2013 -- H 5018

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LC00043

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- REGULATORY POWERS OF

ADMINISTRATION

     Introduced By: Representative Arthur J. Corvese

     Date Introduced: January 08, 2013

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 39-3-11 of the General Laws in Chapter 39-3 entitled "Regulatory

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Powers of Administration" is hereby amended to read as follows:

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     39-3-11. Notice of change in rates -- Suspension of change -- Hearings. -- (a) No

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change shall be made in the rates, tolls, and charges which have been filed and published by any

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public utility in compliance with the requirements of section 39-3-10, except after thirty (30) days

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notice to the commission and to the public published as provided in section 39-3-10, which shall

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plainly state the changes proposed to be made in the schedule then in force, and the time when the

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changed rates, tolls, or charges will go into effect. Whenever the commission receives notice of

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any change or changes proposed to be made in any schedule filed under the provisions of section

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39-3-10, the commission shall hold a public hearing and make investigation as to the propriety of

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the proposed change or changes. After notice of any investigation, the commission shall have

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power, by any order served upon the public utility affected, to suspend the taking effect of the

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change or changes pending the decision thereof, but not for a longer period than eight (8) months

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beyond the time when the change or changes would otherwise take effect. Each hearing and

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investigation shall be conducted as expeditiously as may be practicable, and with a minimum of

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delay. Within ninety (90) days after the completion of any hearing, the commission shall make

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such order in reference to any proposed rate, toll, or charge as may be proper. Notwithstanding

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the provisions of this section, the commission shall periodically hold a public hearing and make

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investigation as to the propriety of rates when charged by any public utility and shall make such

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order in reference to the rate, toll, or charge as may be just. The hearing prescribed by this section

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may be held simultaneously with the hearing prescribed by section 39-3-7. In the event of an

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appeal from an order of the commission in any hearing under this section, the order shall remain

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in full force and effect during the pendency of said appeal.

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      (b) Upon receipt from a common carrier of persons and/or property upon water of a

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notice of any change proposed to be made in any schedule filed pursuant to section 39-3-10, the

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commission shall give notice as it may prescribe of the pendency of the proposal and of the time

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and place of the hearing thereon to the mayor and also any city manager of each city, and to the

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president of the town council and also any town manager of each town in which the carrier picks

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up or discharges passengers. The commission shall also publish a notice of the hearing at least ten

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(10) days prior to the date thereof in a newspaper of general circulation in each city or town in

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which the carrier picks up or discharges passengers. In all other respects, hearings and

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investigations with respect to the proposals by the carriers shall be governed by the provisions of

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subsection (a) of this section.

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      (c) The Kent County water authority shall provide notice by certified mail of rate

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increase requests to the several fire districts which purchase water from the authority.

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      (d) Costs incurred by electric distribution companies for filing rates, tolls and charges,

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for participating in hearings and investigations prior to December 31, 2000 or for appealing

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commission decisions rendered prior to December 31, 2000 pursuant to this section shall not be

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included in the rates, tolls or charges established by the commission pursuant to this section.

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     (e) No rate increase shall be approved by the commission, nor shall any rate increase be

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permitted, which is in excess of two and one-half percent (2.5%) of the rates, tolls, and charges

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which have been filed and published by any public utility, common carrier, or other entity in

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compliance with the requirements of section 39-3-10, and which are in effect at the time of the

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proposed increase. Provided further, no public utility, common carrier or other entity shall be

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entitled to an aggregate rate increase in excess of two and one-half percent (2.5%) within any

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consecutive twenty-four (24) month period, regardless of whether the increases are requested at

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one time or in multiple applications.

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     SECTION 2. This act shall take effect upon passage.

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LC00043

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- REGULATORY POWERS OF

ADMINISTRATION

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     This act would prohibit utility rate increases in excess of two and one-half percent (2.5%)

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over any twenty-four (24) month period.

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     This act would take effect upon passage.

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LC00043

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