Provides that any rate increase with respect to electric distribution companies would be no greater than the increase in the Consumer Price Index or 5.5%, whichever is greater, unless there is approval of a higher rate by the general assembly.
Summary
H5106 would place a cap on proposed electric rate increases charged by electric distribution companies in Rhode Island. Under the bill, a utility’s rate increase could not exceed 5.5% or the annual increase in the Consumer Price Index for All Urban Consumers (CPI-U), whichever is greater, unless the General Assembly affirmatively approves a higher increase. The bill applies to electric distribution companies as defined in state law, but excludes companies with fewer than 7,500 customer accounts.
The measure would create a new statutory limit in the chapter governing the regulatory powers of the Public Utilities and Carriers administration. In practical terms, it would constrain how much electric utilities can raise rates without direct legislative approval, tying future increases to inflation or a fixed ceiling. The bill would take effect immediately upon passage.
Impact
H5106 would amend Rhode Island General Laws chapter 39-3 by adding a new section that directly limits electric distribution rate increases. It would affect electric utilities subject to state regulation, while exempting smaller utilities with fewer than 7,500 customer accounts. The bill would also shift some authority over large rate increases from the regulatory process to the General Assembly, requiring legislative approval for increases above the cap.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of support or opposition from the legislative record included here. Based on the bill text, the proposal appears consumer-protection oriented, aimed at limiting utility rate growth and tying it to inflation. The absence of discussion and votes means the overall sentiment cannot be reliably assessed from the available materials.
Contention
The main point of contention is likely the bill’s restriction on utility pricing authority and the requirement that the General Assembly approve any increase above the CPI-U/5.5% cap. Supporters would likely view this as a safeguard against steep electric bill increases, while opponents may argue it interferes with utility regulation, cost recovery, and the ability to respond to changing operating expenses. The exemption for smaller electric distribution companies suggests a possible concern about imposing the same rule on utilities with different scale and financial capacity.