Directs the public utilities commission to establish a standardized framework for determining authorized common equity ratios and authorized rates of returns on equity for public utilities.

What This Bill Does

This bill would require Rhode Island's Public Utilities Commission (PUC) — the state agency that oversees companies providing electricity, gas, and other essential services — to create a clear, consistent set of rules for deciding two key financial questions: how much of a utility company's funding should come from its own stockholders (called the "equity ratio"), and how much profit those stockholders are allowed to earn on their investment (called the "return on equity"). Right now, these decisions may be made on a case-by-case basis without a uniform standard. This bill would require the PUC to establish a standardized framework so the process is more predictable and consistent.

Who It Affects

This bill primarily affects public utility companies operating in Rhode Island — such as electric and gas providers — as well as the state regulators who oversee them. However, it also has indirect effects on everyday Rhode Islanders. The rates of return that utilities are allowed to earn directly influence how much customers pay on their utility bills. When regulators set limits on utility profits, it can help keep bills from rising unnecessarily. A standardized framework could also make the approval process more transparent, so the public and lawmakers can better understand how utility rates are set.

Current Status

The bill has been introduced in the Rhode Island Senate and referred to the Senate Commerce Committee, with a hearing scheduled for April 7, 2026. It is still in the early stages of the legislative process, meaning it would need to pass through committee review, a full Senate vote, and additional steps before becoming law.