would be incurred to implement the

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rate structure.

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     (d) The tiers and percentage discount rates shall be set initially no later than December 31,

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2023, for effect ninety (90) days after the tiers and percentage discount rates are set and thereafter,

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they will subsequently be set no less frequently than in each of the electric or gas distribution

 

LC004948 - Page 3 of 5

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company's respective base distribution rate cases.

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     (e) An electric or gas distribution company shall enroll an eligible customer in the

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appropriate tier at such time as the electric or gas distribution company receives proof of LIHEAP

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eligibility or enrollment in Medicaid and verification of income level as certified by the department

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of human services and/or subcontractors of the department such as a community action program or

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other community-based agency which shares in the process of determining eligibility for LIHEAP

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benefits or in some other manner determined to be efficient and cost effective by the commission.

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     (f) Customers enrolled in the tiered discount rate under this section shall be offered energy

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efficiency programs as appropriate upon enrollment.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION

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     This act would create an income-sensitive tiered subsidy program to ensure that home

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energy utility costs are affordable for eligible low-income households.

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     This act would take effect upon passage.

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