2013 -- H 5212

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LC00679

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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 -- DUTIES OF UTILITIES AND

CARRIERS

     Introduced By: Representatives Costantino, Williams, Tomasso, Silva, and Baldelli-Hunt

     Date Introduced: January 31, 2013

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. 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 Reasonable and adequate services -- Reasonable and just charges. --

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Commercial customers. -- (a) Every public utility is required to furnish safe, reasonable, and

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adequate services and facilities. The rate, toll, or charge, or any joint rate made, exacted,

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demanded, or collected by any public utility for the conveyance or transportation of any persons

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or property, including sewage, between points within the state, or for any heat, light, water, or

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power produced, transmitted, distributed, delivered, or furnished, or for any telephone or

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telegraph message conveyed or for any service rendered or to be rendered in connection

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therewith, shall be reasonable and just, and every unjust or unreasonable charge for the service is

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prohibited and declared unlawful, and no public utility providing heat, light, water, or power

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produced, transmitted, distributed, delivered, or furnished shall terminate the service or deprive

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any building, whatsoever, of service if the reason therefor is nonpayment of the service without

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first notifying the user of the service, or the owner or owners of the building as recorded with the

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utility of the impending service termination by written notice at least ten (10) days prior to the

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effective date of the proposed termination of service. The effective date of the actual termination

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shall not be on a Friday, Saturday, Sunday or on any state-celebrated holiday.

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     (b) Any existing rules and regulations dealing with the termination of commercial utility

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service and establishing reasonable methods of debt collection promulgated by the commission

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pursuant to this chapter, including, but not limited to, any rules and regulations dealing with

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deposit and deferred payment arrangements, winter moratorium and medical emergency

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protections, and customer dispute resolution procedures, shall be applicable to any public utility

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which distributes electricity.

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     (c) The commission shall promulgate such further rules and regulations as are necessary

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to protect commercial consumers following the introduction of competition in the electric

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industry and which are consistent with this chapter.

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     (d) The commission shall administer such rules and regulations as may be necessary to

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implement the purpose of this section and to provide for restoration of electric and/or gas service

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to commercial customers.

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     (e) Notwithstanding the provisions of the public utilities commission rules and

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regulations governing the termination of commercial electric, gas, and water utility service, a

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commercial customer who has been terminated from gas and/or electric service or is recognized,

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pursuant to a rule or decision by the division, as being scheduled for actual shut-off of service on

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a specific date, shall not be deprived electric and/or gas utility service provided the following

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conditions are met:

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     (1) The customer makes an initial payment of ten percent (10%) of the customer's unpaid

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balance; and

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     (2) The customer agrees to pay an amount equal to one-thirty sixth (1/36th ) of forty

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percent (40%) of the customer's unpaid balance, per month for thirty-six (36) months; and

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     (3) The customer agrees to remain current with payments for current usage. For purposes

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of this subsection, remaining current with payments, shall mean that the customer: (i) Misses no

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more than a total of three (3) payments in the thirty-six (36) month period covered by the

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agreement; (ii) Misses more than two (2) payments in any one calendar year, provided that such

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missed payments in a calendar year are not consecutive and that payments for the year are up-to-

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date by October 31st; and (iii) That the amount due under that agreement is paid in full, by the

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conclusion of the period of the agreement; and

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     (4) The customer has shown, to the satisfaction of the division, that the customer is

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reasonably capable of meeting the payment schedule provided for by the provisions of this

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section. The restoration of service, provided for by this subsection, shall be a one-time right;

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failure to comply with the payment provisions set forth in this subsection shall be grounds for the

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customer to be removed from the repayment program established by this subsection and the

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balance due on the unpaid balance, shall be due and payable in full, in accordance with the rules

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of the commission governing the termination of commercial electric, gas, and water utility

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service. A customer, who completes the schedule of payments, pursuant to this subsection, shall

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have the balance of any arrearage forgiven, and the customer's obligation to the gas and/or

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electric company for such unpaid balance shall be deemed to be fully satisfied. The amount of the

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arrearage, so forgiven, shall be treated as bad debt for purposes of cost recovery by the gas or the

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electric company.

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     (f) A customer terminated from service under the provisions of this section shall be

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eligible for restoration of service in accordance with the applicable provisions of the public

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utilities commission rules and regulations governing the termination of commercial electric, gas,

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and water service.

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     SECTION 2. This act shall take effect upon passage.

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LC00679

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND

CARRIERS

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     This act would establish requirements governing the termination and restoration of

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commercial electric, gas and water utility services.

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     This act would take effect upon passage.

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LC00679

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