Chapter 382
2011 -- H 6293 SUBSTITUTE A
Enacted 07/13/11
A N A C T
RELATING TO
PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION
Introduced By: Representative Scott Slater
Date Introduced: June 24, 2011
It is enacted by the
General Assembly as follows:
SECTION 1. This act shall be known and may be cited as
"The Henry Shelton Act".
SECTION 2. Chapter 39-1 of the General Laws entitled
"Public Utilities Commission" is
hereby amended by adding thereto the following section:
39-1-27.12.
Low Income Home Energy Assistance Program Enhancement Plan.
–
(a) The Low Income
Home Energy Assistance Program Enhancement Plan (hereinafter
“LIHEAP Enhancement Plan”) is hereby created to
supplement the federal Low Income
Household Assistance Program (“LIHEAP”) funding being
received by customers of Rhode
Island electric and gas distribution companies.
(b) Within a period
of time sufficient to accomplish the purposes of this section, but not
longer than ninety (90) days after the effective date of
this chapter, the Office of Energy
Resources shall develop a recommended monthly “LIHEAP
Enhancement Charge” rate for the
following year and make a filing with the commission pursuant
to this chapter recommending
rates. Thereafter annually but no later than October 15 of
each year, the office shall make filings
with the commission to recommend the LIHEAP Enhancement
Charge rates for each class of
electric and natural gas distribution company customer for the
following year.
(c) A LIHEAP Enhancement
Charge approved by the Commission shall have the
following limitations:
(1) For electric
distribution company customers, the charge shall not be more than ten
dollars ($10.00) per year.
(2) For natural gas
distribution company customers, the charge shall not be more than ten
dollars ($10.00) per year.
(3) The total
projected annual revenue for the LIHEAP Enhancement Plan through
charges to all electric and natural gas distribution company
customers shall not exceed seven
million five hundred thousand dollars ($7,500,000) and shall
not be below six million five
hundred thousand dollars ($6,500,000).
(d) The commission
shall open a docket to consider for approval LIHEAP Enhancement
Charge rates proposed by the office. In reviewing the
recommended rates the commission shall
give due consideration to the recommendations of the
office and the standards set forth in
subsection (c) of this section. The commission shall issue a
decision within sixty (60) days after
said recommendations and report are filed with the
commission establishing the Enhancement
Plan Charge rates.
(e) The electric or
gas distribution company shall use the funds collected through this
Enhancement Plan Charge to provide a credit to
customers accounts that are receiving federal
LIHEAP assistance payments. The office of energy resources shall designate to the
gas or electric
distribution company the qualifying customer accounts and the
amounts to be credited to those
customer accounts, provided that the total amount to be
credited to those accounts shall be fully
funded by and not exceed the total amount collected through
the Enhancement Plan Charge. The
electric or gas distribution company’s added administrative
expenses to process the credit
assignments provided to it by the office of energy resources will
be recoverable either from the
LIHEAP Enhancement Charge or through a separate charge
approved by the Public Utilities
Commission.
(f) As used in this
section, “electric and natural gas distribution company” means a
company as defined in subsection 39-1-2(12), but not
including the Block Island Power Company
or the Pascoag Utility District.
SECTION 3. Chapter 39-1 of the General Laws entitled “Public
Utilities Commission” is
hereby amended by adding thereto the following section:
39-1-37.1.
Ratepayers Advisory Board. -- (a) There is hereby established the ratepayers
advisory board. The advisory board shall consist of the
following public members:
(1) Three (3) members
appointed by the speaker of the house of representatives,
one of
whom shall represent the interests of residential
ratepayers; one of whom shall represent the
interests of the elderly and disabled; and one of whom shall represent
a community-based
consumer organization representing low-income individuals.
(2) Three (3) members
appointed by the senate president, one of whom shall represent the
interests of residential ratepayers; one of whom shall
represent a chamber of commerce; and one
of whom shall represent a non-profit energy consortium
of businesses.
(3) Three (3) members
appointed by the governor, one of whom shall represent the
LIHEAP program administration; one of whom shall represent
the interests of small business
owners; and one of whom shall represent the interests of
residents of affordable housing.
(b) The appointments
to the advisory board shall be made as follows: each appointing
authority shall appoint one member to serve a term of one year,
one member to serve a term of
two (2) years, and one member to serve a term of three
(3) years. Thereafter, each member
appointed to the advisory board shall serve a three (3) year term.
The board members are eligible
to succeed themselves. A vacancy, other than by
expiration of a term, shall be filled in the manner
of the original appointment, but only for the unexpired
portion of the term.
(c)
Five (5) members shall constitute a quorum. A majority vote of the board shall
be
required for all recommendations, advice, and approvals of the
board, in accordance with this
section.
(d) A board member
shall not receive compensation for his or her service on the board
but may receive reimbursement for travel and other
necessary expenses, while engaged in the
performance of official duties of the board.
(e) The board shall
elect annually a chairperson and vice chairperson from among its
membership.
(f) The board shall
receive staff and administrative support from the division, to organize
meetings and take and distribute minutes. The division shall
also furnish the advisory board a
suitable location to hold its meetings.
(g) The board shall
meet at least quarterly and at the call of the chairperson or four (4)
board members. The administrator shall be present for all
board meetings to inform the board of
the actions of the division and to respond to the board’s
inquiries.
(h) The board shall
review legislative proposals and comment on existing state laws
relating to residential ratepayers.
(i)
The board shall advise the administrator on matters concerning residential
ratepayers
including, but not limited to utility shut-off policies, rate
affordability, conservation measures,
consumer education, smart meters and/or restricted use meters,
customer service charges,
legislation pending before the general assembly, and legislative
initiatives.
(j) The advisory
board shall issue an annual report of findings, including
recommendations on current or proposed state programs, policies,
regulations and laws, to the
governor and the general assembly.
(k) The board shall
be subject to the provisions of chapter 38-2, Access to Public Records
Act, and chapter 42-46, Open Meetings Act.
SECTION 4. The title of Chapter 39-1.1 of the General Laws
entitled
"TERMINATION OF
SERVICE TO PERSONS WHO ARE DISABLED AND SERIOUSLY
CHAPTER
39-1.1
TERMINATION
OF SERVICE TO PERSONS WHO ARE DISABLED AND SERIOUSLY ILL
CHAPTER
39-1.1
TERMINATION
OF SERVICE TO PERSONS WHO ARE DISABLED, SERIOUSLY ILL OR
IN
ARREARS OF PAYMENT
SECTION 5. Sections 39-1.1-1 and 39-1.1-2 of the General
Laws in Chapter 39-1.1
entitled "Termination of Service to Persons Who Are
Disabled and Seriously Ill" are hereby
amended to read as follows:
39-1.1-1.
Compliance with rules prior to termination. -- (a)
No public utility which
distributes electricity or supplies natural or manufactured gas,
electric, or water service shall
terminate service to any household in which all adult
residents are sixty-five (65) years of age or
older, or where any resident is disabled or seriously ill,
for failure to pay an outstanding
indebtedness for service, without first complying with all rules
and regulations for such
terminations issued by the commission.
(b) A natural gas
distribution company or an electric distribution company as defined in
subsection 39-1-2(12), but not including the Block Island Power
Company or the Pascoag Utility
District, shall not shut off service to a household
eligible for LIHEAP if the customer’s
outstanding bill is three hundred dollars ($300) or less and not
more than two (2) months in
arrears. Service may not be terminated unless two (2) notices
of termination have been sent.
39-1.1-2.
Determination of persons subject to nontermination.
-- (a) The commission
shall promulgate appropriate rules and regulations to determine
which persons who are elderly,
disabled, or seriously ill are subject to the nontermination provisions of section 39-1.1-1, and in
what manner relief will be made available to the subject
persons.
(b) Rules and
regulations maintained to determine which persons are seriously ill
shall
include the provision that said determination shall be
through certification to the public utility or
to the Division of Public Utilities and Carriers by a
licensed physician.
(i)
A licensed physician’s certification of serious illness shall be sufficient if
initially
made by telephone. In such event, the public utility or
the Division, whichever received initial
certification, shall inform the certifying physician that he or she
must forward to the public utility
within seven (7) days a written certification indicating the
name and address of the seriously ill
person, the nature of the illness, and its likely duration.
The public utility shall acknowledge
receipt of such written certification and shall notify the
customer in writing of the date upon
which service will be terminated, unless the customer: (1)
Has arranged for payment of an
outstanding amount with the public utility, pursuant to rules and
regulations promulgated by the
commission; (2) Requests a hearing, pursuant to rules and
regulations promulgated by the
commission; or (3) Enrolls in a residential payment plan or
other payment arrangement. The
termination date shall be not less than three (3) weeks from
receipt by the public utility of the
written certification. If the duration of the illness exceeds
three (3) weeks from the certification to
the public utility, the customer may request a review
pursuant to rules and regulations
promulgated by the commission, to determine whether the initial
exemption shall continue, for
how long, and under what circumstances.
(ii) A public utility
must honor a licensed physician’s certification of serious illness, but
may seek division review of the validity of the
certification, pursuant to rules and regulations
promulgated by the commission. If a licensed physician’s
certification does not comply with the
requirements promulgated by the commission and is rejected by a
public utility, the public utility
shall inform the customer immediately, in writing, of the
reasons for rejection of the certification
and the customer’s right to have the division review the
utility’s rejection of the certification.
(iii) Non-termination
for any reason does not, in any way, relieve the customer of liability
incurred for utility services.
SECTION 6. Section 39-2-1 of the General Laws in Chapter
39-2 entitled "Duties of
Utilities and
Carriers" is hereby amended to read as follows:
39-2-1.
Reasonable and adequate services -- Reasonable and just charges.
-- (a)
Every public utility is required to furnish safe,
reasonable, and adequate services and facilities.
The rate, toll, or charge, or any joint rate made,
exacted, demanded, or collected by any public
utility for the conveyance or transportation of any persons
or property, including sewage, between
points within the state, or for any heat, light, water, or
power produced, transmitted, distributed,
delivered, or furnished, or for any telephone or telegraph
message conveyed or for any service
rendered or to be rendered in connection therewith, shall be
reasonable and just, and every unjust
or unreasonable charge for the service is prohibited and
declared unlawful, and no public utility
providing heat, light, water, or power produced, transmitted,
distributed, delivered, or furnished
shall terminate the service or deprive any home or
building, or whatsoever, of service if the
reason therefor is nonpayment of
the service without first notifying the user of the service, or the
owner or owners of the building as recorded with the
utility of the impending service termination
by written notice at least ten (10) days prior to the
effective date of the proposed termination of
service.
(1) Effective
immediately, following the issuance of a decision by the commission under
39-1-27.2(d), the utility shall collect a LIHEAP
Enhancement Chargefunds from all utility
customers, for the funding of the LIHEAP Enhancement Fund.
(b) Any existing rules and
regulations dealing with the termination of utility service and
establishing
reasonable methods of debt collection promulgated by the commission
pursuant to this chapter and the provisions of section
39-1.1-3, including but not limited to, any
rules and regulations dealing with deposit and deferred
payment arrangements, winter
moratorium and medical emergency protections, and customer
dispute resolution procedures,
shall be applicable to any public utility which distributes
electricity.
(c) The commission shall
promulgate such further rules and regulations as are necessary
to protect consumers following the introduction of
competition in the electric industry and which
are consistent with this chapter and the provisions of
section 39-1.1-3. In promulgating such rules
and regulations, the commission shall confer with the
Retail Electric Licensing Commission and
shall give reasonable consideration to any and all
recommendations of the Retail Electric
Licensing Commission.
(d) On or before May 1,
2007, the commission shall administer such rules and regulations
as may be necessary to implement the purpose of subdivision
(1) of this section and to provide for
restoration of electric and/or gas service to very low income
households as defined by section 42-
141-2. On or before
August 15, 2011, the commission shall administer such rules and regulations,
as may be necessary, to implement the purpose of
subdivision (2) of this section and to provide
for the restoration of electric and/or gas service to
LIHEAP-eligible households, defined as those
with a combined gross income equal to or less than sixty
percent (60%) of the state median
household income as calculated by the
size by the
successor regulation..
(1) Effective July 1,
2007 until October 14, 2011, notwithstanding the provisions of part
V sections 4(E)(1)(B) and (C)
of the public utilities commission rules and regulations governing
the termination of residential electric, gas, and water
utility service, a very low income customer
who is terminated from gas and/or electric service or is
recognized pursuant to a rule or decision
by the division as being scheduled for actual shut-off
of service on a date specified, shall be
eligible one time to have electric and/or gas utility service
restored providing the following
conditions are met:
(i)
the customer pays twenty-five percent (25%) of the
customer's unpaid balance;
(ii) the
customer agrees to pay one thirty-sixth (1/36) of one half (1/2) of the
customer's
remaining balance per month for thirty-six (36) months;
(iii) the
customer agrees to remain current with payments for current usage. For purposes
of this subsection remaining current with payments shall
mean that the customer: (a) misses no
more than a total of three (3) payments in the thirty-six
(36) month period covered by the
agreement; (b) misses more than two (2) payments in any one
calendar year, provided that such
missed payments in a calendar year are not consecutive and
that payments for the year are up-to
date by October 31st; and (c) that the amount due under
that agreement is paid in full by the
conclusion of the period of the agreement; and
(iv) the
customer has shown, to the satisfaction of the division, that the customer is
reasonably capable of meeting the payment schedule provided for
by the provisions of
subdivision 39-2-1(d)(1)(i) and (ii) in
this section. The restoration of service provided for by this
subsection shall be a one-time right; failure to comply with the
payment provisions set forth in
this subsection shall be grounds for the customer to be
dropped from the repayment program
established by this subsection, and the balance due on the unpaid
balance shall be due in full and
shall be payable in accordance with the rules of the
commission governing the termination of
residential electric, gas, and water utility service. A customer
who completes the schedule of
payments pursuant to this subsection, shall have the balance
of any arrearage forgiven, and the
customer's obligation to the gas and/or electric company for
such balance shall be deemed to be
fully satisfied. The amount of the arrearage so forgiven
shall be treated as bad debt for purposes
of cost recovery by the gas or the electric
(2) Effective October
15, 2011, notwithstanding the provisions of part V sections
4(E)(1)(B) and (C) of the
public utilities commission rules and regulations governing the
termination of residential electric, gas, and water utility
service, a LIHEAP-eligible customer, as
defined above in this section, who has been terminated from
gas and/or electric service or is
recognized, pursuant to a rule or decision by the division, as
being scheduled for actual shut-off
of service on a specific date, shall not be deprived
electric and/or gas utility service provided the
following conditions are met:
(i)
The customer makes an initial payment of ten percent (10%) of the customer's
unpaid
balance; and
(ii) The customer
agrees to pay an amount equal to one-thirty sixth (1/36) of forty percent
(40%) of the customer’s unpaid balance, per month for
thirty-six (36) months; and
(iii) The customer
agrees to remain current with payments for current usage. For purposes
of this subsection, remaining current with payments,
shall mean that the customer: (A) Misses no
more than a total of three (3) payments in the thirty-six
(36) month period covered by the
agreement; (B) Misses more than two (2) payments in any one
calendar year, provided that such
missed payments in a calendar year are not consecutive and
that payments for the year are up-to
date by October 31st; and (C) That the amount due under
that agreement is paid in full, by the
conclusion of the period of the agreement; and
(iv) The customer has
shown, to the satisfaction of the division, that the
customer is
reasonably capable of meeting the payment schedule, provided for
by the provisions of
subdivision 39-2-1(d)(1)(i) and (ii) in
this section. The restoration of service, provided for by this
subsection, shall be a one-time right; failure to comply with
the payment provisions set forth in
this subsection shall be grounds for the customer to be
removed from the repayment program
established by this subsection and the balance due on the unpaid
balance, shall be due and
payable in full, in accordance with the rules of the
commission governing the termination of
residential electric, gas, and water utility service. A customer,
who completes the schedule of
payments, pursuant to this subsection, shall have the balance
of any arrearage forgiven, and the
customer's obligation to the gas and/or electric company for
such unpaid balance shall be deemed
to be fully satisfied. The amount of the arrearage, so
forgiven, shall be treated as bad debt for
purposes of cost recovery by the gas or the electric company.
(2) (3) A customer terminated from service under the provisions of
subdivision 39-2-
1(d)(1) or subdivision
39-2-1(d)(2) shall be eligible for restoration of service in accordance
with
the applicable provisions of part V section 4(E)(1)(C),
or its successor provision, of the public
utilities commission rules and regulations governing the
termination of residential electric, gas,
and water service.
SECTION 7. This act shall take effect upon passage.
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LC02928/SUB A
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