It is enacted by the General Assembly as follows:

SECTION 1. Section 39-1-26 of the General Laws in Chapter 39-1 entitled "Public Utilities Commission" is hereby amended to read as follows: {ADD 39-1-26. Public utilities reserve fund created -- Appropriations -- Recovery of expenses from utility companies. -- ADD} (a) There is hereby created a fund to be known as the public utilities reserve account, an account within the public utilities commission in the general fund. Such account, hereinafter referred to as the "fund", shall be used for the purpose of providing the financial means for the commission and division to purchase materials, and to employ on a contract or other basis, legal counsel, official stenographers, engineers, accountants, economists and other expert witnesses, and for other necessary expenses of the commission and division in investigations and hearings related to {ADD applications and filings made by public utilities, ADD} {DEL increases in rates or tariffs, the issuance of securities or debt, utility mergers, or consolidations with other companies DEL} , or commission or division initiated investigations into utility operating practices {ADD , or appeals to federal courts ADD} . The general assembly shall annually appropriate to the fund a sum equal to twenty-five one thousandths of one percent (.00025%) of the gross annual operating revenues of gas, electric, and telephone companies attributable to their conduct of intrastate operations in this state during the year next preceding; provided, however, that if at June 30 in any year the balance in the fund shall be in excess of one hundred thousand dollars ($100,000), the amount of the excess shall forthwith be transferred to the general fund of the state. Prebilled revenue shall be excluded from an excess balance to be transferred to the general fund. The state controller is authorized and directed to draw his or her orders upon the general treasurer for the payment from the fund of such sums as may be required from time to time upon receipt by him or her of proper vouchers approved by the administrator.

(b) The public utility {ADD making an application or filing to the commission or division, ADD} {DEL proposing to increase rates or tariffs, issue securities, or merge or consolidate with other companies, DEL} or subject to a commission or division initiated investigation, or any public utility selling electricity {ADD or gas ADD} whose {ADD retail rates would be affected by a filing made by the administrator or a federally regulated electric or gas company before an agency of the federal government or a federal court, ADD} {DEL affiliate (as defined in section 39-3-27) has requested permission of an agency of the federal government to increase rates or tariffs, issue securities, merge or consolidate with other companies, or enter into a transaction regulated by an agency of the federal government, where the increased rates or tariffs, securities issue, merger, consolidation, or transaction may affect the intrastate cost of service of the public utility, DEL} shall be charged with and shall pay a portion of the expenses reasonably so incurred by the commission and by the division for the purchase of materials and for the employment of legal counsel, official stenographers, engineers, accountants, and expert witnesses, and for travel and other necessary expenses as are reasonably attributable to the investigation or the hearing of the proposal by the commission and the division, or to the administrator's representation of the state before the agency of the federal government. The administrator shall ascertain the expenses and shall determine the amount to be paid by the public utility company or companies, and bills shall be rendered therefor either at the conclusion of the investigation or hearing, or from time to time during its progress, and the amount of each bill so rendered shall be paid by the public utility to the administrator within thirty (30) days from the date of its rendition unless, within the thirty (30) day time period, the public utility so billed shall request an opportunity to be heard by the commission as to the amount thereof. The commission shall comply with any such request. Any amount of the bill not paid within thirty (30) days from the date of service of the determination upon the hearing, or, if none shall be requested, within thirty (30) days from the date of rendition of the bill, shall draw interest at the rate of twelve percent (12%) per annum. At the discretion of the administrator, utility companies may be prebilled for contractual services utilized by the commission or division. Any revenue received {DEL by DEL} {ADD from ADD} public utilities not expended upon the completion of the case will be promptly reimbursed to the utility company. The total amount which may be charged to any public utility under authority of this section for proceedings before the commission or division in any calendar year shall not exceed one hundred sixty thousand dollars ($160,000); in addition, the total amount which may be charged against any public utility under authority of this section for the administrator's representation of the state before agencies of the federal government in any calendar year shall not exceed one hundred sixty thousand dollars ($160,000). All moneys collected by the administrator pursuant to this section shall be paid by him or her monthly to the general treasurer to be added to the public utilities reserve fund.

SECTION 2. This act shall take effect upon passage.