Utility Rate Increase Filings In Rhode Island – A Basic Overview

Utility Rate Increase Filings In Rhode Island – A Basic Overview

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In Energy and Utilities, General Blog
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An electric bill lays under a one hundred bill and an electric plug to represent electric rate increases.

When a regulated utility in Rhode Island files a request for a rate increase, there are two state agencies that play a critical role in the process – the Rhode Island Public Utilities Commission (“PUC”) and the Rhode Island Division of Public Utilities and Carriers (“Division”). The PUC acts as a quasi-judicial body that determines whether an increase should be granted, and the Division acts as the ratepayer advocate in the proceedings before the PUC.

  1. LEGAL STANDARD

The law requires that a regulated utility’s rates be reasonable and that they generate the necessary revenues to provide safe and adequate service.

  1. THE PROCESS

Application

Requests for a rate increase begin when a utility submits a written application to the PUC to change its rates. The application must include documents supporting the request and information on current and projected revenues and expenses.

Investigation

Upon the filing of a rate application, the Division, which operates independently of the PUC, begins a comprehensive review of the regulated utility’s filing. During its investigation, the Division’s staff prepares its recommendations for the PUC in the form of testimony and exhibits, which are filed and then presented during public hearings. Likewise, the PUC’s own staff reviews the regulated utility’s filing to assist the Commissioners in their analysis of the requested rate increase.

Hearing

The public hearings before the PUC are like a civil trial before a Judge. Hearings follow certain rules which allow all parties (including the Division) to present a case for, or against, the requested rate increase. At the beginning of each hearing, members of the public are also given an opportunity to express their views in the form of public comment. During the hearing, evidence and testimony are presented by the utility, the Division (represented by the Rhode Island Attorney General), and any parties who are allowed to intervene in the case (also called a “Docket”). A stenographer records the hearing and prepares a transcript just like in a civil court trial. These hearings provide the PUC with the evidence and testimony it needs to make an informed decision.

Decision

After the hearings are concluded, the PUC’s individual Commissioners must study the entire record. Once their review is complete, the Commissioners make their decision at an open meeting. This decision is later reduced to writing in the form of a “Report and Order” which is binding on all parties. The Report and Order contains a summary of the issues and evidence presented in the case and it explains the reason for the PUC’s decision. At this point, the rate case is complete unless appealed to the Rhode Island Supreme Court.

At Keough + Sweeney one of your areas of interest and expertise is utility law. If you have any questions about this subject or other legal matters such as divorce, child custody, or personal injury, we are available for consultation. Visit our website or call 401-724-3600  to learn more.