AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITY COMMISSION (Requires the public utilities commission to provide for a classification of service for retail electricity consumers that are large energy use facilities.)

S2427

2026 -- S 2427
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LC004836
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITY COMMISSION

Introduced By:
Senators Lauria, Euer, DiMario, Ujifusa, Felag, Valverde, Vargas, Britto,
Gallo, and McKenney

Date Introduced:
February 06, 2026

Referred To:
Senate Commerce
It is enacted by the General Assembly as follows:
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SECTION 1. Section 39-1-2 of the General Laws in Chapter 39-1 entitled "Public Utilities
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Commission" is hereby amended to read as follows:
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39-1-2. Definitions.
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(a) Terms used in this title shall be construed as follows, unless another meaning is
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expressed or is clearly apparent from the language or context:
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(1) “Administrator” means the administrator of the division of public utilities and carriers.
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(2) “Airport” and “landing field” mean and include all airports and landing fields other
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than those owned by the state.
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(3) “Chairperson” means the chairperson of the public utilities commission.
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(4) “Charter carrier” means and includes all carriers for hire or compensation within this
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state not included in the definition of common carrier.
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(5) “Commission” means the public utilities commission.
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(6) “Commissioner” means a member of the public utilities commission.
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(7) “Common carrier,” except when used in chapters 12, 13, and 14 of this title, means and
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includes all carriers for hire or compensation, including railroads, street railways, express, freight
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and freight-line companies, dining-car companies, steam boat, motor boat, power boat, hydrofoil,
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and ferry companies and all other companies operating any agency or facility for public use in the
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conveyance over fixed routes, or between fixed termini within this state of persons or property by,
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or by a combination of, land, air, or water.

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(8) “Company” means and includes a person, firm, partnership, corporation, quasi-
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municipal corporation, association, joint-stock association or company, and his, her, its, or their
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lessees, trustees, or receivers appointed by any court.
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(9) “Costs of serving” includes, as applicable, the costs incurred by an electric company in
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providing transmission, distribution, energy, capacity or ancillary electricity services, and any
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related costs or associated risks with serving a class of retail electricity consumers or a retail
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electricity consumer.
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(9)
(10)
“Customer” means a company taking service from an electric distribution company
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at a single point of delivery or meter location.
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(10)
(11)
“Distribution facility” means plant or equipment used for the distribution of
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electricity and that is not a transmission facility.
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(11)
(12)
“Division” means the division of public utilities and carriers.
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(12)
(13)
“Electric distribution company” means a company engaging in the distribution of
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electricity or owning, operating, or controlling distribution facilities and shall be a public utility
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pursuant to subsection (20) of this section.
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(13)
(14)
“Electric transmission company” means a company engaging in the transmission
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of electricity or owning, operating, or controlling transmission facilities. An electric transmission
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company shall not be subject to regulation as a public utility except as specifically provided in the
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general laws, but shall be regulated by the Federal Energy Regulatory Commission and shall
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provide transmission service to all nonregulated power producers and customers, whether affiliated
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or not, on comparable, nondiscriminatory prices and terms. Electric transmission companies shall
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have the power of eminent domain exercisable following a petition to the commission pursuant to
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§ 39-1-31.
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(15) “Facility” means all buildings, equipment, structures and other stationary items that
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are located on a single site or on contiguous or adjacent sites and that are owned or operated by the
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same person or by any person who controls, is controlled by or is under common control with such
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person.
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(16) “Large energy use facility” means a facility that uses or is able to use twenty
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megawatts (20mw) or more and is primarily engaged in providing a service described under code
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518210 of the 2022 North American Industry Classification System. Code 51820 refers to
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businesses offering infrastructure like cloud storage, application hosting (excluding software
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publishing), and data entry services. These facilities process client-supplied data for reports or
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provide automated services such as optical scanning and disk conversion.
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(14)
(17)
“Liquefied natural gas” means a fluid in the liquid state composed predominantly

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of methane and that may contain minor quantities of ethane, propane, nitrogen, or other components
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normally found in natural gas.
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(15)
(18)
“Manufacturing customers” means all customers that have on file with an electric
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distribution company a valid certificate of exemption from the Rhode Island sales tax indicating
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the customer’s status as a manufacturer pursuant to § 44-18-30.
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(16)
(19)
“Motor carriers” means any carrier regulated by the administrator pursuant to
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chapters 3, 11, 12, 13, and 14 of this title.
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(17)
(20)
“Natural gas” means the combustible, gaseous mixture of low-molecular-weight,
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paraffin hydrocarbons, generated below the surface of the earth, containing mostly methane and
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ethane with small amounts of propane, butane, and hydrocarbons, and sometimes nitrogen, carbon
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dioxide, hydrogen sulfide, and helium.
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(18)
(21)
“Nonprofit housing development corporation” means a nonprofit corporation that
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has been approved as a 26 U.S.C. § 501(c)(3) corporation by the Internal Revenue Service, and is
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organized and operated primarily for the purpose of providing housing for low- and moderate-
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income persons.
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(19)
(22)
“Nonregulated power producer” means a company engaging in the business of
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producing, manufacturing, generating, buying, aggregating, marketing, or brokering electricity for
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sale at wholesale or for retail sale to the public; provided however, that companies that negotiate
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the purchase of electric generation services on behalf of customers and do not engage in the
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purchase and resale of electric generation services shall be excluded from this definition. A
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nonregulated power producer shall not be subject to regulation as a public utility except as
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specifically provided in the general laws.
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(20)
(23)
“Public utility” means and includes every company that is an electric distribution
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company and every company operating or doing business in intrastate commerce and in this state
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as a railroad, street railway, common carrier, gas, liquefied natural gas, water, telephone, telegraph,
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and pipeline company, and every company owning, leasing, maintaining, managing, or controlling
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any plant or equipment, or any part of any plant or equipment, within this state for manufacturing,
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producing, transmitting, distributing, delivering, or furnishing natural or manufactured gas, directly
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or indirectly, to or for the public, or any cars or equipment employed on, or in connection with, any
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railroad or street railway for public or general use within this state, or any pipes, mains, poles,
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wires, conduits, fixtures, through, over, across, under, or along any public highways, parkways, or
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streets, public lands, waters, or parks for the transmission, transportation, or distribution of gas for
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sale to the public for light, heat, cooling, or power for providing audio or visual telephonic or
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telegraphic communication service within this state, or any pond, lake, reservoir, stream, well, or

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distributing plant or system employed for the distribution of water to the consuming public within
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this state, including the water supply board of the city of Providence; provided, that, except as
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provided in § 39-16-9 and in P.L. 1933, ch. 2072, as amended, this definition shall not be construed
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to apply to any public waterworks or water service owned and furnished by any city, town, water
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district, fire district, or any other municipal or quasi-municipal corporation, excepting the water
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supply board of the city of Providence, unless any city, town, water district, fire district, municipal
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or quasi-municipal corporation obtains water from a source owned or leased by the water resources
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board, either directly or indirectly, or obtains a loan from the board pursuant to the provisions of
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chapter 15.1 of title 46, or sells water, on a wholesale or retail basis, inside and outside the territorial
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limits of the city or town, water district, fire district, municipal or quasi-municipal corporation,
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except, however, that a public waterworks or water service owned and furnished by any city, town,
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water district, fire district, or any other municipal or quasi-municipal corporation that sells water,
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on a wholesale or retail basis, inside and outside its territorial limits, shall not be construed as a
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public utility if it has fewer than one-thousand five hundred (1,500) total customer-service
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connections and provided outside sales do not exceed ten percent (10%) of the total water service
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connections or volumetric sales and provided the price charged to outside customers, per unit of
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water, is not greater than the price charged to inside customers for the same unit of water, nor to
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the Rhode Island public transit authority, or to the production and/or distribution of steam, heat, or
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water by the Rhode Island port authority and economic development corporation in the town of
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North Kingstown; and the term “public utility” shall also mean and include the Narragansett Bay
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water quality management district commission; and provided that the ownership or operation of a
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facility by a company that dispenses alternative fuel or energy sources at retail for use as a motor
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vehicle fuel or energy source, and the dispensing of alternative fuel or energy sources at retail from
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such a facility, does not make the company a public utility within the meaning of this title solely
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because of that ownership, operation, or sale; and provided further that this exemption shall not
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apply to presently regulated public utilities that sell natural gas or are dispensers of other energy
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sources; and provided further, that the term “public utility” shall not include any company:
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(i) Producing or distributing steam or heat from a fossil-fuel-fired cogeneration plant
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located at the university of Rhode Island South Kingstown, Rhode Island;
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(ii) Producing and/or distributing thermal energy and/or electricity to a state-owned facility
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from a plant located on an adjacent site, regardless of whether steam lines cross a public highway;
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and
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(iii) Providing wireless service.
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(21)
(24)
“Purchasing cooperatives” shall mean any association of electricity consumers

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that join for the purpose of negotiating the purchase of power from a nonregulated power producer,
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provided however, that purchasing cooperatives shall not be required to be legal entities and are
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prohibited from being engaged in the re-sale of electric power.
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(22)
(25)
“Railroad” means and includes every railroad other than a street railway, by
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whatsoever power, operated for public use in the conveyance in this state of persons or property
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for compensation, with all bridges, ferries, tunnels, switches, spurs, tracks, stations, wharves, and
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terminal facilities of every kind, used, operated, controlled, leased, or owned by or in connection
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with any railroad.
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(23)
(26)
“Retail access” means the use of transmission and distribution facilities owned by
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an electric transmission company or an electric distribution company to transport electricity sold
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by a nonregulated power producer to retail customers pursuant to § 39-1-27.3.
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(27) “Retail electricity consumer” means the end user of electricity for specific purposes
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such as heating, lighting or operating equipment, and includes all end users of electricity served
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through the distribution system of an electric utility, whether or not each end user purchases the
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electricity from the electric utility.
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(24)
(28)
“Street railway” means and includes every railway by whatsoever power operated
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or any extension or extensions, branch, or branches thereof, for public use in the conveyance in this
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state of persons or property for compensation, being mainly upon, along, above, or below any street,
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avenue, road, highway, bridge, or public place in any city or town, and including all switches, spurs,
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tracks, rights of trackage, subways, tunnels, stations, terminals, and terminal facilities of every kind,
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used, operated, controlled, or owned by or in connection with any street railway.
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(25)
(29)
“Transmission facility” means plant or equipment used for the transmission of
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electricity as determined by the Federal Energy Regulatory Commission pursuant to federal law as
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of the date of the property transfers pursuant to § 39-1-27(c).
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(26)
(30)
“Wireless service” means communication services provided over spectrum
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licensed by or subject to the jurisdiction of the Federal Communications Commission.
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(b) Notwithstanding any provision of this section or any provision of the act entitled, “An
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Act Relating to the Utility Restructuring Act of 1996” (hereinafter “utility restructuring act”), upon
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request by the affected electric utility, the commission may exempt from the utility restructuring
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act or any provision(s) thereof, an electric utility that meets the following requirements:
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(1) The utility is not selling or distributing electricity outside of the service territory in
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effect for that utility on the date of passage of the utility restructuring act; and
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(2) The number of kilowatt hours sold or distributed annually by the utility to the public is
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less than five percent (5%) of the total kilowatt hours consumed annually by the state. Provided,

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however, that nothing contained in this section shall prevent the commission from allowing
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competition in the generation of electricity in service territories of utilities exempted in whole or in
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part from the utility restructuring act pursuant to this section, as long as such allowance of
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competition is conditioned upon payment to the exempted electric utility of a nonbypassable
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transition charge calculated to recover the elements comparable in nature to the elements in § 39-
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1-27.4(b) and (c) taking into consideration any unique circumstances applicable to the exempted
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electric utility.
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SECTION 2. Chapter 39-1 of the General Laws entitled "Public Utilities Commission" is
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hereby amended by adding thereto the following section:
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39-1-27.10.1. Classification of services for large energy use facilities.
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(a) The commission shall provide for a classification of service for retail electricity
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consumers that are large energy use facilities. The classification of service shall be separate and
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distinct from classifications of service for other commercial or industrial retail electricity
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consumers and have its own tariff and rate schedule.
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(b) Any tariff and rate schedule adopted by the commission for the class shall:
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(1) Allocate the costs of serving the class of retail electricity consumers that are large
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energy use facilities to the class in a manner that is equal or proportional to the costs of serving the
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class; or
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(2) Directly assign the costs of serving a retail electricity consumer that is a large energy
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use facility to the retail electricity consumer;
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(3) Meet the same conditions the commission requires for a contract under this section;
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(4) Mitigate the risk of:
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(i) Other classes of retail electricity consumers paying unwarranted costs; and
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(ii) Shifting the costs, in an unwarranted manner, of serving a retail electricity consumer
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that is a large energy use facility to other classes of retail electricity consumers, including costs of
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an electric company to meet load requirements resulting from the provision of electricity service to
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a retail electricity consumer that is a large energy use facility.
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(5) In deciding whether to approve a proposed tariff or rate schedule of an electric company
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for a classification of service described under this section, the commission shall consider whether
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tariffs and the rates:
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(i) Result in, or have the potential to result in, increased costs or unwarranted risk to other
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retail electricity consumers;
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(ii) Provide for equitable contributions to grid efficiency, reliability and resiliency benefits;
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(iii) Impede the electric company’s ability to meet the clean energy targets set forth in

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chapter 6.2 of title 42 (" 2021 act on climate) or reduce the emissions of greenhouse gases consistent
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with state policy;
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(iv) Allow for procurement of or contracts for generation resources that support the electric
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company’s ability to meet the clean energy targets set forth in chapter 6.2 of title 42, or reduce the
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emissions of greenhouse gases consistent with state policy; and
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(v) Meet any other conditions the commission may require in the public interest.
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(d) The commission shall require an electric company that is providing electricity service
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to a retail electricity consumer that is a large energy use facility to enter into a contract with the
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retail electricity consumer that covers the provision of the electricity service including, as
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applicable, transmission, distribution, energy, capacity or ancillary electricity services.
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(e) Any contract for the provision of electricity service entered into between an electric
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company and a retail electricity consumer that is a large energy use facility:
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(1) Shall:
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(i) Be consistent with the criteria listed under this chapter;
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(ii) Specify the duration of the contract and be for a duration of ten (10) years or longer;
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(iii) Specify the date or estimated date that the electric company will begin to provide
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electricity service to the retail electricity consumer;
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(iv) Obligate the retail electricity consumer to pay a minimum amount or percentage, as
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determined by the commission, based on the retail electricity consumer’s projected electricity usage
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for the electricity services the electric company is contracted to provide for the duration of the
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contract; and
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(v) Meet any other conditions the commission may require in the public interest; and
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(2) May include a charge for excess demand for the electricity services the electric
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company is contracted to provide that is in addition to the tariff or rate schedule.
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(3) If an electric company fails to begin to provide electricity service on or by the date or
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estimated date specified in a contract entered into under this section due to causes within the electric
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company’s reasonable control, the electric company shall provide the retail electricity consumer
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notice of the delay as soon as reasonably practicable. A contract entered into under this section may
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include terms and conditions that address the possibility of a delay due to causes within the
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reasonable control of the parties to the contract.
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(4) A contract, as described in subsection (d) of this section as well as this subsection, shall
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not prevent the commission from carrying out the commission’s duties under this section.
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(5) Nothing in this chapter is intended to limit or restrict the ability of a retail electricity
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consumer that is a large energy use facility from using direct access or a green power rate, or a

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voluntary renewable energy rate or a special contract, as approved by the commission, except the
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contract shall meet the requirements and be consistent with the provisions of this section.
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(f) No later than September 1, 2028 and every even-numbered year thereafter, the
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commission shall submit a report to the governor and general assembly. The report shall review
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trends in load requirements and other implications from retail electricity consumers that use large
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amounts of electricity and may include recommendations for further legislation. In providing the
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report, the commission shall protect proprietary information as provided under the rules,
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regulations or orders of commission.
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SECTION 3. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITY COMMISSION
***
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This act would require the public utilities commission (PUC) to provide for a classification
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of service for retail electricity consumers that are large energy use facilities, defined as a facility
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that uses or is able to use twenty megawatts (20mw) or more and is primarily engaged in providing
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a service that is related to businesses offering infrastructure like cloud storage, application hosting
5
(excluding software publishing), data entry services and facilities that process client-supplied data
6
for reports or provide automated services such as optical scanning and disk conversion.
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This act would take effect upon passage.
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