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4/29/2026
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Sen. Euer introduces bill to protect ratepayers from rising costs related to utility company spending
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STATE HOUSE — Sen. Dawn Euer has introduced legislation to cap the annual increases to public utility company capital spending plans and limit which of their business expenses are covered by ratepayers.
“Rhode Islanders understand the importance of sticking to a household budget and it’s time for our utilities do the same,” said Senator Euer (D-Dist. 13, Newport, Jamestown). “There is no one simple answer to solving our energy affordability crisis, but limiting the capital spending increases by our utilities is an important step. Under our current system, our utilities have strong incentives to spend as much on capital improvements as they can because that is how they generate profits to reward their shareholders. This bill will change the legal framework that produces these incentives to make our utilities think strategically about which capital improvements are in the best interest of Rhode Island households and businesses.”
In Rhode Island, utility companies are not allowed to make profit on procuring energy to supply ratepayers. They instead earn a rate of return on the delivery of the energy, based on the infrastructure they build in Rhode Island, which is governed by infrastructure, safety and reliability (ISR) hearings carried out before the Public Utilities Commission (PUC).
The bill (2026-S 2779) would put a cap on increases to these ISR capital improvement plans at no more than 3 percent of the average of the previous five years of approved capital spending plans and prevent utilities from recovering legal and administrative costs associated with rate or ISR proceedings from ratepayers.
Capital spending by utilities in Rhode Island has rapidly increased this decade. According to Rhode Island Energy, ISR spending cost the typical customer $237 a year on their gas bill in 2024, up from $63 in 2020. Rhode Island Energy proposed increasing this to $313 in 2025.
These provisions are intended to not only protect ratepayers from rising costs but also to put the responsibility on utilities to manage their infrastructure investments in a prudent and cost-effective manner.
The bill would also place restrictions on what types of spending public utilities are forbidden from recouping from ratepayers, either directly or indirectly. The list includes advertising, marketing, communications, public education or lobbying, as well as any costs associated with such activities, such as research, analysis, preparation or planning undertaken to support these activities.
Connecticut, Maine, California and Colorado have recently passed similar legislation. Legislators in Connecticut reported that the savings to ratepayers from lobbying alone topped $1.3 million in the two years following passage of their bill.
For more information, contact:
Tristan Grau, Publicist
State House Room B20
Providence, RI 02903
401.222.4935
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